In an exclusive conversation with CNBC-TV18, CEO Sabharwal said that consolidation in the financial services business would happen at the holding company level, ruling out consolidation among the housing, NBFC, leasing and other subsidiaries.
Rajiv Sabharwal, the managing director and CEO of Tata Capital, believes that a third of company's business will originate from within the Tata Group over the next five years.
That will complement group chairman N Chandrasekaran’s ‘One Tata’ approach, which aims to synchronise businesses within the Tata conglomerate.
In an exclusive conversation with CNBC-TV18, Rajiv Sabharwal said that consolidation in the financial services business would happen at the holding company level, ruling out consolidation among the housing, NBFC, leasing and other subsidiaries.
Tata Capital, a unit of Tata Sons Limited, provides financial service to retail, corporate and institutional customers across businesses.
On the current crisis in the non banking financial services sector, Sabharwal said non-banking financial companies (NBFCs) have a lion's share of the market in several segments that are now likely to see a slowdown in credit flow due to the liquidity crunch. Small ticket affordable housing, consumer durables, two wheelers, and roads are some of the sectors that may get impacted.
However, Sabharwal believes that the current crisis will pass, and the fundamentals of the businesses remain strong, irrespective of the panic triggered by the IL&FS default.
ICICI Bank veteran Sabharwal also praised his former boss Chanda Kochhar, calling her a great leader who helped shape the bank's retail and wholesale businesses.
Sabharwal, who has served as an executive director on the board of ICICI Bank, said he learnt a lot from the three leaders he worked with at the country's second largest private sector bank, namely N Vaghul, KV Kamath and Chanda Kochhar and credited Kochhar for building businesses at the institution.
Kochhar resigned as ICICI Bank CEO and MD earlier this month after the board accepted her request to seek an early retirement.
Sabharwal also confirmed that several people from ICICI Bank were recently recruited into Tata Capital, adding that there was lateral hiring from other large institutes and multi-nationals as well.(Source: CNBC TV 18)