New Delhi : Tourism Finance Corporation of India (TFCI), India’s premier non-banking finance company, has decided to diversify into retail lending through FinTech platforms and to establish an Alternative Investment Fund (AIF).
Partnering with FinTech companies to diversify in retail lending allows TFCI to tap vast credit opportunities in household and micro-small enterprises market segments, particularly the younger generation who expect quicker loan approvals and prefer the convenience of a digital lending platform. The digital lending business will bolster the company and its balance sheet.
In the first quarter of FY25, TFCI raised ₹50.02 crore through a preferential issue of equity at an issue price of ₹225 per share. With capital adequacy of ~ 58%, TFCI has enough headroom to expand the wholesale & retail loan book aggressively.
Mr Anoop Bali, Managing Director of TFCI, said, “This strategic move reaffirms our commitment to our long-term growth strategy. By deciding to tap into the fast-growing short-term retail lending through digital technology and to sponsor an Alternative Investment Fund, we are diversifying our offerings to add more sectors, driving our next growth phase.”
TFCI provides finance through term loans and investment in debentures to the tourism/hospitality sector, social-infrastructure sector (with an emphasis on healthcare & educational institutions, green energy, warehousing & logistics), manufacturing sector and real-estate sector. TFCI also provides medium term loans to smaller NBFCs, MFIs & HFCs for onward lending. Besides, TFCI provides quality advisory and consultancy services in the tourism space. In Q1FY25, TFCI’s sanctions increased by 97% to Rs.531.50 crore and disbursements grew by 140% to Rs.179.09 crore on Q-o-Q basis. During first quarter of FY25, the company recorded total income of Rs.61.84 crore with PAT of Rs 25.40 crore and there was no accretion to NPAs.
“These results highlight our consistent progress and strengthening our financial health. Our improved asset quality and robust capital position signify our focus on stability and long-term growth. We remain dedicated to delivering value to our stakeholders by maintaining prudent financial practices and ensuring sustained performance across our operations”, Mr Bali added.
