L&T Finance has announced plans to add at least 500 dedicated gold loan branches annually over the next four to five years, taking its network to 2,500-3,000 branches nationwide by 2029. According to reports from The Economic Times, the company currently operates 343 active gold loan branches and expects to reach 800 branches by the end of the current financial year. The expansion builds on the company's acquisition of a gold finance business from a Chandigarh-based company in June 2025, which initially started with 130 branches and has since established 200-plus additional branches by March 2026. The company expects its gold finance book to grow over fifty percent annually, driven by increasing branch footprint and market opportunities.
The expansion will follow a systematic regional approach, with Gujarat expected to see around 50-60 new gold loan branches annually. As reported by The Economic Times, L&T Finance Whole-time Director and Chief Operating Officer Raju Dodti stated that out of the 500 annual branches, a minimum of 100 will be allocated to the West region, with Gujarat specifically targeted for 50-60 branches. The company plans to focus expansion in east, then west, then south, and then north regions, ensuring rapid deployment without strictly restricting expansion to one region before moving to another. Dodti emphasized that the exact state-wise allocation would depend on market dynamics, with the expansion covering all regions of the country.
L&T Finance's gold finance business has demonstrated exceptional growth, with the gold finance book standing at around ₹3,800 crore as of June 2026 against its total loan book of ₹1.29 lakh crore. According to company data reported by The Economic Times, the gold loan portfolio grew 182 per cent year-on-year to ₹3,829 crore in Q1 FY27 from ₹1,360 crore in Q1 FY26. The company expects its overall loan book to grow at 20-25 per cent annually, while gold finance could expand at more than 50 per cent annually, with Dodti specifically stating the company anticipates annualised growth rate upward of 50-60 per cent for gold finance specifically, driven by rapid branch expansion and increasing market opportunities.
The expansion is driven by significant untapped potential in India's formal credit market, with credit growth currently running at almost 19 per cent while real economic growth is around 7.8 per cent. As reported by The Economic Times, Dodti highlighted that India holds around 28,000 tonnes of household gold, of which only around 8 per cent is monetised, with the total gold loan market estimated at ₹20-21 lakh crore. The company's new campaign featuring cricketer Jasprit Bumrah aims to promote gold loans among individuals, micro-entrepreneurs and households, with a study in Ahmedabad showing 53 per cent of respondents expressed interest in taking a gold loan. According to the company's research, 23 per cent of respondents are looking at home improvements, 21 per cent each for starting a new business and buying a two-wheeler. The campaign is being rolled out across key markets in eight states and a Union Territory through around 150 L&T Finance branches.
