International BusinessTata Capital to raise Rs 2,100 cr by end of next fiscal
Tata Capital, the non-banking finance arm of Tata Group, today said it expects revival of demand in auto, housing and personal loans from the third quarter and plans to raise Rs 2,100 crore through bond issue by the end of next fiscal.
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"By March 2011, the company plans to raise Rs 2,100 crore through issue of Tier II bonds," Tata Capital Managing Director Praveen Kadle told reporters here.
He said there is good demand of auto, housing and personal loans and the company expects robust demand in the third and fourth quarter of this fiscal.
"... We are growing much better than the average credit growth of the country ... First quarter growth was not that big ... But we are seeing significant growth beginning of second quarter and I am hoping we will see further growth in the last two quarters," he added.
The company expects at least 50 to 60 per cent loan growth in the current fiscal, Kadle said.
Tata Capital today announced the scale up of its consumer finance and advisory business (CFAB), which aims to be a one- stop shop for providing the entire financial requirements through a single window.
"The company has created a unique, common sales and service structure which dovetails all consumer finance and advisory products and services into a common branch network," Kadle said.
By the end of 2009, the company plans to cover 80 cities across the country through a chain of around 120 branches.
Tata Capital said that these touch points will offer a diverse mix of retail offerings in the ares of consumer loan products and investment advisory services.
These include home loans, auto loans, personal loans, education loans, loan against property, advisory services and equity trading.
To cater to the needs of branches, Tata Capital plans to recruit around 600 people taking its head count to 1,000 by the end of this fiscal.
Tata Capital has about Rs 2,100 crore of equity capital and has raised Rs 1,500 crore through public bond issue in February this year.
Tata Capital is a subsidiary of Tata Sons and is registered with the RBI as a non deposit accepting non banking financial company.