With the acquisition of debt-ridden DHFL, Piramal Group has set a growth trajectory and is targeting a loan disbursement of around Rs 3,500 crore in the third quarter of this financial year.
Sharing the growth strategy with shareholders at Friday’s annual general meeting, Piramal Group Chairman Ajay Piramal said the financial services arm plans to further expand the branch network by adding 100 branches over the course of of the 2023 financial year.
Piramal Finance seeks to expand its product line by launching new differentiated high yield products and new partnerships with fintech and consumer technology companies to acquire customers at scale and at low acquisition costs.
“With all these initiatives, we are on track to achieve retail loan disbursements of Rs 2,500-3,500 crore in the third quarter of FY23, which is 5-7 times the pre-merger levels. .
”With a scalable, technology-driven lending platform, significant firepower for organic growth as well as acquisitions, given our low financial services sector debt/equity at 2.7x and of considerable value unlocking potential (i.e. investments in Shriram), we believe we are well positioned to become one of the largest premium NBFCs in the years to come,” Piramal said.
Gross non-performing assets (NPA) declined in FY22 to 3.4% from 4.1% in March 2021.
Last year Piramal Group acquired Dewan Housing Finance Corporation Ltd (DHFL).
This was the first resolution under the Bankruptcy and Insolvency Code (IBC) in the financial services industry.
On the life insurance business side, Piramal said: “Through the acquisition of DHFL, we have also acquired a 50% stake in Pramerica Life Insurance (JV with Prudential-US). Given the strength of the balance sheet of the company (solvency ratio of 404%), we aim to boost the growth of this activity in the years to come”.
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