India's top gold loan companies have achieved a historic milestone, collectively holding 334 tonnes of gold in FY26, according to The Economic Times. This represents the biggest annual increase in the past three years, with the combined holdings of Muthoot Finance, Manappuram Finance, and IIFL Finance rising by 20 tonnes. The size of their combined holdings compared with the RBI's gold reserves increased to 38% from 36% a year ago, as reported by ET Intelligence Group.
The three major gold loan companies now hold more gold than several major central banks worldwide, as reported by The Economic Times. Their combined holdings exceed the gold reserves of the United Kingdom at 310 tonnes, Brazil at 172 tonnes, and Singapore at 194 tonnes, according to data from the World Gold Council. Their holdings were nearly 46% of India's annual gold imports, with the country's gold imports falling by nearly 5% year-on-year to 721 tonnes in FY26, according to commerce ministry data.
The rise in gold holdings in FY26 was driven primarily by IIFL Finance, which added 19 tonnes of yellow metal during the year, according to The Economic Times. The company's gold loan business was severely impacted by regulatory action in FY25, with the RBI barring the company from issuing fresh gold loans for over six months starting March 2024. Following the lifting of restrictions, its gold holdings recovered to around 60 tonnes in FY26, broadly in line with levels seen in previous years.
Muthoot Finance, the largest player in gold financing, saw its gold holdings fall by seven tonnes or 3.2% year-on-year to 209 tonnes in FY26, as reported by The Economic Times. Antu Eapen Thomas, senior research analyst at Geojit Investments, attributed the fall to sharp increase in gold prices during the year, noting that "higher prices enable borrowers to secure the same loan amount by pledging a smaller quantity of gold." Manappuram Finance reported a record 63 tonnes of gold holding in FY26, up seven tonnes or 11.7% from the previous year, with the company stepping up gold loan financing after the microfinance sector started showing higher delinquencies.
At the end of March 2026, the RBI held 880.5 tonnes of gold, similar to the year-ago level of 879.6 tonnes, according to The Economic Times. Of this, 680 tonnes were stored domestically, 197.7 tonnes with the Bank of England and the Bank for International Settlements (BIS), and 2.8 tonnes in gold deposits. This compares to the combined holdings of the three major gold loan companies, which have now surpassed several major central banks in terms of gold reserves.
