THIRUVANANTHAPURAM: When the business economy is reeling under the crisis of Rupee depreciation in the country, it is a reverse trend happening in Kerala. With a formidable number of Non-Resident Keralites (NRKs) in the state, deposits from European countries are witnessing a steady increase as those who used to deposit in banks there have started remitting in Kerala on finding that their money value increases by 16 per cent. When the value of US dollar reached an all-time high of `52, each dollar which was `45 earlier, would fetch an additional `7 for those NRKs who deposited in the local banks in other countries. But it is reverse for exporters and those who have taken loan from other countries. “Rupee depreciation will help the banks in Kerala to attract more depositors which, in turn, can change the economy of the state. Around 95 per cent of the NRK depositors are from middle and lower classes of society, who can convert the money to Indian rupee which will be higher than their earlier sum,’’ V A Joseph, MD and CEO of South Indian Bank (SIB), said. It is seen that majority of the NRK customers are not withdrawing the huge amount unless and until they start any venture or building a house. At this juncture, Kerala will be the state in India where the deposit increases as the state has the highest number of expatriates, he said. Abraham Tharian, executive director of SIB, said when the value of dollar increases there will be substantial increase in UAE Dirhams. The immensely rich NRKs are in Europe and they started depositing in Kerala banks as the banking industry was strong in India even during recession.“This trend is not good for Kerala banking industry on a long-term basis owing to increase in imports compared to exports. The increase in deposits can be evaluated only on a monthly basis and the exact figures will be available only after a couple of months,’’ he said. There has been a steady increase in the deposits in the last several months which shows an increase of `866 crore in the first quarter of this financial year. The total NRK deposit in public sector banks in Kerala during the first quarter was `38,556 crore, said K V Rajesh, DGM, Punjab National Bank.
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