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Tata Capital goes into retail

Written by Gary Howes
Wednesday, 01 October 2008
India's largest private company hints at potential for lending growth in developing nations. Tata Capital Ltd (TCL) has announced plans to foray into the retail loan business at a time when global finances are in crisis. Related Articles Sterling may stabilise in Feb Paul Cherry to chair Standards Advisory Council Jaime Caruana appointed as BIS General Manager Credit Suisse India appointment A bold move The move is an indication that there is scope for growth fuelled by positive sentiment in Indian, and indeed in developing world finance and lending. However it must of course be noted that the move is backed by the financial might of the Tata Group - which in terms of market capitalisation and revenues is the largest private company in India. The Tata Group also has operations in more than 85 countries across six continents and its companies export products and services to 80 nations. It has interests in steel, automobiles, information technology, communication, power, tea and hotels. "By this year end, we want to enter two-wheeler financing segment, though it involves a big risk. But opportunities are also there," TCL MD and CEO Praveen P Kadle told reporters here. "The market is tough in retail finance. We want to build it very carefully. In the wake of crisis in the US, liquidity has become a major concern now. We want the government to take steps in this regard," he said. Rural financing is the other area it is looking at, Kadle said but firmly ruled out the company getting into micro financing. Investment banking, distribution and broking business and commodity broking are the other sectors the company was eyeing, Kadle said.