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Tata Fin may hike Vakrangee stake

Our Bureau

MUMBAI, Nov. 22

TATA Finance Ltd (TFL) has raised its stake in Bangalore-based Vakrangee Softwares Ltd to 8.5 per cent and it may increase it further, according to Mr Dilip Pendse, Managing Director, TFL.

``The company is a very good one and we may think of increasing our stake further. We are also thinking of appointing a representative on the board in the next two to three months,'' Mr Pendse told Business Line on the sidelines of the annual general mee ting here on Wednesday.

TFL is in talks with the Reserve Bank of India for converting itself into a bank, he said.

Earlier, delivering the Chairman's address, Mr. F.A. Mehta said TFL will shortly launch a credit card for which it has got the RBI's approval. That will be followed by a global credit card and smart cards.

This is being done to enable the company's transition to a ``universal bank'' and also to leverage the infrastructure and expertise built up over the years, Mr Mehta said.

He said the joint venture of Tata Securities Ltd, the primary dealership and broking arm of TFL, with TD Waterhouse Group Inc. now known as Tata TD Waterhouse Securities Ltd, will start offering online broking services from January 2001.

Speaking about the performance of the company, Mr Mehta said the profit had been marginally affected by the recessionary conditions obtaining in the economy.

On the NBFC sector as a whole, he said, ``The process of consolidation has begun to take place in the sector. There have been too many weak and unreliable players who dented the image of the NBFC sector... The sector is now evolving with a few large play ers providing a full range of financial services.''

The shareholders approved all the resolutions unanimously, including the ones seeking private placement of one crore equity shares of Rs 10 each as well as 50 lakh cumulative convertible preference shares of Rs 100 each and employees' stock option.