In an interview with ET, Piramal Enterprises (PEL) Chairman, Ajay Piramal projected the following.
- To double loan book by FY28 to about 1.2-1.3 lakh crore i.e., a CAGR of about 15%
- The growth will come significantly in retail through secured as well as unsecured lending.
- Like many other NBFCs, PEL is also banking on technology led borrower acquisition
- Target is 1st time borrowers or those who are not easily bankable
- When PEL acquired DHFL, wholesale business comprised 95% and retail was 5%. Today it’s 55% retail and 45% wholesale. Going forward, PEL targets to have 2:1 in favor of retail
- Within wholesale, PEL targets to have a more granular approach i.e., lower ticket and hence more diversified.
- Now the average loan size in real estate is only Rs 165 cr and the average size of loan in corporate lending in mid-market is about Rs 60 crore.
- PEL also is doing away with structured approach to loans and focusing more towards regular repayments.
- PEL’s target are corporates that normally banking channels would hesitate i.e., below AA
- There is no need to raise equity for the next 5 years as current debt equity is low at 1.2x providing adequate headroom to grow through borrowings
I am currently unable to appreciate the real USP of Piramal Enterprises vs-a-vis so many other NBFCs.