Tata Capital to start home loan business by 2009

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New Delhi, Aug 3 (UNI) Tata Capital Ltd, a wholly-owned financial services subsidiary of Tata Group, has said it plans to start home loan business by the next year.

''We expect to start our home loan business by March 2009 after getting all the necessary approvals,'' company Managing Director Praveen P Kadle told reporters here.

The company, which is already operating six-seven business verticals, plans to reach to a wider audience by using its experience and expertise, and support and grow its existing businesses, he said, adding, ''We will work as a pseudo bank and provide services ranging from capital market services, housing finance, assets and vehicle financing, retail finance, merchant banking and manage private equity investment among other related activities''.

At the beginning, Tata Capital will like to concentrate more on auto finance and providing help to small and mid size companies but in due course of time it would expand its reach, Mr Kadle said.

Referring to the size of funds that Tata Capital was contemplating, Mr Kadle said the first fund is still in pre-marketing stage and the size will be determined later.

''The mid-cap fund should have a size of at least 250 million dollars, but it would be determined at a later stage,'' he said, adding that next in line could be a technology venture fund, which would focus on the IT and telecom companies.

Asked whether the company plans to enter the stock market, he said, ''We have no immediate plans for an IPO.'' Recently, the company had signed an agreement with Japan-based Mizuho Corporate aimed at fostering business cooperation, enhancing cross-market value relation capabilities and aiding each other in gaining a deeper understanding of the Indian and Japanese markets.

At present, the company has a headcount of 450 and is operating across 40 locations in tier-II cities.

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