Stronger dollar, resilient remittances, and diaspora trust drive steady inflows into state banks
Ahmedabad: Non-Resident Indians (NRIs) continue to remain a pillar of financial strength for Gujarat’s banking sector. Fresh data from the State Level Bankers’ Committee (SLBC) show that NRI deposits in the state rose by 16.97% in the June quarter of FY 2026, climbing to ₹1.08 lakh crore from ₹93,096 crore a year earlier, reported timesofindia.indiatimes.com.
Banking experts attribute the surge to a stronger dollar against the Indian rupee, resilient global remittances, and the consistent earnings of Gujarati workers and professionals abroad. “This sharp increase comes at a time when global remittances are proving resilient, aided by overseas earnings in the Gulf, North America, and Europe, alongside favourable currency movements,” a senior banker said.
The rise reflects growing diaspora confidence in Indian banks and steady overseas earnings
The diaspora’s trust in the Indian banking system has not only boosted deposits but also facilitated investment in real estate and equities. The profile of Gujarat’s overseas community has shifted significantly in recent years—from predominantly migrant workers to a growing base of professionals in IT and other skilled sectors. This financially stronger group is remitting larger sums, ensuring long-term financial inflows.
Interestingly, NRI deposits had already crossed the ₹1 lakh crore mark in the March quarter of FY 2025, peaking at ₹1.09 lakh crore. While the June figure is slightly lower quarter-on-quarter, the year-on-year growth underscores the crucial role of diaspora funds in providing liquidity to Gujarat’s banks. Such deposits are enabling credit expansion across retail, corporate, and housing sectors, particularly at a time when domestic demand is uneven.