Consumer, SME lending thrust areas for Tata Capital Fin Kolkata

Consumer and SME lending will be thrust areas for Tata Capital Financial Services Ltd due to high growth registered by these segments, a top official of the company said Friday.

"Consumer finance sector is growing at 20 percent, followed by SME lending which is showing expansion of around 15 percent. We will definitely focus in these sectors," Kusal Roy, Managing Director of the company said.

He was in the city to participate in a roadshow for the company's maiden non-convertible debenture (NCD) sale from September 10. The Tata Capitals flagship lending arm also said it can raise up to Rs 7,500 crore including over-subscriptions of Rs 5,500 crore from the NCD issue.

The company has consumer finance assets worth Rs 16,080 crore and SME assets of about Rs 14,146 crore as on March 2018, accounting for 43 percent and 38 percent, respectively, of the total assets under management.

The company is keen on the even higher share of its assets from the consumer finance segment in the future, Roy said. He said though all sectors of operation are important, it is good to exercise caution in commercial lending as the sector continues to face stress.

Deputy VP, Sandip G Joshi said the average cost of fund for the company is around 8.2 percent. With the compounded annual growth of assets under management at 15 percent for the last three years, the profitability of the company stood at 35 percent, he said.

The company is offering a coupon rate between 8.70 percent and 9.10 percent, depending on the investor class and tenor for the NCDs.