New Delhi:
The Tata Group is quite bullish on its home finance business after witnessing a rapid growth in the sector in the last seven years. The corporate conglomerate has big aspirations of getting into the league of market leaders like Housing Development Finance Corporation (HDFC) in the next decade.
As per the reports published in leading financial dailies, the $103-billion group will invest another Rs 300 crore through its subsidiary Tata Capital after already pumping in Rs 200 crore by subscribing convertible preference shares so far this fiscal year. The group has invested a total of Rs 700 crore in the home loan company until August. "We plan to become another HDFC. That's our goal," said R Vaithianathan, managing director at Tata Capital Housing Finance.
R Vaithianathan also said that "The promoters have infused money every year since we started in 2009. Last year, we raised Rs 350 crore through convertible preference shares and this year we will raise Rs 500 crore, out of which Rs 200 crore has already come."
Net profit rose 67% to Rs 175 crore in the year ended March 2016 from Rs 105 crore in March 2015. To be sure, Tata Capital's home loan venture is still very small compared to HDFC, which had a loan book size of Rs 3.01 lakh crore as of June 2016. Other home financiers like LIC Housing Finance, DHFL and even Indiabulls are bigger than the Tata venture.
