Capri Global targets 30 pc gold loan growth in FY27 despite Middle East tensions new RBI norms

Mumbai, Apr 9 (PTI) Capri Global Capital is targeting around 30 per cent growth in its gold loan portfolio in FY27 amid persist geopolitical tensions in the Middle East and the revised gold loan norms introduced by the Reserve Bank of India (RBI) from April 1, 2026, a top company official said on Thursday.
     "If gold loan prices reduce or increase, that also has an impact. So, overall basis we have said that earlier that we will continue to grow with the same kind of a pace of 30 per cent around," Rajesh Sharma, Managing Director of Capri Global Capital, told PTI.
     The company's gold loans AUMs have grown at a faster clip on a smaller base in the past. The gold loan AUM rose to Rs 12,799.2 crore in Q3FY26, up from Rs 10,406.5 crore in Q2FY26 and Rs 8,042.2 crore in FY25.
     Overall, the company reported consolidated AUM of Rs 30,406.5 crore in Q3FY26, compared with Rs 27,040.1 crore in Q2FY26 and Rs 22,860.2 crore in Q4FY25, indicating steady balance sheet expansion across business segments.
     The lender's customer base has also grown sharply, reaching 4,96,592 customers in Q2FY26, up from 89,980 customers in FY23.
     Sharma said structural factors continue to support long-term growth in gold loans, particularly the gradual migration of borrowers from informal lenders to regulated institutions.
     "The larger market still exists with small lenders and gold jewellers who also do lending. That is shifting from unorganised to organised, so this business will continue to grow," he said.
     He noted that only a small portion of India's household gold stock is monetised, leaving a significant headroom for expansion, especially after gold prices have nearly tripled over the past four years.
     According to him, tighter credit conditions in segments such as microfinance can also drive customers toward gold-backed borrowing during liquidity stress.
     Despite external risks and regulatory changes, the company does not expect moderate fluctuations in gold prices to materially alter its strategy.
     Meanwhile, the company launched a public issue of non-convertible debentures worth Rs 500 crore on Thursday, comprising a base issue of Rs 100 crore and a Rs 400 crore greenshoe option. The issue will open for subscription on April 15 and close on April 28.
     The company is offering a coupon rate between 8.8 per cent and 9.5 per cent across tenures ranging from 24 months to 120 months.

(This story has not been edited by THE WEEK and is auto-generated from PTI)