Kerala‘s Gold Reserves Outshine the United Kingdom’s, Driven by Thriving NBFC Sector
Kochi, India – Non-banking financial companies (NBFCs) based in the Indian state of Kerala collectively possess a gold reserve exceeding that of the United Kingdom, a striking testament to the region’s unique financial landscape and cultural relationship with gold. Currently, Kerala’s NBFCs hold a combined 381 tonnes of gold, surpassing the UK’s official reserves of 310 tonnes and also exceeding those of Spain (282 tonnes), Austria, and Portugal.
This remarkable accumulation places Kerala’s NBFC sector as the 16th largest gold holder globally, if considered as a national entity. The vast reserve has been quietly amassed over decades thru individual gold-backed loans,reflecting a deeply ingrained tradition of utilizing gold as a secure savings and credit mechanism.
The bulk of these holdings are concentrated within a handful of major players: Muthoot Finance (208 tonnes), Manappuram Finance (56.4 tonnes), muthoot FinCorp (43.69 tonnes),Kerala State Financial Enterprises (KSFE) (67.22 tonnes), and Indel Money (approximately 6 tonnes).
The current high price of gold translates this reserve into a value exceeding Rs 4.6 lakh crore.This figure underscores the critically important economic power wielded by these financial institutions and the importance of gold within Kerala’s economy.
“In tier-3, tier-4, and tier-5 cities, gold loans are the first preference for any immediate requirement – whether it’s putting a son through college, painting the house, or buying machinery for a workshop,” explains Umesh Mohanan, Executive Director and CEO of indel Money. He further notes that the recent surge in gold prices has only amplified the appeal of gold loans,increasing the rupee value available per gram and encouraging more individuals to leverage their gold assets.
The enduring popularity of gold in kerala extends beyond mere investment. It remains a potent symbol of status and a crucial financial lifeline for many families, solidifying the gold loan business as a culturally rooted and economically vital sector within the state.