NRI deposits in Gujarat banks rise 17% in Q1

Ahmedabad: Non-Resident Indians (NRIs) continue to be a significant pillar for Gujarat’s banking sector. According to the latest State Level Bankers’ Committee (SLBC) data, deposits from the diaspora surged 16.97% in the June quarter of FY 2026, rising to ₹1.08 lakh crore from ₹93,096.04 crore a year ago.

The main reasons behind this growth are a stronger US dollar and the steady earnings of Gujarati workers and professionals overseas. Bankers believe these deposits not only reflect the diaspora’s trust in India’s banking system but also strengthen credit availability across multiple sectors.

Gujarat’s large diaspora, especially in the US, UK, Canada, and West Asia, continues to channel savings into deposits due to the security of formal investment channels. Many NRIs also invest remittances in real estate and stock markets.

Notably, the NRI deposits had already crossed the ₹1 lakh crore mark in the March quarter. While the June 2026 deposits are slightly lower than the March 2025 figure of ₹1.09 lakh crore, the year-on-year growth remains strong. For banks in Gujarat, such inflows are vital, providing liquidity that supports credit extension across retail, corporate, and housing sectors amid uneven domestic demand.