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Informist, Friday, Feb. 6, 2026

 

--RBI Swaminathan: Gold loan rise not unexpected, aided by gold price spurt 
--RBI Malhotra: Reviewing gold loans across all portfolios 
--RBI Malhotra: We are very comfortable on gold loans 
--RBI Malhotra: Very comfortable on gold loans 

 

NEW DELHI – The Reserve Bank of India is comfortable with banks' current gold loan portfolios, with low slippage rates and good asset quality, Governor Sanjay Malhotra said Friday. "On the gold loans, we are very comfortable... we have been reviewing all the portfolios, whether it is gold loans, whether it is MSMEs (micro, small, and medium enterprises), or whether it is personal loans, all categories show good asset quality, low slippages, and no cause for any concern," Malhotra said. 

 

He said the loan-to-value ratios for gold loans are on the lower side, despite banks having a higher limit of up to 85%. "The LTV ratios for the gold loans are quite low, although we have a higher limit going up to even 85%, depending on the amount of loan, but the LTV (loan-to-value) ratios being maintained by the banks, as well as the NBFCs (non-banking financial companies), are on the lower side."

 

Banks are shifting towards safer assets due to higher slippages in unsecured segments, such as microfinance institutions and personal loan portfolios, leading to a pickup in collateralised loans, such as gold loans. Gold prices have also contributed to this shift. Importantly, the overall loan-to-value ratio remains comfortable at below 70%, Deputy Governor Swaminathan J. said. "We have even permitted slightly higher LTV (loan-to-value)... at the system level, it is below 70%," Swaminathan said. 

 

"So, there is absolutely no concern in terms of percentage, as the overall pie that it has in the bank credit. And second is that LTV (loan-to-value) levels are even comfortable at this point in time, so there is no worry," Swaminathan said.

 

Asked whether gold loan growth is driving credit growth, Swaminathan J. said, "Gold loan as a proportion of total lending is something we will have to see... and that increase is not something which is unexpected."

 

Loans to the agriculture sector have grown by 12%, and industry loans by 13%, while personal loans have grown slightly above 14%. So, no particular segment has contributed more or less, Swaminathan said.

End 

 

Reported by Vaishali Tyagi

Edited by Saji George Titus

 

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