Ahmedabad, Feb 17: AU Small Finance Bank (AU SFB), India’s largest Small Finance Bank and the first in over a decade to receive in-principle approval to transition into a Universal Bank, has announced the launch of its exclusive Gold Loan branch network, beginning with Jamnagar and Junagadh in Gujarat. This marks the start of a nationwide expansion in secured retail lending, with nine additional branches planned across Telangana, Tamil Nadu, Karnataka, and Maharashtra by March 31, 2026.
The new branches are designed to provide a specialized, customer-centric experience for gold-backed lending, combining operational efficiency with bank-grade compliance, governance, and risk frameworks. Unlike conventional branches, these exclusive outlets will focus solely on loans against gold ornaments, offering dedicated infrastructure, trained personnel, and simplified processes to meet growing demand from self-employed individuals, small traders, and salaried customers.
“Gold loans are among India’s fastest-growing secured credit products, and customers today expect a service experience that is fast, secure, and trustworthy,” said Uttam Tibrewal, ED & Deputy CEO, AU Small Finance Bank. “With our exclusive Gold Loan branches, AU SFB is stepping into a space traditionally dominated by NBFCs, but with the differentiated value of a regulated banking institution. Starting with Jamnagar and Junagadh, we are expanding quickly across multiple states to make gold-backed credit more accessible for households, traders, and small businesses.”
Gujarat has emerged as one of India’s fastest-growing gold loan markets, with a ~67% year-on-year growth in portfolio outstanding. The new branches will cater to this rising demand, offering secure storage, quick loan disbursal, and end-to-end customer support.
This initiative strengthens AU SFB’s strategic focus on secured retail lending across Retail, Agri, and MSME segments, providing households and businesses with reliable access to credit while maintaining portfolio stability and asset quality.