Tata Motors, India's largest truck maker, is looking to monetise its non-bank lending subsidiary as it plans to restructure its business, BloombergQuint reported.
“We will continue to own the majority stake in the company, but are open to bringing in partners in this business," P B Balaji, Chief Financial Officer of Tata Motors said, as reported by BloombergQuint.
The non-bank lending subsidiary, which focuses on both finance and refinance of vehicles, posted losses in two out of four quarters with non-performing assets reaching 4% in the year ended March 2018. Bad loans for the unit rose to 26% in 2014.
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“We infused Rs 300 crore last year and we have to be prepared for infusing Rs 400 crore every year," Balaji said to BloombergQuint, adding that the assets under management (AUM) of the finance arm rose at 24%.
Since the roll-out of the Goods and Services Tax (GST), truck sales for Tata Motors in India, has increased. The company also improved on its commercial vehicle market share by 45.1% in the financial year 2018, aided by heavy discounting to pull share from rivals like Ashok Leyland Ltd, the report said.
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