Tourism Finance Corp eyes alternative investment fund

19 Aug 2024 , 10:16 AM

Tourism Finance Corporation of India (TFCI) managing director Anoop Bali has announced that the company will establish an alternative investment fund as part of its expansion into retail lending.

The firm is also looking into methods to raise financing through long-term bonds and debentures, he told ET, adding that TFCI will aggressively expand its wholesale and retail loan book because it is well capitalised at more than 58%.

In 2023-24, the non-banking finance company borrowed ₹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 primarily pursued through digital lending platforms and that the lender would collaborate with fintech companies to expand its retail portfolio.

TFCI also intends to capitalise on lending opportunities in the household and micro-small enterprise market segments. In 2023-24, the firm sanctioned ₹1,454 crore in loans and non-convertible debentures for the tourist and hospitality sectors. The company made a profit of ₹25 crore in the first quarter of this fiscal year.

“Our improved asset quality and robust capital position signify our focus on stability and long-term growth,” Bali told analysts.

In June, TFCI’s gross non-performing loans (NPL) were 2.81%, compared to 5.35% the previous year. The firm secured ₹300 crore in term loans from scheduled banks and institutions.

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