The company said it has planned a phase-wise rollout of 200 to 300 dedicated gold loan branches by March 2027 across high-potential markets. Over the next three years, it aims to establish a network of around 1,000 gold loan branches, it said.
The offering will cater to various customers across urban and semi-urban markets, serving existing customers within the Aditya Birla Capital ecosystem and expanding its reach to new platforms through an integrated distribution network of physical branches and digital platforms.
Rakesh Singh, executive director and CEO-NBFC, AB Capital said gold loans are witnessing strong structural growth in India and its entry into this segment is a natural extension of the company’s secured lending strategy.
“As we expand our presence across India, we will leverage our extensive distribution network and digital capabilities to deliver a superior customer experience,” he said.
Increasing Competition In The Gold Loan Market
Aditya Birla Capital’s move comes just four months after Poonawalla Fincorp also announced a foray in to this segment, targeting tier-2 and tier-3 cities.
The move further intensifies competition in the gold loan segment, which includes players like Muthoot and Manappuram Finance, along with IIFL Finance.
Not just gold loan players, there are private financial banks who are also part of this gold loan segment, including Federal Bank, CSB Bank, South Indian Bank among others.
During the quarter, Muthoot Finance’s Gold Loan AUM grew by 44% from last year, while Manappuram’s nearly doubled, rising 97%. IIFL Finance’s gold loans grew by 114% during the quarter. For Federal Bank and CSB Bank, the segments grew 33% and 47% year-on-year respectively.
For the June quarter, Aditya Birla Capital’s Net Interest Income (NII) had grown by 27.9% from last year to ₹2,377 crore, while its net profit grew by 40% to ₹1,175 crore from ₹839 crore last year.
Total business loans at the end of the quarter grew by 31% to ₹95,099 crore, while its overall Assets Under Management (AUM) grew by 28% to ₹1.67 lakh crore.
Asset quality also remained broadly stable on a sequential basis and improved from the same quarter last year.
Shares of AB Capital were trading 2.2% up at ₹404.7 apiece at 10 am on Thursday. The stock has gained 11.96% this year, so far.
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