Now Reading: Aditya Birla Capital to open 1,000 gold loan branches in 3 years
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Aditya Birla Capital to open 1,000 gold loan branches in 3 years
Aditya Birla Capital to open 1,000 gold loan branches in 3 years
Aditya Birla Capital has entered the gold loan business with a plan to open 1,000 branches in three years. It will start with up to 300 branches by the end of FY27…
Aditya Birla Capital has entered the gold loan business with a plan to open 1,000 branches in three years. It will start with up to 300 branches by the end of FY27 in high-potential markets, targeting both urban and semi-urban customers. The company will build its own network of physical branches and digital platforms rather than take the acquisition route.
Gold loans are seeing strong growth: NBFCs' outstanding credit against gold jewellery surged 69.3% year-on-year to Rs 3.42 lakh crore in June. Aditya Birla Capital's NBFC arm posted a 28% rise in AUM to Rs 167,456 crore in Q1 FY27. Rakesh Singh, executive director and CEO-NBFC, said the entry is a natural extension of the secured lending strategy.
Indian Opinion Analysis
The gold loan market is one of India's fastest-growing secured lending segments, driven by rising gold prices and high borrower repayment rates. NBFCs now hold Rs 3.42 lakh crore in gold-backed credit. Aditya Birla Capital's organic entry, building branches rather than buying a rival, signals confidence that demand will sustain even as more players crowd in. Watch the pace of branch openings over the next two quarters: if it hits 300 by March 2027, the full 1,000 target becomes credible.
One key risk: if gold prices correct sharply, loan-to-value ratios could trigger margin calls, slowing disbursements. But for now, structural factors, emotional attachment to pledged gold, limited alternatives for small borrowers, support continued growth.
Source: rediff.com
This story was synthesised by AI from the source linked above.
