Remittances up 29 percent in Malappuram

MALAPPURAM: The remittance from expatriates from the district has witnessed the growth of a whopping 29.20 percent during the last fiscal year despite massive spending cuts in the Gulf countries and the demonetization drive in India. The NRI deposits received by the banks in 2016 (Rs 7,168 crore) has grown to Rs 9,261 crore by March 2017 as the district continues to register a steady growth in overseas remittances. A major share of the increase of Rs 2,093 crore (Rs 937 crore) was during the December-March quarter, and bankers say it's natural.

“Though there is a huge growth in NRI remittances in the district, another major share goes to other accounts. Around 25 percent NRIs prefer to send money to the accounts of their relatives. Together, this contributes much to support the banks in the district,” says K. Abdul Jabbar, manager of the district lead bank. However, banking experts are a bit sceptic about converting this into real investments. The investment options like real estate sector, the most preferred option, remain stagnant after the demonetization.  

The latest district-level banking statistics also shows 23.15 percent growth in overall deposits to Rs 5,968 crore. The total deposits stood at Rs 31,737 crore. Mr Jabbar says the growth in deposits was natural due to the demonetization. Though the loan disbursement has also increased by 13.76 percent during the period, the credit-deposit ratio (CD Ratio) witnessed a steep fall by 5 percent.