TFCI Expands Horizons with Retail Lending and Fund-Raising Plans

Tourism Finance Corporation of India (TFCI) is set to diversify its operations by establishing an alternative investment fund and foraying into retail lending. Through these strategic initiatives, the company aims to bolster its loan book.

TFCI has secured government approval for a significant capital infusion of ₹10,501 crore, which will be utilised to strengthen its financial position and support business expansion. The company is also exploring avenues to raise funds through long-term bonds and debentures to augment its capital base.

With a robust capital position of over 58%, TFCI is well-equipped to expand its lending portfolio. The company’s gross non-performing loans (NPLs) declined to 2.81% in June 2024 from 5.35% a year ago, indicating improved asset quality.

To support its growth plans, TFCI has raised term loans worth ₹300 crore from scheduled banks and institutions. This additional funding will be instrumental in driving business expansion and supporting the company’s strategic objectives.

“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.

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