KOLKATA: L&T Finance is adding more branches to its gold rush.
The non-bank lender plans to open 500 new gold loan branches during the current financial year, significantly expanding its presence in a segment that is expected to grow rapidly over the next two years, according to an Economic Times report.
L&T Finance had 330 gold loan branches as of March 31 and plans to add the new locations as it looks to build scale in the business. The expansion follows its entry into the gold loan market last year through the acquisition of the gold loan business of Chandigarh-based Paul Merchants Finance.
The all-cash acquisition, valued at Rs 537 crore, gave L&T Finance a gold loan book of around Rs 1,350 crore, along with 130 branches and 700 employees.
Gold loans have emerged as an important part of L&T Finance’s growth strategy as the lender expands its retail financial services business. The company expects its gold loan business to grow by more than 50 per cent, although from a relatively small base.
At the overall enterprise level, L&T Finance is targeting growth of more than 20 per cent as it expands its retail lending operations.
The aggressive branch expansion comes as the organised gold loan market is expected to see strong growth. According to ICRA, gold loans offered by banks and non-bank financial companies are projected to grow at more than 30 per cent annually during FY27 and FY28.
The organised gold loan market is expected to cross Rs 30 lakh crore by March 2028, up from Rs 18.5 lakh crore at the end of March this year.
For L&T Finance, the branch rollout is part of a broader push to build its retail lending franchise through technology and artificial intelligence. The lender is positioning gold loans as a key growth engine while expanding its presence across India’s growing secured lending market.
With hundreds of new branches planned in a single financial year, L&T Finance is clearly looking to turn its recent entry into the gold loan business into a much larger lending franchise.