Tourism Finance Corporation of India Limited — Important, 29-01-2025: Updates

**Financial Highlights:**

In 9MFY25, Tourism Finance Corporation of India reported total income of ₹190.61 crore, with net interest income of ₹74.54 crore and a profit before tax of ₹91.71 crore. Profit after tax stood at ₹73.61 crore, translating to an earnings per share of ₹7.95. The Gross NPAs were recorded at ₹94.11 crore, indicating a deterioration to 5.61%, while net NPAs increased to ₹65.69 crore, or 3.92%.

**Strategic Initiatives and Growth Drivers:**

TFCI focuses on tourism and hospitality financing, offering a range of term loans for setting up and expanding projects in the sector. It has also initiated digital retail lending through a fintech platform, currently assessing delinquency patterns before full-scale rollout.

**Business Developments:**

The corporation reported successful asset sales of ₹28.72 crore concerning NPAs expected to enhance its GNPA and NNPA ratios significantly in the upcoming quarter. The company is positioned for growth with a structured approach to financing, particularly in the hospitality sector.

**Market Position and Competitive Advantage:**

With over 35 years of experience, TFCI maintains a dominant presence in hotel financing, benefiting from longstanding relationships across the tourism industry.

**Investor Implications:**

The recent worsening in NPA ratios raises concerns, but strategic sales and digital initiatives may improve future performance and capital adequacy, presenting both risks and opportunities to investors. Watch closely as the situation develops.