Tata Capital Hsg Finance to expand rural book to Rs 2,500 cr

Will be raising Rs 3,000-4,000 crore through debt to reach overall book size of Rs 18,000 cr

Tata Capital Housing Finance Ltd (TCHFL) has said that it is looking at expanding its rural housing finance book from Rs 1,500 crore this year to Rs 2,500 crore by next fiscal year. The company is also looking at raising around Rs 3,000-4,000 crore mainly through debt to reach a book size of Rs 18,000 crore next fiscal year.

"We are looking at increasing the book size of rural housing finance to Rs 2,500 crore by next year," said R Vaithianathan, managing director, TCHFL. He added that the rural affordable homes segment in the size of sub Rs 25 lakh is registering a growth.

 

The company currently has a book size of around Rs 12,000 crore and is expecting it to be at Rs 13,000 crore by end of current fiscal year. The book size is expected to grow to Rs 18,000 crore by next fiscal year.

In order to achieve this, the company would be expanding its presence. At present it has presence in 70 cities and expects it to grow up to 80 locations by next fiscal year.

It also has to invest around Rs 3,000-4,000 crore in order to achieve the target and this would be raised through various modes including private placement of non-convertible debentures. It has recently raised funds from World Bank's investment arm International Finance Corporation (IFC) through NCDs. According to reports, IFC is infusing around $60 million (around Rs 390 crore) into TCHFL.

The company is seeing growth in loan upto Rs 50 lakh, while the market is not growing in the segment where units are valued over Rs 1 crore, he added.