Kolkata, August 18, 2026: L&T Finance Ltd plans to significantly expand its gold-loan business in West Bengal, with 26 more locations expected to be added by March 2027 as the company looks to strengthen its presence in one of the country’s large gold-credit markets.
The company currently has 28 locations in West Bengal, including four in Kolkata, and plans to add another 26 locations in the state by March 2027, of which four are expected to be in Kolkata, Raju Dodti, Whole-time Director and Chief Operating Officer, L&T Finance, said.
The lender launched new campaigns to promote its gold loan product.
Expansion Across Eastern India
The expansion is part of L&T Finance’s broader strategy to scale up its gold-loan network, with the company targeting around 100 new branches across eastern India. It has set a target of adding about 500 branches during the current financial year, taking its total network to around 843 branches.
L&T Finance had no gold-loan branches or portfolio in West Bengal a year ago. Its gold-loan outstanding in the state has now risen to around Rs 165 crore.
The gold-loan market in West Bengal is estimated at around Rs 47,000 crore, while its market share in West Bengal stands at 2.2 per cent, according to CRIF data, giving lenders significant headroom for expansion.
The average gold-loan ticket size at L&T Finance is around Rs 2.6 lakh per customer.
Gold-Loan Book At Rs 3,829 Crore
At the company level, its gold-loan book stood at Rs 3,829 crore in the first quarter of FY27. L&T Finance had acquired and integrated the gold-loan business of Paul Merchants Finance Ltd. in June 2025.
RBI Master Direction
Commenting on the Reserve Bank of India’s latest master direction on gold loans, the official said the consolidation of existing circulars into a single master direction would create a level playing field for lenders.
He said one of the key changes was the manner in which loan-to-value is calculated, with interest payable over the tenor of the loan being factored into the outstanding amount for the purpose of determining LTV.
According to Dodti, the change would bring greater transparency and certainty for borrowers while providing lenders with an additional buffer for recovery.
“Lenders are not interested in selling the gold. L&T Finance certainly is not interested. Whenever the gold has to be sold, that will be our last resort to recover,” he said.
He added that the new framework would also allow the regulator to assess finance companies on the same parameters.
Gold-Loan Business Sees Dip
Dodti said the industry had witnessed a dip in gold-loan business in the last quarter as lenders took time to incorporate the regulatory changes into their technology platforms and branch-level processes.
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“People took time to calibrate that into their technology platforms,” he said, adding that lenders had to modify systems used for gold assessment, maximum loan calculations and amortisation schedules.
The company expects the regulatory clarity, coupled with its branch expansion, to support the next phase of growth in its gold-loan business.
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