Third largest non bank lender Tata Capital is targeting a gold loan portfolio of Rs 4,000-5,000 crore over the next three years and plans to expand its footprint to more than 500 branches following its proposed acquisition of Kerela based Yogakshemam Loans Ltd (Yogloans).
“We have also organically started the gold loan business. While we have applied to RBI seeking approval for acquisition of this entity, we expect to receive the approval towards the end of this calendar year. Over the next two and a half to three years, we expect to build a portfolio of approximately Rs 4,000-5,000 crore,” Managing Director & CEO Rajiv Sabharwal told ETBFSI.
Sabharwal stated that the company expects to build around 500 plus gold loan branches over the next two and a half to three years after receiving regulatory approval for the acquisition. While the acquired network provides Tata Capital with a strong southern India presence, the company also plans to expand into northern markets, though it has not yet disclosed the states it intends to enter. Its strategy, he said, is to first establish a strong ecosystem in select markets before expanding further.
The acquisition marks Tata Capital’s entry into the gold loan business, a secured lending segment where specialised NBFCs have historically dominated. According to the investor presentation, Tata Capital has agreed to acquire approximately 88.6 per cent of Yogloans through an all-cash transaction. The deal values the company at not more than Rs 318 crore pre-money and also includes a primary capital infusion of around Rs 93 crore for future growth, subject to regulatory approvals.
Yogloans currently has an assets under management (AUM) of Rs 708 crore, with nearly 85 per cent of the portfolio comprising gold loans. It operates through 162 branches across Kerala, Karnataka, Tamil Nadu and Andhra Pradesh, serves around 32,000 gold loan customers, and employs more than 990 people. Established in 1991 and headquartered in Kerala, the company has reported a 25 per cent CAGR in gold loan AUM between FY22 and FY26.
Sabharwal said the company had already begun building an organic gold loan business even before announcing the acquisition. He also stressed that Tata Capital would continue its conservative lending philosophy while scaling the portfolio.
“We are a conservative organisation. We try to understand each segment before we start growing it aggressively. Our strategy here will also remain the same. We will also watch out for the trends on gold price movements and keep all of that in mind,” he said, adding that technology would play a larger role in distribution and operations.
The non bank lender has said retail and SME lending together accounted for 85.4 per cent of its Rs 2.91 lakh crore consolidated AUM as of June 30, 2026, while nearly 99 per cent of its lending book has been built organically.
For the June quarter, Tata Capital reported a 22 per cent year-on-year increase in consolidated AUM to Rs 2.91 lakh crore, while profit after tax rose 56 per cent to Rs 1,547 crore. Annualised credit cost stood at 1 per cent, gross NPA improved to 1.9 per cent, and net NPA declined to 0.8 per cent.
