• Financial performance: Tata Capital reported roughly 47% growth in profit after tax and around 18% growth in net interest income, supported by retail and SME lending which comprise 86% of its portfolio.
• Segment growth drivers: Housing finance grew about 30% with affordable housing above 25%, secured retail expanded by around 28%, and loan against property increased over 30%, alongside strong traction in SME leasing and vehicle loans.
• Credit cost trajectory: Asset quality improved with credit costs declining sequentially quarter-on-quarter, supported by favorable early indicators in bounce rates and missed payments across segments including motor finance.
• Unsecured loan expansion: Retail unsecured loans currently account for about 10.3% of the total loan book, with management aiming to accelerate disbursements and raise the segment's portfolio share by approximately 1% in the coming year.
• Operating strategy: The company is focusing on resilience through product and geographic diversification, prioritizing credit quality before growth, and leveraging GenAI and technology to lower operating costs.