Tata Capital MD & CEO Rajiv Sabharwal told TOI that while the cost of funds has gone up, the financial services group will stick to its growth targets and access new avenues for fund-raising, which include masala bonds and external commercial borrowings. The group will also be looking at the possibility of on-tap bonds if they are permitted by the regulator.
Sabharwal, who is credited with building ICICI Bank’s retail franchise, was brought in by Tatas to lead the financial services business a year ago.
Since his arrival, he has put in place a team to grow the retail segment. The new business heads include Kusal Roy, former head of cards and unsecured business at ICICI Bank, who now heads Tata Capital Financial Services.
Tata Capital Housing Finance is headed by another senior executive from ICICI Bank, Anil Kaul, who was senior general manager in charge of retail at the private bank.
Driving the group’s retail strategy is Abonty Banerjee, chief marketing and digital officer at Tata Capital. Banerjee, who headed digital banking in ICICI Bank is driving a strategy to digitise SME lending in Tata Capital.
“While the processes will be digital, borrowers will always have the facility of assisted digital given the needs of the segment,” said Sabharwal.
The group’s loan book, which was around Rs 60,000 crore as of end-March 2018, has grown to over Rs 70,000 crore. Home loans at around Rs 23,000 crore are a third of the book. Retail personal loans — including consumer durables, two-wheelers and used car loans — account for 25% of the portfolio. Another 25% is from small and medium enterprises — a significant part of which comes from dealer and vendor financing — and 15% from corporate or commercial lending. “We have gone for a granular loan book. Even when it comes to corporate lending, loans of above Rs 100 crore account for less than 7% of the portfolio,” said Sabharwal.
According to Sabharwal, Tata Capital has been unaffected by the recent troubles being faced by non-banking finance companies. “We are reducing our dependency on corporate paper and going for more long-term paper,” said Sabharwal.