L&T Finance Enters Gold Loan Market with Strategic PMFL Acquisition

L&T Finance Ltd. (LTF) has successfully completed the acquisition of Paul Merchants Finance Private Ltd.'s (PMFL) gold loan business. This strategic move positions LTF as a major player in the gold loan market, adding 130 branches, approximately 700 employees, and a loan book worth Rs. 1,350 Crore to its portfolio.

With a robust rural customer base of 1.6 crore and a workforce of 20,000, LTF plans to leverage its resources for an efficient cross-selling strategy, enhancing its range of secured loan products. The acquisition aligns with LTF's strategy to address portfolio gaps and diversify its financial offerings.

According to Sudipta Roy, MD & CEO of LTF, the acquisition not only fills a crucial gap but also strengthens LTF's portfolio, positioning it as a comprehensive financial partner across India. The seamless integration of the gold loan business supports LTF's ESG-focused growth ambitions under its strategic Lakshya 2026 plan.

(With inputs from agencies.)