L&T Finance has announced its entry into the gold loan segment with the acquisition of Paul Merchants Finance Pvt. Ltd.’s (PMFL) gold loan business. The company will pay ₹537 crore in an all-cash deal, with certain adjustments before the final closing. The transaction is expected to be completed by the second quarter of FY26, subject to regulatory approvals.
The acquisition consists of a network of 130 branches in full operations in Punjab, Haryana, Chandigarh, Delhi, Rajasthan, Madhya Pradesh, Gujarat, and Uttarakhand. L&T Finance will also inherit PMFL’s 24×7 security hub for offsite monitoring and approximately 700 workers.
L&T Finance CEO Sudipta Roy mentioned that the move is a part of its long-term high-yield secured lending and growth strategy. L&T Finance gold book will be accelerated 36 months with an addition of assets under management worth ₹1,000 crore and over 98,000 active customers through the acquisition.
Meanwhile, L&T Finance reported a Q3 FY25 net profit of ₹626.4 crore, down 2.1% sequentially from ₹640 crore. On a sequential basis, its profit reduced 10%. Net interest income (NII) rose 11.4% to ₹2,041 crore but failed to beat estimates at ₹2,120.8 crore.
The company’s asset quality weakened marginally, with gross NPA at 3.23%, an improvement over 3.19% in Q3, and 0.97% for net NPA. Net interest income increased 15.1% sequentially to Rs3,806.38 crore.
L&T Finance closed at ₹149 at NSE, down 1% compared to the last session. Nevertheless, its price rose 10% since January 2025.
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Source: Moneycontrol.
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