Piramal Finance, the financial services arm of Piramal Enterprises Limited, announced on June 17 that it had surpassed the milestone of Rs 50,000 crore in Assets Under Management (AUM) of retail loans. Retail loans have grown 132 percent since March 2022.
Piramal Enterprises operates through its wholly-owned subsidiary, Piramal Capital & Housing Finance Ltd., under the collective customer brand Piramal Finance.
As per the statement, mortgages remain the dominant part of Piramal Finance's portfolio, accounting for 68 percent of the overall retail AUM, with a 38 percent year‐on‐year increase in FY24. The housing loan portfolio disbursed an average of Rs 800 crore per month in FY24, with an average ticket size of Rs 19 lakh.
Post the announcement, shares of holding company Piramal Enterprises rose 3 percent to Rs 910.95 apiece on BSE around 12:14 pm. The shares have gained 11 percent in last one month with a market capitalisation at Rs 20,400 crore.
Piramal Enterprises Limited aims for retail lending to constitute 75 percent of the loan book. As of 31 March 2024, the total AUM stands at Rs 68,845 crore, with the retail book accounting for 70 percent. The company said it envisions growing its AUM to Rs 1.5 lakh crore by FY28.
Over the last three years, Primal Finance has expanded its customer base as a leading Non‐Banking Financial Company‐Housing Finance Company (NBFC‐ HFC) in the affordable lending space.
In 2021, it acquired Dewan Housing Finance Corporation Limited (DHFL), which was the first successful resolution under the IBC route in the financial services sector. It remains among the largest resolutions in value terms in the industry.
Commenting on the achievement, Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance, said, “It is gratifying to see us regain our position as a leading financial services company in the affordable housing space. Our business will continue to be focused on MSMEs and small salaried individuals across Bharat, providing more people access to formal credit.”
Piramal Finance has 490 branches in 26 states/UTs as of 31 March 2024, and the customer base has grown to 4.1 million. The employee strength has also increased from ~5,000 to over 13,000 today.
Over the last three years, Primal Finance has expanded its customer base as a leading Non‐Banking Financial Company‐Housing Finance Company (NBFC‐ HFC) in the affordable lending space.
In 2021, it acquired Dewan Housing Finance Corporation Limited (DHFL), which was the first successful resolution under the IBC route in the financial services sector. It remains among the largest resolutions in value terms in the industry.
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