Non-resident Indian (NRI) deposits in banks in Malappuram district have started rising after a period of stagnation.

Banks in the district, which boast a major share of NRIs from the State, particularly in the Gulf countries, recorded an increase of Rs 314 crore in total NRI deposits from Rs 2,538 crore in the first quarter of this year to Rs 2,852 crore as on September 30.

Prior to that, deposits remained more or less unchanged for over a year.

According to Mr P. Unnikrishnan, Lead District Manager, the deposits started rising after a series of frauds in money chain and other dubious activities were brought to light and people began reposing their faith in the safety of banks. The deposits also picked up in the wake of the falling value of rupee in recent days and the growth would be significant in the current quarter, he said.

Review committee meeting held

At the district level review committee meeting held the other day, it was revealed that the total deposits in the district reached Rs. 8,757 crore at the end of the second quarter from Rs 8,37 crore as on September 30, 2010. The total credit grew by 29 per cent year-on-year from Rs 5,706 crore to Rs 7,380 crore.

The credit-deposit ratio in the district increased from 69 per cent a year ago to 84 per cent as on September 30, marking a growth of 15 per cent.

During the last six months from April 1, banks disbursed Rs 4,081 crore against the annual target of Rs 4,705 crore. Of this, priority sector credit amounted to Rs 1,805 crore, with agriculture accounting for Rs 1,125 crore, non-farm sector, Rs 23 crore and other priority sectors, Rs 658 crore. The non-priority sector received the balance Rs 2,276 crore of the total disbursements.

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