Tata Capital announced its FY24 result

17 September 2024

Financial Performance

The company reported a consolidated gross income of ₹18,198 Cr, reflecting a 33.44% increase from ₹13,637 Cr in the previous fiscal year. Profit after tax rose 4% to ₹3,327 Cr, up from ₹2,947 Cr. The loan book expanded by 35%, reaching ₹1,57,761 Cr by the end of FY24. Tata Capital achieved a major milestone with disbursements exceeding ₹1 lakh Cr, totaling ₹1,05,244 Cr, marking a 40% year-over-year growth. Consolidated net interest margin (NIM) and other revenues grew 22.64% to ₹8,630 Cr, driven by a larger loan portfolio. In terms of asset quality, gross NPA declined to 1.47% from 1.71%, while net NPA decreased to 0.38% from 0.40%, with a healthy provision coverage ratio of 74.12%.

Operational Developments

The company expanded its branch network to 723 from 438, with 92% located in non-metro areas, driving its customer base growth to 4.5 million from 3.3 million the previous year. Retail and SME loans accounted for over 85% of the loan book, contributing to a diversified portfolio, with retail loans reaching ₹1,00,051 Cr and SME loans at ₹37,293 Cr. Tata Capital strengthened its digital-first approach, with 97% of customers onboarded digitally and 92% of collections handled through digital channels. Investments in AI and automation enhanced services such as chat-based customer support and marketing automation. Key product initiatives included the launch of education loans for domestic and international students and a loan origination system tailored for SMEs. Additionally, the merger of Tata Capital Financial Services Limited (TCFSL) and Tata Capital Cleantech Limited (TCCL) into Tata Capital Limited consolidated operations, improving efficiency and capital strength.