Non-bank lender Tata Capital aims to double its loan portfolio in the next three years and is confident of reducing credit costs to less than 1 percent in the future, a top official said on Monday.
The fresh capital raised from the IPO offer will be sufficient for more than two and a half years, CEO and managing director Rajiv Sabharwal told reporters after the market debut.
Shares of non-banking financial company Tata Capital Ltd were trading more than 1 per cent higher at the issue price of ₹326 on Monday.
The stock later traded at ₹330.90, up 1.50 per cent over its issue price on both the BSE and NSE.
Speaking to reporters, Sabharwal said, “If our country’s growth rate continues as we hope, our book could double in the next three years.” The company’s loan book currently stands at ₹2.3 lakh crore, and it took just a year to add ₹50,000 crore to assets under management (AUM), compared to the ten years it took to initially reach ₹50,000 crore.
Sabharwal said credit costs – booked mainly due to failed loan applications – have touched 1.4 per cent after Tata Motors Finance’s merger with it was done in May this year.
Credit costs for Tata Capital have always been below 1 percent, and the company is “very confident” of getting it below 1 percent “very soon,” Sabharwal said.
Amid concerns over asset quality of loans to micro, small and medium enterprises at the sector level, Sabharwal asserted that the company is confident that the portfolio, which comprises over 26 percent of assets under management, will hold up well, with small business lending emerging as a fast-growing segment.
“We believe that if credit quality remains strong, we should be able to grow at a very healthy pace in the SME sector,” he added.
The company is providing almost the entire volume of loans it is making without relying on co-lending schemes, Sabharwal said, adding that he expects this to continue in the future.
The company also believes that any adverse movements in interest rates will not impact net interest margins due to a well-diversified loan book. However, aspects such as the dependence on digital technologies can help to expand the key metric in the future.
At the listing ceremony, which was also attended by parent company Tata Sons chairman N Chandrasekaran, company chairman Saurabh Agrawal said the total outstanding credit in the economy will double to ₹500 lakh crore over the next five years and Tata Capital is well positioned to seize this opportunity.
“Amid uncertainty in the global economy, India’s growth story continues to gain strength and momentum,” said Agrawal, who is also chief financial officer of the salt-to-software conglomerate.
GST rationalization, income tax relief and RBI interest rate cuts have given a strong boost to domestic demand, he said.
Published on October 13, 2025
#Tata #Capital #aims #double #loan #portfolio #years #reduce #credit #costs