NRI deposits rise while home and education loans fall

Attractive interest rates offered to NRIs along with high rupee against dollar spurred the NRI deposits in the second quarter of 2014-15. The NRI deposits increased by Rs 12,187 crore during July – September 2014. According to the State Level Bankers’ Committee report for second quarter of FY15, NRI deposits in Gujarat stood at Rs 59,612 crore – forming 13.08 per cent of the total deposits in as of September 2014 against Rs 47,445 crore (10.86 per cent) as of June 2014. “The positive sentiments have converted into physical money leading to high deposits. NRIs are depositing money at the time when rupee is at high which when comes down will result in more dollars for them,” said Aspy Bharucha, analyst. 


Due to slowdown in real estate and higher interest rates, demand for home loans saw a drop of 15.2 per cent in second quarter in 2014-15 compared to same period in 2013-14 as less people applied for home loans. Home loans worth Rs 1997.28 crore were granted to 18,907 beneficiaries during July-September 2014 under Direct Housing Finance compared to disbursement of Rs 2125.04 crore of loan to 22,299 beneficiaries in the same period in 2013-14. 


The request for education loans dropped by more than 50 per cent in second quarter of 2014-15 compared to same period in last year. Banks have disbursed education loans to 3,620 students to the tune of Rs 75.87 crore during July- September 2014 compared to Rs 137.64 crore disbursed to 7,336 beneficiaries in same period in 2013-14.