Gold loans now make up more than half of IIFL Finance’s managed loan portfolio. Its September-quarter results show why a lender’s overall growth and bad-loan numbers need to be read alongside the businesses underneath them.
In results released on October 15, the non-bank lender reported consolidated assets under management, or AUM, of ₹1,24,268 crore at September 30, 2026, up 38% from a year earlier.
The Breakdown
Gold-loan AUM rose 90% year on year to ₹65,729 crore, taking its share to 52.9%. A year earlier, gold represented about 38.4% of group AUM, calculated from the company’s comparative figures. The expansion has therefore changed the portfolio’s composition as well as its size.
AUM includes lending assigned to or shared with partner lenders. It is broader than the loan book used for the company’s bad-loan reporting, so those ratios should not be multiplied by total AUM to estimate troubled loans.
Credit quality moves in different directions
The group’s gross non-performing asset ratio, or GNPA, eased to 1.48% from 1.55% in the June quarter. Within gold loans, however, GNPA rose to 0.90% from 0.61%. It remained below the group ratio, but moved in the opposite direction.
The group’s net bad-loan ratio, which accounts for provisions against bad loans, also increased: to 0.87% from 0.82% quarter on quarter. Meanwhile, the gross ratios for MSME lending and microfinance declined. MSME means micro, small and medium enterprises.
A blended ratio reflects both product-level loan performance and the relative size of each loan book. An improving group figure therefore cannot establish that every business improved. Equally, these movements alone do not establish a wider credit problem.
What the shift means
With gold accounting for a larger share of managed lending, its repayment performance matters more to the overall business mix. Management expects home loans and secured MSME lending to gain momentum as gold-loan growth moderates. That remains an outlook to track in subsequent quarters.
The Crunch
Gold has become a bigger part of IIFL’s business. The next test is whether growth broadens across products while the gold-loan and group net bad-loan ratios stabilise.