Indian Bank to launch gold bullion trading

Chennai-based Indian Bank is planning to launch gold bullion trading. A proposal to this effect was recently cleared by the board of directors.

Speaking to Business Standard here, MS Sundara Rajan, chairman and managing director, Indian Bank, said the bank was now offering all financial services under one roof and trading in bullion would be one step forward in that direction. The bank would soon sign an agreement with an overseas supplier in this regard, he added.

The other banks that are into this business include Bank of India, Union Bank, Bank of Baroda, Oriental Bank of Commerce and Corporation Bank.

Initially, Indian Bank will offer this service in Coimbatore, Madurai, Mumbai, Delhi and Kolkata. It has set a target of Rs 10 crore, which would be accounted as other income through the new business.

Indian Bank’s other income during the half year ended September 30, 2008, increased 9 per cent to Rs 455 crore from Rs 417 crore.

According to market reports, domestic banks, which are into bullion trading, imported nearly 50 tonne of gold, the highest this year, between August and early September.