Mumbai, April 23 -- Tata Capital, the non-banking financial company (NBFC) subsidiary of Tata Sons, on Thursday said it has witnessed some tangible benefits of using artificial intelligence (AI) in its lending decisions and monitoring.

The portfolio monitoring platform has helped strengthen risk management and reduce credit cost by 14 bps year-on-year (y-o-y) in FY26, said Rajeev Sabharwal, managing director and chief executive of the NBFC, in a statement.

Tata Capital's consolidated credit cost, including the portfolio of erstwhile Tata Motors Finance, stood at 1.2% in FY26, down 20 bps from FY25. Credit cost is total provisions and write-offs expressed as a percentage of assets, and indicates the risk associated with a loan portfolio....