Malappuram: While expat remittances in Malappuram district banks have continued to register a steady growth, the rate of growth has dipped in the last few quarters.
According to banking experts, the rate is expected to come down further in the current quarter too. Though NRI deposits have touched Rs 7,563 Cr, thereby increasing by 1.7 per cent during the third quarter ending on September 30, the growth figure has came down from 3.5 per cent of the increase during the previous quarter.
The growth in the second quarter was despite the crisis in Gulf countries, a major source of money flow to the district. According to the banking review, expat remittances during the third quarter increased by Rs 134 crore.
“The recession in Gulf countries has started affecting the remittance in the district gradually and it may go down further in the coming quarters too,” said district lead bank manager Mr. K. Abdul Jabbar. The ongoing crisis after the demonetisation drive will also have a negative impact on the remittance, he said.
The district had witnessed 22 per cent rise in expat remittance during the financial year 2015-16.
The banking review meet also expressed concern regarding an expected fall in the Credit-Deposit ratio (CD Ratio) in the district, which already lags behind the national average. “The CD ratio may witness a steep fall in the next quarter,” Jabbar said.
Meanwhile, bank deposits in the district have marked a growth of Rs 204 Cr during the third quarter of the current financial year. According to the district level banking review, the total bank deposits in the district has grown from Rs 25,920 Cr to Rs 26,124 Cr during the period.
