Piramal Finance Plans To Raise $1 Billion Overseas To Boost Retail Lending Growth

Piramal Finance Limited is planning to raise up to $1 billion through foreign currency loans this year to meet strong demand for retail credit in India.

CEO Jairam Sridharan said the company will mainly borrow from foreign banks and multilateral agencies with loan tenures of 3 to 5 years.

Borrowing Despite Rupee Weakness

The fundraising plan comes at a time when the Indian rupee is at record lows against the US dollar, which makes hedging foreign loans more expensive.

Even so, the company plans to borrow in multiple tranches after evaluating total borrowing costs, including hedging expenses. Piramal Finance may also explore borrowing in currencies other than the US dollar.

Why Indian Firms Borrow Overseas?

Indian companies often raise funds from global markets because of:

• Lower interest rates
• Longer loan tenures
• Access to a wider group of lenders

According to Reserve Bank of India data, external commercial borrowings rose to $4.63 billion in February, up from $2.82 billion a year earlier.

The company avoided global bond markets for now due to geopolitical uncertainties, which make bond issuance less attractive.

Funds To Expand Retail Loan Book

Piramal Finance plans to use the funds to grow its consumer lending business.

The company offers:

• Home loans
• Loans against property
• Used car loans
• Small business lending

Rising aspirations among retail customers and small businesses are creating strong demand for credit, especially in areas where traditional banks have limited reach.

Read More: BSE Q4FY26 Results Out: Profit Jumps 61% YoY to ₹797 Crore, Announces ₹10 Dividend 

Strong Growth In Assets And NBFC Sector

Piramal Finance’s assets under management (AUM) have doubled to ₹1 trillion in 5 years and are expected to grow 50% over the next 2 years.

The NBFC sector is also expanding rapidly. A report by CRISIL expects NBFC AUM to grow 18–19% by March 2027, supported by rising consumption demand.

Conclusion

Piramal Finance’s plan to raise $1 billion overseas highlights strong credit demand and rapid NBFC growth in India. The move will help the company diversify funding and expand its retail lending business.

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