Tatas increase exposure to banking, NBFC stocks

In fray for new banking licences, the salt-to-software conglomerate, Tata Group, has acquired shares in about two dozen banks and NBFCs, such as ICICI Bank, SBI, HDFC Bank and Axis Bank, through one of its group investment firms.

The shares have been acquired by Tata Investment Corporation Ltd, whose portfolio of bank stocks rose to nearly Rs 183 crore, and that of non-banking financial sector stocks grew to about Rs 114 crore at the end of last fiscal year.

According to the company's latest annual report, Tata Investment Corp made fresh investments in shares of at least three banks - J&K Bank, Punjab National Bank and South Indian Bank - during the fiscal year ended March 31, 2013.

Besides, its holding went up in shares of lenders like Andhra Bank, Bank of Baroda, Central Bank, Corporation Bank, ICICI Bank and Indian Bank during the year.

Among other banks where Tata Investment holds share as part of its 'non-current' investment portfolio were  Axis Bank, DCB, HDFC Bank, IDBI Bank and SBI.

The only bank whose shares were sold by it during the year was United Bank of India.

Total market value of the company's holding of bank shares rose to Rs 183 crore, from Rs 157 crore a year ago.

Among NBFCs, Tata Investment Corp made fresh investments in shares of JM Financial and Bajaj Holdings & Investment Ltd.      

Incidentally, JM Financial and Bajaj group also figure among the aspirants for new bank licenses.

RBI on July 1 released a list of 26 licence applicants and they include Tata Sons, Reliance Capital, IDFC, LIC Housing, as also entities of Aditya Birla and L&T groups.

Tata Investment Corp has also increased its exposure to the shares of Aditya Birla Nuvo Ltd, while it also holds shares of IDFC and LIC Housing Finance.

The company said that the all the investments classified as 'non-current investments/trade investments' have been made with the intent to hold for long term appreciation, to enhance the income from dividends and are not held for trade.

Besides, funds pumped in under the category of 'current investments' are intended to be held for less than one year.

The company said it invests "in Tata and non-Tata companies, both in the listed and unlisted categories, though investments in Tata companies generally constitute a larger proportion and are of a longer term and strategic nature".

Its non-current investments as on March 31, 2013 stood at about Rs 1,800 crore, up from about Rs 1,688 crore, while its current investments rose from Rs 120 crore to Rs 142 crore.

The company holds shares of Axis Bank as part of its both current and non-current investment portfolios. Among NBFCs, its portfolio includes shares of CARE, GIC Housing Finance, IL&FS Investment Managers, HDFC, Motilal Oswal Financial Services and REC Ltd.