2. Business Divisions

Tata Capital’s business divisions encompass a wide array of financial services that cater to diverse customer needs. These divisions include:

• Tata Capital Financial Services Limited: This is the core of Tata Capital’s offerings, providing a range of financial products, including corporate finance, commercial finance, leasing, and rural finance. This division ensures that Tata Capital addresses the needs of both individuals and businesses across various industries.
• Tata Capital Housing Finance Limited: Aimed at helping individuals achieve their homeownership dreams, this division offers home loans, construction finance, and affordable housing solutions. Whether it’s for purchasing a home or building one, Tata Capital Housing Finance ensures that financial solutions are accessible to a wide spectrum of customers.
• Tata Cleantech Capital Limited: This subsidiary focuses on providing financing and advisory services to promote the shift towards renewable and clean energy solutions. Tata Capital’s investments in sustainable energy underscore its commitment to contributing to a greener, more sustainable future.
• Tata Securities Limited: In addition to its lending services, Tata Capital has expanded into investment banking through this subsidiary. Tata Securities provides investment banking services and acts as a distributor of mutual funds and third-party financial products, primarily for institutional clients.

3. Financial Highlights

Here are five key financial highlights of Tata Capital Unlisted Shares:

1. Impressive Profit Growth: Tata Capital posted its highest-ever Profit After Tax (PAT) of ₹2,975 Crore in FY23, reflecting a sharp 80% year-on-year (Y-o-Y) growth. This growth was driven by higher net interest income (NII) and increased revenues while keeping operating and credit costs in check.
2. Strong Net Interest Margin (NIM): Tata Capital’s NIM reached ₹7,023 Crore in FY23, a 34% increase from the previous year. This increase in NIM showcases the company’s ability to generate higher income from its lending activities, improving its profitability.
3. Continued Growth in Loan Book: Tata Capital’s total loan book grew by 28% to ₹1,20,940 Crore as of FY23, indicating robust growth in its lending portfolio. This expansion in the loan book highlights the company’s ability to attract more customers and strengthen its financial position.
4. Decreasing Non-Performing Assets (NPA): Tata Capital has successfully reduced its NPA ratio, with Gross NPA standing at 1.71% in FY23, down from 1.9% in FY22. Furthermore, the Net NPA ratio decreased to 0.4%, demonstrating improved asset quality and effective risk management.
5. Return on Equity (ROE): Tata Capital’s ROE stood at 17.3% in FY23, up from 15.6% in FY22. This increase reflects the company’s efficient use of shareholders’ equity to generate higher profits, making it a potentially attractive investment.