Dhanlaxmi Bank forays into silver retailing biz

Private lender Dhanlaxmi Bank has entered the silver retailing business with the launch of its ‘Dhan’ silver bars.

The silver bars will be available in tamper-proof laminated pack in weights of 50 and 100 grams at branches across the country, the Kerala-based bank said in a release issued here today.

“The launch of Dhan silver bars has been prompted by the success of the bank’s gold retailing business. With this launch, we foresee further traction and aim to become one of the leading players in the bullion business in the next couple of years,” Dhanlaxmi Bank Head - Insurance, Gold & Silver, Mr Deepak Singh, said.

The launch of silver retailing marks the second phase of the bank’s foray in silver bullion business. In July 2011, the bank rolled out its wholesale initiative with the launch of 30-kg silver bars and silver grains.

“We see a lot of potential in metals as an asset class. With higher disposable income and high inflation, investment in metals such as silver and gold will allow investors to hedge and diversify their savings and investment portfolio,” Mr Singh added.

India is the largest importer of silver in the world.

According to Bombay Bullion Association estimates, imports of silver into India will exceed 4,000 tonnes in 2011. In 2010, India consumed about 2,800 tonnes of silver.