Bengaluru: As the demand for affordable housing continues to surge across the nation, it becomes imperative to grasp the evolving needs of India’s budget-conscious consumers. Purchasing a home stands as the most significant investment for individuals in their lifetime, serving not only as a fundamental necessity but also as a cornerstone for economic development. This trend is particularly observed among the population residing in tier-II and tier-III towns, emphasizing the critical role affordable housing plays in addressing the housing needs of the nation.
Jairam Sridharan, Managing Director of Piramal Finance, emphasizes the importance of recognizing the evolving needs of budget-conscious consumers and the potential for substantial long-term returns within the affordable housing segment. “Even within the affordable housing space, there is a noticeable trend of individuals seeking greater space and nurturing aspirations to enhance their loved ones’ quality of life,” said Sridharan.
Addressing the challenges and opportunities in supporting the affordable housing segment, Sridharan highlighted the widespread lack of awareness and access to formal credit among a significant portion of the population. He emphasized the need for financial institutions, particularly NBFCs, to innovate and tailor financial solutions to bridge the gap in housing finance for the underserved. “We view this as an opportunity to discover untapped areas of value and leverage our extensive branch network and innovative products,” added Sridharan.
Since the acquisition of DHFL, Piramal Finance has strategically integrated and expanded its retail business footprint, significantly increasing its branch network overnight. “We operate more than 470 branches across 625 districts, primarily situated in tier-II and tier-III towns,” stated Sridharan. He emphasized the company’s focus on optimizing and expanding its branch network to effectively serve a broader customer base.
In terms of Piramal Finance’s business in affordable housing, Sridharan highlighted sustained growth and strategic priorities. “Our Housing AUM constitutes 72% of retail AUM, exemplifying our position as a leader in this space,” said Sridharan. He emphasized the company’s commitment to maintaining portfolio quality and serving a diverse demographic.
Looking ahead, Piramal Finance is committed to driving retail growth through the optimization and expansion of its branch network. “Our strategic roadmap aims for a total AUM of INR 120-130 lakh crore with a 70:30 Retail: Wholesale mix by FY28,” concluded Sridharan. As affordable housing continues to gain momentum, Piramal Finance remains steadfast in its mission to address the housing aspirations of Bharat and ensure financial inclusivity for all.
