New Delhi, September 27, 2024.
Organised gold loans (GL) by banks and non-banking financial companies (NBFCs) are set to exceed Rs 10,00,000 crore in the current financial year (FY2025) and hit the Rs 15,00,000 crore mark by March 2027, according to a report.
While banks remain dominant driven by their gold jewellery-backed agriculture loans, at the same time, NBFCs hold the pole position in retail gold loans and are expected to expand at 17-19 per cent in FY2025, rating firm ICRA said.
It said overall, organised gold loan business expanded at a compounded annual growth rate (CAGR) of 25 per cent over the period FY2020-FY2024, driven by banks, which expanded these loans at a higher CAGR of 26 per cent, while the NBFCs expanded theirs at 18 per cent during the same period.