Tata Capital aims up to 30% growth in retail book

Credit growth will come at two-and-half times or 18 to 20% with a GDP growth of 7-8%, says company's chief operating officer

Non-bank lender Tata Capital today said it targets 20-30% growth in retail book on the back of good demand from the home loan segment.

"With a GDP growth of 7-8%, credit growth will come at two-and-half times or 18 to 20%. We will grow a few notches faster than the system," Tata Capital chief operating officer for retail business Govind Sankaranarayanan, told reporters here.

He added that the company will grow its retail book, which stood at Rs 16,000 crore as of January 2015, by 20 to 30% going forward.

Sankaranarayanan said the growth will be primarily driven by demand for home loans, which constitutes 48% of book.

When asked about reports of tepidness in the realty sector, he pointed out to the government's commitment to focus on the housing sector.

The company borrowed up to Rs 3,000 crore through private placements and bank lines, and it will grow in a corresponding way next fiscal, as per the credit growth, he said.

When asked if the Tata Sons company is looking at an IPO, Sankaranarayanan declined to comment.

The company today announced launch of a flexi-payment of retail loans product, under which a borrower can repay using four different ways, going beyond the present system of dividing it equally along the tenure of loan.

He said the company has all the regulatory approvals in place for it and asserted that it is different from the controversial "teaser loans" product launched by some lenders a few years ago.