Mumbai: Dhanlaxmi Bank, one of India’s fastest growing mid-size private sector banks, on Monday said it has entered the gold retailing business with the launch of ‘Dhan’ gold coins.
The 24-carat gold coins will be available in a tamper- proof pack in two denominations of five and 10 grams at the bank’s 275 branches across the country, Dhanlaxmi Bank said in a statement here.
‘Dhan’ gold coins with a purity of 99.99% will carry Assay certification, signifying highest purity of gold as per international standards. The pure gold coins will be imported from Switzerland based PAMP S.A. Geneva (Produits Artistiques Metaux Precieux), one of the world’s premier gold refiners, it said.
The launch of gold retailing marks the second phase of the bank’s bullion business. In June 2011, the bank rolled out its wholesale initiative - 24-carat gold bars weighing one kilogram.
“The launch of gold retailing is part of the bank’s overall strategy to be a leading provider of end-to-end investment products and services across all verticals. With this launch, we aim to become one of the leading players in the bullion business in the next couple of years,” Dhanlaxmi Bank’s chief financial officer Bipin Kabra said.
India is the highest consumer of gold commanding 20% of world’s market share.
According to World Gold Council, India had imported 918 tonnes of gold in 2010 far exceeding 2009 levels.
“We see a lot of potential in gold as an asset class. With higher disposable income and near term inflationary expectations, investment in gold will allow investors to hedge and diversify their savings and investment portfolio,” Kabra said.
In 2010, global gold demand reached a 10 year high of 3,812.2 tonnes. Demand was up 9% year-on-year, and marginally above the previous peak of 2008 despite a 40% increase in the annual average price level between 2008 and 2010.