Money & Banking

Tata Capital Fin Services eyes over 20% growth in loan book this fiscal

KR Srivats New Delhi | Updated on August 09, 2019 Published on August 09, 2019

Tata Capital Financial Services (TCFS), a wholly-owned subsidiary of Tata Capital, is eyeing more than 20 per cent growth in its overall loan book this fiscal, said Rajiv Sabharwal, Managing Director and CEO, Tata Capital.

This is lower than the 25 per cent growth rate recorded in the previous fiscal. The systemically important NBFC has an overall loan book of more than ₹46,500 crore.

“Our growth rate depends on the economy. Because of the slowdown in the economy, our growth rate is expected to get moderated. But the ongoing economic slowdown has not impacted the quality of our portfolio,” said Sabharwal when asked if the economic slowdown was affecting the company.

Sabharwal was in New Delhi for TCFS’ upcoming public issue of non-convertible debentures, slated to open on August 13 and scheduled to close on August 23.

₹500-crore NCD issue

TCFS is looking to tap the public markets with an NCD offering having base issue of ₹500 crore, with an option to retain oversubscription of up to ₹3,626 crore. The entire debt raising will be utilised for funding growth, said Sabharwal.

When combined with the September 2018 issue where TCFS raised debt of ₹3,373 crore, the total money raised, including the proposed offering, would be ₹7,500 crore. TCFS does not plan to come up with further debt issuances in the public markets this fiscal, company officials said.

Sabharwal said the Centre was seized of the economic slowdown, and expressed hope that things would improve in the next three-six months.

“While we (TCFS) grow, what is important is we grow responsibly. We are not focussed on the short term but on the long term. We want to create a sustainable company and ensure that portfolio quality is good. That’s the most important factor as far as sustainability is concerned,” he said.

Kusal Roy, Managing Director, TCFS, said the company was on the right track to maintain portfolio quality and also healthy growth rate.

Asked if Tata Capital plans to list TCFS in the stock exchanges in the coming days, Sabharwal said there are no plans to dilute equity, even as he added that this was a question better answered by the owners.

Sabharwal also said that the retail book of TCFS is not faced with any stress right now. Of the total loan book of ₹46,500 crore, consumer goods finance is accounted for by as much as ₹19,000 crore.

Published on August 09, 2019
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