Piramal Finance Targets Keertana for Expansion into Gold Loan Sector

Kolkata: Piramal Finance, a non-deposit taking non-bank lender, is exploring an acquisition opportunity in the gold loan market as part of its proposed foray into the segment. The company has approached Keertana Finserv, primarily a gold loan lender, with a buyout proposal, two people aware of the development said.

“We continuously evaluate opportunities that align with our strategy, but we do not comment on specific discussions,” a Piramal spokesperson said, responding to ET’s queries about the Hyderabad-based company.

Keertana is a lending start-up with over 90% of its portfolio in gold loans. Its portfolio currently stands at ₹3,250 crore, while it aims to reach a ₹4,200 crore gross loan portfolio by the end of FY26.

“We have no plan to sell out our company,” Keertana promoter-cum managing director Padmaja Reddy said. “We may only look for a minor stake dilution. We would anyway plan an initial public offer once we create a ₹5,000 crore portfolio.”

Reddy set up Keertana a year after being forced out from Spandana Sphoorty Financial, her first entrepreneurial venture. Keertana was founded in 2022 with a product suite of microfinance and gold loans. However, following the prolonged stress in the microfinance business, Keertana has decided to exit the microfinance market by the end of FY26 and focus on lending against jewellery, a fully secured loan product.

The company started running down the microfinance business ever since the asset quality crisis broke out. Its microfinance portfolio has shrunk to ₹194 crore from ₹706 crore as of September last year. It is learnt that Piramal had first given the proposal to acquire the company in the last quarter of FY25, but the proposal was then put on the backburner. Piramal renewed the offer very recently after Keertana consolidated its gold loan business, sources said.
Piramal Finance, with ₹91,500 crore of assets under management (AUM) at the end of September, has housing loans and loans against property as the primary focus, with about 55% combined share. The company was relisted on stock exchanges on November 7 after a reverse merger with its parent entity, Piramal Enterprises.

Its managing director Jairam Shridharan told ET a month ago that the company aims to launch gold loans by the end of FY26.

“Gold loans are a natural next step in our journey of serving credit needs of Bharat customers,” he had said.

Loans against gold ornaments, which require specialised expertise and risk strategies, are the latest buzzword in India’s financial space as the demand for it skyrocketed with rise in prices.

Higher prices translate into higher loan value for the same amount of gold, making it a sought-after product for farmers, traders and individuals.