Piramal Finance surpasses Rs 50,000cr AUM in retail loans

Piramal Capital & Housing Finance Ltd (Piramal Finance), a premier diversified financial services company and a wholly owned subsidiary of Piramal Enterprises Limited (PEL), today announced a remarkable milestone, having surpassed INR 50,000 crore in assets under management (AUM) of retail loans. This achievement underscores the company’s robust growth trajectory and strategic expansion in the affordable lending space across India, particularly in underserved markets.

The growth in AUM is part of an ongoing expansion strategy that began with the acquisition of Dewan Housing Finance Corporation Limited (DHFL) in 2021, marking a significant milestone as the first successful resolution under the IBC route in the financial services sector. This acquisition, one of the largest in value terms within the industry, has notably enhanced Piramal Finance’s market presence.

Since the integration of DHFL, Piramal Finance has significantly increased its operational footprint, expanding its branch network from 300 to 490 branches across 26 states and Union Territories as of March 31, 2024. The customer base has grown to 4.1 million, with employee strength also rising from approximately 5,000 to over 13,000. The company now offers more than 13 loan products, including mortgages, which remain the dominant part of the portfolio, accounting for 68% of the overall retail AUM.

Jairam Sridharan, Managing Director of Piramal Capital & Housing Finance Ltd., expressed his enthusiasm about the company’s growth: “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. Our focus will continue to be on empowering MSMEs and small salaried individuals across Bharat, providing broader access to formal credit.”

Looking ahead, Piramal Finance is not only expanding its physical presence with plans to add 50-100 new branches by FY25 but is also enhancing its technological infrastructure. The company employs a ‘High Tech + High Touch’ strategy, incorporating advanced AI-enabled underwriting and customer service platforms, including a comprehensive mobile app and WhatsApp communication, to provide seamless customer experiences.

With the total AUM standing at INR 68,845 crore as of March 31, 2024, and the retail book accounting for 70% of it, Piramal Enterprises Limited is set to increase the proportion of retail lending to 75% of its loan book by FY28, aiming for an AUM of INR 1.5 lakh crore. This strategic focus aligns with the company’s goal to cement its position as a leader in the affordable housing finance sector.