Industry Analysis

The Non-Banking Financial Companies (NBFCs) sector plays a pivotal role in India's economic growth and financial inclusion, particularly in underserved regions. Valued at USD 326 billion in 2023, NBFCs now represent 18.7% of the banking sector's assets, a notable increase from 13% in 2013. This growth is fueled by rising consumer demand, favorable government policies, and the integration of advanced technologies such as AI, ML, and fintech innovations. As of September 2023, lending by NBFCs surged 20.8% year-over-year, accompanied by enhanced asset quality, a reduction in NPAs, and growing profitability. With a robust capital adequacy ratio of 27.6%, NBFCs are well-equipped for sustained growth within India's dynamic financial ecosystem.
(Source: Industry Research Report and Annual Report)

Overview of Tata Capital

Founded in 2007, TATA Capital is a prominent Non-Banking Financial Company (NBFC) and a subsidiary of Tata Sons Private Limited. The company offers a comprehensive range of services, including commercial finance, investment banking, and private equity. With a strong presence across India, TATA Capital operates 723 branches and serves over 4.5 million customers as of FY24. The company prioritizes financial inclusion, with more than 80% of its loan portfolio dedicated to the retail and SME sectors. Its key subsidiaries, including Tata Capital Housing Finance Limited (TCHFL) and Tata Securities Limited (TSL), enhance its ability to offer diverse financial solutions.