Annual Report: 2023
Tata Capital Annual Report 2022-23 Summary:
Tata Capital Limited ("TCL"), a subsidiary of Tata Sons Private Limited, is registered with the Reserve Bank of India (RBI) as a Systemically Important Non-Deposit Accepting Core Investment Company. Tata Capital and its subsidiaries are involved in lending and offering financial services products to retail, corporate, and institutional customers.
Our Purpose and Pillars: A responsible financial partner fulfilling India's aspirations.
Corporate Social Responsibility (CSR) Initiatives: Tata Capital's CSR approach is oriented towards stakeholder-participation, with a focus on Education, Skill Development & Entrepreneurship, Climate Action, and Health. Key initiatives include:
Product Portfolio: Tata Capital offers Personal Loans, Home Loans, Business Loans, Other Consumer Loans, Cleantech Finance, Institutional Distribution, Private Equity, Loan Against Property, Wealth Products Distribution, Commercial and SME Finance, Leasing Solutions, and Tata Cards.
Digital Initiatives: Tata Capital continues to invest in digital transformation, creating best-in-class platforms and products, enhanced its digital presence, launched omni-channel marketing automation platforms, and increased the share of direct and digital business. Over 75% of customer service interactions take place through digital platforms. Digital kiosks are launched at Tata Capital branches to seamless services. The company has launched digital-only products and services across customer segments like Moneyfy. Almost all customer processes starting from on-boarding to underwriting to disbursements are done in a paperless manner for retail loans. Similarly, for SME and corporate customers, a new loan origination system was launched which will simplify the customer journey further and enable quicker processing and sanction of loans. The company is also leveraging data analytics to understand customer behavior and provide personalized offers. Robotic Process Automation (RPA) has been implemented for almost all centralized processes which improves overall operational efficiency. Tata Capital is integrated with more than 100 plus FinTech partners across multiple domains to enhance service and ensure seamless digital processes.
New Products Introduced: Micro business loans were launched in April 2022 to Traders, Service providers and Manufacturers and the entire onboarding journey is fully digitized.
Brand Initiatives: Tata Capital has been nurturing its brand promise 'Count on Us'. The main Brand Campaign 'Palak Jhapkao Loan Pao' had a series of short films themed around digital, seamless and quick loans. Tata Capital was the official partner for the inaugural edition of the Tata Women's Premier League 2023.
Snapshot of Numbers:
Awards:
Chairman's Message: The company crossed ₹1 Lakh Crore book size mark and achieved several "highest-evers" during FY23. The Loan book grew by 28% Y-o-Y to ₹1,20,940 Crore with Retail + SME constituting 80% of the total loan book. The company achieved the highest-ever disbursals in FY23; up by 42% Y-o-Y; crossed ₹20,000 Crore quarterly disbursals mark for the 1st time. The highest-ever profit after tax was ₹2,975 Crore; up by 80% Y-o-Y. RoE is 23.0%. Digital transformation continues to be an area of continuous focus for Tata Capital. The Company has tripled its branch footprint over the past two years with an objective to reach deeper markets. The Company has also taken steps towards simplifying its corporate structure with a roadmap set for merging its two operating subsidiaries.
Managing Director & CEO's Message: The company crossed the coveted mark of ₹1 Lakh Crore Loan Book in the first half of the year and continued to scale thereon, finally ending the year with a Loan Book in excess of ₹1.2 Lakh Crore (up by 28% YoY). During the year, the Company took significant steps towards consolidating leadership position across products among non-banks and was among the best performing NBFCs in the country. Disbursals grew by 42% YoY to ₹75,099 Crore. Share of Retail & MSME stood at 80%+ of the loan book. Margins improved by 20 bps YoY. Credit cost stood at 0.5%. Gross NPA & net NPA stood at 1.7% & 0.4% respectively. Achieved highest-ever PAT of ₹2,975 Crore. RoE was 23.0%.
Corporate Structure Simplification: Tata Capital Financial Services Limited ('TCFSL') and Tata Cleantech Capital Limited ('TCCL') will merge with the holding Company i.e., Tata Capital Limited to create a unified entity with a wider and stronger capital and asset base. We have filed for necessary approvals and expect the merger to go through in FY24.
Key Financial Information (Consolidated):
Key Financial Information (Standalone):
The report also contains details on the Board of Directors, their evaluation, risk management, CSR activities, compliance with regulations, share capital, and other financial disclosures. It highlights the company's commitment to responsible financial practices, digital innovation, and social responsibility.
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