Gold Loans

Analysts believe the continued aggression of banks and fintechs would make gold loan NBFCs pivot their business models to lower spreads and margin

The Kerala-based mid-sized lender CSB Bank (formerly Catholic Syrian Bank) on Monday reported a muted 5 per cent growth in net profit to Rs 156 crore despite record margins and a 26 per cent rise in advances for the quarter to December. Led by a hefty 51 per cent jump in gold loans, its total advances grew 26 per cent to Rs 18,456.70 crore, while deposits rose 19 per cent to Rs 22,664 crore. CSB Bank has over 45 per cent of its assets in gold loans. During the reporting quarter, its gold loan book soared 51 per cent to Rs 8,780.30 crore from Rs 5,825.50 crore a year ago, the company said. It's very high gold loan exposure, which works out to be 45.4 per cent of its overall loan assets, giving the lender an industry high 5.8 per cent net interest margin (up marginally on-year), which the managing director and Pralay Mondal said is not sustainable as the bank will have to offer better pricing to its depositors going forward. This record high margin pushed up its core net interest in

Lender's amalgamation with Lakshmi Vilas Bank expanded its reach in South India

Manappuram, Muthoot not facing refinancing challenge yet

The Bengaluru-based microfinancier-turned-small finance bank is also expecting to hit over 30 per cent this fiscal and take its loan book to around Rs 25,500 crore

Canara Bank is pushing this business in Eastern region and two metropolitan areas - Mumbai and Pune

SBI agriculture cold loan portfolio increased to Rs 73,601 crore in FY22 from Rs 66,878 crore in FY2021 and personal segment, the gold loans book expanded by 9.89 per cent YoY to Rs 23,063 crore

Shriram City Union Finance will focus on personal, gold and small business loans to achieve its 18 per cent growth in AUM in the current fiscal year amid a slowdown in demand for two-wheelers due to shortage of components and other factors, a top company executive said. Noting that the demand in the economy has not yet fully recovered, while rural and semi-urban areas have been doing better now, Y S Chakravarti, MD & CEO, said majority of the company's business comes from semi-urban and rural markets and anything good for the rural economy will help the company's business. "Our focus will be on personal loan, gold loan and small business loans. In terms of economic recovery, we have not recovered fully. Urban areas are still struggling, to some extent the rural economy has picked up probably because, one the harvest has been good and in current year also there is good rainfall prediction,"Chakravarti told PTI in an interaction. He said the crop harvests and also the prices are ...

If the price of gold plunges, a borrower can be asked to put up additional collateral

Plans aggressive expansion in north India, where it has already launched its product in 70 branches

Gold loan portfolio across banks has jumped by more than 89 per cent year-on-year to Rs 60,700 crore in FY21 and Rs 70,900 crore in the first nine months of FY22

According to the proposal, the commercial banks will issue a negotiable discounted instrument to the gold owner and pay an interest rate on the precious metal

Gold loan securitisation volumes stood at around Rs 4,400 crore in the first half of the current fiscal, same as volumes seen in the year-ago period, Icra Ratings said in a report on Wednesday

Opt for overdraft facility if you have a recurring need, a term loan if you require a lump sum

The share price of Muthoot Fin has risen 31% over last year, but Manappuram underperformed with 9% return

The drop of 5-7% in gold prices after March 2021 has added to borrowers' woes, triggering margin calls and auctioning off of jewellery pledged by customers

Loans to agriculture and allied activities showed an accelerated growth of 11.4 per cent in June 2021 as compared to 2.4 per cent in June 2020

Despite a 10-12 per cent decline in gold prices, Muthooth Finance managed to grow the loan book by 4 per cent quarter-on-quarter

Since June 2020, gold-loans surged even as lending to other segments was affected by asset-quality concerns

Here's a selection of Business Standard opinion pieces for the day