1 month ago
Tata Capital Reports 56% Profit Surge
Tata Capital, a big financial company in India, just announced that its profits went up by 56% in the last three months.
This is because they gave out more loans and made more money from fees and investments.
They also started a new business lending money against gold and plan to open many new branches.
The company is careful about risks like inflation and bad weather but is still optimistic about growing.
They are also thinking about making some changes to another part of their business but haven't decided yet.
Their stock price went up a little bit on the news.
Tata Capital's net profit surged 56% to Rs 1,547 crore in Q1.
Net interest income rose 25% to Rs 3,571 crore.
Gross loan book expanded 23% to Rs 2.86 lakh crore.
Net AUM grew 22% to Rs 2.90 lakh crore, with 85.4% from retail and SME.
Tata Capital acquired 88.6% stake in Yogakshemam Loans to enter gold loan business.
- Who
- Tata Capital
- What
- Reported a 56% increase in consolidated net profit for Q1
- Where
- India
- When
- Quarter ended June
- Why
- Aided by robust loan growth and expansion into gold loans
Expansion Strategy
Risk Management
Gold Loan Acquisition
Expansion Strategy
Tata Capital is expanding into gold loans by acquiring an 88.6% stake in Yogakshemam Loans, aiming to add 500+ branches and grow the gold loan book to Rs 4,000-5,000 crore in 2.5-3 years.
Risk Management
The company is cautious about geopolitical developments, inflationary trends, and monsoon-related risks, while maintaining a credit cost of 1% in Q1.
Key facts
- Consolidated Net Profit
- Rs 1,547 crore (56% increase)
- Net Interest Income
- Rs 3,571 crore (25% increase)
- Operating Expenses
- Rs 1,621 crore (21% increase)
- Gross Loan Book
- Rs 2.86 lakh crore (23% increase)
- Net Assets Under Management (AUM)
- Rs 2.90 lakh crore (22% increase)
- Retail and SME Book
- 85.4% of net AUM
- Unsecured Retail
- 10.3% of net AUM
- Gross NPA Ratio
- 1.9%
- Net NPA Ratio
- 0.8%
- Annualised Credit Cost
- 1%
Quotes
Rajiv Sabharwal
Managing Director & CEO of Tata Capital
“"We have applied to the Reserve Bank of India for the acquisition and expect to get an approval by the end of the calendar year. In the next 2.5-3 years, we plan to add more than 500 branches and take the gold loan book to Rs 4,000-5,000 crore."”
financialexpress.com
“"We remain watchful of geopolitical developments, inflationary trends and monsoon-related risks, but continue to see a broadly supportive environment for credit growth."”
financialexpress.com
Sources
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