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.