MALAPPURAM: Despite a massive austerity drive across Gulf countries triggered by oil price crash, the remittances to Malappuram has witnessed a spurt during the last financial year. The district-level banking review meet reports a 22 per cent rise from the previous year. While the banks received Rs 5,894 crore in 2015 March, it has grown to Rs 7,168 crore by 2016 March.
But experts in the banking sector don’t consider this growth a positive sign for the local economy. They point out that a rise in the remittances may also lead to a proportionate decrease in investments.
“The rise in deposits has not reflected in real investments. The latest trends show that the expatriate investors increasingly prefer to stay away from investing in real estate, their most preferred investment option,” says K. Abdul Jabbar, a manager of the lead bank in the district.
He also pointed out the confusion among the expat investors on how and where to invest properly. They also lack proper guidance on investment options. Expats’ investments in the housing sector have also come down, he said. The number of loans sanctioned for Gulf returnees, who lost jobs due to the nationalisation of various jobs in countries like Saudi Arabia, has also increased over the years but their repayment track record, according to the bank officials, is not satisfactory.
