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Housing

Tata Capital Eyes Housing and Property Loans as Key Growth Driver Ahead of IPO

Strategic Insights

— 1 min read

Tata Capital is gearing up for an initial public offering (IPO) and is positioning its housing and property loans segment as a major growth driver, with the segment contributing nearly 40% of profits and 34% of the loan book. The company's housing finance arm, Tata Capital Housing Finance (TCHFL), has been actively lending to salaried and self-employed borrowers for various home loan requirements. As of March 2025, TCHFL had a loan book of Rs 66,950 crore, supported by NHB borrowings, and a capital adequacy ratio of 19%, exceeding the regulatory minimum of 15%.

Key Takeaways:

  • Tata Capital's housing and property loans segment is expected to drive growth, contributing 40% of profits and 34% of the loan book.
  • Tata Capital Housing Finance (TCHFL) has 248 branches and has grown its gross home loans by 31.8% CAGR over two years to Rs 38,402.7 crore.
  • TCHFL's loan book stood at Rs 66,950 crore in March 2025, supported by NHB borrowings, with a capital adequacy ratio of 19%.
  • Standard home loans averaged Rs 31 lakh with a tenor of up to 30 years at 9.8% interest, while affordable loans averaged Rs 18 lakh at 11.4%.
  • TCHFL ranks among the largest HFCs and reported the highest return on equity among peers at 19.3% in FY25.
  • India's home loan market is projected to grow 14-16% annually to Rs 60-63 lakh crore by FY28, with public sector banks leading the market.

Statistics:

  • Tata Capital's housing and property loans segment contributed 40% of profits.
  • May 34% of the loan book.
  • The loan book of TCHFL stood at Rs 66,950 crore in March 2025.
  • Gross home loans grew at a 31.8% CAGR in two years to Rs 38,402.7 crore.
  • Standard home loans averaged Rs 31 lakh with a tenor of up to 30 years at 9.8% interest.
  • Affordable loans averaged Rs 18 lakh at 11.4%.
  • TCHFL has 248 branches.
  • India's home loan market is valued at Rs 40.6 lakh crore in March 2025.
  • The home loan market is projected to grow 14-16% annually to Rs 60-63 lakh crore by FY28.

Sources:

  • Times News Network
  • Tata Capital IPO documents
  • RBI classification of Tata Capital Housing Finance (TCHFL)
  • NHB registration of TCHFL
  • Crisil report on India's home loan market
  • TCHFL FY25 annual report

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