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SBI launches gold banking outlet in Hyderabad

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BS Reporter Chennai/ Hyderabad
Last Updated : Jan 21 2013 | 1:24 AM IST

State Bank of India on Thursday launched ‘Sona Ghar’, its first exclusive gold banking outlet in the country, at its Koti branch in Hyderabad.

Speaking to the media, chief general manager Shiva Kumar said the new centre would sell pure gold coins and bars from 2 gm to 50 gm. It would also offer gold deposit schemes. The gold coins would be assay certified. Special discounts would be offered at the outlet for bulk purchase of 500 gm and above.

The deposit scheme would pay 1-1.5 per cent interest on gold for a term ranging from three to five years.

For instance, if a customer deposited 500 gm gold for a period of three years, he would be given 515 gm at the end of the term, he explained adding that the interest on the gold deposit was exempted from income tax and the value of gold from wealth tax. The appreciation in value of gold was also exempted from capital gains tax.

Rupee loans could be availed of from any SBI branch against pledge of the gold deposit certificate. There is a provision for premature withdrawal of the gold deposit after an initial lock in period of one year.

“We are targeting gold deposits of 500 kg in one year,” he said, adding the bank would speak to various temples and trusts to deposit the idle gold with them. Two more branches in Visakhapatnam and Vijayawada would be opened shortly. SBI expects to sell 100 kg gold every month, he said.

Minister of state for human resource development D Purandeswari inaugurated the branch.

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First Published: Jan 01 2010 | 12:57 AM IST

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