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| Tata Capital to set up infra finance subsidiary |
| Press Trust of India / Kolkata Aug 17, 2010, 16:23 IST |
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Tata Capital, a subsidiary of Tata Sons, would set up a 100 per cent subsidiary for providing infrastructure finance, a company official said.
"We will set up a 100 per cent infrastructure finance subsidiary by March 2011," managing director of Tata Capital Praveen Kadle said today. Presently, infrastructure financing activity was being done out of a division of Tata Capital.
In its first year of operations, Tata Capital had disbursed Rs 4,000 crore towards infrastructure financing out of a total of Rs 11,000 crore.
Khadle said that the funds required for infrastructure financing would be raised in the right mix of external commercial borrowings and domestic debt.
Out of the Rs 11,000 crore disbursed, Rs 4,500 crore was towards commercial finance and Rs 2,500 crore towards retail finance.
The company had clocked a net profit of Rs 51 crore on a gross revenue of Rs 1,379 crore.
Tata Capital's capital base stood at Rs 2,200 crore. Khadle said that the company would leverage the Tata brand to raise further capital from the market.
"We will be able to raise about Rs 3,000 crore further from the market," he said. Kadle said that Tata Capital would also enter the foreign exchange business soon.
He said that the company would apply for licenses and that the new venture was likely to take off by the third quarter of the current financial year.
Among the non-fund based activities of the NBFC, he said the company engaged in investment banking and wealth management.
Asked if the Tata group was keen to convert Tata Capital into a banking outfit, Kadle said that it was 'too premature to comment on this'.
He said that Tata Capital was almost doing various banking activity except for accepting deposits.
Asked about the disbursement target for the current year, he said the company would add around Rs 3,000 crore.
Kadle said the capital adequacy of the company stood at 21.4 per cent and net worth stood at Rs 2,120 crore.
The company would also focus on rural finance, but was not entering into micro-finance, he pointed out.
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