Top gold loan companies expand bullion holdings to record levels in FY26

ET Intelligence Group: The combined gold holdings of three major listed gold loan companies including Muthoot Finance, Manappuram Finance, and IIFL Finance rose by 20 tonnes to a record 334 tonnes in FY26, marking the biggest annual increase in the past three years. The size of their combined holding compared with the RBI’s gold reserves increased to 38% from 36% a year ago. The three gold loan companies also held more gold than several major central banks in the world including the United Kingdom at 310 tonnes, Brazil at 172 tonnes, and Singapore at 194 tonnes, the data from World Gold Council showed.

Their holdings were nearly half or 46% of India’s annual gold imports. The country’s gold import fell by nearly 5% year-on-year to 721 tonnes in FY26, according to the commerce ministry data.

The rise in gold holdings in FY26 was driven by IIFL Finance, which added 19 tonnes of yellow metal during the year. The company’s gold loan business was hit by regulatory action in FY25. The RBI had barred the company from issuing fresh gold loans for over six months starting March 2024. Following the lifting of restrictions, its gold holdings recovered to around 60 tonnes in FY26, broadly in line with levels seen in previous years.

The gold holding of Muthoot Finance, the largest player in gold financing, fell by seven tonnes or 3.2% year-on-year to 209 tonnes in FY26. Antu Eapen Thomas, senior research analyst, Geojit Investments attributes the fall to sharp increase in gold prices during the year. “Higher prices enable borrowers to secure the same loan amount by pledging a smaller quantity of gold,” Eapen said.

The third listed gold loan company Manappuram Finance reported a record 63 tonnes of gold holding in FY26, up seven tonnes or 11.7% from the previous year. “Manappuram has stepped up gold loan financing, especially after the microfinance sector started showing higher delinquencies,” Eapen said.

At the end of March 2026, the RBI held 880.5 tonnes of gold, similar to the year-ago level of 879.6 tonnes. Of this, 680 tonnes were stored domestically, 197.7 tonnes with the Bank of England and the Bank for International Settlements (BIS), and 2.8 tonnes in gold deposits.