L&T Finance Ltd (LTF) has completed the acquisition of Paul Merchants Finance Pvt Ltd’s (PMFL) gold loan business, marking a significant milestone in its growth journey. This strategic move not only signals L&T Finance’s entry into the competitive gold loan segment but also substantially broadens its secured lending portfolio, reinforcing its presence across both rural and urban markets.
The acquisition brings under L&T Finance’s umbrella a gold loan portfolio worth ₹1,350 crore, along with 130 branches and approximately 700 employees from PMFL. This integration is designed to enhance LTF’s ability to deliver high-yield, secured financial products to a broader customer base, aligning closely with the company’s long-term vision for expansion and diversification.
Sudipta Roy, Managing Director and CEO of L&T Finance, highlighted that the addition of the gold loan business fills an important gap in the company’s suite of offerings. He noted that gold loans are a secured, high-yield product that can benefit customers in both urban and rural settings, and that this acquisition fits seamlessly into LTF’s five-pillar strategy, which emphasises expanding customer acquisition and diversifying product lines.
With a robust rural franchise already serving 1.6 crore customers and a field force of 20,000 employees, L&T Finance is well-positioned to cross-sell gold loans across diverse geographies. The company’s leadership believes that the new business segment will serve as a catalyst for immediate lead generation and deeper customer engagement, leveraging its existing infrastructure and market reach.
Sat Paul Bansal, Chairman and Managing Director of Paul Merchants Finance, expressed confidence in L&T Finance’s ability to take the gold loan business to new heights. He remarked that the transition aligns well with LTF’s strategic direction and will provide both customers and employees with a strong platform for future growth.
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This acquisition is a cornerstone of L&T Finance’s “Lakshya 2026” roadmap, which aims to cement its reputation as a diversified, retail-focused lender. With a market capitalisation exceeding ₹47,000 crore, L&T Finance is positioning itself as a comprehensive financial partner for millions of customers nationwide.
