Tata Capital uses AI to cut credit costs and grow
Tata Capital, a non-banking financial company (NBFC) subsidiary of Tata Sons, is using artificial intelligence to make lending smarter and cheaper.
Thanks to AI-powered portfolio monitoring, their credit costs dropped by 14 basis points in FY26 (year ended March 2026), and Tata Capital's consolidated credit cost stood at 1.2%, down 20 bps from FY25.
This tech upgrade isn't just about saving money: it's helping the company grow faster and more efficiently.
AI assists 80% small-business underwriting
AI now assists underwriting for 80% of the small-business portfolio at Tata Capital, speeding things up and boosting productivity by 30%.
Their Voice AI even takes care of most welcome calls and originates 15% of direct personal loan business.
All this has paid off: in the last quarter alone, net profit jumped 43% to ₹1,502 crore and the loan book grew by 21%.
As Managing Director Rajeev Sabharwal puts it, AI remains a core strategic priority.