Mumbai: Piramal Finance, the financial services unit of Piramal Enterprises, is accelerating lending to construction companies amid a shortage of funding for the industry which is hobbled by the impact of goods and services tax (GST) and banks reluctance to lend.
The company has built of strong portfolio with total investments, loans and assets under management of over Rs 44,000 crore. The lending book from its wholesale business is at Rs 33,059 crore while its newly launched housing finance company (HFC) has assets under management of Rs 500 crores within three months of operations. Its HFC too has tied up with 19 developers for 31 projects within two months of launch.
“It’s no longer a lending business, I am more of a financial partner and a marriage counsellor,” said Khushru Jijina, Managing Director, Piramal Finance.
“It is very clear to us that wholesale and retail lending have to play together. Our pitch to developers is that if you have any problem in selling through the housing finance company, we help sell those projects.”
From about 90 housing finance companies in India, only 10 NBFCs have a turnover of more than Rs 15,000 crore and only 16 with an AUM of more than Rs 5,000 crore.