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Gold loan boom: Credit market poised for major expansion; NBFCs plan 3,000 new branches as demand jumps – The Times of India
India’s gold loan market is gearing up for strong expansion, with non-bank lenders preparing to open around 3,000 dedicated branches over the next year to meet rising demand. The market, which is largely led by public-sector banks, grew 36% year-on-year to Rs 14.5 lakh crore by the end of September.According to sector heads quoted by ET, this is the largest annual branch expansion undertaken by gold loan companies. Lenders are setting up exclusive gold-loan centres and adding the product to many existing branches to tap what they see as a fast-growing opportunity.George Alexander Muthoot, managing director of Muthoot Finance, was cited by ET as saying that demand for gold loans is increasing sharply, as borrowers struggling to secure unsecured microfinance loans are turning to secured lending against jewellery. Microfinance firms have become more selective due to heavy stress in their asset quality.Rising gold prices have also boosted loan ticket sizes, making the product particularly attractive to farmers and small traders seeking working capital. Rating agency ICRA has projected the organised market will reach Rs 15 lakh crore in FY26, a year ahead of earlier expectations.Shaji Varghese, CEO of Muthoot Fincorp, said that he expects the momentum to continue, noting that global central bank demand is driving gold prices, reported ET. His firm plans to open 200 branches by March. Major players such as Muthoot Finance, Muthoot Fincorp, IIFL Finance and Bajaj Finance together intend to add about 1,800 branches. Bajaj Finance alone aims to open 900 by March 2027, while IIFL Finance plans 500 by this fiscal year.New entrants are also expanding aggressively. L&T Finance, which entered the gold loan market in February after acquiring Paul Merchants Finance’s 130-branch business, plans to add 200 more outlets. Microfinance players such as Keertana Finserv and Uttrayan Financial Services are diversifying into gold loans to stabilise their portfolios. “We are scaling down our microfinance business,” Padmaja Reddy said, adding they will set up 175 gold-loan branches by FY26, ET reported.Setting up a gold loan branch requires significant security infrastructure, from strong rooms to vaults and cameras, costing between Rs 8 lakh and Rs 20 lakh. Such branches usually break even within 1.5–2 years.ICRA expects NBFC gold-loan assets under management to grow 30–35% in FY26, supported by high gold prices and slower growth in unsecured loan products. Public-sector banks remain dominant in the segment, with their gold loan portfolios growing at a CAGR of 27% in FY24 and FY25, compared with 22% for private banks.
A United Airlines plane approaches the runway at Denver International Airport on March 23, 2026.
Al Drago | Getty Images
United Airlines slashed its 2026 earnings outlook Tuesday as it grapples with a surge in jet fuel prices due to the Iran war, but CEO Scott Kirby said demand remains strong.
United said it could earn between $7 and $11 a share on an adjusted basis this year, down from its previous forecast of between $12 and $14 a share that it released in January, more than a month before the U.S. and Israel attacked Iran.
Wall Street had already been adjusting its expectations for the year because of higher fuel. Analysts polled by LSEG had forecast that United’s adjusted, full-year earnings would be $9.58 a share.
The carrier, like others, is trimming some of its planned flying this year to reduce costs. Lower capacity can drive up airfare, with fewer seats on the market.
For the second quarter, United forecast adjusted earnings of between $1 and $2 a share. Analysts had expected $2.08 a share for the quarter. United estimated its fuel price would average $4.30 a gallon in the second quarter.
The carrier said it expects its revenue to cover between 40% to 50% of the fuel price increase in the second quarter, as much as 80% in the third and between 85% and 100% by the end of the year.
United reiterated that it is tweaking its schedules to adjust to higher fuel, with capacity in the second half of the year expected to be flat to up about 2% on the year. It grew 3.4% in the first quarter.
Here is what United Airlines reported for the quarter that ended March 31 compared with what Wall Street was expecting, based on estimates compiled by LSEG:
- Earnings per share: $1.19 adjusted vs. $1.07 expected
- Revenue: $14.61 billion vs. $14.37 billion expected
Revenue, profit climb
Revenue overall rose more than 10%, to $14.61 billion, up from the $13.21 billion from a year before.
For the first quarter, United’s net income rose 80% to $699 million, or $2.14 cents a share, compared with net income of $387 million, or $1.16 cents a share, a year earlier. Adjusted for one-time items, United posted earnings per share of $1.19 a share.
Unit revenue was up in every reported segment, including for domestic U.S. flights, where it rose 7.9% to $7.9 billion from a year earlier, signaling strong pricing power in the quarter.
Jet fuel in the U.S. was going for $3.51 a gallon on Monday, down from the high on April 2 of $4.78, but far above the $2.39 on Feb. 27, the day before the first attacks on Iran, according to prices assessed by Platts.
Airline executives have said demand has remained robust even while they have increased fares and checked bag fees as they pass along higher fuel prices to customers.
“Bookings are strong,” Kirby told CNBC’s “Squawk Box” on Wednesday.
United and the rest of the industry have become more reliant on travelers who are willing to shell out more for flights and bigger seats, and who are less affected by price increases.
Alaska Airlines pulled its 2026 forecast on Monday because of higher fuel prices. It has raised fares about $25, CEO Ben Minicucci told analysts Tuesday.
Merger ambitions?
Kirby is likely to face questions on the company’s 10:30 a.m. ET earnings call on Wednesday about his ambitions for a merger with another airline.
Kirby floated a potential merger with American Airlines to a Trump administration official earlier this year, according to a person familiar with the matter, but President Donald Trump said he was against the idea.
“I don’t like having them merge,” he told CNBC’s “Squawk Box” on Tuesday morning. He said he would like someone to buy struggling discount carrier Spirit but he also suggested that the federal government could “help that one out.”
American also rejected the idea of a merger with United last week.
When asked about floating the merger, Kirby declined to confirm the meeting to CNBC’s “Squawk Box” on Wednesday but said: “We want to create a truly global airline.”
Kirby reiterated his view that the U.S. is at a deficit in international air travel as customers fly on international competitors, some of which are state owned.
NI Affairs Committee told even if conflict ends immediately it will take time for supply chains to return to normal.
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The president also said the US will continue to blockade Iran’s ports until peace talks progress.
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