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L&T Finance Plans 500 New Gold Loan Branches in FY27; Aims to Triple Portfolio Share by 2031

The planned rollout will expand the company's dedicated gold loan footprint from 330 branches as of March 31, 2026, to over 830 branches by the end of the current fiscal year, accelerating its transition into a dominant secured retail lender.

Banking1 min read

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500 NEW GOLD LOAN BRANCHES IN FY27.L&T Finance Limited

L&T Finance Limited has announced an aggressive physical expansion roadmap, committing to open 500 new gold loan branches in FY27.


Long-Term Strategic Roadmap (2031 Targets)

As part of its long-term growth objectives, L&T Finance has outlined a multi-year expansion framework:

  • Annual 500-Branch Additions: The company plans to add at least 500 new gold loan branches every year for the next five years (through 2031).
  • Portfolio Share Expansion: Management aims to increase the share of gold loans in its overall loan book from approximately 3% currently to over 10% by 2031.
  • Retail Transformation: Retail assets now account for 98% of L&T Finance’s total loan book, cementing the execution of its "Lakshya 2026" strategic roadmap.


Financial Performance & Growth Track Record

The expansion builds on rapid operational momentum following L&T Finance's acquisition of Paul Merchants Finance's gold loan portfolio in June 2025:

  • Triple-Digit AUM Growth: Gold loan Assets Under Management (AUM) reached ₹3,829 crore in Q1 FY27, marking a 182% year-on-year surge.
  • Margin & Risk Balance: Scaling high-yielding, fully collateralized gold loans provides strong Net Interest Margin (NIM) buffers while insulating the balance sheet from unsecured retail credit stress.

Why it matters

Industry & Market Outlook

The expansion capitalizes on strong structural demand in the organized gold loan market, which is projected by rating agencies to expand at a compound annual growth rate (CAGR) of over 30% through FY28.

In retail non-bank finance, physical branch density remains the primary operational moat for in-person gold appraisal, customer trust, and instant disbursement. Expanding physical access across Tier-2 and Tier-3 markets positions diversified NBFCs to capture significant market share in secured consumer lending.

Sources

Finsamudra Desk19 Aug 2026, 12:00 pm IST
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