Piramal has been looking to diversify its lending business away from its mainstay of wholesale lending, especially real estate, a sector which has been facing severe liquidity issues since the collapse of IL&FS group in 2018
MUMBAI: Vikas Deep Gupta, head of Piramal Capital and Housing Finance's corporate finance group (CFG), has quit the non-bank lender to join Bank of America, said three people aware of the development.
Gupta, who has joined the Bank of America a few days ago, heads the bank's structured and distressed credit business as managing director, one of the people cited above said on condition of anonymity.
His departure comes at a time when Piramal Capital is focusing on building a retail lending franchise.
"We need to be more diversified. So, we are focusing on getting a whole retail franchise going, which is consumer lending and housing finance," Ajay Piramal had told Mint in an interaction in October.
The Economic Times on Tuesday reported that two senior executives at Axis Bank's retail vertical -- Jagdeep Mallareddy, head of retail assets and Sunit Madan, executive vice president for retail credit underwriting -- have quit to join Piramal group's non-banking finance venture.
Piramal has been looking to diversify its lending business away from its mainstay of wholesale lending, especially real estate, a sector which has been facing severe liquidity issues since the collapse of Infrastructure Leasing & Financial Services (IL&FS) group in 2018.
The CFG loan book has grown from ₹925 crore as of 31 March 2014 to ₹8,511 crore (approximately $1.12 billion), as of 31 December 2019. Piramal's real estate lending exposure stood at ₹36,084 crore, out of a total loan book of ₹45,290 crore, as on 31 December.
The corporate finance group invests in sectors such as infrastructure, logistics, auto component, industrials etc. Gupta represented Piramal Capital on the board of various portfolio companies like Apollo Logistics, Essel Solar, Atria Power, Acme Solar and others, according to the company's website.