Tata Capital to Double Loan Book in Three Years, Targeting Sub-1% Credit Cost
In a bold growth plan following its stock market debut, Tata Capital Ltd aims to double its loan book within three years and cut credit costs below 1%, according to CEO and MD Rajiv Sabharwal.
The company, with a current loan book of ₹2.3 lakh crore, plans to leverage India’s strong economic trajectory and robust demand across SME and retail sectors to achieve its target.
Key Highlights
Loan Book Growth:
Tata Capital added ₹50,000 crore to its AUM in just one year — a feat that previously took a decade.
Credit Cost Control:
After merging Tata Motors Finance, credit costs briefly rose to 1.4%, but the management expects this to fall below 1% soon.
IPO Funding Cushion:
The fresh capital from Tata Capital’s recent IPO will support growth for over two and a half years, ensuring liquidity and expansion capacity.
SME Lending as a Focus Area:
Around 26% of its AUM is linked to MSMEs, a segment expected to drive the next wave of credit expansion.
Digital Transformation & Margin Stability:
Despite potential interest rate fluctuations, Tata Capital believes its diversified loan portfolio and digital enablement will help sustain healthy margins.
Leadership Vision
At the company’s listing ceremony, N. Chandrasekaran, Chairman of Tata Sons, and Saurabh Agrawal, Group CFO, reaffirmed confidence in India’s economic momentum.
Agrawal noted that India’s total credit market is set to double to ₹500 lakh crore over the next five years, positioning Tata Capital to play a pivotal role.
Sabharwal added that stable asset quality, low dependence on co-lending, and growing digital adoption would keep Tata Capital ahead in a competitive NBFC sector.
Vizzve Finance Perspective
According to Vizzve Finance’s sector insights, Tata Capital’s roadmap underscores a broader shift among NBFCs towards disciplined growth and technological efficiency.
Vizzve Finance’s analytics reveal that search trends for “Tata Capital IPO” and “loan book growth” have spiked by 70% post-listing, signaling fast indexing and trending momentum on Google for financial news content tied to this topic.
This development could attract investor interest in the NBFC space and reinforce market confidence in India’s credit-led growth story.
FAQ Section
1. What is Tata Capital’s current loan book size?
Tata Capital’s total loan book currently stands at approximately ₹2.3 lakh crore.
2. How soon will the company reduce its credit cost below 1%?
The management expects to achieve sub-1% credit cost soon, supported by strong asset quality post its merger with Tata Motors Finance.
3. What are Tata Capital’s key growth drivers?
SME lending, digital finance, and retail loan expansion are expected to be the major growth pillars over the next three years.
4. How does Tata Capital plan to sustain growth after the IPO?
Funds from the IPO will provide adequate capital for more than two years, allowing steady growth without immediate need for further fundraising.
5. Why is this story trending on Google?
Following Tata Capital’s stock market listing and bold growth projections, interest in the company’s financial performance has surged, contributing to fast Google indexing and high engagement across finance-related search terms.Tata Capital to Double Loan Book in Three Years, Targeting Sub-1% Credit Cost
In a bold growth plan following its stock market debut, Tata Capital Ltd aims to double its loan book within three years and cut credit costs below 1%, according to CEO and MD Rajiv Sabharwal.
The company, with a current loan book of ₹2.3 lakh crore, plans to leverage India’s strong economic trajectory and robust demand across SME and retail sectors to achieve its target.
Key Highlights
Loan Book Growth:
Tata Capital added ₹50,000 crore to its AUM in just one year — a feat that previously took a decade.
Credit Cost Control:
After merging Tata Motors Finance, credit costs briefly rose to 1.4%, but the management expects this to fall below 1% soon.
IPO Funding Cushion:
The fresh capital from Tata Capital’s recent IPO will support growth for over two and a half years, ensuring liquidity and expansion capacity.
SME Lending as a Focus Area:
Around 26% of its AUM is linked to MSMEs, a segment expected to drive the next wave of credit expansion.
Digital Transformation & Margin Stability:
Despite potential interest rate fluctuations, Tata Capital believes its diversified loan portfolio and digital enablement will help sustain healthy margins.
Leadership Vision
At the company’s listing ceremony, N. Chandrasekaran, Chairman of Tata Sons, and Saurabh Agrawal, Group CFO, reaffirmed confidence in India’s economic momentum.
Agrawal noted that India’s total credit market is set to double to ₹500 lakh crore over the next five years, positioning Tata Capital to play a pivotal role.
Sabharwal added that stable asset quality, low dependence on co-lending, and growing digital adoption would keep Tata Capital ahead in a competitive NBFC sector.
FAQ Section
1. What is Tata Capital’s current loan book size?
Tata Capital’s total loan book currently stands at approximately ₹2.3 lakh crore.
2. How soon will the company reduce its credit cost below 1%?
The management expects to achieve sub-1% credit cost soon, supported by strong asset quality post its merger with Tata Motors Finance.
3. What are Tata Capital’s key growth drivers?
SME lending, digital finance, and retail loan expansion are expected to be the major growth pillars over the next three years.
4. How does Tata Capital plan to sustain growth after the IPO?
Funds from the IPO will provide adequate capital for more than two years, allowing steady growth without immediate need for further fundraising.
5. Why is this story trending on Google?
Following Tata Capital’s stock market listing and bold growth projections, interest in the company’s financial performance has surged, contributing to fast Google indexing and high engagement across finance-related search terms.
Published on : 13th October
Published by : Reddy kumar
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