Aug 20 (Reuters) - Aditya Birla Capital (ADTB.NS), will enter India's gold loan market and plans to open about 1,000 dedicated branches over the next three years to expand its secured lending business, the financial services firm said on Thursday.
Elevated gold prices, supported by safe-haven demand linked to the Iran war, have increased the value of jewellery pledged as collateral, boosting growth prospects for India's gold loan industry.
Aditya Birla Capital's non-banking financial business plans to open 200 to 300 gold loan branches by March 2027 across high-potential markets, it said in a statement.
The business will serve urban and semi-urban customers through a combination of physical branches and digital platforms, including existing Aditya Birla Capital group customers, the company said.
Aditya Birla Capital's non-banking financial business provides secured and unsecured loans to retail, small-business and corporate customers.
The business will now compete with established gold loan lenders including Manappuram Finance (MNFL.NS), and Muthoot Finance (MUTT.NS), as it enters the market.
Reporting by Aleef Jahan in Bengaluru; Editing by Rashmi Aich
