The Hindu Business Line : Federal Bank to introduce gold coins

To coincide with the Malayalam New Year Chingam 1 on Friday, the Aluva-based Federal Bank is to roll out its new product – Federal Bank Pure Gold – at a function to be held at Federal Towers.

The Bank Chairman, Mr M. Venugopalan, will announce the launch of the product on Friday evening and noted cine actresses, Kavya Madhavan, will inaugurate the sale in the presence of Mr Ajay Mithra, Managing Director, World Gold Council.

Denominations

Speaking to reporters here on Thursday, Mr Abraham Thariyan, General Manager (Treasury), said that the bank would initially sell imported gold bullions of 5 gm, 8 gm and 20 gm at its 53 select branches in Kerala.

Soon it will introduce other denominations and expand the sale network in the other States.

The bullions, made in Switzerland, will be of 24 carat with 99.99 per cent purity, which is the highest quality standard possible in gold. The products will come in tamper proof packages together with an Assay Certificate of the Swiss Refinery.

Consumption

The gold market, he said, has been undergoing a pronounced shift from jewelery consumption to bullion investment as the life styles and fashions are changing.

Considering this, the bank will promote the products with an emphasis on investment and gifting.

Gold is considered to be a good investment for long term. It is estimated that around 700 tonnes of gold is imported to India on an yearly basis and of this, 180 tonnes is used only for investment purpose, he added.

The bank has obtained authorisation from the RBI to import gold bullion and sell in wholesale and retail.

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