L&T Finance Ltd plans to open 500 new gold-loan branches across India during the current financial year [1], [2].
The expansion signals a strategic shift to capitalize on the growing gold-loan sector. By increasing its physical footprint, the company intends to diversify its credit portfolio and capture a larger share of the secured lending market.
The gold-loan segment currently accounts for about 3% [3] of the company's total loan book. L&T Finance aims to grow this contribution to more than 10% within five years [3]. This growth strategy follows a strong start to the current fiscal cycle, with the company reporting a 29% increase [8] in net profit for the first quarter of FY27.
Net interest income also saw a 28% increase [8] during the same period. The company is leveraging an AI-led strategy to support this expansion drive [8].
West Bengal is a primary focus for this rollout. The company currently operates 28 gold-loan locations in the state [5] with a portfolio size of Rs 165 crore [6]. To build on this presence, L&T Finance plans to add 26 new locations in West Bengal by March 2027 [5].
This regional push is part of the broader goal to add 500 branches annually [2]. The company is positioning itself to compete more aggressively in a market where gold loans provide a lower-risk alternative to unsecured lending, given the collateral nature of the assets.
“L&T Finance Ltd plans to open 500 new gold-loan branches across India during the current financial year.”
L&T Finance is pivoting toward secured lending to stabilize its balance sheet and drive profit growth. By targeting a triple-digit increase in the gold-loan share of its loan book, the company is reducing its reliance on other credit products while expanding into high-demand regional markets like West Bengal. The integration of AI with a massive physical branch rollout suggests a hybrid approach to customer acquisition in the Indian financial services sector.
