Public sector, Allahabad Bank has started the sale of gold coins and bars through its select branches.

The bank has forayed into gold retail with a view to raise its fee-based income. With this launch, Allahabad Bank has become the first bank from the eastern region to offer such a service.

The gold coins offered by the banks are available in 4grams, 8grams and 10 grams where as the bars are available in 29 grams and 50 grams.

Allahabad Bank's Chairman and Managing Director, K R Kamath said that the bank will retail gold of 999.9 purity and Assay certified. "The gold coins will be Assay certified and will be competitively priced," he said.

The bank will import gold for this purpose. It has tied up with Produits Artistiques Metaux Precieux S.A. Geneva for the supply of gold.

The company also supplies coins and bars to 17 other banks in India.

Both coins and bars will be priced on the basis of daily quotes in the international bullion market exclusive of VAT and sales tax.

Until now the bank had been importing gold for only wholesale purposes.

Meanwhile Allahabad Bank has registered a year-on-year growth of 18% in deposits and advances during 2008-09. "The bank has achieved a total business of Rs 144,000 crore as on March 31, 2009," said Kamath.