• OUTLOOK ARENA
  • VIEWS ON NEWS
  • JANUARY 31, 2000

State Bank announces new retail financial products

A leading financial daily has reported that The State Bank of India has plans to launch two financial products for retail investors – loans against mortgage of immovable property and gold metal loans.

Speaking to the press, Mr. A. K. Purwar, chief general manager SBI said that the bank would offer loans to retail customers against the mortgage of their properties for up to Rs 1,000,000. The loans have been structured in the same way as personal loans, the only difference being that of tenures - loans against the mortgage of property will be available for longer tenures.

The second product – gold metal loans are aimed at deploying the gold mobilised by the Bank through its gold deposit scheme. The metal collected through this scheme will be made available to the jewelers who will repay the loan in metal form.

The move will help more inflow of gold in the system providing increased liquidity to the immovable property market. The Bank will be able to put to use its gold stock, earning interest on the same. The jewelers in turn will get another legal source of supply of the metal. The increased supply of gold metal through this scheme and similar schemes (which are expected from other banks) will surely lead to a diminishing import value for the metal and a consequent decline in a the country’s foreign currency payment.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407