{"url":"https://newsforagent.com/news/2026-10-24/shriram-finance-gold-loan-expansion-profit","markdown_url":"https://newsforagent.com/news/2026-10-24/shriram-finance-gold-loan-expansion-profit.md","title":"Shriram Finance Keeps Gold Loan Push as Profit Jumps 59%","headline":"Shriram Finance Sticks With Gold Lending Expansion as Profit Rises 59.37% to Rs 3,677 Crore","description":"Shriram Finance will keep expanding gold lending even as stage 2 and 3 assets rise, with profit up 59.37% to Rs 3,677 crore and AUM guidance cut to 15-17%.","section":"Earnings & Results","published_at":"2026-10-24T06:26:02+00:00","modified_at":"2026-10-24T06:26:02+00:00","author":"News Desk","key_takeaways":["Shriram Finance said it will continue expanding gold lending despite rising stage 2 and stage 3 assets in the segment.","Profit after tax rose 59.37% to Rs 3,677 crore, and assets under management grew 16.96% to Rs 3,29,003 crore.","Management cut its AUM growth guidance to 15-17% from 18%, citing the West Asia war and a weak monsoon."],"companies":[{"name":"Shriram Finance","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0000tn1/shriram-finance","website":"https://www.shriramfinance.in"}],"source":{"publisher":"NDTV Profit","title":"Why Shriram Finance Wants To Double Down On Gold Loans Despite Repayment Red Flags","url":"https://www.ndtvprofit.com/markets/why-shriram-finance-wants-to-double-down-on-gold-loans-despite-repayment-red-flags-12228710"},"other_sources":[],"tags":["Earnings & Results","Shriram Finance"],"body_markdown":"[Shriram Finance](https://akta.pro/company-profiles/0000tn1/shriram-finance) said it will keep expanding its gold lending business even as stage 2 and stage 3 assets in the segment rise, with second-quarter profit after tax up 59.37% to Rs 3,677 crore. The company reported the position on its earnings call, NDTV Profit [reported](https://www.ndtvprofit.com/markets/why-shriram-finance-wants-to-double-down-on-gold-loans-despite-repayment-red-flags-12228710).\n\n## Shriram Finance Holds to Gold Book Target\n\nExecutive Vice Chairman Umesh Revankar said on the call that there was no change to the plan to expand gold lending. An analyst had cited the company's earlier target of doubling the gold book over three years, from about 2.5% to 5% of total assets. The gold book is about Rs 9,000 crore, according to the call.\n\nAbhishek Murarka of HSBC noted that stage 2 and stage 3 gold assets had risen sharply quarter-on-quarter for three quarters. Aditya Tiwari of Emkay Research pointed to instances of multiple borrowing against gold and said some banks had deliberately moderated gold loan growth.\n\nRevankar said the company sees no challenge as long as customers are identified carefully and gold is valued properly. He declined to speak for the industry, saying Shriram's portfolio is small, but called the opportunity very large.\n\nRevankar said the rise stems from the EMI and interest-servicing gold loans Shriram has introduced. Borrowers are used to bullet repayment, he said, and have not been servicing on time. Those opting for EMI or interest payments can get a larger loan, and the company is stepping up customer communication to normalise behaviour. Asked why delays were not arrested before reaching 90 days, he said Shriram can sell the gold, adding that it has no credit cost in gold loans.\n\nChief Executive Parag Sharma said gold disbursements were Rs 5,443 crore, against Rs 5,153 crore in the previous quarter. Loan-to-value on the book, including accrued interest, is around 72-73%, little changed from last quarter. Assets under management grew 16.96% to Rs 3,29,003 crore. Gross stage 3 was 4.65%, against 4.57% a year ago, while credit cost on assets rose to 2.03% from 1.68%.\n\nManagement has cut its AUM growth guidance to 15-17% from 18%, citing the West Asia war and a weak monsoon that ended at 87% of the long period average. Revankar said credit cost could run 30-40 basis points above the 2% guidance for a quarter or two, with Maharashtra, Karnataka and Telangana the hardest hit regions.\n\n## Shriram Finance's MUFG Stake and VinFast Tie-Up\n\nShriram Finance is a publicly listed Indian NBFC that lends to underserved rural, semi-urban and MSME borrowers, primarily through commercial-vehicle, two-wheeler, gold and small-business loans, according to akta.pro [company records](https://akta.pro/company-data). The same records show MUFG Bank completed the acquisition of a 20% stake in Shriram Finance in April 2026 for ₹39,618 crore, or US$4.4 billion, lifting capital adequacy from 20% to 34%. In June 2026, Shriram Finance signed a memorandum of understanding with VinFast India to provide tailored retail EV financing, including up to 100% on-road funding, across VinFast's product portfolio.\n\n## Earlier Shriram Finance Moves\n\nOn October 21, 2026, Shriram Finance said it would hold a group meeting with select investors in Mumbai on October 23, 2026, with senior management attending to discuss public domain disclosures, ScanX reported. On October 7, 2026, expert Daljeet Kohli said he sees a valuation opportunity in select NBFCs after an RBI rate hike, citing Shriram Finance as well-funded and resilient, Business Today reported. On October 3, 2026, Orange Retail Finance said it raised Rs 100 crore in debt via NCDs and added a Rs 100 crore co-lending partnership with Shriram, Indian Startup News reported.\n\n## Shriram Finance's Next Steps\n\nShriram Finance's group meeting with select investors in Mumbai is set for October 23, 2026, with senior management attending to discuss public domain disclosures, according to ScanX.\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}