MUMBAI, Mar 24: Tata Capital, the financia services arm of the diversified conglomerate, will be raising
USD 100 million in foreign borrowings through an arm by next week, a top official has said.
The external commercial borrowing (ECB) being raised
by Tata Capital Housing Finance is part of a liabilities
diversification programme, Tata Capital managing director and chief executive Rajiv Sabharwal said.
“We will do a borrowing of USD 100 million before the
end of the fiscal year,” Sabharwal told PTI recently.
The ECB funds will come right after a Rs 2,500-crore
capital infusion by the parent Tata Sons in two tranches through the course of the fiscal, he said.
Sabharwal said as part of liability diversification, the company also completed its maiden non-convertible
debenture issue last September, raising Rs 1,400 crore. Asked if the liability diversification is the result
of the squeeze in credit markets after the IL&FS crisis, he replied in the negative, stating that the company had already drawn up plans to diversify its borrowing sources.
The September 2018 liquidity crisis did not have any
impact on the company, he said, adding they had resorted to
drawdown of bank credit lines as the reliance on mutual funds had to be limited.
However, cost of funds went up during the trouble period, but of late the rates have been coming down, Sabharwal said.
The company is targeting 25-30 per cent credit
growth for FY20 and he hinted that this capital raised will
suffice for at least one year given the credit growthtarget.
Sabharwal, however, declined to comment when asked
about additional capital raising plans and if the promoter
will be looking at a listing eventually.
At present, 60 per cent of its book is devoted to the
retail segment, 25 per cent to small and medium enterprises
while corporate and infrastructure account for the remaining
15 per cent, Sabharwal said, pointing out that broadly, the
book composition will be maintained.
Asked about reports of a slew of changes in
regulations governing non-banking lenders segment, Sabharwal
said the company does not see any adverse outcome from it.
An asset quality review which has been speculated
about multiple times will also not be a problem for the
company, he stressed. (PTI)