Tata Motors Finance recognised for contribution to MSME sector

The leading vehicle financier is a recipient of three MSME Banking Excellence Awards instituted by CIMSME

Rohit Tiku, Chief Risk Officer, Tata Motors Finance, receiving the MSME Banking Excellence Award 2021

Tata Motors Finance, one of India’s leading NBFCs, and a pioneer in the vehicle financing industry, 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 Pandemic-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 April 20, 2022 in New Delhi.

That’s not all. In addition, the brand also bagged the 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 recognises 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 the pandemic.

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. Speaking on the recognition, Tiku 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 practises, programmes and projects to support MSMEs, encouraging their entrepreneurial spirit,” he added.

Salient Features

• Tata Motors Finance’s assets under management (AUM) consist of 60-70% funding to MSME customers with average ticket size of Rs 10 lakhs.
• Starting FY 2021-22, 85% of the brand’s disbursements i.e. Rs 1,500 crore per month are allocated to MSME segments, under the new MSME guidelines.
• Over the last five years till September 2021, the brand has securitized and assigned MSME portfolio worth Rs 14,000 crore to several banks to help them meet their PSL obligations.
• The brand’s current AUM of Rs 45,000 crore includes 31% of loans to first time users (FTUs) with monthly disbursements ranging from Rs 300 to 350 crore to this segment.
• The brand is serving its customers in more than 17,000 pin codes of India with a ‘customer first’ approach