Chennai: Cholamandalam Investment and Finance Company (Chola), the financial services arm of the Murugappa Group, has outlined an ambitious plan to double its assets under management (AUM) over the next three to five years. The non-banking financial company (NBFC) reported an AUM of Rs 2.4 lakh crore in FY26, reflecting a robust 21% growth from approximately Rs 2 lakh crore in FY25.
Growth Strategy and Portfolio Diversification
Arul Selvan D, President and CFO of Chola, stated that the company is targeting consistent annual growth of 20% to 23%. Between FY23 and FY26, Chola added about Rs 1.3 lakh crore to its AUM. The company offers eight distinct products, including vehicle finance, home loans, loan against property (LAP), and most recently, gold loans, which were launched last year. This diversified portfolio is central to Chola's growth strategy.
Gold Loan Portfolio Expansion
The gold loan portfolio stood at Rs 1,813 crore in FY26, accounting for approximately 1% of the total AUM. On a sequential basis, the portfolio surged by nearly 84% quarter-on-quarter from Rs 986 crore as of December 2025. Selvan attributed this sharp increase to rising gold prices in Q4 FY26, which allowed the same quantity of pledged gold to fetch higher loan values compared to earlier periods.
To further expand its gold loan business, Chola is adding 300 new branches dedicated to this segment. The company currently operates a network of 1,761 branches across India, including 119 exclusive gold loan branches. Additionally, Selvan mentioned that the company plans to open another 100-odd branches under the general category, initially focusing on vehicle finance, followed by LAP and home loans.
Outlook and Market Position
Chola's ambitious target reflects its confidence in sustained demand across its product lines, particularly in vehicle finance and secured lending. With a strong branch network and a focus on diversification, the NBFC is well-positioned to achieve its growth objectives in the competitive Indian financial services landscape.
