Piramal Finance Surpasses ₹50,000 Crore in Retail Loans

On June 18, 2024, Piramal Capital & Housing Finance Ltd, a major financial services company and a subsidiary of Piramal Enterprises Limited, announced that it had crossed the milestone of ₹50,000 crore in assets under management (AUM) for retail loans.

Piramal Finance operates under the Piramal Finance brand. It has developed a range of financial products to meet the diverse needs of people in India, especially those in underserved communities. Over the past three years, Piramal Finance has grown its customer base across India, establishing itself as a leading non-banking financial company specialising in affordable housing finance.

Diverse Lending Solutions

Piramal Finance has introduced various lending solutions tailored for budget-conscious customers in India, offering more than 13 types of loans, including home loans, business loans, personal loans, loans against securities (LAS), and used car loans. Home loans remain the most significant part of its portfolio, constituting 68% of its total retail assets under management (AUM). In FY 2024, the housing loan portfolio showed robust growth, with average monthly disbursals amounting to ₹800 crore and an average loan size of ₹19 lakh.

High Tech + High Touch Strategy and Expansion Plans

Piramal Finance employs a ‘High Tech + High Touch’ strategy. It operates 490 branches across 26 states, 625 districts, and 404 cities and towns, covering over 6,000 pin codes in metro-adjacent areas and Tier 1, 2, and 3 cities. It plans to add 50 to 100 more branches by FY 2025.

Piramal Enterprises Limited targets Retail Lending to make up 75% of its loan portfolio, with total assets under management (AUM) reaching ₹68,845 crore as of March 31, 2024, and aims to grow this figure to ₹1.5 lakh crore by FY 2028.

PEL’s Strategic Focus and Growth Targets

Since March 2022, retail loans have surged by 132%, highlighting robust growth in Piramal Finance’s lending activities. Mortgages, particularly in affordable housing, constitute 68% of the company’s assets under management (AUM), underscoring its significant focus in this sector.

The customer base has expanded substantially, reaching 4.1 million by March 2024 compared to 1.7 million in March 2022. Piramal Finance’s branch network has expanded, totalling 490 branches across 26 states, reinforcing its extensive presence and reach in the Indian market.

About Piramal Enterprises Ltd

Piramal Enterprises Ltd (PEL) is a prominent non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). It is involved in retail lending, wholesale lending, and fund-based platforms. PEL has approximately $10 billion in investments and assets and uses AI-driven technology to offer innovative financial solutions across different industries.

On June 18, 2024, Piramal Enterprises Ltd’s share price opened at ₹892.90 and closed at ₹899.00 on the NSE.

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