AU Small Finance Bank Enters Gold Loan Branch Segment

AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first in over a decade to receive in-principle approval to transition into a Universal Bank, today announced the rollout of its exclusive Gold Loan branch network as part of a broader nationwide expansion in secured retail lending. The Bank is inaugurating its first two dedicated Gold Loan servicing branches in Jamnagar and Junagadh, Gujarat, marking the start of a phased expansion. 

Nine additional exclusive branches will be launched across Telangana, Tamil Nadu, Karnataka and Maharashtra before March 31, 2026, significantly strengthening AU SFB’s reach in key secured lending markets. This national rollout underlines AU SFB’s commitment to building a high-quality, risk-first secured retail portfolio, supported by dedicated infrastructure, deeper regional presence, and a customer-centric approach to product delivery.

Traditionally, exclusive gold loan branches have largely been the domain of specialized NBFCs. With this initiative, AU SFB becomes the progressive bank to introduce a branch-led, gold loan–only format, aimed at delivering a faster, simpler, and more customer-centric experience - backed by the strength, transparency, and governance of a regulated banking institution.

Why Jamnagar and Junagadh

Gold loans continue to be India’s fastest-growing secured retail credit product. According to an industry estimate, India’s gold loan portfolio outstanding touched around ₹15.6 lakh crore as of November 2025, registering a sharp ~41.9% year-on-year growth, significantly outpacing both consumption and overall retail loan growth. Gujarat has emerged as one of the fastest-growing gold loan markets among the top 10 states, recording ~67% year-on-year growth in portfolio outstanding, with Jamnagar and Junagadh standing out as high-potential centres driven by demand from self-employed individuals, small traders, and salaried customers. 

These exclusive branches are designed to offer specialized service, faster turnaround, and operational efficiency, meeting the growing need for quick, secure gold-backed credit for business and personal requirements. Unlike conventional bank branches, AU SFB’s gold loan branches will focus exclusively on loans against gold ornaments, enabling a streamlined and highly efficient service environment. 

Key features include:

• Exclusive focus on loans against gold ornaments

• Dedicated gold loan infrastructure and trained personnel

• Simplified, customer-friendly processes

• Secure handling and storage of gold collateral

• Robust compliance and risk frameworks aligned with AU SFB’s banking standards

Speaking on the initiative, Uttam Tibrewal, ED & Deputy CEO, AU Small Finance Bank, said,
“Gold loans are among the fastest-growing secured credit products in India, and customers today expect a service experience that is fast, secure and trustworthy. With our exclusive Gold Loan branches, AU SFB is stepping into a space traditionally dominated by NBFCs, but with the differentiated value of bank-grade compliance, governance and customer protection. Starting with Jamnagar and Junagadh, we are expanding quickly across multiple states to make gold-backed credit more accessible for households, traders and small businesses.”

This initiative aligns with AU SFB’s strategic focus on secured retail asset lending across Retail, Agri, and MSME segments. Gold loans play a critical role in providing quick access to credit while supporting asset quality and portfolio stability. The bank will continue to evaluate high-potential markets across Gujarat and other regions for the rollout of similar specialised formats.