Piramal Finance secures AA plus long-term rating from Crisil

MUMBAI: Crisil Ratings has assigned a long-term rating of AA plus/Stable to Piramal Finance, a step up that underscores the lender’s multi-year shift into a scaled, retail-focused non-bank.

The upgrade applies to the company’s non-convertible debentures and bank debt, while the A1 plus rating on its commercial paper was reaffirmed. Piramal Finance carries outstanding borrowings of about Rs 75,000 crore.

Crisil cited sustained improvements in asset quality, a more granular retail loan book, strengthening profitability and a conservative liquidity position. The rating also reflects promoter strength, which provides financial flexibility and stability, alongside growing institutional confidence in governance and risk management.

Over the past four to five years, the lender has tightened underwriting, diversified its liabilities and invested heavily in technology-led risk and collections frameworks. Its retail portfolio has expanded rapidly, supported by data analytics and AI-driven decision-making across origination and monitoring.

Piramal Finance MD and CEO Jairam Sridharan, said the AA plus/stable rating validates the firm’s disciplined approach to risk, governance and execution, and strengthens its access to competitive long-term funding.

Classified by the RBI as an upper-layer nbfc, Piramal Finance raised nearly Rs 21,000 crore in long-term funding in FY25. Its assets under management stand at about Rs 91,000 crore, with plans to scale beyond Rs 1.5 lakh crore by FY28 as profitability continues to improve.