Bk loans against gold jewellery keep rising, up 71% as on Dec 27 - RBI data
This story was originally published at 19:23 IST on 31 January 2025
Register to read our real-time news.Informist, Friday, Jan. 31, 2025
NEW DELHI – Loans given by banks against gold jewellery continued to rise sharply and stood 71% higher as on Dec. 27, according to data released Friday by the Reserve Bank of India. As per the central bank's data, loans against gold jewellery stood at INR 1.73 trillion. When compared to the end of November, these loans were up INR 80.25 billion, or 5%.
The continued rapid increase in loans against gold jewellery comes despite the RBI telling banks in September that a review of this segment had revealed "several irregular practices", including valuation of gold without the presence of the customer and inadequate due diligence and lack of end use monitoring of gold loans, among others. As such, the central bank had asked all banks to "comprehensively review" their gold loan policies and practices and initiate "appropriate remedial measures in a time-bound manner" while also closely monitoring the portfolio in light of the "significant growth" the segment had shown for certain entities.
Meanwhile, in what may be a worrying trend, personal loans for consumer durables were down 1.1% on year as on Dec. 27. At the end of November, they had shown growth of 4.8%. Other personal loans, which primarily are unsecured loans, were up 9%. At the end of November, growth in unsecured loans stood at 12%.
On the whole, personal loan growth continued to trend downwards, standing at 12% as on Dec. 27, as against 13% a month ago. Overall bank credit growth edged up slightly to 11%. End
Reported by Siddharth Upasani
Edited by Avishek Dutta
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
