Banks expand safe deposit lockers to keep gold

A huge demand for safe deposit lockers for gold, prompted by a spate of thefts in south Indian cities, is driving banks to increase storage in their branches.

With gold consumption continuing unabated despite an escalation in price, pressure is on banks to arrange lockers. "Nobody wants small lockers. Everyone wants medium or large lockers. Earlier, only corporate houses sought large lockers," said Gopal Gusain, the Chennai circle head of PNB.

He said the bank was expanding strong rooms to accommodate more cabinets. "We are doubling the space from 100 sq ft wherever possible. We are bringing in innovation in cabinet sizes too. Instead of a standard size, the cabinets are getting cutomised," he said.

Safe deposit lockers have always been in short supply. But incidents of thefts in the past months in Tamil Nadu and Kerala are forcing more people to opt for safe deposit lockers in banks. "On an average, over 30% of investors are seeking large lockers," said Roopa, a senior manager with Andhra Bank in Hyderabad.

Locker rent has not been raised much as banks have not considered it as a means of revenue. The annual rent ranges from Rs 800 to Rs 2,000 or more depending on the size. Although the storage is used to store documents, title deeds and other precious metals, gold ornaments are the main items that are kept in lockers, bankers say.

Source: EconomicTimes