Tata Capital Surges with 43% Profit Boost Amidst West Asia Crisis

Tata Capital, a notable non-bank lender, reported a substantial 43% increase in net profit for the March quarter, reaching Rs 1,502 crore. This surge comes as the company exercises caution while disbursing loans to MSMEs, managing risks linked to the ongoing West Asia crisis.

With a stable net interest margin of 5.2%, Tata Capital's assets under management swelled by 29%, totaling Rs 86,653 crore. The company's strategic shift towards higher-yielding products like retail unsecured loans and affordable housing appears to be paying off.

Managing Director Rajiv Sabharwal highlighted the deployment of AI tools to improve credit costs and emphasized weekly reviews of exposures amidst the crisis. Despite global challenges, Tata Capital's focus on asset quality—aided by conservative lending—strengthens its financials.