With the acquisition of debt-ridden DHFL, Piramal Group has embarked on a growth trajectory and aims to disburse about Rs 3,500 crore in the third quarter of the current financial year.
Sharing the growth strategy with shareholders at the Annual General Meeting on Friday, Piramal Group Chairman Ajay Piramal said that the financial services arm plans to further expand the branch network by adding 100 branches in FY13.
Piramal Finance is looking to expand its product suite by launching new differentiated high-yield products and new partnerships with fintech and consumer tech firms to acquire customers on a larger scale and at lower acquisition costs.
“With all these initiatives, we are on track to achieve retail loan disbursement of Rs 2,500-3,500 crore in Q3FY23, which is 5-7 times the pre-merger levels.
“With a scalable, technology-driven lending platform, organic growth as well as significant firepower for acquisitions, 2.7x less debt/equity and considerable value-unlocking potential (i.e. investment in Shriram) of our financial services business, the Given this, we feel we are poised to become one of the largest, high quality NBFCs in the years to come,” Piramal said.
Gross non-performing assets (NPAs) declined to 3.4 per cent in March 2021 from 4.1 per cent during FY22.
Piramal Group had acquired Dewan Housing Finance Corporation Limited (DHFL) last year.
This was the first proposal under the Insolvency Bankruptcy Code (IBC) in the financial services sector.
On the life insurance business, Piramal said, “Through the DHFL acquisition, we have also acquired 50 per cent stake in Pramerica Life Insurance (JV with Prudential-US). The company’s strong balance sheet (solvency ratio 404) Percentage), we aim to accelerate the growth of this business in the coming years”.