Business Desk – Aditya Birla Capital Gold Loan Entry: Aditya Birla Capital has announced its entry into Gold Loan Business. The NBFC unit of the company has informed about starting business in the gold loan segment. Along with this, a plan has also been announced to open 1,000 gold loan branches across the country in the next three years. After this news, buying by investors increased and the company's shares rose by more than 3%.
However, there was some profit booking from higher levels intra-day. The stock was currently trading at Rs 407.75 on BSE with a gain of 2.77%. During trading it rose 3.34% to Rs 410.
1,000 gold loan branches will open in three years
Aditya Birla Capital said in its exchange filing on August 20 that its NBFC unit has entered the gold loan business. The company plans to open 1,000 branches in the next three years.
According to the company, there are plans to open 200 to 300 branches in high-potential markets by March 2027. The company's Executive Director and CEO-NBFC Rakesh Singh said that strong structural growth is being seen in the gold loan segment in India. According to him, the company's entry into this segment is a natural extension of its Secured Lending Strategy.
Competition will increase in gold loan market
The entry of Aditya Birla Capital has come at a time when competition in the gold loan market is fiercer than ever. About four months before this, Poonawalla Fincorp had also announced its entry into the gold loan segment.
Currently, Muthoot Finance, Manappuram Finance and IIFL Finance are among the major players in this market. Apart from this, banks like Federal Bank, CSB Bank and South Indian Bank are also present in Gold Loan Business. In such a situation, competition in this segment is likely to increase further with the entry of Aditya Birla Capital and Poonawala Fincorp.
Growth of gold loan companies in June quarter
Strong annual growth was seen in Gold Loan AUM of major companies in the June quarter. Muthoot Finance's gold loan AUM grew by 44% YoY. Whereas Manappuram Finance's AUM increased by about 97%. IIFL Finance's gold loans increased by 114% during the same period. A growth of 33% was recorded in this segment of Federal Bank and 47% growth was recorded in CSB Bank.
How was the financial performance of Aditya Birla Capital?
Net Interest Income (NII) of Aditya Birla Capital increased by 27.9% year-on-year to Rs 2,377 crore in the June quarter. The company's net profit increased by 40% to Rs 1,175 crore. During this period, the total business loan of the company increased by 31% to Rs 95,099 crore. At the same time, the total Assets Under Management (AUM) of the company increased by 28% on annual basis to Rs 1.67 lakh crore.
How much return did the share give in one year?
Shares of Aditya Birla Capital were priced at Rs 273 on September 3, 2025, which was its one-year record low. After this, the stock gained momentum and in about 11 months it rose by 57.71% to reach the price of Rs 430.55 on August 3, 2026. This was its one-year record high level.
Today, after the news of entry in gold loan business, the stock rose. However, investors will now keep an eye on the branch expansion of the company's new business and gold loan AUM growth.