Piramal Finance aiming for 'predictable profitability': MD
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Mumbai: Piramal Finance is considering entering the gold loan market, launching co-branded credit cards and expanding its microfinance portfolio, a three-pronged strategy aimed at diversifying its loan books to avoid concentration risk, managing director Jairam Sridharan said in an interaction with ET. The finance company is likely to move towards "predictable profitability" by the end of this fiscal year as it shrinks its legacy book, which is expected to decrease the volatility in the earnings number, he said. Consistency in earnings is a factor that most investors have preferred over surprises. The legacy books - the stressed loans in Piramal's book even before it acquired Dewan Housing Finance (DHFL) - will be down to ₹7,000 crore by the end of this financial year. Stressed loans fell from ₹51,435 crore in March 2019 to ₹13,000 crore currently. "Reduction in the legacy book is what drives a lot of the volatility bec...