Piramal Capital and Housing Finance Ltd. is setting its sights on nearly doubling its retail asset under management (AUM) from ₹50,530 crore to ₹1 trillion over the next three years. The company also plans to expand into new retail lending segments like gold loans, microfinance loans, and co-branded credit cards, while maintaining a focus on affordable housing.
Key Growth Plans 🏦
- Retail AUM: Aim to hit ₹1 trillion by FY27 from the current ₹50,530 crore.
- New Products: Entering gold loans, microfinance, and co-branded cards alongside its core secured lending products (mainly around mortgages).
- Focus Areas: Housing loans, loans against property, business loans, and personal loans for salaried individuals.
Strategic Shift 🔄
CEO Jairam Sridharan emphasized that the company is scaling back its digital lending, which has seen early signs of stress, and instead focusing on branch-led businesses. Piramal Capital plans to grow the branch-led segments, which have shown greater resilience.
Wholesale Lending 🏗️
The company is reducing its legacy wholesale book, aiming to bring it down to below ₹7,000 crore by the end of FY25, from the current ₹13,000 crore. While large-ticket builder finance loans are winding down, Piramal remains interested in small-ticket developer finance, particularly for real estate projects.
Borrowing Strategy 💸
Piramal Capital is looking to tap into the dollar bond market, having already raised $300 million in its first USD-denominated bond issuance in July 2024. The company plans to raise ₹15,000-20,000 crore in the second half of FY25 and reduce its reliance on bank borrowings to below 50%, leveraging alternative funding through securitization and the domestic debt market.
With ambitious growth targets and expansion into new lending sectors, Piramal Capital is positioning itself for major retail AUM growth in the coming years.