Gold loans likely to recover in the second quarter, says CSB Bank

The gold loan portfolios of banks widened last year after the RBI allowed banks to offer 90% of the value of gold loans from 75%

After seeing a contraction in the gold loan portfolio during the first quarter of this financial year, Fairfax-backed CSB Bank said it expects the segment to be back to normalcy by the second quarter.

The contraction in gold business was seen during the quarter after CSB Bank posted a record 61 per cent increase in gold loan in 2020-21.

In 2019-20 also, the company's gold-loan business saw an increase of 28 per cent compared to the previous year.

“First quarter has been a bit challenging for the gold loan portfolio and growth has been negative. As the economy is recovering fast from the