Godrej Capital Buys Kanakadurga Finance’s Gold Loan Book

July 23, 2026July 23, 2026

Godrej Capital made its first acquisition, buying Kanakadurga Finance’s gold loan business, worth around Rs 280 crore, across Andhra Pradesh.

The deal, announced on 22 July, hands the entire gold loan book to Godrej Finance, the group’s lending arm. The exact price hasn’t been disclosed.

What has been disclosed is the scale of what’s changing hands: nearly 12,000 customers and 54 branches spread across Andhra Pradesh.

So this isn’t a small toehold. It’s a working business with staff, branches and customers already in place.

Up to now, Godrej Capital has stuck to two lending lines, home loans and MSME loans. Gold loans are new territory for the group.

The company has talked about building a Rs 1 lakh crore AUM business and serving over a million customers by 2031, and gold-backed lending, being about as secured as lending gets, is an obvious way to bulk that up.

Around 250 people from Kanakadurga’s gold loan team are set to move across too, so Godrej Finance isn’t starting from zero in Andhra Pradesh.

Kanakadurga Finance said the sale frees it up to focus on its core vehicle finance business instead, which is where the company wants to put its energy now. Gold loans have had a strong run this year.

RBI data puts outstanding loans against gold jewellery at Rs 3.29 lakh crore as of May 2026, up almost 70% from a year earlier. Tata Capital made a nearly identical move just weeks back, buying a majority stake in Kerala’s Yogakshemam Loans.

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