L&T Finance plans 500 new gold loan branches this fiscal

Synopsis

L&T Finance plans to open 500 new gold loan branches this financial year. This expansion aims to increase its network significantly and capitalize on sector growth. The company entered the gold loan market last year after acquiring Paul Merchants Finance. Gold loans are a key driver for L&T Finance's growth agenda.

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L&T Finance plans to open 500 gold loan branches this fiscal, expanding its network from 330 branches as it looks to tap the sector’s projected 30% annual growth.

Non-bank lender L&T Finance is planning to open 500 gold loan branches in this financial year, increasing its network from 330 branches as of March 31, to expand its footprint in the sector that is projected to grow at a compounded annual growth rate of 30% for the next two years.

The expansion follows the company’s entry into the gold loan market last year through the acquisition of the gold loan business of Chandigarh-based Paul Merchants Finance Private Ltd. L&T Finance paid Rs 537 crore for the all-cash deal, which helped it acquire a Rs 1,350 crore loan book, 130 branches and 700 employees.

“Gold loan serves as one of the key drivers of our growth agenda, as L&T Finance continues its transformation into a risk-first, tech-first, AI (artificial intelligence)-native retail financial institution,” chief operating officer Raju Dodti said in Kolkata.

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He said that while the lender aims to grow more than 20% at the enterprise level, its gold loan business is expected to increase over 50%, albeit on a low base.

Credit rating agency ICRA projected a more than 30% compound annual growth rate in organised gold loans by banks and non-bank financial companies during 2026-27 and 2027-28, surpassing Rs 30 lakh crore by March 2028 from Rs 18.5 lakh crore at the end of March this year.