In spite of the fluctuating prices of the valuable commodity, gold loan originations rose in Q4FY26, according to a report by Crif High Mark, a credit information firm.
During the March quarter, auto loan originations decreased by 11.6% to ₹1.05 lakh crore, while two-wheeler loan originations by value saw a more pronounced decline of 22%, amounting to ₹29,800 crore.
Notably, after the GST rationalization, there was a notable increase in demand for the auto sector in Q3 FY26. Moreover, the festive season likely contributed to the heightened demand during that quarter.
From a portfolio viewpoint, auto loans increased by 3.4% in Q4 compared to the previous quarter, while two-wheeler loans rose by 2.7% sequentially.
Overall retail loans in the system grew by 16.6%, reaching ₹170 lakh crore in FY26, and the amount of stressed advances also declined in the last fiscal year, according to CIC data.
As of March 31, 2026, only 2.7% of retail loans across categories were overdue for between 31 and 180 days, down from 3.1% in the same period last year.
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The home loan portfolio at the system level saw growth of less than 10% in FY26, while gold loans surged by 50.4% during the fiscal year as lenders became more confident in extending credit against the commodity, driven by rising prices.
Despite worries about potential declines in gold loan asset quality due to some price fluctuations following the West Asia conflict, data indicated a decrease in the proportion of assets overdue for 31-180 days, recorded at 1.2% as of March compared to 2% in the same period last year.
