Tata Cap first to offer loan against NCDs

Having barely begun in the financial services sector, Tata Capital Limited seems to be innovating its way up. For instance, the company claims to be offering loan against non-convertible debentures (NCDs) for the first time in the market.

"Innovating products will be our strategy to gain investors' confidence in these current scenario. That is why we have announced loan against non-convertible debentures which is for the first time in the country," said Praveen Kadle, managing director and chief executive officer of Tata Capital Limited.

The company would be focusing on retail lending, corporate lending, investment solutions like broking and wealth management, investment banking and private equity verticals. With already a capital base of Rs 2,000 crore and asset base of Rs 7,000 crore, Tata Capital aims to be among the top five financial services company in next 16 months.

"We will be using the Tata ecosystem, business linkages and brand to attract retail investors. Moreover, we will be having strong customer satisfaction processes where IT will play a major role. For this, we have roped in TCS which will help us reduce cost by internet-based platform for buying and selling of securities," added Kadle. The company is entering the capital market through issue of NCDs by which it intends to raise Rs 500 crore.