India’s Tata Capital posts quarterly profit rise in first earnings since listing

India’s Tata Capital reported a rise in second-quarter profit on Tuesday, in its first earnings since going public, led by steady loan growth.

The non-bank lender’s consolidated profit rose to 10.97 billion rupees ($124.8 million), from 10.76 billion rupees a year earlier.

Credit demand in India recovered during the July–to-September quarter following several quarters of muted growth, driven by a revival in consumption and a gradual increase in corporate borrowing.

Loan growth is expected to remain strong in the second half of the fiscal year, buoyed by recent tax relief measures.

Tata Capital, which trails market leader Bajaj Finance and Shriram Finance by market capitalisation, said revenue from loans it gave to retail and corporate borrowers climbed 12.3% to 75.18 billion rupees.

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Retail loans account for 64% of the company’s total assets.

The lender’s interest income rose nearly 12% to 69.80 billion rupees.

Tata Capital made a subdued trading debut earlier this month and was valued at 1.4 trillion rupees, after getting bids worth $2.9 billion for its IPO, the country’s biggest so far this year.

The company’s shares have been flat since listing.