Tata Capital spruces up
Tata Capital, a wholly owned subsidiary of Tata Sons, has revamped the business model for its consumer finance business launched in January 2008.business Updated: Sep 15, 2009 22:22 IST
Tata Capital, a wholly owned subsidiary of Tata Sons, has revamped the business model for its consumer finance business launched in January 2008.
The company is changing its business model by having a single sales force for selling both loan and investment products unlike the previous model where a sales person was trained to sell a single product.
The Non Banking Finance Company (NBFC) disbursed Rs 2,500 crore in 2008-09 and is targeting a disbursement of Rs 3,000 crore in 2009-10.
“The credit growth was modest in the first six months as the economy was still under fears of recession. But we have seen a significant growth in the second quarter. Therefore we are looking at growing the loan book to 50 to 60 per cent compared to last year,” said Praveen P. Kadle, Tata Capital’s managing director.
Tata Capital has 20 branches and an additional 100 branches would be opened in 80 locations by the end of this year to offer consumer loans and advisory services.
“We want to be among the top 3 NBFCs in the country,” said Kadle.
Tata Capital’s consumer finance and advisory services offers auto loans, personal loans, education, travel loans, loans against property and home loans. Auto loans constitute 70 percent of the total loans. The Company will also go in for a private placement, Kadle said.
“We had raised Rs 1,500 crore through a public bond issue in February. Since we have a good rating and support from investors, we will be raising money from a private placement. We also can raise Rs 2,100 crore of tier II capital by March 2011. We had recently raised Rs 270 crore of Tier II capital,” said Kadle.