Shriram Finance is eyeing expansion of its gold loan portfolio: Vice Chairman

Umesh Revankar, Executive Vice Chairman, Shriram Finance

“While we will not be launching any new products, we will look to expand our reach with existing products. Especially in the gold loan space, we will increase our business to expand our gold portfolio. We do have plans to launch gold loan branches,” Revankar said.

“It is required that gold loan branches be located in residential areas, so our efforts will be to ensure that existing branches in residential areas can offer gold loans. And perhaps we can have a few gold loan-specific incremental branches,” he said. The non-banking finance company’s (NBFC) total assets under management (AUM) grew 16 per cent year-on-year (yoy) to ₹2.81 lakh crore in the second quarter. Commercial vehicles account for 46 percent of total assets under management, passenger cars 21 percent, while gold loans account for 2 percent of assets under management.

Push by GST 2.0

Revankar said that in anticipation of the GST rate cuts, customers postponed their purchases and the NBFC saw higher credit demand in the last week of September, especially in the two-wheeler and car segments.

“We have seen good demand in October. Our credit growth in the second half of FY26 will be better than the first half. Overall, our credit growth was around 16 percent in the first half, and our expectation is to grow 15 percent in the current fiscal. It remains the same, but we do expect higher growth, maybe 17-18 percent,” he said.

Revankar stated that shareholders had approved an increase in borrowing limit to ₹2.95 lakh crore, and additional limits on outstanding securitization to ₹75,000 crore, at the company’s last AGM. The NBFC will consider raising funds at an opportune time and believes that bank loans would be cheaper in the current scenario given the reduction in repo rate. The NBFC’s total outstanding loans stand at ₹2.34 lakh crore at the end of September.

Shriram Finance expects net interest margin to increase to 8.5 percent by the end of FY26 from 8.19 percent in the second quarter, and credit costs to remain below 2 percent in FY26. In addition, the company denied reports that MUFG was in advanced talks to acquire up to 20 percent stake in Shriram Finance.

Published on November 3, 2025