Corporation Bank, a Mangalore-headquartered bank is planning to test purity of gold pledged with it by borrowers with the help of caratometers at some of its branches. The bank is planning to take this initiative after considering increase in gold loan portfolio by almost 70% in FY13 to about Rs 4,000 crore. The caratometer is a scientific and non-destructive method of testing the purity of the precious metal.
As of December-end 2012, bank’s gold loan portfolio more than doubled to Rs 3,662 crore against Rs 1,585 crore as at December-end 2011. In the first nine months of the current financial year, the bank’s gold loan portfolio swelled 70%.
