Piramal Capital & Housing Finance (PCHFL) announces that it has been awarded a  long term rating of ‘CARE AA+; Stable’ for its debt instruments post the scheme of amalgamation of Piramal Finance Limited (PFL) and Piramal Capital Limited (PCL) with PCHFL. Post this, PCHFL will now be a wholly owned subsidiary of Piramal Enterprises Limited (PEL) and is the flagship entity for the Group’s financial services business.

“FY 2018 was an eventful year for us as we made conscious and definitive strides towards an increasingly diversified and more granular portfolio. We continued to grow our real estate lending business with a foray into hospitality and an increased exposure to Lease Rental Discounting (LRD). We believe that with the restructuring and the recent allocation of capital, coupled with our complete suite of diversified products across wholesale and retail will prove to be a distinct competitive advantage in our journey of continued growth. This credit rating from CARE serves as a fitting validation of our efforts,” affirms Khushru Jijina, Managing Director, PCHFL.  

Apart from acknowledging the strong performance across real & non-real estate sectors over several quarters, ‘CARE AA+; Stable’ considers robust risk management metrics, a stringent in-house asset management and monitors process which kept NPAs in check inspite of strong ramp-up of the lending business. Additionally, the rating also reviews conscious & sustained effort to diversify the asset base, and add granularity to the loan book (through a foray into retail housing finance), contributing more towards construction finance and lease rental discounting (under real estate), expanding to several sectors by the corporate finance group and focus on mid-market corporate through the emerging corporate lending vertical. Besides, on liability side, ‘CARE AA+; Stable’ reflects robust treasury management with low levels of leverage and deems as the major factor for the huge successful of QIP and Rights Issue undertaken by PEL during the past FY 7000 crore, out of which 5,000 crore has been allocated to the financial services business.

“For non-real estate, the growth in our corporate finance group comprised mainly of senior debt and project finance and with emerging corporate lending, we set the foundation for more granular lending. Our retail housing finance vertical also established a strong footprint in a relatively short period of time,” adds Khushru.

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