From Financialexpress · Narayanan V · · 50s
Gold Loans Remain Strong Despite Price Drops
South Indian Bank CEO says no stress in gold loans as prices fall.
In brief
South Indian Bank CEO says no stress in gold loans as prices fall. South Indian Bank expects robust gold loan demand ahead of festive season with no major asset quality concerns despite gold price corrections. Originally reported by Financialexpress.
Gold Loan Demand
South Indian Bank expects gold loan demand to remain robust ahead of festive season.
Asset Quality Concerns
South Indian Bank sees no major asset quality concerns despite gold price corrections.
Gold Price Correction
Gold prices corrected from ₹1,83,050 per 10 grams to ₹1,48,310.60 per 10 grams.
Gold Loan Growth
South Indian Bank's gold loan portfolio grew 41% year-on-year to ₹26,603 crore.
NBFC Repayment Risks
Some NBFCs flagged early repayment risks in gold loans with 15-23% of borrowers overdue.
LTV Margin
South Indian Bank has 20-25% cushion in loan-to-value (LTV) for gold loans.
In short
South Indian Bank expects robust gold loan demand ahead of festive season with no major asset quality concerns despite gold price corrections.
