Primal Finance Surpassed 50,000 Crore in AUM 

Primal Finance surpassed 50,000 Crore in AUM, and Jairam Sridharan, the Managing Director, has also said that the company hopes to achieve 1.5 lakh crore by FY28.

by Damodharan N

Updated Jun 19, 2024

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Primal Finance Surpassed 50,000 Crore in AUM

Piramal Capital & Housing Finance Ltd (Piramal Finance), a leading financial services company and a subsidiary of Piramal Enterprises Limited (PEL), on June 18, 2024 has achieved a significant milestone by surpassing INR 50,000 Crore in retail loans. This marks a 132% growth in retail loans since March 2022.

Piramal Finance has focused on expanding its reach and serving the diverse financial needs of India's underserved segments. With a strong presence in affordable housing, 68% of its assets under management (AUM) come from mortgages. The company has successfully grown its customer base from 1.7 million in March 2022 to 4.1 million in March 2024.

The company operates 490 branches across 26 states, up from 300 branches in 2021, and employs over 13,000 people. Since acquiring Dewan Housing Finance Corporation Limited (DHFL) in 2021, Piramal Finance has integrated and expanded its services, now offering 13 loan products, including home loans, business loans, personal loans, and used car loans.

Jairam Sridharan, Managing Director of Piramal Finance, expressed his satisfaction with the company's growth, stating, "Reaching INR 50,000 crore in retail AUM demonstrates the vast business opportunities in small-town India. Our focus will remain on serving MSMEs and small salaried individuals, providing more people access to formal credit."

Piramal Finance plans to expand its branch network further, aiming to add 50-100 more branches by FY25. The company utilizes a "High Tech + High Touch" strategy, combining strong physical distribution with advanced technology to enhance customer experience and operational efficiency.

Piramal Enterprises Limited aims to increase its AUM to INR 1.5 lakh crore by FY28, with retail lending constituting 75% of the loan book. As of March 31, 2024, the total AUM stands at INR 68,845 crore, with retail loans accounting for 70%.

Read the full statement here.

About Primal Finance  

Piramal Capital & Housing Finance Ltd. (Piramal Finance) is a subsidiary of Piramal Enterprises Limited and a housing finance company registered with the National Housing Bank (NHB). It offers a range of financial services, including wholesale and retail funding.

In real estate, Piramal Finance provides various financing solutions, such as housing finance, private equity, structured debt, secured debt, construction finance, and lease rental discounting. It has also recently started financing hotels operated by well-known brands.

Beyond real estate, Piramal Finance caters to different sectors through its Corporate Finance Group (CFG) and Emerging Corporate Lending (ECL) divisions. CFG offers tailored funding solutions to companies in infrastructure, renewable energy, roads, industrials, and auto components sectors, while ECL focuses on lending to Small and Medium Enterprises (SMEs).

With its rich experience and extensive network in wholesale lending and construction, Piramal Finance has naturally expanded into retail lending. 

Primal Finance surpassed 50,000 Crore in AUM - FAQs

1. What milestone did Piramal Finance achieve in June 2024?   

Piramal Finance surpassed INR 50,000 Crore in retail loans.

2. What percentage of Piramal Finance's assets under management (AUM) come from mortgages?   

Piramal Finance's 68% assets under management (AUM) comes from mortgages.

3. How many branches does Piramal Finance have?   

Piramal Finance operates 490 branches across 26 states.

4. What is Piramal Finance's goal for AUM by FY28?   

Piramal Finance aims to achieve INR 1.5 lakh crore in AUM by FY28.

5. What new sector has Piramal Finance recently started financing?   

Piramal Finance has recently started financing hotels operated by well-known brands.

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