Three Kerala companies have more gold than Sweden, Singapore, Australia!

December 14, 2014

Kerala companiesKochi, Dec 14: Three gold loan companies in Kerala have more precious metal in their vaults than the gold reserves of some of the richest nations. Muthoot Finance, Manappuram Financeand Muthoot Fincorp jointly hold nearly 200 tonnes of gold jewellery, which is higher than the gold reserves of Singapore, Sweden or Australia.

India accounts for approximately 30% of the global demand for gold, a true-and-tested source of insurance for millions of families that have little access to other forms of social security. What is true for India is even more so for Kerala, where 2 lakh people are employed in the gold industry. The metal's fungibility makes it an ideal collateral for over-the-counter loans.

Muthoot Finance holds 116 tonnes of gold as security for its loans, Manappuram Finance has 40 tonnes and Muthoot Fincorp, 39 tonnes. The trio's combined holdings are 195 tonnes. To put things in global perspective, Singapore's gold reserves are 127 tonnes, Sweden's 126 tonnes, South Africa's 125 tonnes and Mexico's 123 tonnes.

Muthoot Finance, the largest of Kerala's gold loan companies, holds more yellow metal in its vaults than the reserves of Greece (112.4 tonnes), Australia (79.9 tonnes), Kuwait (79 tonnes), Denmark (66.5 tonnes) and Finland (49.1 tonnes).

India, according to the World Gold Council, has the 11th largest gold reserves, with 558 tonnes. The US heads the pack with 8,134 tonnes, while Germany and IMF come next (3,384 and 2,814 tonnes, respectively).

"Historically, Malayalis have excelled in financial services as an ethnic group. The size of these companies reflects their innovative skills. Gold loan business also reflects Malayalis' hunger for gold and the strong dowry system which feeds gold and gold loans," said CJ George, founder and managing director of stock broking firm Geojit BNP Paribas.

It was even better a couple of years ago. Muthoot Fincorp, which has a gold loan portfolio of Rs 8,550 crore, then had 41 tonnes of gold in its vaults. "Then, two things happened ” gold prices declined and banks became aggressive in gold loans. As gold prices declined, our business also came down slightly, reflecting on our gold holdings," said Thomas John Muthoot, chairman and managing director of Muthoot Fincorp.

Muthoot Finance is the largest gold loan NBFC with a reach of over 4,265 branches across 21 states and four Union territories. Its gold loan portfolio is Rs 21,800 crore. Manappuram Finance has 3,200 branches nationwide and 20,000 employees, with a gold loan portfolio of Rs 9,000 crore.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 28,2020

Bengaluru, Mar 28: Karnataka Pradesh Congress Committee (KPCC) chief DK Shivakumar on Saturday appealed to the authorities to arrange transport for migrant workers, stating that it is appalling to see their plight as they are walking hundreds of kilometres to their villages amid COVID-19 lockdown.
"Appalling to see the plight of poor migrant workers who are walking hundreds of kms to their villages. We cannot abandon our citizens, especially children, and put them at risk. Appealing to the authorities to arrange transport. Please take sufficient safety precautions as well," Shivakumar tweeted.
Hundreds of people, comprising mostly of migrant workers and their families, gathered at the Lal Kua in Uttar Pradesh from Delhi, Gurugram and other places, to take buses to their respective destinations amid the lockdown.
While the Prime Minister Narendra Modi had imposed a nationwide lockdown to prevent the spread of coronavirus, the Uttar Pradesh administration had decided to ply these buses to help thousands of migrant workers who were stuck in the national capital and had started returning on foot to their native places in Bihar, Uttar Pradesh, among others.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 11,2020

Bengaluru, Feb 11: A 36-year-old woman who fought back after being stabbed eight times by a helmet-clad intruder succumbed to injuries at a hospital.

Susheela was in shock after she pulled off the attacker’s helmet as it was her own brother-in-law. Before breathing her last, she explained the sequence of events to the police.

She said her brother-in-law attacked her because he was eyeing their ancestral property worth over Rs 10 crore. “Susheela put up a stiff resistance and identified her assailant. But the stab injuries proved to be fatal,” said a police officer. Based on her statement, Ananth Kumar, 42, was arrested on murder charges.

The attack occurred on February 7 at Honaganahatti village in Tavarekere, off Magadi Road. Susheela, whose husband Gangaraju died in a road accident 12 years ago, was living with her 14-year-old daughter and 75-year-old mother, Rudramma.

On Friday, her daughter had gone to school and Rudramma was sitting outside the house when a man walked in wearing a full-faced helmet and attacked Susheela with a knife. She defended herself with a stick used for making ragi balls and by throwing chilli powder at his face. But the attacker stabbed her on the hand, neck and head. He fled when Susheela identified him and raised an alarm. Neighbours rushed her to a hospital.

During questioning, Kumar reportedly confessed to the crime, saying he wanted to get rid of her as she was not agreeing to sell five acres of their ancestral property.

Susheela’s nephew Kiran G said: “The family owned six acres. Kumar sold one acre for Rs 50 lakh a few years ago after convincing Susheela. He, however, paid her only Rs 5 lakh. Lately, he was pestering Susheela to sell the remaining land as buyers were ready to pay Rs 2.5 crore per acre. But she was hesitating as she had been cheated by him earlier.”

Police are now examining the circumstances under which Gangaraju was killed. “We learnt the driver who had been arrested in connection with Gangaraju’s accident is currently working with Kumar,” said an officer.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
coastaldigest.com news network
July 10,2020

Mangaluru, Jul 10: Among over a hundred special flights to be operated between India and United Arab Emirates under the fourth phase of Vande Bharat Mission, five flights will be operated from Mangaluru International Airport.

The repatriation flights are also allowed to carry eligible passengers from India to UAE between July 12 and July 26.

These flights will be allowed to carry the ICA approved UAE residents on their onward journey from India to the Gulf country.

According to Air India, while flying from India to UAE, these special flights will carry only those passengers who are destined for the UAE.

Flights from Mangaluru

From Mangaluru, the first special flight will take off on July 13 at 7.30 am and reach Sharjah at 9.30 am.

The second flight is scheduled to take off on July 16 at 9.30 am and reach Dubai airport at 11.20 am.

The third flight will take off on July 19 at 11.00 am and land at Sharjah airport at 1.00 pm.

The fourth flight will take off on July 20 at 7.30 am and reach Sharjah at 9.30 am.

The fifth flight will take off on July 26 at 8.00 am and land at Abu Dhabi Airport at 10.20 am.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.