Gold Loan AUM Growth Target: 25-30% for FY27
Management targets gold loan growth of 25-30% for full FY27, with Q1 already delivering ~12% sequential growth. Growth will be supported by 500 new branch openings, with 60% in South and Central India.
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Gold Loan Yield Steady State: ~18%
Management expects gold loan yield to stabilize around 18%, potentially moving +/- 25 basis points from current levels. Q1 improvement of ~60 bps was driven by pricing actions taken to align with peer group.
ROE Target: 15-18% in 3-Year Horizon
Management targets ROE of 15-18% and ROA of 3.5-4%, with expectation to reach ROE of ~18% in approximately 3 years as business mix stabilizes and operational efficiency improves.
500 New Gold Loan Branches in FY27
Following RBI removal of prior approval requirement for branch opening, management plans to add 500 gold loan branches. Approximately 60% in South and Central India, 25% in East (Bihar, West Bengal, Odisha), remainder elsewhere.
Standalone ROA target of 4.25-4.5%
Management expects to reach ROA of 4.25-4.5% as volume growth at branches continues, opex remains controlled, and non-gold credit costs decline in the second half of FY27.
Non-gold business growth to resume from Q1 FY27
MSME and vehicle loan businesses will see low to moderate growth until systems, processes, and controls are fully strengthened; formal growth to resume from Q1 FY27.
Full strategic roadmap and firm guidance from FY27
CEO explicitly committed to sharing a comprehensive strategic plan and specific financial guidance from next financial year (FY27) onwards.
Gold loan yields to stabilize at ~18%
Management expects gold loan portfolio yields to stabilize in the 18-18.15% range as pricing reaches parity with leading competitors, with transmission from onboarding to book being faster due to the digital gold loan app.