Piramal Finance Aims for 25% AUM Growth, Plans Non-Core Divestments
Piramal Finance targets strong AUM growth, plans non-core stake sale
Business StandardImage: Business Standard
Piramal Finance, led by CEO Jairam Sridharan, targets a 25% increase in assets under management (AUM) to approximately ₹1.25 trillion by FY27, alongside a 50% rise in profits. The company plans to divest stakes in non-core businesses while expanding its branch network to support rural lending.
- 01Piramal Finance aims for a 25% growth in AUM to ₹1.25 trillion by FY27.
- 02Profit is expected to increase by 50% next year.
- 03Plans to divest stakes in non-core businesses are set for FY27.
- 04The company will invest in 170 new branches, focusing on rural areas.
- 05Unsecured lending may increase by 2-3 percentage points from the current 18%.
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Piramal Finance, under the leadership of managing director and CEO Jairam Sridharan, anticipates a 25% growth in its assets under management (AUM), aiming for approximately ₹1.25 trillion by the end of fiscal year 2027. The company also expects profits to surge by 50%, following a threefold increase in the current year. Sridharan indicated that the non-banking financial company (NBFC) is looking to divest stakes in its non-core businesses, with plans to take action in FY27. Recently, Piramal Finance sold its stake in Shriram Life Insurance for ₹600 crore. The company will also expand its presence by adding 170 branches, primarily in rural areas, to support its gold loans and microfinance initiatives, which are expected to constitute 10% of its overall portfolio in the next three to four years. Additionally, the firm plans to increase unsecured lending by 2-3 percentage points from the current 18%, as risks in this sector have moderated.
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The expansion of Piramal Finance's branch network will enhance access to financial services in rural areas, potentially benefiting local businesses and consumers seeking loans.
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