The aggregate gold-loan book of Federal Bank, CSB Bank, South Indian Bank, Karur Vysya Bank and City Union Bank rose 91.2% to ₹1.40 lakh crore as of June 2026 from ₹73,248 crore in June 2023, disclosures by the lenders showed.
Growth accelerated sharply in the latest year. The five banks added ₹36,986 crore to their gold-loan portfolios between June 2025 and June 2026-more than the ₹30,162 crore collectively added during the preceding two years. Gold prices, which have come off record highs hit this January, have still more than doubled since the start of 2023.
Their combined book grew 35.8% in the latest 12-month period, compared with 17.9% in the year to June 2025 and 19.7% in the year to June 2024. The three-year expansion translates into a compound annual growth rate of about 24%.
Southern banks have traditionally enjoyed an advantage in gold-backed lending because of their dense regional branch networks, long-standing relationships with borrowers and experience in valuing and underwriting jewellery. Rising gold prices have reinforced this advantage by allowing customers to borrow more against the same quantity of pledged metal.
CSB Bank recorded the fastest growth among the five lenders, with its portfolio more than doubling to ₹21,906 crore from ₹10,065 crore over the three-year period. Gold loans now constitute about 54% of its gross advances, making it the most concentrated lender in the group.
“Gold loans were an outlier as last year’s rally in gold prices drove disbursements. This year, with prices largely stable, top-ups have been limited, while the rest of the business has followed normal seasonal trends,” Pralay Mondal, MD and CEO, CSB Bank said.
Federal Bank’s gold-loan portfolio nearly doubled to ₹41,476 crore from ₹20,927 crore, making it the largest gold lender among the five. Karur Vysya Bank’s book increased 85% to ₹31,368 crore, while South Indian Bank recorded a 72% rise to ₹24,930 crore.
“We are the largest bank in gold loans and we have achieved this by building the appraisal capability,” said KVS Manian, MD and CEO
City Union Bank’s portfolio grew 92% to ₹20,715 crore. Gold loans now constitute about 31% of its advances, compared with about 30% at KVB, 24% at South Indian Bank and 15% at Federal Bank.