Piramal Housing Finance, the wholly owned subsidiary of Piramal Finance, is looking at more than doubling its Rs 1,400-crore housing finance assets under management within a year on the back of “demand for housing limping back” in the organised sector.
Its new retail housing finance business offers home loans, loan against property and smaller ticket construction finance to developers.
The Mumbai-headquartered company also plans to open a total of 24 branches for retail housing finance across India by the end of 2020.
“In a short span of seven months, we have built a book of Rs 1,400 crore, mostly in Mumbai metropolitan region,” Khushru Jijina, managing director at Piramal Finance and Piramal Housing Finance told FC. The home loan ticket size is about Rs 1 crore in Mumbai.
The company is targeting to reach over Rs 3,000 crore mark in home loans by the end of financial year March 2019, he said.
“In the last three-four years, real estate slowed down but now the organised players are limping back with sales showing a steady rise,” Jijina pointed out.
At present, the company is funding 330 projects of 104 developers in key micro markets of tier I cities. “Tapping merely a portion of these existing customer base of these developers can create a significant business opportunity,” Jijina said.
The company, which started its operations from Mumbai seven months back, has branches in Delhi, Noida, Gurgaon and Bangalore with its retail offering.
On Tuesday, it opened Pune branch to offer home loans, loan against property and smaller ticket construction finance to the developers in the market.
The company is focusing both on the tier I and tier II and III cities such as Chennai, Nashik, Surat where it would open branches in phases. “We are targeting to open 50 per cent of our branches in tier II and III cities in the coming years,” the company said.