Piramal Capital & Housing Finance today announced that it has surpassed Rs 50,000 Crore in retail assets under management. The company said it aims to double its retail loan book by financial year 2028.
The non-bank lender aims for retail lending to constitute 75% of the loan book. As of 31 March 2024, the total AUM stood at Rs 68,845 crore, with the retail book accounting for 70%. The company plans to grow its assets under management to Rs 1.5 lakh crore by FY28.
It’s retail loans have grown 132% since March 2022, it said in a press release. 68% of its assets under management from mortgages are led by affordable housing. Its customer base has also grown to 4.1 million as of March 2024 from 1.7 million in March 2022.
“This scale demonstrates the massive business opportunity that exists in small-town Bharat markets,” said Jairam Sridharan, MD, Piramal Finance. “Since the acquisition of DHFL in 2021, our goal has been to build on its strong customer franchise in smaller towns. 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.”
PEL operates through its wholly owned subsidiary, Piramal Capital & Housing Finance Ltd., under the collective customer brand Piramal Finance.
In 2021, Piramal Finance acquired Dewan Housing Finance Corporation Limited (DHFL), which was the first successful resolution under the IBC route in the financial services sector.
Since then, the businesses have been fully integrated and grown, with the branch network increasing from 300 to 490, spanning 26 states and union territories as of 31 March 2024, and the customer base increasing to 4.1 million. The employee strength has also increased from nearly 5,000 to over 13,000 today.
As a merged entity, Piramal Finance has launched multiple lending solutions, offering over 13 loan products, including home, business, personal, loan against securities (LAS), and used car loans.
Mortgages remain the dominant part of the portfolio, accounting for 68% of the overall retail AUM, with a 38% year-on-year increase in FY24. The housing loan portfolio has continued its strong growth trajectory, disbursing an average of Rs 800 crore per month in FY24, with an average ticket size of Rs 19 lakh.
Piramal Finance’s strategy is centered around a strong physical distribution of 490 branches, spanning 26 states, 625 districts, and 404 cities and towns, serving over 6,000 pin codes of the country in metro-adjacent areas and Tier 1, 2, and 3 cities. The company plans to expand its branch network with 50-100 more branches by FY25.
