+
Godrej Capital Targets Rs 5,000 Crore Gold Loan AUM By 2031
ECONOMY & POLICY

Godrej Capital Targets Rs 5,000 Crore Gold Loan AUM By 2031

Godrej Capital has set a target to build a Rs 5,000 crore gold loan portfolio by 2031 as part of a wider retail lending strategy. That target converts to Rs 50 billion (50 bn) and forms part of an ambition to expand total assets under management to Rs 1 lakh crore, equivalent to Rs 1 trillion (1 tn), over the next five years. The firm intends to pursue strategic acquisitions and organic expansion in key regions to accelerate retail credit growth.

The company completed its first strategic acquisition by buying the gold loan business of Kanakadurga Finance through its subsidiary Godrej Finance. The deal adds about Rs 280 crore of assets under management, roughly Rs 2.8 billion (2.8 bn), and brings nearly 12,000 customers, 54 branches in Andhra Pradesh and around 250 employees into the group. Management said the acquisition provides an experienced operational team and a platform to scale the product.

Godrej Capital currently manages about Rs 30,000 crore in assets, approximately Rs 300 billion (300 bn), and regards gold lending as one of the faster growing retail segments as borrowers move from informal sources to organised lenders. The company plans to expand the gold loan business organically into Maharashtra and Gujarat while leveraging lower borrowing costs and stronger capital access within the group. Executives view the segment as a short?term working capital option that complements the firm’s diversified lending mix.

The group has adopted a cautious stance on lending to sectors exposed to global uncertainties and has reduced fresh lending to tariff sensitive industries and to borrowers with lower credit scores and high leverage after stress in unsecured business loans last year. Despite the selective approach overall credit demand across focus segments remains healthy and the portfolio has shown resilience, with the cost of risk expected to stay below one per cent. The firm will continue to balance growth with selective underwriting and capital management to sustain asset quality.

Godrej Capital has set a target to build a Rs 5,000 crore gold loan portfolio by 2031 as part of a wider retail lending strategy. That target converts to Rs 50 billion (50 bn) and forms part of an ambition to expand total assets under management to Rs 1 lakh crore, equivalent to Rs 1 trillion (1 tn), over the next five years. The firm intends to pursue strategic acquisitions and organic expansion in key regions to accelerate retail credit growth. The company completed its first strategic acquisition by buying the gold loan business of Kanakadurga Finance through its subsidiary Godrej Finance. The deal adds about Rs 280 crore of assets under management, roughly Rs 2.8 billion (2.8 bn), and brings nearly 12,000 customers, 54 branches in Andhra Pradesh and around 250 employees into the group. Management said the acquisition provides an experienced operational team and a platform to scale the product. Godrej Capital currently manages about Rs 30,000 crore in assets, approximately Rs 300 billion (300 bn), and regards gold lending as one of the faster growing retail segments as borrowers move from informal sources to organised lenders. The company plans to expand the gold loan business organically into Maharashtra and Gujarat while leveraging lower borrowing costs and stronger capital access within the group. Executives view the segment as a short?term working capital option that complements the firm’s diversified lending mix. The group has adopted a cautious stance on lending to sectors exposed to global uncertainties and has reduced fresh lending to tariff sensitive industries and to borrowers with lower credit scores and high leverage after stress in unsecured business loans last year. Despite the selective approach overall credit demand across focus segments remains healthy and the portfolio has shown resilience, with the cost of risk expected to stay below one per cent. The firm will continue to balance growth with selective underwriting and capital management to sustain asset quality.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code