New Delhi: Tourism Finance Corporation of India (TFCI) will set up an alternative investment fund as it plans to enter retail lending, said its managing director Anoop Bali.
The firm is also exploring ways to raise funds through long-term bonds and debentures, he told ET, adding that TFCI will aggressively expand its wholesale and retail loan book as it is well capitalised at above 58%.
In 2023-24, the total borrowings of the non-banking finance company stood at ₹983 crore.
“We will tap into the fast-growing short-term retail lending through digital technology, sponsor an alternative investment fund as part of our diversified offerings and add more sectors to drive our next growth phase,” Bali said, adding that retail lending would be largely pursued through digital lending platforms and the lender would partner with fintech companies to expand its retail portfolio.
TFCI also plans to tap into credit opportunities in the household and micro-small enterprise market segments. The firm, which currently focuses on financing through term loans and investment in debentures in the tourism and hospitality sectors, sanctioned loans and non-convertible debentures aggregating ₹1,454 crore in 2023-24. It reported profit of ₹25 crore for the first quarter of this fiscal. “Our improved asset quality and robust capital position signify our focus on stability and long-term growth,” said Bali.
TFCI’s gross non-performing loans (NPL) amounted to 2.81% in June, as against 5.35% a year ago. The firm raised term loans from scheduled banks and institutions aggregating ₹300 crore.
