Private sector lender Federal Bank is aiming to achieve double digit growth rate in gold loans segment for the present quarter, in keeping with its gold loans growth rate in the previous quarter ending 31 June.
Talking on the matter, the managing director and chief executive officer of the bank, Mr. Shyam Srinivasan said, "We hope to clock around 15% growth in our gold loan book in the near-term after a high 25% growth in advances against gold in Q1."
Last quarter, the bank recorded a 30 percent hike in net profits, which stood at Rs 190.35 crore. But, it is reported that its retail loans book would have showed negative growth rate but its gold loans segment rescued it by recording a growth of 25 percent. Last quarter, its retail loans segment improved only slightly from Rs 589.54 crore to Rs. 593.48 crore.
On the performance of gold loans segment, it is reported that banks are observing more requests for gold loans since RBI has fixed a Loan to Value (LTV) rate at 60 percent, decreasing it from 80 percent, which pure gold loans players like Muthoot Finance were offering their customers earlier.