Ahmedabad: Gujaratis, traditionally known for their habit of saving money in banks, are now exploring other investment options. The latest data from the State Level Bankers’ Committee (SLBC), Gujarat, reveals that bank deposits in the state grew by only 7.3% in the third quarter of the financial year 2025. The total bank deposits stood at ₹12.68 lakh crore, compared to ₹11.82 lakh crore in the same period last year. This marks a slowdown from the double-digit growth seen in previous years.
| Period | Bank Deposits (₹ lakh crore) | % YoY Growth |
|---|---|---|
| Q3 2024-25 | 12.68 | 7.31 |
| Q2 2024-25 | 12.68 | 10.07 |
| Q1 2024-25 | 12.27 | 10.89 |
| Q4 2023-24 | 12.42 | 15.42 |
| Q3 2023-24 | 11.82 | 15.45 |
| Q2 2023-24 | 11.52 | 14.72 |
| Q1 2023-24 | 11.07 | 13.46 |
| Q4 2022-23 | 10.76 | 11.00 |
Why Are Gujaratis Moving Away from Bank Deposits?
Financial experts say that investors are shifting their money to assets that offer better returns. The Indian stock market has been performing well, attracting many retail investors. At the same time, gold and silver prices have risen sharply, making them an attractive investment.
Bank deposits currently offer an interest rate of around 6.8%, while stocks, mutual funds, and precious metals have provided returns between 22% and 51%. The significant difference in returns has made traditional bank savings less appealing.
Growing Interest in Stocks, Mutual Funds, and Precious Metals
Investment advisor Jaydevsinh Chudasama explained that many investors now prefer liquid funds, which offer better flexibility compared to fixed deposits. “People are reducing their savings in bank accounts and instead investing in mutual funds through Systematic Investment Plans (SIPs). Even women, who earlier relied on recurring or fixed deposits, are now turning to mutual funds,” he said.
Gold, a long-time favorite investment in Gujarat, has also gained popularity due to rising international prices. “The high volatility in gold prices has made it a preferred investment for many. With the global economy facing uncertainties, gold remains a safe-haven asset,” Chudasama added.
Silver, too, has seen a strong rally in prices, further increasing its appeal among investors. A financial advisor, who preferred to remain anonymous, noted that the growing risk appetite among investors has pushed fixed deposits to the background.
Will Bank Deposits Regain Popularity?
Despite the current trend, banking experts believe that this shift may be temporary. “Stock markets are cyclical, and commodity prices fluctuate. Once the market stabilizes, bank deposits could regain popularity,” a senior banker said.
For now, however, Gujaratis are diversifying their investments, seeking higher returns beyond traditional savings options.
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