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Piramal Group to offer retail lending products via recent tie-ups

Piramal Group to offer retail lending products via recent tie-ups

The Piramal Group, a diversified conglomerate company, is reportedly set to deliver a range of retail lending products via partnerships to shift its business from offering wholesale loans.

Piramal Retail Finance will conduct all the retail lending businesses as well as enter segments like user car loans, digital personal finance, and secured lending to the small businesses. As per the statement made by Piramal Retail Finance’s Chief Executive Officer, Jairam Sridharan, the company is targeting to commence the two-wheeler financing & education loans over the next 12 months. It is further focusing on a loans-against-shares product and expanding the unsecured & multi-collateral lending products to serve the small businesses.

For the record, Piramal Retail Finance will offer the used car financing service via a partnership with Cars24. In addition, the company has collaborated with ZestMoney to ensure consumer durable financing. Another partnership deal with India Mortgage Guarantee Corporation will further help expand affordable housing. It is aiming to reach Rs.3,000 crore ($403 million) in the new loan originations over the next 12 months.

On 31st December 2020, the outstanding loan book of Piramal Group stood at Rs.46,370 crore ($6.2 billion), including the wholesale loans of Rs.41,060 crore ($5.5 billion), as per reliable sources. On the other hand, the non-performing assets and those that are classified as stage-3 under the Ind-AS accounting rules also stood at 3.7%.

Under the Insolvency and Bankruptcy Code, Piramal Group recently acquired Dewan Housing Finance Corp., which will play a major role in its efforts to develop a retail loan book. Following the completed acquisition, Dewan Housing will be merged with Piramal Capital and Housing Finance Ltd.

Mr. Sridharan further added that the retail lending business of Piramal Group is expected to account for 40% of its total portfolio after the transaction is completed. The segment may also eventually make up 2/3rd of the book with the introduction of new retail products and further reduce the wholesale loan exposure by selling down Dewan Housing’s loans, he added.

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Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for, spanning the verticals of business, finance, and technology.