Almost a year after acquiring beleaguered housing finance lender DHFL, Piramal Capital and Housing Finance is betting big on developer financing loans as demand for credit from that segment increases.
While most non-banks have burnt their fingers with such loans in the past, they are focusing on low yielding developer advances to reputed builders as the preferred route to expand the wholesale book.
“We are consolidating our development finance book, but we still like the business; it is materially a sound business,” said Jairam Sridharan, managing director, Piramal Capital and Housing Finance. “The fact that banks have got serious limitations in terms of how to lend to real estate is well known. So, where will the funding come from? We want to be among those providers.”