L&T Finance targets 500 new gold-loan branches a year, eyes 3,000-store network
L&T Finance plans to add at least 500 dedicated gold-loan branches annually over the next four to five years, targeting a 2,500-3,000 outlet network. It aims to reach 800 branches by the current fiscal year-end, with Gujarat set for 50-60 additions each year.
What happened
L&T Finance will add at least 500 dedicated gold-loan branches yearly over four to five years, targeting 2,500-3,000 outlets nationwide. It expects 800 branches
Key facts
- At least 500 dedicated gold-loan branches to be added annually
- Network targeted at 2,500-3,000 branches over four to five years
- 343 active gold-loan branches currently
- 800 branches targeted by the end of the current financial year
- 130 branches acquired in June 2025
- More than 200 branches added by March 2026
- Gujarat to receive around 50-60 new branches annually
- At least 100 of 500 annual branches allocated to West India
- Gold-finance book of around Rs 3,800 crore as of June 2026
- Total loan book of Rs 1.29 lakh crore
- Gold-loan portfolio rose 182% year-on-year to Rs 3,829 crore in Q1 FY27
- Gold finance expected to grow 50-60% annually
- Campaign spans around 150 branches across eight states and one Union Territory
Why this matters
The aggressive branch buildout strengthens L&T Finance’s position in fragmented gold lending and may increase the strategic value of local partnerships, talent acquisitions and market-share consolidation opportunities.
What to watch
- Quarterly dedicated gold-loan branch additions versus the 500-per-year target and progress toward 800 branches by fiscal year-end.
- Gold-loan AUM growth, average ticket size, yields, branch-level productivity and cost-to-income trends.
- Gujarat opening pace relative to the stated 50-60 annual additions.
- Gold-price volatility, auction losses, loan-to-value ratios and delinquency/provisioning trends.
- Competitor branch expansion, rate promotions and digital gold-loan product launches by banks and NBFCs.
- RBI guidance or enforcement affecting gold collateral handling, auction practices, loan-to-value limits or NBFC conduct.
- Accelerate hiring and training of gold appraisers, branch managers, security staff and collections teams, particularly in Gujarat and other West Indian markets.
- Build regional vaulting, cash-management, auction and logistics capacity to support a much larger physical collateral network.
- Increase local-language marketing, jeweller referral partnerships and renewal campaigns to build borrower acquisition around new branches.
- Use the branch footprint to cross-sell MSME, personal and rural finance products, increasing customer lifetime value beyond gold loans.
- Prioritize cluster-based openings near competitors and high gold-ownership catchments rather than dispersed standalone locations.
- Invest in centralized gold valuation, fraud detection and digital renewal workflows to preserve underwriting consistency at scale.