Intent to Impact

Transformation through Purposeful Lending

The fiscal year 2023-24 marked a significant phase of transformation for Piramal Enterprises Limited (PEL). Our theme, “Intent to Impact: Transformation through Purposeful Lending”, reflects our strategic vision and the substantial progress we have made.

As we near the completion of our comprehensive business transformation journey that began in FY 2021-22, we are pleased to have established distinct and focussed “Growth Business”, notably scaling up our Retail Lending and Wholesale 2.0 Lending operations. Concurrently, we have effectively reduced our “Legacy Business”, which includes Wholesale 1.0 lending and other non-core assets, and we continue to expedite this rundown. Today, we stand as a leading, diversified, multi-product, retail-led NBFC, with a unique business model and a robust balance sheet. Leveraging technology such as artificial intelligence / machine learning and analytics has been crucial to our lending operations, driving our success.

Our transformation journey has been multifaceted, driven by strategic initiatives designed to support businesses, foster innovation, and promote financial inclusion. Our initial foray into financial services began with wholesale lending, and while we had a presence in retail lending, our acquisition of DHFL in September 2021 marked a significant expansion, establishing us as a key industry player in the retail lending sector. Through our digital-first approach and extensive distribution network, we aim to be a ‘trusted financial services provider,’ going beyond being merely a ‘go-to’ lending institution. We are committed to supporting our customers’ diverse borrowing needs through comprehensive and tailored retail and wholesale lending solutions.

Currently, our Growth Business is on a steady path to profitability across various verticals, including secured and unsecured loans. We are building a diversified and profitable retail lending portfolio and a granular Wholesale 2.0 book, backed by cash flows and assets. Within our Growth Business, our mission, led by housing finance-driven retail lending, is to serve unbanked individuals and SMEs across Bharat, addressing their unmet financial needs. Our focus remains on improving asset quality, diversifying the borrowing mix, and expanding our customer base.

We maintain momentum in Retail and Wholesale 2.0 Lending, complemented by value accretion from our Alternatives business and Life Insurance JV. Our optimal capital structure ensures independent growth for each business. We strive for long-term value creation by strategically selecting specialised opportunities in Retail and Wholesale Lending. This is further enhanced by our cutting-edge technology, rigorous risk management, strong governance, and exceptional leadership.

We have achieved a steep growth trajectory across our product offerings and established a deep presence in the Bharat market with 490 conventional branches and 194 microfinance branches across 26 states/UTs, expanding our customer franchise to over 4 million. Our goal is to ensure that everyone with the right intent can access India’s formal credit system. We underwrite our customers based on their intent and integrity, ensuring they have rightful access to formal credit.

Through our purposeful lending, we aim to financially empower the retail and wholesale segments of our emerging economy. Our goal is to be a key enabler in broadening and deepening financial services, unlocking India’s vast untapped potential.

We extend our heartfelt gratitude to all our stakeholders including customers for their continued trust and unwavering support. Together, we are making a lasting impact, transforming lives, and building a brighter future.