Mumbai-headquartered Tata Capital is joining hands with Japan’s Capital Services Holding Corporation (CSG) to form a receivable management company that will support financial entities and others to more effectively manage and collect non-performing loans.

The proposed firm India Collections Management is likely to be established by way of collaboration between CSG and Tata Capital as strategic investors while International Finance Corporation (IFC) is likely to be inducted as a financial investor, according to a disclosure by IFC.

CSG headquartered in Tokyo offers loan servicing, real estate management and technology solutions across Asia through its network of local offices in Japan, Thailand, Philippines, Singapore, Malaysia, Taiwan and China. Presently, it has $ 8 billion of assets under management and was introduced to Tata Capital by IFC.

Calls made on Saturday to seek comments from Sunil Agrawal, VP (strategy and business development) at Tata Capital were not answered. Text messages sent to the mobile of Praveen P Kadle, MD and CEO, Tata Capital did not elicit any response till the filing of the story.

IFC is expected to take up to 20 per cent stake in the venture and to commit an amount of up to $5 million to be drawn down as per the capital needs of India Collections Management, according to the disclosure.

The new firm’s operations will be located in Mumbai but more offices in other locations may be opened depending upon its business needs.