 "Piramal Enterprise")
Piramal Finance plans to double assets under management (AUM) of its retail lending business to Rs 1 trillion by 2027-28 (FY28) from over Rs 50,000 crore now with emphasis on enhancing presence in small towns.
The company is looking to grow total AUM to Rs 1.5 trillion by FY28 and aims to make retail lending 75 per cent of its loan book.
The total AUM stands at Rs 68,845 crore, with the retail book accounting for 70 per cent as of March 31, 2024, Piramal Enterprises (PEL) said in a statement.
PEL operates a financial services business through its wholly-owned subsidiary Piramal Capital & Housing Finance with customer brand Piramal Finance.
Jairam Sridharan, managing director (MD), Piramal Capital & Housing Finance, in a statement said there is massive business opportunity in small-town markets of ‘Bharat’.
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The company plans to expand its branch network with 50-100 more branches by FY25.
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While Piramal Finance has 13 loan offerings in home, business, personal and loan against securities (LAS), mortgages remain the dominant part of the portfolio. It accounts for 68 per cent of the retail AUM.
Mortgages grew 38 per cent year-on-year (Y-o-Y) in FY24.
The housing loan business saw an average disbursement of Rs 800 crore per month in FY24, with an average ticket size of Rs 19 lakh.
Since the acquisition of Dewan Housing Finance Corporation Limited (DHFL) in 2021, the goal has been to build on its strong customer franchise in smaller towns. After acquisition of DHFL, the branch network expanded from 300 to 490 as of March 31, 2024.
The non-banking financial company’s network spans over 26 states, 625 districts, and 404 cities and towns.
Its customer base stood at 4.1 million. Employee strength rose to 13,000 as of March 31, 2024, from 5,000 on the eve of the acquisition, the company added.
