Tata Capital Fin expects 20 pc growth despite stress in NBFCs

Tata Capital Financial Services Limited (TCFS) is hoping that its assets will grow by 20 per cent in the current fiscal amid a slowdown in the automotive sector and stress in the non-banking financial companies (NBFCs), an official said here on Tuesday.

The company's book size had increased from Rs 37,269 crore in the 2017-18 fiscal to Rs 45,316 crore in 2018-19.

"We are growing strong year-on-year. In the current fiscal, we expect to grow at least 20 per cent in assets and capital will not be a constrained," Deputy VP, Sandip G Joshi said on the sidelines of the second tranche of NCD issue, aggregating up to Rs 4,126 crore.

He said equity infusion in the current fiscal can also go up to Rs 1,500 crore.

"However, the infusion will depend on actual growth," Joshi said adding that the company ideally maintains around 150 basis points above the regulatory requirement of 15 per cent capital adequacy, he said.

Tata Capital Financial was also looking at external commercial borrowing.

"TCFS has already raised in excess of USD 75 million and is working on another USD 100 million," Joshi said.

Speaking about the slowdown in the automotive sector, the company's Managing Director Kusal Roy said the firm has taken certain measures such as close monitoring and tightening of polices.

Automotive sector constitutes about 18 per cent of its assets book.

TCFS does not offer loans for new cars but does provide advances for the used-cars and two wheelers.

With this strategy, it has not faced the brunt of slowdown in the automotive sector, Roy said.

Meanwhile, the NCD issue will close on August 23, 2019 with an option of early closure.

The NCDs are categorised into four options, with interest rates ranging from 8.35-8.85 per cent depending on tenure and categories of investors.