With the acquisition of debt-ridden DHFL, Piramal Group has set itself on a growth trajectory and is targeting a loan disbursement of around Rs 3,500 crore in the third quarter of this fiscal.
Sharing the growth strategy with shareholders at the annual general meeting on Friday, Piramal Group chairman Ajay Piramal said the financial services group plans to further expand its branch network by adding 100 branches a year Fiscal 23.
Piramal Finance is looking to expand its product suite by launching new, higher-performing differentiated products and new partnerships with fintech and consumer technology companies to acquire customers at scale and with low acquisition costs.
“With all these initiatives, we are on track to achieve retail loan disbursements of Rs 2,500-3,500 crore in 3Q13, which is 5-7 times the pre-merger levels.
“With a scalable and technology-driven lending platform, significant firepower for organic growth and acquisitions, given our low debt/equity of the financial services business at 2.7x and considerable potential to unleash value (ie investments in Shriram), we believe we are well poised to become one of the largest and highest quality NBFCs in the coming years,” Piramal said.
Gross non-performing assets (NPAs) 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 Code (IBC) in the financial services sector.
On the life insurance business, Piramal said, “Through the acquisition of DHFL, we also acquired a 50% stake in Pramerica Life Insurance (JV with Prudential-US). Given the strong balance sheet of the company (solvency ratio of 404%). , we intend to drive the growth of this business in the coming years.”