Tata Capital Limited (TCL) has announced it will acquire an 88.6% stake in Yogakshemam Loans Limited, a non-banking finance company (NBFC) based in Thrissur, Kerala. This deal is a major step for Tata Capital as it officially enters the gold loan business. By buying this stake, Tata Capital gets immediate access to a ready-made platform for gold loans, including a network of branches, a steady customer base, and a management team that knows the industry well.

Tata Capital is classified as an 'Upper Layer' NBFC (a large, strictly regulated finance company), while Yogakshemam is a 'Base Layer' NBFC (a smaller finance company). TCL will pay approximately ₹93 crore to subscribe to the equity shares. The final price paid to the current sellers will depend on the company’s net worth as of September 30, 2026. However, the agreement states that the total valuation of the target company cannot exceed ₹318 crore.

As of March 2026, Yogakshemam Loans managed assets worth ₹708 crore (AUM or total loans given out). The company has been active since 1991 and operates 162 branches across South Indian states, including Kerala, Karnataka, Tamil Nadu, and Andhra Pradesh. In the 2025-26 financial year, the company earned a revenue of ₹140.38 crore and reported a profit after tax of ₹14.21 crore.

The Managing Director and CEO of Tata Capital, Rajiv Sabharwal, stated that gold loans are a 'secured lending product' (a loan backed by an asset like gold). He noted that this acquisition helps the Tata Group build a more diversified franchise. By combining the Tata brand name and financial strength with Yogakshemam’s local expertise, the company aims to grow much faster in the retail lending space.

This move follows a recent trend of large Indian NBFCs expanding through acquisitions. Last year, L&T Finance made a similar move by taking over the gold loan business of Paul Merchants Finance. These big players are interested in gold loans because they are high-yield (bring in good interest) and low-risk since the bank holds physical gold as collateral.

For bank officers and aspirants, this news shows that the gold loan market is becoming very competitive. Large corporate houses are no longer leaving this business to local players or specialized gold loan NBFCs like Muthoot or Manappuram. Bankers should watch for more technology integration in gold loans, as Tata Capital plans to use its tech and risk management systems to scale the business across India.