Banks’ gold jewellery loan to top Rs.1 lakh crore mark soon

Banks’ loans against gold jewellery (LAGJ) portfolio could cross the Rs. 1lakh crore mark in the next few months, going by the strong year-on-year (y-o-y) growth recorded by them as at June-end 2023.

As on June 30, 2023, banks’ LAGJ portfolio recorded a robust 26 per cent growth (vis-a-vis the July 1, 2022 outstanding) to Rs. 95,347 crore, per RBI data on sectoral deployment of bank credit.

As on July 1, 2022, growth of the aforementioned portfolio was muted at 1.4 per cent (vis-a-vis the July 2, 2021 outstanding) to Rs.75,659 crore.