Archive · 24 Jul 2026
Godrej Capital targets Rs 5K-cr gold loan AUM by 2031
Godrej Capital wants to grow its gold loan business to Rs 5,000 crore by 2031.
They recently bought a gold loan company called Kanakadurga Finance, which adds Rs 280 crore in loans, 12,000 customers, and 54 branches in Andhra Pradesh.
The company thinks gold loans are a good opportunity because more people are borrowing from formal lenders instead of informal sources.
They plan to expand this business in Maharashtra and Gujarat.
However, they are being careful about lending to sectors that might be affected by global problems.
Overall, their loan portfolio is doing well, with low risk.
Godrej Capital aims to reach Rs 5,000 crore in gold loan AUM by 2031.
Acquired Kanakadurga Finance's gold loan business, adding Rs 280 crore in AUM.
The acquisition includes 12,000 customers and 54 branches in Andhra Pradesh.
Plans to expand the gold loan business organically in Maharashtra and Gujarat.
The company is cautious about lending to sectors exposed to global uncertainties.
- Who
- Godrej Capital
- What
- Targeting Rs 5,000 crore gold loan AUM by 2031
- When
- Acquisition completed on Wednesday
- Where
- India, with focus on Andhra Pradesh, Maharashtra, and Gujarat
- Why
- To diversify lending business and grow overall AUM
Expansion Strategy
Cautious Lending Approach
Gold Loan Growth
Expansion Strategy
Godrej Capital sees significant potential in gold loans due to rising formalisation and consumer acceptance.
Cautious Lending Approach
The company remains cautious about lending to sectors exposed to global uncertainties.
- Target AUM for Gold Loans
- Rs 5,000 crore by 2031
- Current AUM
- Rs 30,000 crore
- Acquisition Details
- Acquired Kanakadurga Finance's gold loan business
- AUM from Acquisition
- Rs 280 crore
- Number of Customers
- Nearly 12,000
- Branches Acquired
- 54 branches across Andhra Pradesh
- Employees Acquired
- About 250 employees
- Expansion Plans
- Organic growth in Maharashtra and Gujarat