Banks intensify focus on expatriate funds with new NRI centres and regional expansion plans
Kerala is on the verge of reaching a major financial milestone, as NRI (Non-Resident Indian) deposits in the state head towards the ₹3 trillion mark. This growth, driven by remittances from expatriates, particularly in the Gulf region, is prompting fierce competition among banks to attract and retain overseas customers, reported moneycontrol.com.
According to the Reserve Bank of India, NRI deposits across the country surged by 23.3% during FY 2024–25 up to February, with inflows hitting $14.55 billion, up from $11.8 billion the previous year. As of February 2025, total outstanding NRI deposits in India stood at $160.33 billion, with Kerala accounting for a substantial portion.
This dominance has led to aggressive expansion strategies. Tamilnad Mercantile Bank has established a global NRI centre in Kochi to connect with clients in West Asia, Singapore, and Malaysia. Canara Bank has set up an NRI processing hub in Ernakulam and collaborates with Kerala’s Norka Roots department, which oversees expat affairs. The bank also uses its overseas offices in Sharjah, London, and New York to facilitate remittance services.
Kerala continues to dominate India’s NRI deposit landscape, with banks like Tamilnad Mercantile and Canara Bank stepping up efforts to tap into global remittance flows
Federal Bank’s executive director Shalini Warrier noted the strategic importance of NRI deposits, saying, “NRI deposits, characterised by larger ticket sizes and consistent inflows, provide a valuable source of long-term funding. NRIs often seek secure and profitable avenues to park funds domestically.”
Smaller banks are also capitalizing on this trend. ESAF Small Finance Bank, rooted in Kerala, is expanding its outreach to Maharashtra, Tamil Nadu, Karnataka, Delhi, and Hyderabad. Meanwhile, Federal Bank is tapping into newer migration states like Jharkhand, Chhattisgarh, and Uttar Pradesh to diversify its NRI customer base.
Despite global economic fluctuations, the appetite for secure savings among NRIs remains strong. As banks continue to innovate and expand their services, Kerala is poised to remain the central hub of NRI banking in India.
