Gold loan portfolio to surpass ₹1.5 trillion by FY27 end: Indian Bank MD

Public sector lender Indian Bank expects its gold loan book to cross Rs 1.5 lakh crore in the current financial year, supported by robust demand for the product.

"Gold loan is safe lending for banks...it is not a consumption loan, but mostly it is income-generating and also helps small businesses to grow.

Last year, we saw very significant growth of 30 per cent in the segment due to a jump in gold prices.

It will be slower this year as there is a 30 per cent decline in gold prices," Indian Bank MD and CEO Binod Kumar told PTI in an interaction.

This growth would come from tonnage, he said, adding that the gold loan segment is likely to grow about 20 per cent.

Currently, the gold loan portfolio is around Rs 1.25 lakh crore, and the book should exceed Rs 1.5 lakh crore during this financial year at the anticipated growth rate, he said.

Kumar further said that RAM (Retail, Agriculture, and MSME) constitutes 65 per cent of the overall loan book while the remaining 35 per cent is from .