IOB joins gold rush, targets retail sector

Chennai, Apr 19 (UNI) The Indian Overseas Bank (IOB) today launched retail sale of gold coins hoping to garner Rs 300 crore during the current fiscal.

In a brief interaction with the press after launching ''Fine Gold'' scheme, IOB Chairman and Managing Director T S Narayanaswamy said the coins, available in four, eight, 20 and 50 grams to be sold in 63 branches spread over 12 centres, will be of 999.9 purity (24 carat) and will satisfy the needs of all income groups.

The coins, minted and imported from reputed suppliers "Pamp", Switzerland, will be sold in certified tamper-proof card packing.

The scheme had already received tremendous response from people who had started looking to the precious metal as an investment option.

Besides, the purity and reliability while being sold through a PSU bank proved to be an added attraction.

Ms Suneetha Reddy of Apollo Hospitals and noted Carnatic singer Nithyashree Mahadevan launched the scheme at a glittering function here today.

The scheme was mainly aimed at giving the middle income group access to gold, the prices of which had increased by nearly 15 per cent in the last four months.

On sales target, the CMD said that there was no specific target.

''We will keep selling. If the demand is more, we will import more gold. We expect a minimum of Rs 300 crore revenue through sale of the coins in the current fiscal,'' he added.

Mr Narayanaswamy said the bank was planning to take the scheme to semi-ubran and tier II cities in the next two to three months where the demand was good.

''We have not penetrated in semi-urban and tier II cities. There is very good demand in these places for gold.'' Based on feedback, the bank will introduce 100 gm coins, he added.

UNI GV GM 1712