Tata Motors Finance recognized for its contribution to the MSME sector's growth
Hyderabad Tata Motors Finance, a NBFC and vehicle financing entity, has been conferred as winner of the MSME Banking Excellence Award, 2021 by Chamber of Indian Micro Small and Medium Enterprises (CIMSME) in the category of 'Best NBFC for implementing Covid related government schemes'. The coveted award was presented by Minister of State for Micro Small and Medium Enterprises, Bhanu Pratap Singh Verma and Minister of Micro Small and Medium Enterprises, Narayan Tatu Rane to Rohit Tiku, Chief Risk Officer, Tata Motors Finance at a ceremony held on 20th April 2022 in New Delhi.
Additionally, the brand also bagged 'Runner Up' award in categories of 'Best NBFC for promoting social schemes' and 'Best Branding NBFC'. Considered to be one of the most coveted awards in the sector, CIMSME's MSME Banking Excellence Award recognizes the remarkable work done by Banks and NBFCs in supporting and rejuvenating the MSME sector.
Winners of the award undergo a rigorous evaluation process and scrutiny on parameters like work done in aiding MSMEs, stakeholder engagement, strategy, execution, and impact, as well as support extended to MSMEs during Covid time. The methodology for evaluation includes assessment of responses to questionnaires, interactions with management team, analysis by the knowledge partner and the jury. The award jury was chaired by Justice (Retired) Deepak Verma, Supreme Court of India.
Rohit Tiku, Chief Risk Officer, Tata Motors Finance, said: "It is indeed an honour that Tata Motors Finance has been bestowed with the MSME Banking Excellence Award at this prestigious forum. We recognise that availability of financial assistance, particularly during difficult times is at the core of ensuring social equity and improving quality of life. Customer centricity, therefore, is at the DNA of Tata Motors Finance's corporate philosophy. As a leading vehicle financier, we aim to create capabilities among people to take advantage of emerging economic opportunities. Staying true to our credo of 'Nation building through money lending', we have helped create over 1.5 million entrepreneurs, taking forward the dream of a self-reliant India. We are committed to playing a vital role in fuelling inclusive growth and implementing innovative practices, programmes, and projects to support MSMEs, encouraging their entrepreneurial spirit."
Tata Motors Finance's Assets under Management (AUM) consist of 60-70 per cent funding to MSME customers with average ticket size of Rs 10 lakhs. Starting FY 2021-22, 85 per cent of the brand's disbursements i.e., Rs 1500 crores per month are allocated to MSME segments, under the new MSME guidelines and over the last five years (till Sept 2021), the brand has securitized and assigned MSME portfolio worth Rs 14000 crores to several banks to help them meet their PSL obligations. The brand's current AUM of Rs 45000 crores includes 31 per cent of loans to First Time Users (FTUs) with monthly disbursements ranging from Rs 300 to 350 crores to this segment. The brand is serving to its customer in more than 17000 pin codes of India with customer first approach.