Banks in Kerala are losing NRI deposits fast, according to K P Padmakumar, former chairman of Federal Bank. | |
| He had recently taken over as chairman of Equity Intelligence India Limited, a portfolio management company based in Kochi. This is mainly due to the low interest regime and the diversified investment opportunities available abroad, especially in the Gulf. |
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| He told reporters here that the NRI deposits of Federal Bank fell Rs 300 crore during the current fiscal and other banks faced the same problem to various degrees. |
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| About 35 per cent of Federal Bank's deposit are made up by NRI contributions. |
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| He also said that the fall will continue as other investment avenues were developing. Also the scope for portfolio management business and other modern instruments of investment is very promising and the only problem the Indian economy is facing at present is that of the combined fiscal deficit of 10 per cent of the total GDP. |
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| The stock market capitalisation will be increased to attract the middle classes to invest through portfolio management companies. The minimum limit for investment is the major hurdle in development of this business. |
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| The government has decided to provide 80 hectare land free of cost in line with its IT policy which provide Rs 20,000 as incentive to the investor for each job created through the project. It is estimated that through the first phase of the project, 33,000 IT professionals will be employed. |
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