Karur Vyasa Bank rose 1.81% to Rs 28.05 after the bank on Wednesday (18 March 2020) announced its entry into precious metals business.
The gems and jewellery business in India contributes about 7% of the country's GDP and 15% of total merchandise exports. India is the second largest consumer of gold in the world. Demand for gold in the country stood at about 700 tons during 2019. The gems and jewellery business is an important part of India's economy. Karur Vyasa Bank (KVB) is now in a position to enhance its support to this important industry, the bank said in a statement.
KVB, a deeply entrenched bank with the country's businesses, serves approximately 6000 jewellers and jewellery manufacturers. In order to serve them fully, KVB now offers precious metals to its customers'. This will enable our customers to compete more effectively in this highly competitive industry.
The bank delivered its first shipment to clients in Chennai and Coimbatore. It is now in the process of ramping up the business to more fully support its existing set of customers across the nation. It may be re-iterated that this new business has been launched after ensuring the highest quality risk management.
Karur Vyasa Bank's net profit dropped 28.9% to Rs 15.07 crore on a 3.6% rise in total income to Rs 1,763.84 crore in Q3 December 2019 over Q3 December 2018.
Karur Vysya Bank is engaged in providing banking and financial services, including commercial banking and treasury operations. The bank's business segments include treasury, corporate and wholesale banking, retail banking and other banking operations.
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