Karur Vysya Bank forays into bullion business

KVB serves approximately 6,000 jewellers and jewellery manufacturers and in order to serve them fully, the bank now offers precious metals (gold & silver) to its corporate customers (B2B), a release said.

“This will enable our customers to competemore effectively in thishighly competitive industry,” it said.

The gems and jewellery business in the country contributes about 7 per cent of the GDP and 15 per cent of the total merchandise exports.

After China, India is the second largest consumer of gold where the demand was about 700 tonnes during 2019.

As the gems and jewellery business is an important part of the economy the bank is now in a position to enhance its support to this important industry, the release said.

On a trial basis, the bank delivered its first shipment to clients in Chennai and Coimbatore recently.

It is now in the process of ramping up the business to fully extend support to its existing set of customers across the nation.

It may be re-iterated that this new business has been launched after ensuring the highest quality risk management, the release said.