L&T Finance Targets Massive Gold Loan Growth, Plans Branch Expansion
Business
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News18•20-01-2026, 18:06
L&T Finance Targets Massive Gold Loan Growth, Plans Branch Expansion
- •L&T Finance aims to significantly grow its gold loan portfolio from Rs. 1,700 crore (Dec 2025) to Rs. 4,500-5,000 crore by March 2027.
- •The company plans to expand its branch network from 130 in June to 330 by next March, with an additional 300-350 new branches next year.
- •Despite rising gold prices, L&T Finance maintains a loan-to-value (LTV) ratio below 70% to mitigate market fluctuation risks.
- •Credit costs have reduced from 3.8% to 2.83% and are targeted to drop further to 2-2.2% by Q4 FY2027, aided by an AI-powered credit engine for recovery.
- •L&T Finance reported a 17.9% net profit increase to Rs. 738.6 crore, with retail loans now comprising 98% of its total portfolio, indicating a shift to a full-fledged retail lender.
Why It Matters: L&T Finance is aggressively expanding its gold loan business with new branches and technology, targeting substantial growth.
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