Piramal Group said on Tuesday that the company plans to expand its wholesale and retail lending business over the next five years.
In an interview with CNBC-TV18‘s Tanvir Gill, Chairman Ajay Piramal, said the company aims to split the lending business into two-thirds retail and one-third wholesale over the next 5 years. The company currently lends 60% to wholesale and 40% to retail.
Piramal said the NBFC business has undergone a transformation. Last year, the company merged with DHL, one of the country’s largest mortgage lenders.
“DHFL is a company that went bankrupt. It was the first company that was referred by the RBI to the bankruptcy courts. wholesale and retail. So the lending today, retail is around 40% and wholesale is 60%,” he said.
Additionally, Piramal said the company will target retail customers in Tier II and Tier III cities that are not easily accessible by banks and other large NBFCs.
He said the retail business is very competitive and the business caters to customers who are not easily accessible by banks and other large NBFCs.
“For example, in housing loans, the business is not going to major cities or major customers. The business will go to Tier II and Tier III cities where we can assess the risk well, where it there are people who have the creditworthiness to take home loans but are not easily accessible by banks and larger NBFCs, so our strategy is to get into more and more Tier II cities, Tier III in using technology and distribution,” he added.
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First post: STI