KOCHI: Three major Kerala-based financial companies with 320 tonnes of gold worth over Rs 1.6 lakh crore. Muthoot Finance, Muthoot Fincorp and Manappuram Finance hold more gold reserves than the central banks of many smaller countries. Gold reserves of these companies have increased sharply from 190 tonnes to 320 tonnes in the last eight years. These companies have benefited from the surge in gold prices and rapid business expansion in the North Indian market.

Gold reserves held by leading non-banking financial institution Moothoot Finance crossed 200 tonnes in the period ended September 30, according to official figures. Manappuram Finance, another leading company, has 65 tonnes of gold reserves. According to unofficial figures, Muthoot Fincorp has around 55 tonnes of gold reserves.

These companies have a share of more than thirty percent of the total gold pawn trading market in the country. It is estimated that the leading banks of the state like Federal Bank, South Indian Bank, Dhanalakshmi Bank and CSB Bank have more than 120 tonnes of gold reserves.

Gains on boom in gold loans

Faster access to loans to customers without the hassle of formalities is giving excellent growth to gold pawnshops across the country. Currently, banks and other financial institutions are able to provide loans within half an hour by taking gold as a safe deposit. With more than 70 percent of the value of gold being given as a loan, consumers rely heavily on this sector for urgent needs.

More reserves than central banks

Financial companies in Kerala hold more gold than major countries like Indonesia, Czech Republic, Australia and South Africa.

Company-Total amount-gold reserve-value

Muthoot Finance-Rs 68,000 crore-200 tonnes -Rs 1 lakh crore

Manappuram Finance-Rs 20,600 crore-65 tonnes-Rs 33,000 crore

Muthoot Fincorp-Rs 20,000 crore-55 tonnes-Rs 30,000 crore

(unofficial)