### **Overview** Tourism Finance Corporation of India Ltd (TFCI), established in 1989, is a specialized non-banking financial company (NBFC) dedicated to financing tourism and hospitality infrastructure in India. Over its more than 36-year history, TFCI has played a pivotal role in developing high-quality tourism infrastructure, contributing significantly to employment generation and economic growth. While rooted in the tourism sector, the company has progressively diversified into resilient sectors such as social and urban infrastructure, manufacturing, affordable housing, and NBFC/HFC financing, enhancing risk diversification and long-term sustainability. --- ### **Loan and Investment Portfolio (Recent Trends)** - **As of September 30, 2025:** - Outstanding loan portfolio: ₹1,853.14 crore across **64 borrowers**. - Gross project-related non-convertible debentures (NCDs): ₹52.77 crore. - **Total gross portfolio**: ₹1,905.91 crore. - Represents a slight contraction from the peak of ₹2,061.06 crore (as of June 30, 2025), reflecting portfolio optimization or repayments. - **Geographic Exposure (Sep 2025):** TFCI maintains a **pan-India footprint** with notable concentration in: - **Maharashtra**: ₹394.02 crore - **Uttar Pradesh**: ₹349.50 crore - **Gujarat**: ₹309.33 crore - Smaller exposures across **17 other states and UTs**, including northeastern and island territories, ensuring strong geographic diversification. - **Historical AUM Trend:** - Jun 2025: ₹2,061.06 crore - Sep 2025: ₹1,905.91 crore (down ~7.5%) - May 2025: ₹1,693.57 crore Indicates active portfolio management, possibly driven by strategic rebalancing or targeted exits. --- ### **Core Business Focus & Sector Expertise** TFCI has deep domain expertise in the **tourism and hospitality sector**, enabling it to effectively address sector-specific challenges such as cyclical demand, working capital gaps, and project structuring complexities. #### **Key Contributions to Tourism Infrastructure:** - Financed approximately **58,700 star-category hotel rooms** (~29% of India’s total supply as of 2025), up from 57,000 in 2024 and 52,000 in 2023. - Supports greenfield, brownfield, refinancing, acquisition, and under-implementation projects across **Tier I–III cities and leisure destinations**. - Projects have spanned hotels, resorts, travel agencies, and related infrastructure. --- ### **Strategic Diversification Beyond Tourism** While maintaining its leadership in tourism financing, TFCI has consciously broadened its scope into resilient and high-growth sectors: #### **1. Social & Urban Infrastructure** - Financing for **education** (schools, colleges, universities) and **healthcare** (hospitals). - Recognized as growth areas with rising public and private investment. #### **2. Affordable & Middle-Income Housing** - Active participation in residential real estate projects catering to low- and middle-income groups. - Aligned with government initiatives like ‘Housing for All’. #### **3. Manufacturing Sector** - Increasing focus on MSME and large-scale manufacturing units undergoing digital transformation. - Sees potential in resilient industrial segments. #### **4. NBFC/HFC/ARC Lending** - Provides secured onward lending to NBFCs, HFCs, and MFIs targeting retail, MSME, and housing segments. - **ARCs** present niche lending opportunities (target returns: 18–24%) due to limited bank access. --- ### **Growth Strategy & Future Outlook (FY26 & Beyond)** TFCI’s business strategy centers on **sectoral diversification, product innovation, co-lending models, and fee-based income generation**. #### **Key Strategic Initiatives (Approved Plans):** - **Expand Core Lending Areas:** Hospitality, manufacturing, renewable energy (solar/wind), social infrastructure, and affordable housing. - **Enter Retail Lending:** Through **FinTech partnerships** and **co-lending with banks and NBFCs** in secured products: - **Secured Micro, Small & Enterprise (MSE) loans** - **Loan Against Property (LAP)** - **Explore New Avenues:** - **Digital supply chain financing** - **Alternate Investment Fund (AIF)** for hospitality (approved in 2023) - **Structured finance** and special situation lending #### **Fee-Based Income Expansion:** - Launch of **tourism advisory, corporate advisory, and loan syndication services**. - Enhances revenue resilience beyond interest income. --- ### **Governance & Leadership** TFCI is led by seasoned professionals with decades of experience in finance and project structuring: - **Mr. Anoop Bali**, Whole Time Director & CFO: Over 30 years in **credit appraisal, risk management, NPA recovery**, and tourism policy engagement with state governments and the Ministry of Tourism. - **Mr. Vasan Paulraj**, Executive Director & Head of Investment Banking: ~30 years in investment banking, private equity, and special situations (former MD at Axis Capital). - **Investment Committee Leadership:** Mr. Bali chairs the Investment Committee of the India Enterprise Development Fund and serves on boards of major hotel companies.