L&T Finance Expands Gold-Loan Business In West Bengal

L&T Finance Ltd is set to significantly expand its gold-loan business in West Bengal, with plans to add 26 new locations by March 2027. The company currently has 28 locations in the state, including four in Kolkata, and aims to strengthen its presence in one of the country's largest gold-credit markets.

The expansion is part of L&T Finance's broader strategy to scale up its gold-loan network, with a target of adding around 100 new branches across eastern India. The company has set a goal 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, but its gold-loan outstanding in the state has now risen to around Rs 165 crore. The gold-loan market in West Bengal is estimated to be around Rs 47,000 crore, with L&T Finance's market share standing at 2.2 per cent, according to CRIF data.

The average gold-loan ticket size at L&T Finance is around Rs 2.6 lakh per customer. 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.

Raju Dodti, Whole-time Director and Chief Operating Officer, L&T Finance, commented on the Reserve Bank of India's latest master direction on gold loans, stating that the consolidation of existing circulars into a single master direction would create a level playing field for lenders. He noted that 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. He added that lenders are not interested in selling the gold, and that L&T Finance would only do so as a last resort to recover.

The gold-loan business had witnessed a dip in the last quarter as lenders took time to incorporate the regulatory changes into their technology platforms and branch-level processes. However, with the new framework in place, L&T Finance is poised to continue its expansion in the gold-loan market.

The expansion of L&T Finance's gold-loan business in West Bengal is significant, given the state's large gold-credit market. The company's plans to add new locations and branches will likely increase competition in the market, benefiting consumers. As the gold-loan market continues to grow, L&T Finance is well-positioned to capitalize on the opportunity and increase its market share.

In the broader context, the growth of the gold-loan market in India is driven by the increasing demand for credit from individuals and small businesses. The market is expected to continue growing, driven by the rising demand for gold loans from rural and semi-urban areas. L&T Finance's expansion plans are therefore well-timed, and the company is likely to benefit from the growing demand for gold loans.

Overall, L&T Finance's plans to expand its gold-loan business in West Bengal are a significant development in the Indian financial sector. The company's focus on increasing its presence in the gold-loan market is likely to benefit consumers and drive growth in the sector.

The expansion of L&T Finance's gold-loan business is also significant for the Indian economy, as it will provide more credit options for individuals and small businesses. The growth of the gold-loan market is expected to contribute to the overall growth of the Indian economy, and L&T Finance is well-positioned to play a key role in this growth.

In conclusion, L&T Finance's plans to expand its gold-loan business in West Bengal are a positive development for the Indian financial sector. The company's focus on increasing its presence in the gold-loan market is likely to benefit consumers and drive growth in the sector. As the gold-loan market continues to grow, L&T Finance is well-positioned to capitalize on the opportunity and increase its market share.

The significance of L&T Finance's expansion plans cannot be overstated. The company's plans to add new locations and branches will likely increase competition in the market, benefiting consumers. The growth of the gold-loan market is expected to contribute to the overall growth of the Indian economy, and L&T Finance is well-positioned to play a key role in this growth.

As the Indian economy continues to grow, the demand for credit from individuals and small businesses is likely to increase. L&T Finance's expansion plans are therefore well-timed, and the company is likely to benefit from the growing demand for gold loans. The company's focus on increasing its presence in the gold-loan market is likely to benefit consumers and drive growth in the sector.

In the end, L&T Finance's plans to expand its gold-loan business in West Bengal are a significant development in the Indian financial sector. The company's focus on increasing its presence in the gold-loan market is likely to benefit consumers and drive growth in the sector. As the gold-loan market continues to grow, L&T Finance is well-positioned to capitalize on the opportunity and increase its market share.