Study on

TATA CAPITAL FINANCIAL

SERVICES LIMITED
 Introduction on Finance Industry
The financial services industry encompasses many types of businesses
involved in managing money, and it plays a vital intermediary role in the
world economy. The industry as a whole is vast, and includes companies
engaged in activities such as investing, lending, insuring, securities trading
and issuance, asset management, advising, accounting, foreign exchange,
and more. Because of its large and diverse landscape, the financial services
industry offers a wide range of career options.

Retail and Commercial Banking

These types of institutions offer checking and savings accounts, accept

deposits, lend money, issue credit and debit cards, perform foreign currency
exchanges, and offer other basic financial products to individuals and
businesses.

Investment Banking

Essentially, investment banks are intermediaries that help companies

access capital markets, such as the stock and bond markets. Investment
banks generally handle more complex financial transactions, such as
facilitating company mergers and acquisitions, issuing shares of stock when
a company goes public, acting as an advisor for companies, securities
trading, underwriting new debt and equity securities, and performing
financial research.

Venture Capital and Private Equity

These types of businesses involve investing money in private companies in

exchange for partial ownership or a percentage of the profit. Venture
capitalists usually focus on startups in their early stages with hopes of
selling them once they become profitable.

Accounting

Accounting is another broad subsector within the financial services

industry. In general, accountants record, maintain, and analyze financial
accounts for individuals, companies, nonprofit organizations, or government
agencies.

Insurance

The insurance subsector of the financial services industry exists to help

individuals and businesses calculate and mitigate potential risks for
financial loss.
 Financial Industry: History
India once had a heavily government-dominated financial services industry,
and most services were provided by nationalised banks. Financial sector
reforms were initiated in 1991 with the aim of accelerating economic growth.

In the following years, industry and service sectors were opened up for
foreign direct investment. The reforms ended the dominance of the public
sector and reduced direct government control on industrial investments.

Financial sector reforms in India have improved resource mobilisations and

allocation. The liberalisation of interest rates and the easing of cash reserve
norms have helped make funds available to various sectors.

However, prudential norms have been tightened and transparency and

regulation increased to avoid a systemic collapse that other countries have
suffered.
 Tata Capital Financial Services Ltd
Introduction:

Tata Capital Financial Services Limited ("TCFSL") is a subsidiary of Tata

Capital limited. The Company is registered with the Reserve Bank of India as
a Systemically Important Non Deposit Accepting Non Banking Financial
Company (NBFC) and offers fund and fee-based financial services to its
customers, under the Tata Capital brand.

A trusted and customer- centric, one-stop financial services provider, TCFSL

caters to the diverse needs of retail, corporate and institutional customers,
across various areas of business namely the Commercial Finance,
Infrastructure Finance, Wealth Management, Consumer Loans and
distribution and marketing of Tata Cards.

TCFSL has over 100 branches spanning all critical markets in India.

Vision: The most admired financial solution partner

Mission: We will only do what’s right - for all our stakeholders, including our
employees, customers and society at large.
 History and Background of Tata capital Financial
services Limited

The company was incorporated in 2010 and is headquartered in Mumbai,

India. Tata Capital Financial Services Limited is a subsidiary of Tata Capital
Limited. As of June 30, 2018, it operated 134 offices in 23 states. It has
employee base of 2612 employees.

It operates through Financing Activity, Investment Activity, and Others

segments. The company offers loans for new and used cars. It also provides
two wheeler, personal, and consumer durable loans. In addition, the
company offers loan against property and securities; wealth products
distribution services; and investment advisory services comprising portfolio
advisory, financial planning, retirement planning, estate planning and
trusteeship, and tax planning and advisory services. Further, it provides
commercial finance products and services consisting of term loans, channel
finance, debt syndication, structured finance, loan against securities,
equipment finance, lease rental discounting, working capital demand loan,
bill discounting, letter of credit, and equipment finance and lease solutions
for large, medium, and small corporate customers. Additionally, the
company offers infrastructure finance; wealth management service; and
Tata Card, a white label credit card.

Board of Directors

Mr. M. D. Mallya (Non – Executive Director)

Mr. Mukund S. Dharmadhikari (Independent Director)

Ms. Anuradha E. Thakur (Independent Director)

Mr. Farokh Nariman Subedar (Non – Executive Director)

Mr. Rajiv Sabharwal (Non-Executive Director)

Mr. Kusal Roy (Managing Director)

 Product and Services of Finance Industry.
MERCHANT BANKING

Merchant banking can be defined as a skill-oriented professional service

provided by merchant banks to their clients, concerning their financial
needs, for adequate consideration, in the form of fee.

Merchant banks are a specialist in international trade and thus, offers a

range of financial and consultancy services, to the customers, which are
related to:

 Marketing and underwriting of the new issue.

 Merger and acquisition related services.
 Advisory services, for raising funds.
 Management of customer security.
 Project promotion and project finance.
 Investment banking
 Portfolio Services
 Insurance Services.

Merchant banking helps in reinforcing the economic development of the

country, by acting as a source of funds and information to the business
entities.

Any person, indulged in issue management business by making

arrangements with respect to trade and subscription of securities or by
playing the role of manager/consultant or by providing advisory services, is
known as a merchant banker.

LEASING

A lease can be defined as an arrangement between the lessor (owner of the

asset) and the lessee (user of the asset) whereby the lessor purchases an
asset for the lessee and allows him to use it in exchange for periodical
payments called lease rentals or minimum lease payments (MLP). Leasing is
beneficial to both the parties for availing tax benefits or doing tax planning.
At the conclusion of the lease period, the asset goes back to the lessor (the
owner) in an absence of any other provision in the contract regarding
compulsory buying of the asset by the lessee (the user). There are four
different things possible post-termination of the lease agreement.
 The lease is renewed by the lessee perpetually or for a definite period
of time.
 The asset goes back to the lessor.
 The asset comes back to the lessor and he sells it off to a third party.
 Lessor sells to the lessee.

DISCOUNTING
Bill Discounting is a discount/fee which a bank takes from a seller to
release funds before the credit period ends. This bill is then presented to
seller's customer and full amount is collected. Bill Discounting is mostly
applicable in scenarios when a buyer buys goods from the seller and the
payment is to be made through letter of credit.

When a buyer buys goods from the seller, the payment is usually made
through letter of credit. The credit period may vary from 30 days to 120
days. Depending upon the credit worthiness of the buyer, the bank
discounts the amount that needs to be paid at the end of credit period. Bill
Discounting is also known as Invoice Discounting.
It means that the bank will charge the interest amount for the credit period
as an advance from the buyer’s account. After that, the bill amount is paid
as per the end of the time span with respect to the agreed upon document
between the buyer and seller.
Bill Discounting is a major trade activity. It helps the seller's get funds
earlier on a small fees or discount. It also helps the bank earn some
revenue. The borrower or (seller's) customer can pay money on the due date
of the credit period.

FACTORING

Factoring is a financial service in which the business entity sells its bill
receivables to a third party at a discount in order to raise funds. It differs
from invoice discounting. The concept of invoice discounting involves,
getting the invoice discounted at a certain rate to get the funds, whereas the
concept of factoring is broader. Factoring involves the selling of all the
accounts receivable to an outside agency. Such agency is called a factor.

The seller makes the sale of goods or services and generates invoices for the
same. The business then sells all its invoices to a third party called the
factor. The factor pays the seller, after deducting some discount on the
invoice value. The rate of discount in factoring ranges from 2 to 6 percent.
The factor does not make the payment of all invoices immediately to the
seller. Rather, it pays only up to 75 to 80 percent of invoice value after
deducting the discount. The remaining 20 to 25 percent of the invoice value
is paid after the factor receives the payments from the seller’s customers.

FORFEITING

The terms forfeiting is originated from a old French word ‘forfait’, which
means to surrender ones right on something to someone else. In
international trade, forfeiting may be defined as the purchasing of an
exporter’s receivables at a discount price by paying cash. By buying these
receivables, the forfeiter frees the exporter from credit and the risk of not
receiving the payment from the importer.

The exporter and importer negotiate according to the proposed export sales
contract. Then the exporter approaches the forfeiter to ascertain the terms of
forfeiting. After collecting the details about the importer, and other
necessary documents, forfeiter estimates risk involved in it and then quotes
the discount rate.

The exporter then quotes a contract price to the overseas buyer by loading
the discount rate and commitment fee on the sales price of the goods to be
exported and sign a contract with the forfeiter. Export takes place against
documents guaranteed by the importer’s bank and discounts the bill with
the forfeiter and presents the same to the importer for payment on due date.

The forfeiting typically involves the following cost elements:

1. Commitment fee, payable by the exporter to the forfeiter ‘for latter’s’
commitment to execute a specific forfeiting transaction at a firm discount
rate within a specified time.

2. Discount fee, interest payable by the exporter for the entire period of
credit involved and deducted by the forfaiter from the amount paid to the
exporter against the availised promissory notes or bills of exchange.

SECURITIZATION

Securitization is a carefully structured process by which a pool of loans and

other receivables are packaged and sold in the form of asset-backed
securities to the investors to raise the required funds from them. Through
this process relatively illiquid assets are converted into securities.
Securitization falls under the broad category termed as structured finance
transactions.

Structured finance refers to securities where the promise to repay the

investors is backed by the value of the underlying financial asset or the
credit support of a third party to the transaction or some combination of the
two. Thus, securitization is nothing but liquefying assets comprising loans
and receivables of an institution through systematic issuance of financial
instruments.

MUTUAL FUNDS

A mutual fund is formed when capital collected from different investors is

invested in company shares, stocks or bonds. Shared by thousands of
investors, a mutual fund is managed collectively to earn the highest possible
returns. The person driving this investment vehicle is a professional fund
manager.
A Mutual fund features
 Money pooled from various individuals (investors)
 Well-regulated (by SEBI)
 Access to large portfolios
 Professionally Managed
 Higher returns than conventional investing
 Allows to invest in small amounts

CREDIT CARDS

A credit card is a card issued by a financial company which enables the

cardholder to borrow funds. The funds may be used as payment for goods
and services. Issuance of credit cards has the condition that the cardholder
will pay back the original, borrowed amount plus any additional agreed-
upon charges. The credit company provider may also grant a line of
credit (LOC) to the cardholder which allows the holder to borrow money in
the form of a cash advance. The issuer pre-sets borrowing limits which have
a basis on the individual's credit rating.

Credit cards have higher annual percentage rates (APRs) than other forms of
consumer loans and lines of credit. Interest charges on the unpaid amount
charged to the card usually begin one month after making a purchase.

HIRE PURCHASE

Hire purchase is an arrangement for buying expensive consumer goods

on credit, where the buyer makes an initial down payment, with the balance
being paid in instalments plus interest. It is similar to an instalment plan,
except unlike instalment plans, where the buyer gets the ownership rights
as soon as the contract is signed with the seller, the ownership of the
merchandise is not officially transferred to the buyer until all the payments
have been made.

Businesses where expensive machinery is required, such as construction,

manufacturing, plant hire, printing, road freight, transport, engineering and
professional services commonly use hire purchase agreements — as well as
startups that have little collateral to establish lines of credit. Like leasing,
hire purchase allows companies with insufficient working capital to deploy
assets.

CREDIT RATING AGENCY

A credit rating agency (CRA) is a company that rates debtors on the basis of
their ability to pay back their interests and loan amount on time and the
probability of them defaulting. These agencies may also analyse the
creditworthiness of debt issuers and provide credit ratings to only
organisations and not individuals consumers. The assessed entities may be
companies, special purpose entities, state governments, local governmental
bodies, non-profit organisations and even countries. Individual customers
are rated by specialised agencies known as credit bureaus that provide a
credit score to every customer based on his/her financial history.
The debt instruments rated by CRAs include government bonds, corporate
bonds, CDs, municipal bonds, preferred stock, and collateralized securities,
such as mortgage-backed securities and collateralized debt obligations.

Credit rating agencies in India do not have a distant past. They came into
existence in the second half of the 1980s. As of now, there are six credit
rating agencies registered under SEBI namely, CRISIL, ICRA, CARE,
SMERA, Fitch India and Brickwork Ratings. Ratings provided by these
agencies determine the nature and integrals of the loan. Higher the credit
rating, lower is the rate of interest offered to the organisation.

VENTURE CAPITAL

It is a private or institutional investment made into early-stage / start-up

companies (new ventures). As defined, ventures involve risk (having
uncertain outcome) in the expectation of a sizeable gain. Venture Capital is
money invested in businesses that are small; or exist only as an initiative,
but have huge potential to grow. The people who invest this money are
called venture capitalists (VCs). The venture capital investment is made
when a venture capitalist buys shares of such a company and becomes a
financial partner in the business.
Venture Capital investment is also referred to risk capital or patient risk
capital, as it includes the risk of losing the money if the venture doesn’t
succeed and takes medium to long term period for the investments to
fructify.

Features of Venture Capital investments

 High Risk
 Lack of Liquidity

 Long term horizon

 Equity participation and capital gains

 Venture capital investments are made in innovative projects

 Suppliers of venture capital participate in the management of the

company

CREDIT DERIVATIVES

Credit derivatives are financial instruments that transfer credit risk of an

underlying portfolio of securities from one party to another party without
transferring the underlying portfolio. Let's break this down to get a clearer
picture.
When a lender lends money to a borrower, the lender is faced with the risk
that the borrower won't pay that money back. This is called the credit risk.
It determines the credit ratings of the bonds issued by companies to raise
debt.
So, how is the credit risk transferred? The lender sells this loan to other
parties who are seeking to invest in debt securities. These buyers get
interest payments from the lender. Once the buyers purchase these special
investment vehicles, the credit risk gets transferred to them, but the loans
remain on the books of the original lender. These investment vehicles are
what we call credit derivatives.

INSURANCE

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent or
uncertain loss.
An entity which provides insurance is known as an insurer, insurance
company, insurance carrier or underwriter. A person or entity who buys
insurance is known as an insured or as a policyholder. The insurance
transaction involves the insured assuming a guaranteed and known
relatively small loss in the form of payment to the insurer in exchange for
the insurer's promise to compensate the insured in the event of a covered
loss. The loss may or may not be financial, but it must be reducible to
financial terms, and usually involves something in which the insured has
an insurable interest established by ownership, possession, or pre existing
relationship.
 Products & Services of Tata Capital Financial Services
Ltd
Two Wheeler Loans

Tata Capital offers Two Wheeler Loans at attractive interest rates. It provides
two wheeler for as low as Rs.43* per day along with quick processing and
hassle free documentation.

Key Features:

 Special reduced rates

 Up to 85% funding of the on-road price

 Hassle free documentation

 Speedy processing

High - End Bike Loans

TCFSL is presenting Two Wheeler Loans for super bikes with attractive
payback options to suit your needs.

Key Features:

 Flexible repayment options

 Loan upto Rs. 40 lakhs

 Hassle free documentation

 Attractive interest rates

Personal Loans

TCFSL provides loan for holiday abroad, a wedding in the family , a business
need or any personal need - with Tata Capital Personal Loans.

Key Features:

 Personal Loans up to Rs 15 lakhs

 Business Loans up to Rs. 50 lakhs

 Attractive interest rates

 No hidden charges

Loan against Property

Loans against Property are secured-term- loans, secured by the mortgage of
property. The end-use of this loan should be towards any declared legal
purpose. The various types of Loans against Property are as follows:

 Loan for personal/business/educational needs against existing

property
 Loan for acquisition of commercial property

 Loan against future rental receivables

Key Highlights
 Loans from 5 Lakhs up to 5 Crores
 Simple documentation
 100% transparency
 Attractive interest rates
 Easy monthly repayment through ECS or PDCs
 Loan tenure of up to 15 years

Consumer Durable Loans

At Tata Capital, customers are the centre of our world and they offer a wide
range of products to make sure their world is both comfortable and secure.

They provide Tata Capital Consumer Durable Loans at 0% ^ Interest with

EMI options to suit your needs best, bringing your dreams within reach.
And all you need is your PAN card and residence proof.

Documents Required

 Photograph

 PAN Card

 Residence proof

Loan against Securities

Tata Capital introduces Loan Against Securities (LAS). LAS offering doubles
the benefits you can enjoy Equity or Mutual Fund investments - you can
now get ready liquidity on your securities, while continuing to earn returns
on them. Now you can take care of your financial needs without liquidating
your investments.

Benefits of taking a loan against securities:

1. It helps you meet all your immediate financial needs without selling
your securities
 2. You can also enjoy all benefits of being a Share/ Mutual Fund/
Securities holder like Bonus, Dividends etc.

3. Any time pre-payment

4. Interest calculated only on the amount withdrawn

5. Option to avail additional finance by pledging more Shares, Mutual

Fund units or Securities

6. Security swapping- Flexibility to swap securities as per your outlook

on the stock market while enjoying the benefits of Dividends, Bonus
and Right Issues

Product offer:

 Loan facility offered on approved Scrips and Mutual Funds to the

extent of 40-70% of the market value/net Asset Value (NAV)

 Interest charged only on amount utilized

 Monthly repayment of only the Interest component, the Principal

needs to be repaid at the end of the term

 Loan amount available as an over draft facility

 Monthly interest payment by way of ECS or PDCs

Investment Advisory Services

Tata Capital Financial Services Limited is a SEBI registered Investment

Adviser under the (Investment Advisers) Regulations, 2013. Being governed
by the regulations, one of the most distinct features of our services are:

 Unbiased independent recommendations

 No obligation of investing through us;

Services includes:

1. Portfolio Advisory Services

2. Financial Planning Services

3. Retirement Planning Services

4. Estate Planning & Trusteeship Services*

5. Tax Planning & Advisory Services*

*This is a third party service offering where Tata Capital Financial Services
is merely acting as a referral agent.

Tata Card
A card that puts YOU first!

Tata Card* combines the benefits of a globally accepted Credit Card with the
advantages of a highly rewarding Empower program.

Empower is India’s first multi-brand loyalty program which offers you the
option to earn accelerated points on your Tata Card across a wide range of
shopping categories and brands. Further, the redemption of these points is
made easy via the facility to redeem against in-store purchases at our
partner outlets.

Key Features:

 Higher value back of up to 5% when you shop at Partner Brands

 Instant redemption of Reward Points at participating outlets

 Convertibility of Reward Points to airline miles

 Reward Points: Faster build- up of Reward Points. Each point is worth

Re. 1

*Tata Card is a White Label Credit Card issued, operated and serviced by
the State Bank of India (“SBI”) and marketed by TCSFL

Commercial Finance

The Commercial Finance from Tata Capital provides financial solutions for
large, medium & small Corporate. We also provide solutions for emerging
business areas. Our products and services are tailored to suit the business
requirement, market conditions and entity size, to ensure our clients
achieve what they aspire for.

Our asset-based business loans are just one facet of our commercial finance
solutions.

Our solutions also include business loans to help improve cash flow, debt
consolidation, working capital finance, debt restructuring and more.

Our experienced professionals work closely to understand your business

and then, structure for you the best financing solution.

Our range of offerings includes:

Term Loans

Term loans aid in providing finance for acquiring income producing assets
(such as machinery, equipment and inventory) in order to generate cash
flows for the repayment of loans.

Key Features

 Tata Capital Term loans act as ideal funding mechanisms for

brownfield or greenfield construction projects, major capital
 improvements, large capital investments (such as machinery and
working capital) and the purchase of existing businesses.

 Loan tenure varies from 3 months to 5 years.

 Maximum funding upto 100% of value of asset

 Solutions oriented approach to structure products to match your

every need

 Simple documentation and quick approvals

Working Capital Loans

Working Capital Loans from Tata Capital could provide you with a
dependable source of funding to continuously scale your business to new
heights.

Key Features

 These loans can be used to pay your daily business running expenses
such as rent, utilities, marketing expenses, inventory, employee
salaries or mortgage payments.

 We offer you working capital finance by way of WCTL or WCDL, after

carefully assessing your business needs and risk profile

 Our fund and non-fund based Product basket including Letters of

Credit, Buyers Credit

Bill Discounting:

TCFSL understands an entrepreneur's needs for short-term finances when it

comes to supplying to large corporate. Which is why, they offer Bill/Invoice
discounting services that gives access to funds at competitive rates.
Additionally, minimal paperwork and quick transaction makes this an ideal
way to meet working capital needs.

The Tata Capital Advantage

 Quick Processing: With simple documentation and quick processing,

you'll receive your loan in no time.

 Paperless Transactions

 Payment Flexibility: They allow you to spread out payments over a

flexible time period, for your convenience.

Channel Finance:
Tata Capital's Channel Finance through its dealer financing services
ensures timely availability of finance at reasonable cost, which means a
healthy and continuous growth of your business.

The Tata Capital Advantage

 Flexible Tenure: They allow you to spread out payments over a flexible
time period, for your convenience.

 Quick Processing: With simple documentation and quick processing,

you'll receive your loan in no time.

Letter of Credit:

Tata Capital, through its relationships with multiple associate banks, offers
a Letter of Credit facility which arms you with a guarantee of payment. This
is especially useful while you navigate the complexities of overseas trading
operations. They also offer you LC discounting facility against a confirmed
Bank LC, to enable you to instantly monetize your credit receivables at
attractive rates. Making your international business operations run smooth.

Usance LC is deferred payment for 1-3 years and customers pay on the
maturity date. In case of Sight LC, Sight LC gets converted into BC for 3
years on LC Maturity date with option of rollover at the end of every 6
months or 12 months and customers have options to Repay and clear the
foreign currency liability partially or fully.

Key Features

 Offers two types of Letters of Credit: Sight & Usance LC, both inland &
foreign

 Financing up to 100% of LC value

 Convenience of payment as per LC terms

Lease Rental Discounting:

The Lease Rental Discounting solutions from Tata Capital allow you to
secure financing against future rentals on your commercial properties which
are leased out.

Key Features

 Loan tenure varies from 12 months to 108 months.

 Customized Product offering

  Simple documentation

 Attractive interest rates

Equipment Finance:

Tata Capital provides Equipment Finance to allow you to purchase a wide

range of equipment from heavy machinery to office equipment. The
knowledge of the Indian business environment coupled with their
associations with the major equipment manufacturers would enable us to
customize solutions for your business.

Key Features

 Can be structured as a Loan or Lease depending on your long term

equipment needs asset ownership requirements etc.

 Tenures vary between 3 to 5 years

 No need for additional security

 Monthly repayments can be structured as per cash flows or product

cycle

 Helps preserve working capital and banks line of credit

Infrastructure Finance:

Tata Capital, undertake construction equipment financing and refinancing

of used construction equipment. They are leading financers of construction
equipments of original equipment manufacturers.

Apart from financing and refinancing of construction equipment, they also

offer project financing in India for various segments including roads,
railways, warehousing, irrigation, power and so on.

They have Tata capital mart a unique B2B & B2C e-commerce portal, Tata
Capital Mart connects the entire value chain and serves as a one-stop-shop
for the Construction Equipment industry.

Services offered through the Portal include:

 Listing of Assets and Contracts

 Uploading of used assets by Customers or Sellers for both Resale and

Rental. Tata Capital Mart also hosts repossessed assets for Sale/Rent.
The Buyer gets access to a single platform to view all assets with high
 resolution photos of the asset and details of available documents
thereby facilitating decision making and seller negotiation.

 Posting of contracts available for sub contracting by Customers &

Contractors and interest shown by subcontractors.

 Details about new launches & schemes from OEMs

Lease solutions:

Tata Capital, in partnership with Century Tokyo Leasing Corporation (TC-

Lease), brings you comprehensive and innovative, solution-oriented asset
financing solutions. Tata Capital Leasing Solutions offer to acquire and
manage your equipment and assets better, by leveraging our financing
knowledge and domain expertise accumulated through our combined
experience of diverse and changing businesses, processes and global
associations.

We offer customized leasing solutions for both manufacturers and resellers

of equipment.

The Tata Capital Advantage

 Quick Processing: A pre-established credit line at Tata Capital allows

you to acquire the equipment in minimal turnaround time.

 Payment Flexibility: A lease can be structured to have variable

payment terms to match your cash-flow needs as well as the tax
bracket of your company.

 Value Add-ons: Our leasing solutions provide further value-addition

with options to avail interim finance for technology-refreshes and
support equipment.

 Customized Solutions: Our team works closely with you to accomplish

the best leasing solution for your asset life-cycle management.

Wealth Products Distribution:

Tata Capitals Wealth Management services gives you a strategic approach to

managing your wealth.

Wealth Product Distribution Services are based on your portfolio and risk
tolerance. Experienced professionals work with you to design an investment
strategy to help meet your current and future needs before allocating your
resources.
Tata Capitals Wealth Product Distribution Services are not only designed to
allow proper allocation of funds, but also to secure your financial future for
generations. Our offerings include:

 Corporate Fixed Deposits

 Mutual Funds

 Portfolio Management Services (PMS)

 Alternate Investment Funds and Structured Products

 Real Estate Services

 Life Insurance

 Bonds
Comparison between Industry and Tata Capital Financial
services Limited

Sr.no. Particulars Finance Industry Tata Capital Financial

Services Ltd

1. Scope Financial Industry TCFSL being an NBFC is

has a wider scope a part of finance industry
since it includes and has a narrow scope
various financial compared to finance
institutions industry

2 Caters to Financial Industry TCFSL is a one stop

has specific financial service provider
institutions to deal that caters to the diverse
with various needs of needs of retail, corporate
retail and corporate. and institutional
Eg: LIC deals with customers across
providing Life businesses
insurance only.

3. Deposits and Financial institution TCFSL is basically

loans such as banks engaged in providing
acceptability accepts deposits and loans and finance services
grants loans also. to retail and corporate. As
It is registered with RBI as
‘Systemically Important
Non-Deposit Accepting
Non-Banking Financial
Company (NBFC)’

4. Product and Financial Institution TCFSL offers products

Services offered offers services such and services such as Two
as Merchant Banking, wheeler loans, Consumer
Leasing, discounting, durable loans, loans
factoring, forfeiting, against property, loan
Mutual funds, credit against securities,
cards, venture commercial finance viz.
capital, insurance, equipment finance, Bill
securitization of discounting, Letter of
debts, Credit Credit, channel finance,
derivates etc Lease rental discounting,
term loans, working
 capital loans and
investment advisory
services.

5. Contribution to Financial institution TCFSL being an NBFC

payment like banks contribute does not participate in
system in payment and payment an settlement
settlement cycle
mechanism

6. Marketing of Financial institution TCFSL markets third

third party offers their own party products like
products products Mutual Funds, Fixed
deposits and bonds

7. Participation in Financial Institution TCFSL participates in

credit creation like Banks granting credit such as
participates in credit term loans and
creation. discounting etc but does
not participate in credit
creation.

8. Investment Many financial The distinct feature of

advisory institutions provide TCFSL is that there is no
services investment advisory obligation of investing
services with a motto through Tata capital
to invest in their own against the investment
products advisory services
provided.

9. Credit card Most of the financial TCFSL markets Tata card

marketing institution in the which is issued, operated
industry has the and serviced by SBI
credit card of their
own company which
is issued, operated
and serviced by them.

10. Research Financial industry is The research team strives

Insights very huge wherein few to provide unbiased and
institutions only independent research
strive to sell the updates to help investors
products without align their investment
providing markets strategies with changing
insights. market dynamics
 Conclusion & Recommendations:
Finance Industry is wide industry wherein NBFC is a part of the huge
industry.

Tata Capital Financial Services Limited, a one-stop financial service provider

that caters to the diverse needs of retail, corporate and institutional
customers across businesses.

Tata Capital Financial services Limited provides a service of Research

insights that helps the investors to take informed decisions.

TCFSL has Tata Capital Mart a unique B2B & B2C e-commerce portal, it
connects the entire value chain and serves as a one-stop-shop for the
Construction Equipment industry. The ease of navigating through the site to
search relevant equipments is assisted by applying filters on the Asset
category, Location of the asset, Manufacturer, Year and Price range.

Consortium finance is a service which is available in finance industry but is

not available in case of NBFC. Consortium finance is used for providing
huge loans. With NBFC undertaking consortium finance the maximum
ceiling level for loans shall be increased.

TCFSCL is a part of the Finance industry and is contributing in the growth

of the industry.