Piramal Finance Eyes Growth Through MFI and Gold Loans

Piramal Finance plans to acquire a microfinance institution and expand into gold loans to boost its assets under management from Rs 1 lakh crore to Rs 1.5 lakh crore by March 2028. The company aims to diversify its lending portfolio due to current geopolitical challenges, maintaining diligence in acquisition strategy.

Piramal Finance has announced ambitious growth plans with its assets under management surpassing Rs 1 lakh crore. The non-banking lender is keen to acquire a microfinance institution as part of its strategy to power its next growth phase, revealed managing director and chief executive Jairam Sridharan.

Sridharan stated that the company's target remains to elevate its AUM to Rs 1.5 lakh crore by March 2028. At present, 55% of the AUM stems from home loans and loans against property, which is expected to decrease as the company diversifies into micro-lending and gold loans.

Discussions are ongoing about acquiring MFI IIFL Samasta, although no deals are imminent. The company remains open to mergers and acquisitions, particularly in the MFI space and gold lending, provided there are favorable opportunities. Despite geopolitical challenges, Piramal Finance is poised for significant growth in the coming years.

(With inputs from agencies.)