City Union Bank Limited CC-Apr26.pdf · 2026-04-27
See, thankfully, we had the experience of 2014 when you had a similar gold price crash, which gave us some sleepless nights, but ultimately we ended up in not missing much but about had to book a loss of about INR5 crores or something like that only, but we had to go through a painful process of auctioning and things like that. So, keeping all those things into account, when they say the gold price crossed beyond say INR12,000 and things like that, we did not increase the per gram rate beyond that. So, when it went to that INR15,000, INR16,000 and all , we had continued to give at the range of around INR10,000 per gram, or not, we had never crossed INR10,300 or something like that. So, we have sufficient cushion built into gold loans that were issued when the share price was at that level. As we had a higher margin when we gave that loan, so that is not giving us any concern at this point in time. And even if another like say 10 %, 15 % crash, which is unlikely , we will still be having this in addition to the RBI given LTV margins. W e have sufficient cushion at this point of time. So that is not a concern at this point in time.
Yes, not only us, almost the entire banking industry had that discipline, and there was no undue competition . So, when the price increase was too sharp, we all adopted a wait -and-watch policy, and I don't think any bank ever offered, say, a per-gram rate beyond INR11,000 and all. Even INR10,500 was something that was maximum even at the peak level of INR15,000, INR16,000, whatever that happened.