The company has a strong gold loan franchise in the south and wants to replicate it in the north, says MD Chakravarthi
The company has a strong gold loan franchise in the south and wants to replicate it in the north, says MD Chakravarthi
Sriram City Union Finance Ltd. (Shriram City) is targeting a gold loan book of ₹20,000 crore over five years, a top executive at the company said.
“Our gold loan book is ₹4,110 crore as of December 2021. Our goal is to grow the gold book to 15,000-20,000 crore over a five-year period,” MD and CEO YS Chakravarthi said in a statement.
Demand for gold loans has surged over the past two years, with Shriram City’s portfolio contributing 13% of assets under management through December 2021, up from 10% a year earlier, he said.
According to Mr. Chakravarthi, total gold loan disbursements increased to €4,610 billion in the nine months of FY22 from €4,140 billion year-on-year, indicating better trends in FY23.
Going forward, the company is targeting an average ticket size for gold loans in the £50,000 range, with a capped loan-to-value of 75%, leaving the margin of the cap requirement for additional margin at times of unfavorable gold price swings, he said.
He announced the launch of a gold lending product in 70 branches in seven northern states and said Shriram City has a strong gold lending business in the south and intends to replicate the success in the north.
