Public sector lender, Indian Bank has decided to pump up its gold and jewellery loan business. The bank is thus going to set up 15 branches in the country to cater especially this segment of loans.

Gold and jewellery loans are quite common in India where people take loans by keeping their ornaments and jewellery as collateral. The loan amount depends on the weight of the ornaments and gold and the prevailing rate of the yellow metal in the market.

CMD of the bank, TM Bhasin said that this segment of loans for the bank currently amounts to $979.7 million. In order to gain better hold of the market and also to increase its penetration in the market, the bank has decided to set up exclusive branches in the country, said Bhasin.

Its vast branch network as well as government owned nature gives it an edge over private players in the field, added Bhasin.