New Delhi, February 17: AU Small Finance Bank on Tuesday announced the launch of its dedicated gold loan branch network, marking a significant step in its broader nationwide expansion strategy in secured retail lending.
The move signals the bank’s intent to deepen its footprint in the gold loan segment through a focused, branch-led model.
First Exclusive Gold Loan Branches Open in Gujarat
The small finance bank has inaugurated its first two exclusive gold loan servicing branches in Jamnagar and Junagadh in Gujarat. These branches mark the beginning of a phased rollout designed to strengthen the bank’s presence in secured lending markets.The launch sets the foundation for a structured expansion of AU Small Finance Bank’s gold loan portfolio through dedicated infrastructure and targeted regional outreach.
Nine More Branches to Be Launched Before March 31, 2026
As part of the next phase, nine additional exclusive gold loan branches will be operational across Telangana, Tamil Nadu, Karnataka, and Maharashtra before March 31, 2026.This expansion is aimed at reinforcing the bank’s reach in key geographies known for strong demand in secured lending, particularly gold-backed loans.
Strengthening Secured Retail Portfolio
The national rollout reflects AU Small Finance Bank’s strategy to build a high-quality, risk-focused secured retail portfolio. The initiative is supported by dedicated branch infrastructure, enhanced regional presence, and a customer-centric approach to product delivery.By establishing exclusive gold loan branches, the bank is positioning itself to offer specialized services within a structured banking framework.
Branch-Led Gold Loan Format in a Traditionally NBFC-Dominated Segment
Traditionally, exclusive gold loan branches have largely been operated by specialized Non-Banking Financial Companies. With this initiative, AU Small Finance Bank introduces a branch-led, gold loan-only format within a regulated banking environment.The bank said the model is designed to deliver a faster and simpler experience for customers, supported by the transparency and governance standards of a regulated banking institution.
The launch of the gold loan branch network marks a strategic milestone in AU Small Finance Bank’s secured retail lending expansion, as it seeks to strengthen its presence in the competitive gold loan market through a dedicated and structured approach.
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