Piramal Finance Aims to Double Retail AUM by FY28
FinTech BizNews Service
Mumbai, June 18, 2024: Piramal Capital & Housing Finance Ltd (herein referred to as Piramal Finance), a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), today announced that it had surpassed the milestone of INR 50,000 Crore in AUM of Retail Loans.
PEL operates through its wholly owned subsidiary, Piramal Capital & Housing Finance Ltd., under the collective customer brand Piramal Finance. Piramal Finance has built a multi-product retail business, offering products tailored to Bharat's diverse needs and financially empowering the country’s underserved segments. Over the last three years, Piramal Finance has expanded its customer base across Bharat, positioning itself as a leading Non-Banking Financial Company- Housing Finance Company (NBFC-HFC) in the affordable lending space.
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. It remains among the largest resolutions in value terms in the industry.
Since then, the businesses have been fully integrated and grown, with the branch network increasing from 300 to 490, spanning 26 states/UTs as of 31 March 2024, and the customer base increasing to 4.1 million. The employee strength has also increased from ~5,000 to over 13,000 today.
As a merged entity, Piramal Finance has launched multiple lending solutions for the budget Bharat customer, 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 INR 800 crore per month in FY24, with an average ticket size of INR 19 lakh.
Speaking about the milestone achievement, Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd., said, “We are delighted and humbled to have reached INR 50,000 crore in retail AUM. This scale demonstrates the massive business opportunity that exists in small-town Bharat markets. 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.”
Piramal Finance’s 'High Tech + High Touch' strategy is centered around a strong physical distribution - 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.
This is coupled with a High-Tech infrastructure that spans customer-facing assets like the website, mobile app, and WhatsApp. Tech is also deeply embedded in the company’s operations, enabling quick decision-making, AI-enabled underwriting and legal and technical processes, providing a seamless customer experience.
Piramal Enterprises Limited aims for Retail Lending to constitute 75% of the loan book. As of 31 March 2024, the total AUM stands at INR 68,845 crore, with the retail book accounting for 70%. PEL envisions growing its AUM to INR 1.5 lakh crore by FY28.
