ICRA said the firm enjoys good financial flexibility for being part of the Tata group, with access to funds at competitive rates of interest. Its funding profile is fairly diversified with a mix of non-convertible debentures, bank borrowings, and commercial paper.
As of September 30, 2019, the overall market borrowings stood at 57 per cent of the total borrowings. The proportion of commercial papers in the overall funding mix declined to about 11 per cent as of December 31, 2019 from 16 per cent as of March 31, 2019.
As of December 31, 2019, the portfolio stood at Rs 44,149 crore and 52 per cent of the loan book comprised retail loans with the balance Rs 48 per cent consisting corporate loans.
The composition of the loan book is expected to remain broadly similar in the near to medium term.
Its asset quality is moderate with gross non-performing assets (GNPAs) of 2.75 per cent and net NPAs (NNPAs) of 0.58 per cent as of December 31, 2019, against GNPAs of 2.45 per cent and net NPAs of 0.39 per cent as of March 31, 2019.
The regulatory Capital Adequacy Ratio (CAR) remains comfortable with CAR and Tier I of TCFSL at 18.25 per cent and 12.72 per cent, respectively.
TCFSL's capitalisation has been supported by regular capital infusions from its parent Tata Capital.
It invested Rs 785 crore in FY17 and Rs 575 crore in FY18 in the form of compulsorily convertible cumulative preference shares (CCCPS). The parent infused an additional Rs 1,025 crore in the form of CCCPS in FY19.