Gujarat crosses Rs.5 lakh-crore bank deposits for first time

INVESnridepositsReports say Gujaratis seem to bank more on deposits, a fact that is evident as bank deposits in that state for the first time have crossed Rs.5 lakh crore.

The latest data from the State Level Bankers’ committee said that deposits have been on a steady rise since 2007-08 and have now galloped to Rs.5.14 lakh crore in 2015-2016.

Experts say the recession of 2007 resulted in people beginning to divert money into deposits, as there is almost no risk in keeping money in the banks. Even the interest rates remained on the higher side and with the rupee depreciating, NRIs also moved in their money.

Higher interest rates offered by banks on NRE and FCNR accounts have also led to the growth in NRI deposits which swelled to Rs.3,349 crore in the second quarter.