L&T Finance Ltd. (LTF) has announced the completion of its acquisition of the gold loan business of Paul Merchants Finance Private Limited (PMFL), a wholly owned subsidiary of Paul Merchants.
The transaction, which was structured as a slump sale on a going-concern basis, includes the transfer of PMFL’s 130 branches, approximately 700 employees, and a gold loan book size of Rs. 1,350 crores to LTF.
The acquisition, first announced in February this year, marks LTF’s formal entry into the gold loan segment, further diversifying its secured loan portfolio. With this addition, LTF aims to leverage its existing rural customer base of approximately 1.6 crore and its field workforce of 20,000 to actively cross-sell gold loans across rural and urban markets.
Sudipta Roy, Managing Director and CEO, L&T Finance Ltd., stated that the acquisition aligns with the company’s five-pillar strategy focused on enhancing customer acquisition through contiguous product expansion. He emphasised that gold loans represent a high-yield, secured product that complements the company’s existing offerings, helping position LTF as a holistic financial partner across India.
Roy added that the move supports the company’s philosophy of risk-calibrated inorganic growth by addressing a capability gap through a business that is easily integrable, culturally aligned, and available at an attractive valuation.
Sat Paul Bansal, Chairman and Managing Director of PMFL, expressed confidence in LTF’s ability to carry forward the legacy of a customer-centric and compliant gold loan business. He affirmed that the employees and customers transitioning to LTF will benefit from its leadership and extensive financial ecosystem.
Headquartered in Mumbai, L&T Finance Ltd., formerly L&T Finance Holdings Ltd., has been rated ‘AAA’ by four leading agencies and recognised for its environmental, social, and governance (ESG) performance.
Under its Lakshya 2026 plan, the company is focused on building a digitally enabled retail finance platform while promoting financial inclusion through initiatives like “Digital Sakhi.” With a customer base of around 2.6 crore, LTF continues to leverage data analytics to cross-sell and deepen its market presence.
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