Bank of Baroda launches gold coins

Public sector Bank of Baroda (BoB) today launched the sale of 24 karat gold coins in three denominations of 4, 5 and 8 grams.

Bank Executive Director S C Gupta said that in the centenary year of the bank, the initiative was a step towards doubling the non-interest income of BoB by 2010.

"We will offer the gold coins at the most competitive rates and also with the least possible margin for the bank."

The margin for the bank will be in the range of 4-6 per cent as compared with industry average of 6-8 per cent, he said.

BoB General Manager Retail Nandan Shrivastav said gold coins from the Volcambi refinery of Switzerland will have an assay certification of 99.99 per cent purity.

"In the first phase, we will launch the sale of coins from 141 point of sale branches covering 80 cities," he said, adding it will expand the sale to 250 branches shortly.

A two-per cent discount will be offered to bank customers while non-customers can avail the discount on bulk buying.

BoB's brand ambassador and former Indian cricket team captain Rahul Dravid launched the gold coins.