Dedicated Gold Loan Format Signals Shift in Secured Retail Strategy at AU Small Finance Bank

Uttam Tibrewal, Executive Director and Deputy Chief Executive Officer, AU Small Finance Bank, India, says specialised branches will begin with Jamnagar and Junagadh, with nine more planned across four states by March 31, 2026

Ahmedabad, February 17, 2026: AU Small Finance Bank has initiated a dedicated Gold Loan branch format, beginning with two exclusive servicing branches in Jamnagar and Junagadh, Gujarat, as part of its secured retail lending strategy.
Nine additional exclusive branches are scheduled to become operational across Telangana, Tamil Nadu, Karnataka and Maharashtra before March 31, 2026.

The new format focuses solely on loans against gold ornaments. Unlike conventional bank branches that offer multiple retail products, these outlets are structured to handle gold backed lending through dedicated infrastructure, trained personnel and secure storage systems.
Industry estimates indicate that India’s gold loan portfolio outstanding reached approximately ₹15.6 lakh crore as of November 2025, recording year on year growth of about 41.9 percent. Gujarat has emerged as one of the fastest growing gold loan markets among major states, with portfolio growth of around 67 percent, with Jamnagar and Junagadh identified as high demand centres.

The branches are designed to provide simplified processes, secure collateral handling and compliance frameworks aligned with regulated banking standards.
Uttam Tibrewal, Executive Director and Deputy Chief Executive Officer, AU Small Finance Bank, India, said, “Gold loans continue to see strong demand across customer segments. With dedicated Gold Loan branches, we aim to deliver faster service supported by banking grade governance and compliance. Beginning with Jamnagar and Junagadh, we are expanding into key markets to make gold backed credit more accessible.”
The initiative aligns with the bank’s broader focus on secured retail assets across retail, agri and MSME segments. The bank stated that additional high potential markets will be evaluated for similar specialised branch formats.

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