TATA Sons subsidiary Tata Capital (TCL), which is a non-banking finance company registered with RBI, was floated in 2007. It caters to the diverse need of retail, corporate and institutional customers, directly or indirectly, through its subsidiaries across various areas such as consumer finance and advisory business, corporate finance, which includes commercial and infrastructure finance, securities business, investment banking and private equity. ET caught up with Jamshed Daboo, TCL’s head (consumer finance and advisory), to get a fix on the company’s future plans. Excerpts:
TCL has floated a 100% subsidiary Tata Capital Housing Finance in October 2008 for providing home loans. How did the company perform in 2009-10, given that the real estate sector was hit hard by the economic downturn?
Though the housing finance company was floated in October 2008, the approval from National Housing Bank came in April 2009. It’s a young company and commenced business from June 2009. Despite the economic downturn, we are hopeful of disbursing Rs 95 crore of housing loans in FY10. We believe a good beginning has been made. The real estate sector has started looking up and we are hopeful FY11 will be much better.
What new initiatives can we expect from Tata Housing Finance to grow its footprint with the market looking up?
We are in the process of tying up with real estate promoters of repute for a financing pact. We are also looking to provide project loans to builders.
However, we will first evaluate the builder’s profile and his projects before providing loan support. We are also leveraging the Tata Group’s ecosystem to enhance our housing loans portfolio. We will finance both residential and commercial projects. The retail sector has started looking up and we are hopeful a lot of activities will happen in the commercial sector. We are reasonably competitive in the interest rate front. However, we do not believe in the teaser rates that some of the banks and housing finance companies offer.
Do you plan to address NRIs who are keen to buy properties inIndia
I would like to reiterate that Tata Housing Finance is a new company, and we are yet to expand in the overseas markets in a big way.
We have just opened offices inSingapore London
Are you keen to buy retail assets of other finance companies?
No, we have no plans to buy retail assets of other finance companies. We believe in growing our business ourselves and establish our own brand in the market. Our focus is to create a strong customer base for TCL. However, we do some amount of takeover financing. TCL’s plan is to be present in 65 plus locations with 100 branches in FY11. Apart from being in the retail finance sector, we also provide investment advisory services.
The automobile sector has shown a significant spurt in the last couple of months. How has your auto loan segment grown in the current fiscal?
We do financing for all automobile companies, except Tata Motors. There is a separate company, Tata Motor Finance, which finances cars produced by Tata Motors. In FY10, we expect to disburse around Rs 741 crore on account of auto financing.
TCL has floated a 100% subsidiary Tata Capital Housing Finance in October 2008 for providing home loans. How did the company perform in 2009-10, given that the real estate sector was hit hard by the economic downturn?
Though the housing finance company was floated in October 2008, the approval from National Housing Bank came in April 2009. It’s a young company and commenced business from June 2009. Despite the economic downturn, we are hopeful of disbursing Rs 95 crore of housing loans in FY10. We believe a good beginning has been made. The real estate sector has started looking up and we are hopeful FY11 will be much better.
What new initiatives can we expect from Tata Housing Finance to grow its footprint with the market looking up?
We are in the process of tying up with real estate promoters of repute for a financing pact. We are also looking to provide project loans to builders.
However, we will first evaluate the builder’s profile and his projects before providing loan support. We are also leveraging the Tata Group’s ecosystem to enhance our housing loans portfolio. We will finance both residential and commercial projects. The retail sector has started looking up and we are hopeful a lot of activities will happen in the commercial sector. We are reasonably competitive in the interest rate front. However, we do not believe in the teaser rates that some of the banks and housing finance companies offer.
Do you plan to address NRIs who are keen to buy properties in
I would like to reiterate that Tata Housing Finance is a new company, and we are yet to expand in the overseas markets in a big way.
We have just opened offices in
Are you keen to buy retail assets of other finance companies?
No, we have no plans to buy retail assets of other finance companies. We believe in growing our business ourselves and establish our own brand in the market. Our focus is to create a strong customer base for TCL. However, we do some amount of takeover financing. TCL’s plan is to be present in 65 plus locations with 100 branches in FY11. Apart from being in the retail finance sector, we also provide investment advisory services.
The automobile sector has shown a significant spurt in the last couple of months. How has your auto loan segment grown in the current fiscal?
We do financing for all automobile companies, except Tata Motors. There is a separate company, Tata Motor Finance, which finances cars produced by Tata Motors. In FY10, we expect to disburse around Rs 741 crore on account of auto financing.
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