Business

Slow fund flow to impact markets

BANGALORE: Indian financial markets will be impacted by the slowdown of liquidity flows from international markets, Tata Capital Managing Director and CEO Praveen P. Kadle said here on Tuesday.

Addressing the media here, Mr. Kadle said higher interest rates reflected the ‘liquidity constraints.’ “A recovery will take at least 6-9 months,” he said. Companies, which had already embarked on projects, would continue investing in them, but they might ‘postpone projects which are futuristic in nature.’ On future plans, Mr. Kadle said the company, a fully owned subsidiary of Tata Sons, would explore business in the broader environment. The company had already built a portfolio of Rs. 1,600 crore in its retail finance operations.

It has a capital base of Rs. 2,100 crore and an asset base of about Rs. 6,000 crore. Tata Capital has built an asset base of Rs. 4,000 crore in the corporate finance space. The company, structured as a non-banking finance company, has raised funds mainly through private placements of debentures and from banks. He said the company planned to start its two-wheeler financing and home financing operations later this fiscal. Tata Capital, which is in its second year of operation, plans to establish three separate private equity funds. They are: a mid-market fund for medium-sized companies, a technology fund, and a growth fund meant for bigger companies.

The company planned to fund large projects such as road development, irrigation projects and special economic zones.

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