The gems and jewellery business is an important part of India’s economy and KVB is now in a position to enhance its support to this important industry, the statement said.
Private sector lender Karur Vysya Bank (KVB) on Wednesday announced the launch of its precious metals business. As a trial basis, the bank delivered its first shipment to clients in Chennai and Coimbatore recently. It is now in the process of ramping up the business to fully extend support to its existing set of customers across the country, said a statement by the bank.
The gems and jewellery business is an important part of India’s economy and KVB is now in a position to enhance its support to this important industry, the statement said. The gems and jewellery business in India contributes about 7% of the country’s GDP and 15% of total merchandise exports.
KVB serves approximately 6,000 jewellers and jewellery manufacturers. In order to cater to them fully, KVB now offers precious metals (gold and silver) to its corporate customers (B2B). The new business has been launched after ensuring the highest quality risk management, it said.
The bank’s business grew to Rs 1,11,875 crore as on 31.12.2019, up by Rs 5,485 crore (YoY). Deposit grew by 6% (Rs 3,638 crore) to Rs 62,262 crore, and the CASA share improved to 31 % (Rs 19,063 crore). The bank continues to drive its strategic initiative to granularise its advance portfolio, which has progressed well, 75% of advance portfolios are now granular, up from 69% as of March 31, 2019. Further,credit portfolio continues to improve, with the lower risk exposures registering an upward trend. Retail credit growth continues to be strong at 21%.
Gold loans have grown by 10% (YoY), aided by migration of the underwriting process to a digital platform and resulted in portfolio climbing up by Rs450 crore during the third quarter of FY20.