Tata Capital Financial closely monitors P2P lending sector

Striving for a high growth trajectory, the Tata Capital Financial Services Ltd, the flagship subsidiary of Tata Capital, was closely tracking emerging Peer-2-Peer lending space and may enter the space in future.

Fintech companies are active in the P2P platforms and the RBI has created separate NBFC-P2P category for proper regulations. Around six startups have already registered under the same.

However, there is no official P2P lending data is available but players in the segment claimed high growth and rise in average lending ticket size.

"We are watching the space carefully. This sector is at a very nascent stage now and we are looking at the loss rate and delinquency. If found good business, we will get into it," Tata Capital Financial Services managing director Kusal Roy told PTI when asked about its plans on P2P lending.

He, however, categorically said there is no plan to foray into it as of now.

Tata Capital Financial Services which is set to hit the NCD market on September 10 to raise upto Rs 7500 crore through its maiden issue to fuel its growth appetite was also evaluating to leverage the retail strength of the Tata group.

The lender's asset under management had registered CAGR of 15 per cent for the last three years.

Roy said the lender was in process of holding dialogues with group companies like retail chain Croma, DTH platform Tata Sky, watch company Titan, jewellery chain Tanishq and airline brand Vistara.

He, however, did not disclose the strategy on modalities as plans are at a formative stage.

Asked about further capital infusion to maintain capital adequacy, Roy said, Rs 550 crore had been pumped in by the parent in July out of Rs 1250 crore capital raised and there will be no funds constrains in future as and when required.

According to media reports, Tata Sons was planning to infuse another Rs 1250 crore by March 2019 into the financial services holding company Tata Capital.