Karur Vysya Bank enters precious metals business

Karur Vysya Bank (KVB) on Wednesday announced the launch of its precious metals business.

Karur (Tamil Nadu) [India], Mar 18 : Karur Vysya Bank (KVB) on Wednesday announced the launch of its precious metals business.

The gems and jewellery business in India contributes about 7 per cent to the country's GDP and 15 per cent of total merchandise exports. India is the second-largest consumer of gold in the world with demand totalling 700 tonnes last year.

"The gems and jewellery business is an important part of India's economy. KVB is now in a position to enhance its support to this important industry," said Managing Director and CEO P R Seshadri.

KVB, a deeply entrenched bank with the country's businesses, serves about 6,000 jewellers and jewellery manufacturers. In order to serve them fully, KVB now offers precious metals to its customers.

The bank delivered its first shipment to clients in Chennai and Coimbatore. It is now in the process of ramping up the business to more fully support its existing set of customers across the country.

"It may be reiterated that this new business has been launched after ensuring the highest quality risk management," said Seshadri in a statement.

KVB was started in 1916 with a seed capital of Rs one lakh. At the end of the last financial year, its total business stood at Rs 1.1 lakh crore with total deposits at Rs 59,868 crore and total advances at Rs 50,616 crore.

The net profit for FY18-19 was Rs 211 crore. It has a branch network of 778 an ATM network of 1,639.

( With inputs from ANI )