Aditya Birla Capital has officially launched its gold loan services, with plans to open 1,000 branches nationwide over the next three years. The expansion begins with 200 to 300 branches by March 2027. This move aims to grow the company's secured lending portfolio, supported by a 28% year-on-year rise in assets under management in the recent quarter.
Aditya Birla Capital has officially expanded its business into the gold loan market. The company announced the new venture on August 20, 2026, setting an ambitious target to establish 1,000 branches across India within the next three years. Following the announcement, shares of the company rose 2.46% to reach Rs 405.75 on the National Stock Exchange.
The company plans a phased rollout of this business. It aims to have between 200 and 300 dedicated gold loan branches operational by March 2027. This strategy is designed to strengthen the company’s presence in the secured lending sector, which involves giving loans against gold jewellery as collateral.
Rakesh Singh, Executive Director and CEO of the company’s non-banking financial business, stated that the entry into the gold loan segment is a logical step for the company. He highlighted that the expansion will focus on transparency and the safe custody of customer assets. The company intends to combine physical branch services with digital tools to ensure quick loan approval and disbursement.
This expansion comes at a time when the company’s non-banking financial division has shown strong financial results. In the first quarter of the 2027 fiscal year, the division reported a 28% increase in its assets under management, which reached Rs 1,67,456 crore. Additionally, its profit before tax grew by 32% to Rs 1,222 crore compared to the same period last year. These figures indicate that the company has a stable financial base as it enters this new product segment.
While this move diversifies the company's lending portfolio, there are business risks inherent in the gold loan industry that investors may consider. The business requires high operational expertise, particularly in the secure handling and physical storage of pledged gold. Furthermore, the company must ensure strict compliance with Reserve Bank of India (RBI) guidelines regarding valuation and lending practices. Another factor is the fluctuation of gold prices, which impacts the value of the collateral held by the lender, though standard industry practice involves maintaining a margin to mitigate this risk. Investors may track the company's success in scaling its branch network and its ability to maintain profit margins while managing these operational and regulatory requirements in the coming quarters.