Top NBFC Companies in India

Top NBFC Companies in India

Top NBFC in India
Shriram Transport Finance

There are a lot of Non-Banking Finance Companies(NBFC) registered with Reserve Bank of India but only some top companies do most of business. These companies are involved in business of loans and advances and insurance besides many other activities. NBFCs are regulated by Reserve Bank of India. These are many types of NBFCs such as Gold Loan NBFC, Infrastructure Finance Company(IFC) and Loan Company(LC).

Top NBFC includes name like Bajaj finserve Limited, Sriram Transport Finance, L&T Finance Holdings, Mahindra  and Mahindra Financial Services, Reliance Capital, Muthooth Finance, Manappuram Finance, Capital First, Cholamandalam Investment and Finance and Can Fin Homes. These NBFC focus on better asset quality and low gross NPA. Most of the well managed NBFC shows a stead growth in their asset under management. Due to good management various companies maintain high margin and low operating costs. This leads to many NBFCs showing double digit growth.

Mahindra Finance

Due to good growth prospects, foreign institutional investors(FII) are picking up stakes in leading NBFCs of India. Many times NBFCs have outperformed banks. NBFCs do not carry some of the risks that are involved in banks. Many years ago NBFCs used to be smaller companies than most of the banks but now there are many companies which are much bigger than small and medium sized banks. NBFCs are expected to account for 17% of total credit in the country by 2018-2019.

The trend of NBFC outperforming banks is likely to continue due to losses reported by banks from bad loans and other profitability issues. To improve situation finance ministry has asked banks to exit non-core businesses. Getting a license is easy for NBFC as compared to banks. Banks need to follow much tougher regulations.

Most of the NBFCs provide services like personal load, business loan, vehicle finance, loan against security, small and medium enterprise loan and loan against property, construction finance etc. NBFCs can carry financial business but are not allowed to accept deposits like banks do.

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