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.

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News Network
June 1,2020

Manglauru, Jun 1: The southwest monsoon has made an onset over Kerala, marking the commencement of the four-month long rainfall season, the India Meteorological Department said on Monday.

"The southwest monsoon has made an onset over Kerala," IMD director general Mrutyunjay Mohapatra said.

The four-month monsoon season from June to September accounts for 75 per cent of rainfall in the country.

Private forecaster Skymet Weather on May 30 had declared arrival of monsoon, but the IMD had differed, saying conditions were not ripe then for such an announcement.

Orange alert

Meanwhile, coastal Karnataka’s Dakshina Kannada district, which is receiving sporadic rains for past couple of days, is on orange alert.

Deputy Commissioner Sindhu B Rupesh declared the orange alert following IMD’s prediction of heavy rainfall in the region.

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coastaldigest.com news network
May 22,2020

Mangaluru, May 22: Following requests from Kannadiga entrepreneurs in Kingdom of Saudi Arabia and persistant efforts of former deputy chairperson of the NRI Forum of Karnataka government Dr Arathi Krishna, the government of India has finally approved the repatriation of stranded Indian expatriate workers amidst prolonged covid-19 lockdown through chartered flights arranged by their employing companies particularly in Gulf region and elsewhere. 

The government has also issued a Standard Operation Protocol (SOP) to be followed to be followed by those who hire the flights. The government's nod will not only allow repatriation of larger number of citizens, who are on wait-lists, but also allows private airlines to get their aircraft, crew, and operational staff actively working again in preparation for resumption of scheduled flights. 

Zakaria Jokatte, CEO of Al-Muzain Est. and K S Sheik, Director of Operations at Expertise Contracting Co. Ltd - both Mangalurean entrepreneurs in Saudi Arabia - were among those who had sought permission to hire chartered flights for the immediate repatriation of their hundreds of employees. 

The NRI entrepreneurs in Gulf have thanked Dr Arathi Krishna for continuously persuading the authorities concerned to issue green signal for the operation of chartered flight at a time when there were only a few scheduled flights under Vande Bharat Mission. 

Welcoming the move Dr Arathi Krishna told coastaldigst.com that Indians stranded in any foreign country can utilize this facility. "Initially, I was approached by Mr Zakaria and Mr Sheik who wanted chartered flights to help their employees fly back to India. I asked them to write to the Indian Ambassador in Saudi Araia Mr Ausaf Sayeed. Then I requested the ambassador to forward the request to Joint Secretary Dr Nagendra Prasad, who is in charge of gulf division in the Ministry of External Affairs, and then to Secretary on charge of Gulf and then I requested Secretary of Economic Relations Mr T S Tirumurti who was also in charge of Gulf to follow this up," she said. 

"There were similar requests for chartered flights from African countries too. Then I persisted officers constantly to take it up to the Foreign Secretary Harsh Vardhan Shringla and Civil Aviation Minister Hardeep Singh Puri and now all the people requesting this from Saudi Arabia have got confirmation from the ministry and communicated by embassy to those who had requested for the chartered flights," she said.

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News Network
April 18,2020

Bengaluru, Apr 18: With 12 fresh cases of the COVID-19 infection, including one woman, the total number of novel coronavirus cases in Karnataka surged to 371 on Saturday.

The sources said that as many as three new positive cases were reported from Mysuru district, followed by two each from Kalaburagi, Bhagalkote, one each case from Vijayapura, Belagavi, Dharwad, Gadag and Mandya, districts on Saturday.

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