1. Home
  2. Three Kerala companies have more gold than Sweden, Singapore, Australia!

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

[email protected] (TNN)
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

About text formats
  • 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
June 16,2020

Bantwal, Jun 16: Two unmarred siblings committed suicide by self-immolation at Sangabettu in Bantwal taluk of Dakshina Kannada last night.

Neelayya Shettogar (42) and his sister Kesari (39) poured petrol on themselves before torching themselves at around 11 p.m. on June 15 inside a room of their house, police sources said. The siblings were reportedly facing health problems.

Neelayya's brother and latter’s wife were sleeping in the other room of the same house when the incident took place. They came to know only when they heard the screams of the duo.

Even though the siblings were rushed to the government hospital at Bantwal with the help of locals, the doctors declared them dead.

Bantwal rural police sub-inspector, Prasanna and staff visited the spot as part of investigation.

Comments

Mohammad Mansoor
 - 
Tuesday, 16 Jun 2020

Very sad. What happening to our youths. Are they going crazy or the mountain fell on them?  Why do our people are becoming so coward? I think many are going under depression. Govt should set up rehabilitation/counselling centres in each Mandals/Taluks/Districts to treat such people.

Add new comment

About text formats
  • 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 15,2020

Bengaluru, Mar 15: Karnataka government has said that as of now six cases of COVID-19 have been reported in the state, including one person who died.

"Till date six COVID-19 cases have been reported in the state including one death. The 5 Coronavirus positive cases are in isolation at the designated hospital in Bengaluru," the Karnataka government said on Sunday.

Meanwhile, the Health Department of Karnataka on Sunday said that all the family members and other contacts of the 76-year-old man who died of coronavirus in Kalaburagi are being monitored closely.

The Union Ministry of Health and Family Welfare informed that India's tally in the number of positive cases for coronavirus has reached 107 on Sunday.

Comments

Add new comment

About text formats
  • 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 3,2020

Bengaluru, Mar 3: Bengaluru mayor Gautam Kumar on Tuesday said that the decision to ban protests in front of Town Hall was made by the council and not only by him.

"The decision to ban the protest in front of the Town Hall was made by the entire council and not only my decision. Also, the things which are approved by the councillor are also read by the ruling party leaders," Bengaluru mayor told media.

"Still it is the discretion of the Commissioner to take a call after the council also. As of now, we have banned any protests in front of Town Hall," he added.

Meanwhile, Congress leaders staged a protest against Bruhat Bengaluru Mahanagara Palike (BBMP) Mayor Gautam Kumar and BJP at Council BBMP building against the decision.

"If people will start protesting, it will badly affect the traffic of the city," said Kumar, while commenting on the protest. If they want to talk about the matter, let us have a healthy discussion. I don't have a problem with and I don't think the ruling party has a problem too," he added.

On Sunday, pro-Kannada activist and former MLA Vatal Nagraj staged a protest in front of Sir KP Puttanna Chetty Town Hall (Bangalore Town Hall) against the decision taken by Bengaluru mayor.

Talking to reporters, Nagraj had said: "He does not know the history of the Town Hall. It is a historic building and protests can be staged there."

"Mayor's decision is against Bengaluru's tradition and culture, that's why we are condemning it and are protesting against this decision. We will not allow Mayor's programs in Bengaluru and he will be shown black flags", he added.

Comments

Add new comment

About text formats
  • 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.