Mumbai, March 31 Piramal Finance's total assets under management have crossed Rs 1 lakh crore, and the non-bank lender is keen to acquire a microfinance institution to fuel the next stage of growth, a top official has said.
The company is aiming to increase its AUM to Rs 1.5 lakh crore by the end of March 2028, managing director and chief executive Jairam Sridharan said.
Currently, about 55 per cent of the AUM comes from home loans and property loans, he said, adding that this share will decrease by about 5 percentage points as the company diversifies lending into newer products.
Microlending and gold loans have been identified as the next areas of growth, he said, adding that the company has already started offering gold loans as per its target.
The company has been operating in the microfinance segment for the last 18 months, which have seen the sector grappling with a host of challenges, Sridharan said, adding that things are normalizing in the sector.
Amid reports of the company in talks to acquire MFI IIFL Samasta, Sridharan said Piramal is keen to expand its MFI book through acquisition, but it is not close to finalizing any particular deal at the moment.
"We are open to M&A (merger and acquisition), although we are not close to doing any particular deal or transaction right now. If there is a deal worth doing, we would certainly take a look at it," he said.
Given the geopolitical events and the challenges faced by the sector, there are favourable factors that will help a deal, Sridharan said, adding that one must not be too greedy in such aspects.
Branches, established processes, and the right people are the key factors that will push Piramal to make an acquisition in the MFI space.
The company will also be keen to look for an acquisition opportunity in the gold lending space, provided there is a small-sized business available, he added.
In the next three years, the company aims to increase the share of gold and MFI in the overall AUM to up to 10 per cent, he added.
So far, there has been no impact of the Middle East conflict on the business, and repayments are also continuing smoothly, he said, adding that the impact will need to be monitored in the next quarter.
Fiscal support, coupled with diligence by lenders, will help in ensuring that entities in sectors impacted as a result of the war get the necessary relief, he said.
The company will be proceeding cautiously with external commercial borrowings given the current environment, Sridharan said, adding that there will be specific pockets where it will explore foreign borrowings.
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.