Despite NBFC woes Tata Capital is aiming for its growth by 25 - 30%
Regardless of turbulence in NBFC’s (Nonfinancial banking services) this year, Tata Capital is still aiming for its growth by 25-30% by the financial year 2019. Rajiv Sabharwal CEO and MD of Tata Capital has told while the funding costs have gone up, the group of financial services group will stick to its growth targets and access new avenues for raising funds which are going to include masala bonds and external commercial borrowings.
Tata Capital Housing Finance is headed by another senior executive from ICICI Bank, Anil Kaul, who was a senior general manager in charge of retail at the private bank.
“While the whole processes will be digital, borrowers will always have the facility of assisted digital given the needs of the segment,” said Sabharwal.
The group’s loan book, which was around Rs 60,000 crore as of end-March 2018, has grown to over Rs 70,000 crore. Home loans at around Rs 23,000 crore are a third of the book. Retail personal loans — including consumer durables, two-wheelers, and used car loans — account for 25% of the portfolio. Another 25% is from small and medium enterprises — a significant part of which comes from dealer and vendor financing — and 15% from corporate or commercial lending.
According to Sabharwal, Tata Capital has been unaffected by the recent troubles being faced by non-banking finance companies.
“We have gone for a granular loan book. Even when it comes to corporate lending, loans of above Rs 100 crore account for less than 7% of the portfolio. We are reducing our dependency on corporate paper and going for more long-term paper,” said Sabharwal.