Hyderabad, Feb 17 (TNT): AU Small Finance Bank (AU SFB) on Tuesday said it has launched its exclusive gold loan branch network, beginning with two dedicated outlets in Jamnagar and Junagadh in Gujarat, as part of a broader push to expand its secured retail lending portfolio.
In a release said, the bank said it will open nine more exclusive gold loan branches across Telangana, Tamil Nadu, Karnataka and Maharashtra by March 31, 2026.
The move marks AU SFB’s entry into a format largely dominated by specialised non-banking financial companies (NBFCs), with a branch-led, gold loan-only model aimed at scaling secured assets while maintaining tighter operational control and risk oversight.
India’s gold loan portfolio outstanding stood at around ₹15.6 lakh crore as of November 2025, registering an estimated 41.9% year-on-year growth, according to industry data.
Gujarat has emerged as one of the fastest-growing markets among the top 10 states, with portfolio growth of about 67% year-on-year. Jamnagar and Junagadh have been identified as high-demand centres, driven by credit needs of self-employed individuals, traders and salaried customers.
The dedicated branches will focus exclusively on loans against gold ornaments, supported by specialised infrastructure, trained personnel and secure storage systems.
The bank said the model is designed to deliver faster turnaround times and operational efficiency while adhering to banking-grade compliance and governance standards.
Uttam Tibrewal, ED and Deputy CEO, AU Small Finance Bank, said the expansion aligns with the lender’s strategy to strengthen its secured retail asset book across retail, agri and MSME segments.
He said gold loans represent one of the fastest-growing secured credit products and offer opportunities to deepen penetration in key regional markets.
TNT KS
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