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“We have had a very strong start to the year,” Sridharan said, highlighting that consolidated growth was above 20%, while the company’s core business expanded nearly 35% in the first half. He added that growth continued into October, with festive season disbursements rising 45% year-on-year.
Piramal Enterprises, a diversified non-banking financial company (NBFC), was relisted on the stock exchanges on November 7 following its merger with wholly owned subsidiary Piramal Finance. The stock opened at ₹1,260 on the NSE — about 12% higher than its discovered price of ₹1,124.20. The relisting did not involve an initial public offering (IPO).
The lender’s total book now exceeds ₹85,000 crore, driven primarily by the retail segment, which has grown sharply from ₹5,000 crore four years ago. Sridharan said demand remains robust across affordable housing, loans against property, digital lending, and personal loans.
While some peers have reported margin pressures in the prime housing segment, Sridharan explained that Piramal Finance operates in semi-urban and middle India, catering to smaller borrowers with average loan yields between 11.7% and 11.9%. “We are not seeing the same competitive intensity problem,” he said.
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Margins have steadily improved, with net interest margins (NIMs) rising from 4.25% to nearly 6% over the past eight quarters. Sridharan expects margins to cross 7% within the next 12–18 months, supported by a better product mix and lower funding costs.
The company also plans to increase its unsecured lending portfolio from 17% to about 25% of total assets, which is expected to boost profitability. Piramal Finance currently delivers a return on assets under management (AUM) of 1.7%, with a medium-term goal of 2.5–3%.
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On asset quality, Sridharan said conditions have stabilised after a challenging 2024. “Last year that engine was in brake mode; this year it’s in neutral gear,” he said, noting that the unsecured segment remains stable.
Sridharan believes NBFCs are well-positioned to benefit from policy tailwinds. “The last couple of years have belonged to NBFCs,” he said, expressing confidence in sustained growth momentum for the sector.
For the entire interview, watch the accompanying video
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