Kerala’s long-standing fascination with gold has once again come into the spotlight, this time with numbers that are nothing short of astonishing. New data reveals that the amount of gold held by major non-banking financial companies (NBFCs) headquartered in Kerala ranks 16th in the world, placing the state just behind Portugal in total gold holdings.
Even more striking is the fact that these NBFCs collectively hold more gold than the official reserves of major European countries such as the United Kingdom, Spain, and Austria.
Leading institutions—including Muthoot Finance (208 tonnes), Manappuram Finance (56.4 tonnes), Muthoot Fincorp (43.69 tonnes), KSFE (67.22 tonnes), and Indel Money (about 6 tonnes)—together possess around 381 tonnes of gold.
At today’s gold price of ₹90,800 per sovereign, this treasure trove is valued at over ₹4.32 lakh crore. To put it in perspective, this surpasses the gold reserves of:
- UK – 310 tonnes
- Spain – 282 tonnes
These vast holdings have accumulated over the years through gold ornaments pledged by customers seeking loans—a common financial practice in Kerala.
Why Gold Loans Are Booming in Kerala
Gold prices continue to soar, currently trading at ₹11,350 per gram, making gold one of the most stable financial assets during inflation. The Reserve Bank of India’s recent restrictions on unsecured loans have further boosted the demand for gold-backed loans, pushing more people toward NBFCs for quick and reliable credit access.
Additionally, a drop in the gold auction rate—from 2.5% to around 1%—suggests more responsible borrowing patterns among consumers.
Kerala, long known for its love affair with gold, is now emerging as an unexpected global hotspot for gold reserves—albeit through private institutions rather than government holdings.
