Tata Capital Financial Services, the retail and wholesale lending arm of Tata group, has planned to raise up to Rs 3,000 crore through debentures to finance its lending operations.
Rating agency Icra has assigned AAA rating to proposed issuance of non-convertible debentures.
The agency said it took note of the increased scale of operations. Its loan portfolio rose by an annualised rate of 31 per cent in September 2018 (H1FY19) to Rs 41,915 crore from Rs 36,319 crore as on March 31, 2018.
The expansion in assets is driven by loan against property (LAP), personal loan and business loan products in the retail finance segment and the corporate financing/leasing segment. The share of retail in loan book was 48 per cent and of corporate was 52 per cent.
Tata Capital Financial Services (TCFSL), Tata Capital Housing Finance and Tata Cleantech are the three lending units of Tata Capital. The combined loan book of the three stood at Rs 69,600 crore as on September 30, 2018, up from Rs 60,498 crore as on March 31, 2018.
Meanwhile, the share of capital market borrowings declined to 45 per cent as on September 30, 2018 from 55 per cent as on March 31, 2017 (48 per cent as on March 31, 2018).
A large proportion of TCFSL’s incremental borrowings were from banks and financial institutions. This led to an increase in share of bank borrowings to 30 per cent as on September 30, 2018 from 22 per cent as on March 31, 2017. The share was 30 per cent as on March 31, 2018.
The proportion of commercial papers in the overall funding mix declined to about 17 per cent as on September 30, 2018 (20 per cent as on March 31, 2018).