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Coimbatore : Karur Vysya Bank (KVB) Wednesday announced the launch of its Precious Metal Business.

A deeply entrenched bank with the country’s businesses, KVB serves approximately 6,000 jewellers and jewellery manufacturers and in order to serve them fully, the bank now offers precious metals (Gold & Silver) to its corporate customers (B2B), Bank release said.

This will enable our customers to compete more effectively in this highly competitive industry, it said.

The gems and jewellery business in India contributes about 7 per cent of the GDP and 15 per cent of total merchandise exports.

India is the second largest consumer of gold in the world and demand for gold in the country stood at about 700 tons during 2019.

As the Gems and Jewellery business is an important part of India’s economy the bank is now in a position to enhance its support to this important industry, the release said.

As a trial base, the bank delivered its first shipment to clients in Chennai and Coimbatore recently.

It is now in the process of ramping up the business to fully extend support, to its existing set of customers across the nation.

It may be re-iterated that this new business has been launched after ensuring the highest quality risk management, the release said.