2 hours ago
Aditya Birla Capital’s non-banking finance company (NBFC) business has entered the gold loan segment, expanding its secured lending portfolio amid growing competition among large diversified lenders in the segment.
The company plans to open 200-300 dedicated gold loan branches by March 2027 across high-potential markets. Over the next three years, it aims to establish around 1,000 gold loan branches across the country.
The gold loan business will complement the company’s existing retail and micro, small and medium enterprise (MSME) lending franchise. The offering will cater to customers across urban and semi-urban markets through a combination of branch-led services and digital platforms.
“Gold loans are witnessing strong structural growth in India, and our entry into this segment is a natural extension of our secured lending strategy,” said Rakesh Singh, executive director and chief executive officer, NBFC, Aditya Birla Capital.
“We are building our Gold Loan business from the ground up, shaped by these principles, and a strong focus on governance, prudent risk management, operational excellence, and a customerfirst approach. As we expand our presence across India, we will leverage our extensive distribution network and digital capabilities to deliver a superior customer experience. We believe our combination of a trusted legacy and a thoughtfully built business will further strengthen Aditya Birla Capital’s position as a lender of choice in one of India’s fastest growing retail credit segments,” Singh added.
The company said the business will focus on governance, prudent risk management and customer service, while leveraging its existing distribution network and digital capabilities.
Aditya Birla Capital’s NBFC business had assets under management (AUM) of Rs 1.6 trillion in FY26, up 27 per cent year-on-year. Retail and SME loans accounted for around 68 per cent of its AUM. Disbursements rose 25 per cent to Rs 84,204 crore, while profit before tax increased 20 per cent to Rs 4,023 crore during the year.
The growth momentum continued in the first quarter of FY27, with AUM rising 28 per cent year-on-year to Rs 1.67 trillion. Disbursements increased 34 per cent to Rs 21,201 crore, while profit before tax grew 32 per cent to Rs 1,222 crore.
The entry comes at a time when large diversified NBFCs are increasing their focus on gold-backed lending. Recently, Tata Capital entered the gold loan business by acquiring an 88.6 per cent stake in Kerala-based Yogakshemam Loans, an RBI-registered gold loan NBFC.
Yogakshemam operates 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh and had assets under management of Rs 708 crore as of March 2026. The acquisition marked Tata Capital’s entry into the gold loan segment and will help it expand its secured retail lending franchise.
