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
February 14,2020

Bengaluru, Feb 14: In order to bring down the accident rates, Karnataka government is planning to increase the penalty for road offences, state Transport Minister Laxman Savadi announced here on Thursday.

Addressing media persons here, he said, ''The Centre had brought an amendment to increase the penalty amount. We too have a similar proposal, which we will discuss, post the budget session.

''Before bringing in the amendment, we will create awareness among the road users. By increasing the penalty amount, the number of offences and accidents will come down,'' Mr Savadi added.

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
August 6,2020

Bengaluru/Mangaluru, Aug 6: Battered by torrential rains, several parts of Karnataka are facing a flood-like situation for the third consecutive year, putting lives and property at risk. 

Several districts of the state's coastal, Malnad and north interior regions are receiving heavy rains and the showers are expected to continue, while there are reports of landslides in hilly areas of Kodagu and Chikkamagaluru districts.

With flood-like situation in several parts of the state, Chief Minister B S Yediyurappa, who is currently undergoing treatment for COVID-19 infection at a private hospital here, has ordered immediate release of Rs 50 crore for emergency relief.

"In wake of heavy rains in several parts of the state, I have instructed the Chief Secretary to review the situation and issued instructions to DCs (Deputy Commissioners) to closely monitor the situation & take necessary measures. Also ordered immediate release of Rs 50 crores for emergency relief purposes," he tweeted last night.

A statement released by the CMO on Thursday said, Yediyurappa has directed the district in-charge Ministers to take precautionary measures in the wake of heavy rainfall across the state.

He instructed the ministers to remain in their constituencies and tour the damaged areas and also directed them to undertake relief distribution and other necessary measures.

"Rs 50 crore has already been released and if necessary more funds would be released. The ministers can take decisions regarding emergency works," he added.

Revenue Minister R Ashoka said he had spoken to Deputy Commissioners of all the districts and given them necessary instructions to respond immediately to the situation.

He has called for a meeting of the disaster management authority later today.

Home Minister Basavaraj Bommai said he will be holding a meeting with the State Disaster Response Force (SDRF) regarding relief and rescue measures to be taken.

Parts of districts in coastal and Malnad regions are currently under red alert and rains are likely to continue there.

Officials said, "... depending on the situation we will downgrade the alerts, it (rains) is likely to reduce during the next couple of days...wind speed is also high some parts, it may also reduce."

In Kodagu district along with widespread rains, landslides have also occurred.

There have been landslides at Brahmagiri, near Talacauvery, the origin of river Cauvery.

"At least four to five people- including the Talacauvery temple priest and family are currently missing... rescue teams have reached the spot," officials said, adding that sensing danger the priest had been asked to vacate the house earlier but he did not.

This is the third consecutive year that Kodagu is facing floods and landslides.

Several parts of north Karnataka, especially the border district of Belagavi are also facing flood situation as inflow has increased in Krishna river and its tributaries due to heavy rains in neighboring Maharashtra and also in the district.

With inflow increasing in Tungabhadra river, there is flood like situation in parts of Ballari district also.

There is a similar situation in Uttara Kannada district that is battered by rains and heavy winds.

The swollen Gangavali river has caused flood like situation in parts of the district.

Due to continuous rains in coastal and Malnad region several rivers including Netravati are swollen and gates of the dams have been opened.

There are also reports of heavy rains and wind causing destruction to crops in parts of Dharwad and Haveri among other districts.

The Karnataka government had recently said it has identified 1,989 villages and over 51 lakh people in 19 districts as flood prone.

As a temporary arrangement for those who will be affected by floods, as many as 1,747 relief centres have been identified- they are schools, anganwadi centres, community centres among others, Minister Ashoka had said recently.

In August 2019, Karnataka witnessed one of its worst natural calamities when heavy floods affected 103 taluks in 22 districts, killing more than 80 people and displacing nearly seven lakh people.

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
July 29,2020

Bengaluru, Jul 28: As many as 5,536 new COVID-19 cases and 102 deaths were reported in Karnataka on Tuesday, according to the State Health Department.

With these new cases of coronavirus, the total number of positive cases in the state stands at 1,07,001 including 64,434 active cases, 40,504 discharges and 2,055 deaths.

India on Tuesday reported 47,704 more COVID-19 cases in the last 24 hours, taking the country's count of coronavirus cases to 14,83,157, informed the Union Ministry of Health and Family Welfare.

Out of the total cases, there are 4,96,988 active cases in the country while the number of patients cured/discharged and migrated stands at 9,52,744. With 654 deaths due to COVID-19 in the country reported in the last 24 hours, the death toll rises to 33,425.

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.