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Piramal Finance Surpasses INR 50,000 Crore in Retail AUM Milestone

Piramal Capital & Housing Finance Ltd (Piramal Finance), a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), has announced surpassing the significant milestone of INR 50,000 Crore in Assets Under Management (AUM) of retail loans.

Operating through its wholly owned subsidiary, Piramal Finance has established a robust multi-product retail business, catering to the diverse needs of Bharat and empowering the country’s underserved segments financially. Over the past three years, Piramal Finance has expanded its presence across Bharat, emerging as a prominent Non-Banking Financial Company-Housing Finance Company (NBFC-HFC) in the affordable lending sector.

In 2021, Piramal Finance acquired Dewan Housing Finance Corporation Limited (DHFL), marking the first successful resolution under the IBC route in the financial services sector. This acquisition remains one of the largest in value terms within the industry.

Since the integration, Piramal Finance has significantly grown its operations, expanding its branch network from 300 to 490 locations across 26 states and union territories as of 31 March 2024. The customer base has surged to 4.1 million, and the employee strength has increased from approximately 5,000 to over 13,000.

As a merged entity, Piramal Finance has launched multiple lending solutions aimed at budget-conscious Bharat customers, offering over 13 loan products, including home, business, personal, loan against securities (LAS), and used car loans. Mortgages dominate the portfolio, accounting for 68% of the overall retail AUM, with a remarkable 38% year-on-year increase in FY24. The housing loan portfolio continues its strong growth, disbursing an average of INR 800 crore per month in FY24, with an average ticket size of INR 19 lakh.

Jairam Sridharan, Managing Director of Piramal Capital & Housing Finance Ltd., expressed his enthusiasm about the milestone achievement, stating, “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 built around a strong physical distribution network of 490 branches, covering 26 states, 625 districts, and 404 cities and towns, serving over 6,000 pin codes across metro-adjacent areas and Tier 1, 2, and 3 cities. The company plans to expand its branch network by adding 50-100 more branches by FY25.

Complementing this is a high-tech infrastructure featuring customer-facing assets like a website, mobile app, and WhatsApp. Technology is deeply embedded in the company’s operations, enabling quick decision-making, AI-enabled underwriting, and efficient legal and technical processes, all contributing to a seamless customer experience.

Piramal Enterprises Limited aims for retail lending to constitute 75% of its 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.

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