Capital Trust Ltd announced it has written off its unsecured loan portfolio to enhance financial stability. Simultaneously, the company is diversifying into the gold loan business, aiming to leverage growth opportunities in secured lending and strengthen its market position.
Capital Trust Ltd reported a strategic move to write off its unsecured loan portfolio, a step aimed at cleaning up its balance sheet and improving financial health. This proactive measure reflects the company’s commitment to managing risks and enhancing asset quality amid market uncertainties.
In parallel, Capital Trust has announced its entry into the gold loan business, signaling a fresh growth avenue in secured lending. The gold loan segment offers attractive potential due to rising demand for low-risk credit products backed by tangible assets.
This diversification aligns with Capital Trust’s broader strategy to expand its product offerings and enhance revenue streams, positioning the company for sustainable growth. The move also aims to cater to evolving customer needs and strengthen competitive advantage in the lending sector.
Key highlights:
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Complete write-off of unsecured loan portfolio to improve asset quality
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Entry into gold loan business to diversify lending portfolio
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Strategic focus on secured lending with tangible asset backing
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Enhanced revenue prospects and risk management from new business line
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Commitment to sustainable growth through portfolio optimization
Capital Trust Ltd’s dual strategy underscores its resilience and adaptability in a competitive financial services landscape.
Sources: Reuters, Capital Trust Ltd official releases, Economic Times, Moneycontrol.