Final Report on NBFC

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A Comparative Study Of NBFC in India

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ALLIANCE BUSINESS SCHOOL | 1

A Comparative Study Of NBFC in India

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ALLIANCE BUSINESS SCHOOL |

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4.3.1 ECONOMIC OVERVIEW ... 47

4.3.2 COMMERCIAL VEHICLE INDUSTRY OVERVIEW ... 47

4.3.3 Shriram Transport Finance ... 48

4.3.4 SWOTANALYSIS... 52

4.4idfc ... 56

4.4.1 Global Financial and Economic Crisis ... 56

4.4.2 Infrastructure Development Finance ... 57

CHAPTER-5 INDIAN BANKS V/S NBFC’S ... 65

5.1 Top 5 Banks and NBFCs with highest profitability ... 67

5.3 Banking versus NBFC regulatory arbitrage in India ... 68

CHAPTER-6 Porter’s five forces ... 70

CHAPTER-7 FINDINGS & MANAGERIAL IMPLICATIONS ... 74

7.1 findings ... 75

7.1.1 Disbursements - Sharp fall during the crisis ... 75

7.1.2 Cost of Funding ... 77

7.1.3 Asset Quality ... 77

CHAPTER-8 RECOMMENDATIONS AND CONCUSION ... 79

8.1 Recommendation: ... 80

8.2 Conclusion ... 80

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EXECUTIVE SUMMARY

The study presents a comparative study of NBFC’s in India. There are almost 13000 registered NBFC’s in India. The study is aimed to provide an holistic view of the NBFC Industry. NBFC fulfills the financial gap by providing loan at a lower rate of interest. The major players of each field

1) Housing Finance Industry: LIC Housing Finance.

2) Infrastructure Finance Industry: IDFC

3) Asset Financing: Shriram Transport Finance

4) Composite: Reliance Capital

The study also compared the Indian Banks v/s NBFC. It was found that at even at the time of the economic slowdown NBFC was more profitable. Porters Five forces was also used to analyse the industry and to find the competitiveness in the industry. The industry is not tightly regulated as there are many regulatory bodies. Hence, there was an important need to study the NBFC as the industry plays an important role in the financial Services market of INDIA.

It is encouraging that the NBFC sector‘s importance is finally being acknowledged across FS market constituents as well as the regulator. However, the importance attached to the sector is often transcending into misplaced exuberance. Over simplified and vague drivers for NBFC valuations such as strategic fit and customer base, can never substitute dispassionate business analytics. A rational assessment of the intrinsic values of NBFCs factoring issues such as past performance, structural weaknesses of the sector (for instance funding disadvantages), along with an identification of real capabilities are essential to ensure that the equilibrium between price paid and value realized is reached to the extent possible. In the absence of this, India is sure to witness the re-opening of the NBFC horror story albeit with a new chapter on the erosion of NBFC investment values affecting investors across categories

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CHAPTER-1

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ALLIANCE BUSINESS SCHOOL | INTRODUCTION

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A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 and is engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/securities issued by Government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. A non-banking institution which is a company and which has its principal business of receiving deposits under any scheme or arrangement or any other manner, or lending in any manner is also a non-banking financial company (Residuary non-banking company).

NBFCs are doing functions akin to that of banks; however there are a few differences:

(i)an NBFC cannot accept demand deposits;

(ii) an NBFC is not a part of the payment and settlement system and as such an NBFC cannot issue cheques drawn on itself; and

(iii) deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available for NBFC depositors unlike in case of banks.

1.1 TYPES OF NBFC’S

Originally, NBFCs registered with RBI were classified as: (i)equipment leasing company; (ii) hire-purchase company;

(iii) loan company; (iv) investment company.

However, with effect from December 6, 2006 the above NBFCs registered with RBI have been reclassified as

(i) Asset Finance Company (AFC) (ii) Investment Company (IC) (iii) Loan Company (LC)

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1.2 REGULATIONS OF NBFC’S

 In terms of Section 45-IA of the RBI Act, 1934, it is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934. However, to obviate dual regulation, certain categories of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, Nidhi companies as notified under Section 620A of the Companies Act, 1956, Chit companies as defined in clause (b) of Section 2 of the Chit Funds Act, 1982 or Housing Finance Companies regulated by National Housing Bank.

 A company incorporated under the Companies Act, 1956 and desirous of commencing business of non-banking financial institution as defined under Section 45 I(a) of the RBI Act, 1934 should have a minimum net owned fund of Rs 25 lakh (raised to Rs 200 lakh w.e.f April 21, 1999). The company is required to submit its application online by accessing RBI‘s secured website https://secweb.rbi.org.in/COSMOS/rbilogin.do (the applicant companies do not need to log on to the COSMOS application and hence user ids for these companies are not required). The company has to click on ―CLICK‖ for Company Registration on the login page. A window showing the Excel application forms available for download would be displayed. The company can then download suitable application form (i.e. NBFC or SC/RC) from the above website, key in the data and upload the application form. The company may note to indicate the name of the correct Regional Office in the field ―C-8‖ of the ―Annx-Identification Particulars‖ worksheet of the Excel application form. The company would then get a Company Application Reference Number for the CoR application filed on-line. Thereafter, the company has to submit the hard copy of the application form (indicating the Company Application Reference Number of its on-line application), along with the supporting documents, to the concerned Regional Office. The company can then check the status of the application based on the acknowledgement number. The Bank would issue Certificate of Registration after satisfying itself that the conditions as enumerated in Section 45-IA of the RBI Act, 1934 are satisfied.

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 All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorisation to accept Public Deposits can accept/hold public deposits. NBFCs authorised to accept/hold public deposits besides having minimum stipulated Net Owned Fund (NOF) should also comply with the Directions such as investing part of the funds in liquid assets, maintain reserves, rating etc. issued by the Bank.

Yes, there is a ceiling on acceptance of Public Deposits. An NBFC maintaining required NOF/Capital to Risk Assets Ratio (CRAR) and complying with the prudential norms can accept public deposits as follows:

Category of NBFC having minimum NOF of Rs 200 lakhs

Ceiling on public deposit

AFC* maintaining CRAR of 15% without credit rating

AFC with CRAR of 12% and having minimum investment grade credit rating

1.5 times of NOF or Rs 10 crore whichever is less

4 times of NOF

LC/IC** with CRAR of 15% and having minimum investment grade credit rating

1.5 times of NOF

*AFC=Asset Finance Company

** LC/IC = Loan company/Investment Company

As has been notified on June 17, 2008 the ceiling on level of public deposits for NBFCs accepting deposits but not having minimum Net Owned Fund of Rs 200 lakh is revised as under:

Category of NBFC having NOF more than Rs 25 lakh but less than Rs 200 lakh

Revised Ceiling on public deposits

AFCs maintaining CRAR of 15% without credit rating and Equal to NOF AFCs with CRAR of 12% and having minimum investment

grade credit rating

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LCs/ICs with CRAR of 15% and having minimum investment grade credit rating

Equal to NOF

 Presently, the maximum rate of interest an NBFC can offer is 12.5%. The interest may be paid or compounded at rests not shorter than monthly rests.

The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.

 The NBFCs are allowed to accept/renew public deposits for a minimum period of 12 months and maximum period of 60 months. They cannot accept deposits repayable on demand.

 NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI from time to time. The present ceiling is 12.5 per cent per annum. The interest may be paid or compounded at rests not shorter than monthly rests.

 NBFCs cannot offer gifts/incentives or any other additional benefit to the depositors.

 NBFCs (except certain AFCs) should have minimum investment grade credit rating.

 The deposits with NBFCs are not insured.

 The repayment of deposits by NBFCs is not guaranteed by RBI.

 Certain mandatory disclosures are to be made about the company in the Application Form issued by the company soliciting deposits.

 Effective from April 24, 2004, NBFCs cannot accept deposits from NRIs except deposits by debit to NRO account of NRI provided such amount does not represent inward remittance or transfer from NRE/FCNR (B) account. However, the existing NRI deposits can be renewed.

1.3 GUIDELINES FOR NEW DEPOSITS

 Customer identification: 'Know The Customer' (KYC) should be the key guiding principle for identification of an individual / corporate customer (depositor or borrower).

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9  Accordingly, the KYC framework should have two-fold objective, (i) to ensure

customer identification and verifying his identity and residential address; and (ii) to monitor transactions of a suspicious nature.

 NBFCs should ensure that the identity of the customer, including beneficial owner is done based on disclosures by customers themselves.

 Typically easy means of establishing identity would be documents such as Permanent Account Number (PAN), ration card, driving licence, Election Commission's identity card, passport, et cetera in case of individuals and registration certificate, partnership deed/agreement, et cetera and other reliable documents in respect of companies, firms and other bodies.

 Verification through such documents should be in addition to the introduction by a person known to the NBFC.

Procedures for existing customers

 In respect of existing customers, NBFCs should ensure that gaps and missing information in compliance of KYC guidelines on customer identification procedure is filled up and completed before June 30, 2004.

Ceiling and monitoring of cash transactions

 NBFCs would normally not have large cash withdrawals and deposits.

 However, wherever transactions of Rs 10 lakh (Rs 1 million) and above are undertaken, they should keep record of these transactions in a separate register maintained at branch, as well as at Registered Office.

 Such information should be made available to regulatory and investigating authorities, when demanded.

Guidelines and monitoring procedures

 The board of directors of NBFCs should formulate policies and procedures to operationalise the guidelines and put in place an effective monitoring system to ensure compliance by their branches.

 Early computerisation of branch/office reporting will facilitate prompt generation of such reports and monitoring.

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Internal control systems

 Duties and responsibilities should be explicitly allocated among the staff for ensuring that policies and procedures are managed effectively and that there is full commitment and compliance to an effective KYC programme in respect of both existing and prospective customers/clients.

Internal audit/inspection

 Internal auditors must specifically scrutinise and comment on the effectiveness of the measures taken by branches / offices of NBFC in adoption of KYC norms and steps towards prevention of money laundering.

 Specific cases of violation should be immediately brought to the notice of head / controlling / registered office.

Record keeping

 NBFCs should prepare and maintain proper documentation on their customer relationships and cash transactions of Rs 10 lakh and above.

 The records of all such transactions should be retained for at least ten years after the transaction has taken place and should be available for perusal and scrutiny by audit functionaries as well as regulators and law enforcement authorities; as and when required, at the branch as well as at registered office.

Training of staff and management

 It is important that all the operating and management staff is made fully aware of the implications and understand the need for strict adherence to KYC norms.

 NBFCs may take suitable steps to impart training to their operational staff on anti-money laundering measures.

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1.4 RESPONSIBILITIES

The NBFCs accepting public deposits should furnish to RBI

i. Audited balance sheet of each financial year and an audited profit and loss account in respect of that year as passed in the annual general meeting together with a copy of the report of the Board of Directors and a copy of the report and the notes on accounts furnished by its Auditors;

ii. Statutory Annual Return on deposits - NBS 1;

iii. Certificate from the Auditors that the company is in a position to repay the deposits as and when the claims arise;

iv. Quarterly Return on liquid assets; v. Half-yearly Return on prudential norms;

vi. Half-yearly ALM Returns by companies having public deposits of Rs. 20 crore and above or with assets of Rs. 100 crore and above irrespective of the size of deposits ; vii. Monthly return on exposure to capital market by companies having public deposits

of Rs. 50 crore and above; and

viii. A copy of the Credit Rating obtained once a year along with one of the Half-yearly Returns on prudential norms as at (v) above.

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1.5 CURRENT SCENARIO

Nearly 11 years after the last of the two banking licences were issued by RBI to private sector entities, the government has again started the process of allowing the better-managed non-banking finance companies (NBFCs) to graduate to full-fledged banks. FM Pranab Mukherjee‘s Budget proposal on Friday was the first step towards the same.

The second step will be enacted on Tuesday morning. A select group of officials from top NBFCs, under the aegis of the Finance Industry Development Council (FIDC), the trade body for NBFCs in India, are meeting R Gopalan, the banking secretary in the finance ministry, to present a case for select NBFCs to be converted into full-fledged banks, sources said. About 12-15 NBFCs and corporate houses having presence in the financial sector are expected to join the race to float a bank.

‗‗The finance minister is convinced that there is a huge need for low-cost financing at the semi-urban and rural areas in India,‘‘ said a industry source. The financial services industry believes the Budget proposal was a reflection of the same. ‗‗In the finance ministry things are moving in the right direction and the banking secretary‘s meeting proves the same,‘‘ said the source. FIDC office bearers could not be contacted during the extended weekend.

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n the last Union Budget, the FM had announced that RBI is considering giving additional banking licences to private sector players, including NBFCs. This was ostensibly to further financial inclusion and also to improve the size and sophistication of the Indian banking system. The announcement set the financial markets on fire with a lot of conjecturing as to who would be the lucky few. The access to low-cost current account and savings accounts and the ability to offer all financial products under one roof were cited as major attractions for NBFCs to rush to seek banking licences. It was also expected that RBI would give new licences to private players very soon. But, an analysis reveals a different picture. Neither is RBI in a hurry to issue fresh licences nor are many NBFCs keen to get into commercial banking.

The reasons for this are manifold. RBI rules are stringent for commercial banks as they are the visible face of the Indian financial system and commercial banks are primarily the custodians of public money. RBI places restrictions on commercial banks in their lending operations. Out of Rs 100 taken in as deposits, approximately Rs 30 has to be set apart as statutory requirements towards CRR and SLR. This leaves the banks with Rs 70 to lend. Out of this, 40% has to be statutorily lent towards the priority sector as defined by RBI. This leaves banks with approximately Rs 42 to lend at their own discretion. Many NBFCs would definitely find this as restrictive to say the least.

As per the guidelines of 2001, NBFCs seeking a banking licence should have a minimum paid-up capital of Rs 200 crore, which must be increased to Rs 300 crore within 3 years of conversion into a bank. Further, banks have to invest large funds in fixed assets and information technology primarily to facilitate financial inclusion, risk management, anti money laundering, etc. These huge capital expenditures increase the payback period for the investments made. Also, banking-as-a-business model is far more people-, process- and product-driven than a simple NBFC model. For example, in order to adopt universal banking, the staff needs to be multi-skilled in banking functions. So, the operating expenses will be substantially higher, which, in turn, would reduce the profitability of operations. Also, there are restrictions on ownership and voting rights. Current stipulations cap voting rights at 10%; higher rights require the specific approval of...

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ALLIANCE BUSINESS SCHOOL | Literature review

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Chapter-2

Literature

review

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2.1 IMPORTANCE OF NBFC’S

According to RBI Non Banking Finance Companies (NBFCs) is a constituent of the institutional structure of the organized financial system in India. NBFCs perform a significant and important role in our financial system. They facilitate the process of channelising of public savings and provide better return to the depositors. We are aware that due to liberalization and globalisation, banking industry and financial sector has gone through many reforms. In the present economic environment it is very difficult to cater need of society by Banks alone so role of Non Banking Finance Companies and Micro Finance Companies become indispensable. The activities of non-banking financial companies

(NBFCs) in India have undergone qualitative changes over the years through functional specialisation. The role of NBFCs as effective financial intermediaries has been well recognised as they have inherent ability to take quicker decisions, assume greater risks, and customise their services and charges more according to the needs of the clients. While these features, as compared to the banks, have contributed to the proliferation of NBFCs, their flexible structures allow them to unbundle services provided by banks and market the components on a competitive basis. The distinction between banks and non-banks has been gradually getting blurred since both the segments of the financial system engage themselves in many similar types of activities. At present, NBFCs in India have become prominent in a wide range of activities like hire-purchase finance, equipment lease finance, loans, investments, etc. By employing innovative marketing strategies and devising tailor-made products, NBFCs have also been able to build up a clientele base among the depositors, mop up public savings and command large resources as reflected in the growth of their deposits from public, shareholders, directors and their companies, and borrowings by issue of non-convertible debentures, etc.

According to KPMG survery The Indian Non Banking Finance Company (NBFC) sector has often been relegated to the shadows, in most discussions on the Indian Financial Services (FS) industry. Banks, insurance companies and capital market players take centre stage and invariably, NBFCs attract public attention only during times of crisis. Little attention has been paid to the silent but effective manner in which NBFCs have spread their operations across the country. NBFCs have provided financial solutions to sections of society who hitherto were at the mercy of unorganized players for credit and savings products, which

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were delivered on economically and socially usurious terms. ronically, in recent times, NBFCs are once again in the spotlight for their perceived strengths and capabilities rather than their problems. While this re-rating ought to bring cheer to a much maligned sector, a degree of caution needs to be instilled within potential investors in NBFCs, who need to clearly understand the true drivers of value for finance companies. This understanding is imperative to enable a better judgment of the intrinsic worth of NBFCs. This article proceeds to illustrate the key factors responsible for the strong re-rating of the NBFC sector, as well as discuss the validity of each of these factors, as actual drivers of value. Today, the NBFC sector is as financially sound as it has ever been.To an extent, this can be attributed to the very problems affecting the sector which have resulted in the purging of several players, leaving the fittest few to dominate the landscape. Taking the Reserve Bank of India‘s (RBI) definition of ‗reporting NBFCs‘ as a proxy for non-dormant players, a mere 24 NBFCs held 92.7 percent of the total assets of all NBFCs in 2005-2006. The balance assets, amounting to less than 8 percent of the total, were fragmented across 439 NBFCs. In addition to this consolidation, at present, NBFCs in general are well-capitalized with strong parent support. A majority of active NBFCs reported capital adequacy ratios exceeding 12 percent

2.2 ROLE OF NBFC’S

According to EPW Research Foundation (EPWRFThe Indian economy is going through a period of rapid `financial liberalisation'. Today, the `intermediation' is being conducted by a wide range of financial institution through a plethora of customer friendly financial products. The segment consisting of Non-Banking Financial Companies (NBFCs), such as equipment leasing/hire purchase finance, loan and investment companies, etc. have made great strides in recent years and are meeting the diverse financial needs of the economy. In this process, they have influenced the direction of savings and investment. The resultant capital formation is important for our economic growth and development. Thus, from both the macroeconomic perspective and the structure of the Indian financial system, the role of NBFCs has become increasingly important. The crucial role of Non Banking Finance Institutions (NBFIs) in broadening access to financial services, and enhancing competition and diversification of the financial sector has been well recognized. The main advantages of these companies lie in their ability to lower transactions costs of their operations, their quick decision-making ability, customer orientation and prompt provision of services. While NBFIs are sometimes seen as akin to banks in terms of the products and services offered, this is strictly not

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accurate, as more often, NBFIs play a range of roles that complement banks. Further, Status Note on NBFCs

NBFIs can add to economic strength to the extent they enhance the resilience of the financial system to economic shocks. A well developed and properly regulated NBFI sector is thus an important component of broad, balanced, efficient financial system that spreads risks and provides a sound base for economic growth and prosperity.

2.3 ON GLOBAL CRISIS

According to CARE: NBFC sector faced significant stresses on asset quality, liquidity and funding costs due to the global economic slowdown & its impact on the domestic economy. While all the NBFCs were affected, the impact varied according to the structural features of each NBFC. Asset-liability maturity (ALM) profiles, type of assets financed and origination / collection models followed were the primary differentiators within NBFCs. The support provided by the Reserve Bank of India (RBI) highlighted the explicit acceptance of the systemic importance of the sector. FY10 was marked by re-aligning of the liability profiles, tightening of lending norms coupled with closing down of many of the unsecured loan segments. On a structural basis, the sector is now more robust due to the lessons learned by NBFCs from this crisis. Profitability is expected to be lower than historical levels due to conservative ALM management, higher provisioning and avoidance of high yielding unsecured loan segments. However profits are at the same time expected to be much more stable & less susceptible.

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ALLIANCE BUSINESS SCHOOL | RESEARCH METHODOLOGY

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CHAPTER-3

RESEARCH

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3.1 RESEARCH DESIGN

Since the research is for industry analysis and it is structured for NBFC‘S. The research uses secondary data for analysIs and interpretation.

3.2 OBJECTIVE

The confined objectives of the present study are:

 To analyze the market of NBFC‘s in India

 To study the financials of NBFC‘s

3.3 SCOPE OF THE STUDY

The study was limited to the Financial Service market of India which included NBFC‘s mainly from the . The study was completed within the time frame of 60 days(2 months) starting from 1st April, 2010 and ending on 1st June, 2010. The target group of the study were the NBFC‘s

3.4 DATA COLLECTION

There are two methods of data collection that can be considered when collecting data for research purpose. These data collection types include the following:

1. Primary data 2. Secondary data

Both the secondary and primary data collection methods were used in the study.

3.4.1 PRIMARY DATA

The primary data required for this study was collected by visiting the financial services and analysing the information provided by them.

3.4.2 SECONDARY DATA

The secondary data for the research was collected from journals, research articles, books and internet websites, annual reports etc whose details and references has been given in Chapter-2 and in ―References‖. The source of the secondary data was British Library, NBFC‘s and Internet.

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Secondary data was the main source in formulating the constructs of ― A comparative study of NBFC‘s in India‖

3.5 FIELD WORK PLAN

The study was conducted in New Delhi (NCR and Bangalore visiting different institutions and analyzing the different NBFC‘s work.

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ALLIANCE BUSINESS SCHOOL | MAJOR PLAYERS AND SELECTED COMPANY FOR STUDY

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CHAPTER-4

MAJOR PLAYERS AND

SELECTED COMPANY FOR

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LIC HOUSING FINANCE

RELIANCE CAPITAL

SHRIRAM TRANSPORT

FINANCE

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4.1 LIC HOUSING FINANCE

4.1.1 Housing Finance Industry

India‘s housing finance industry comprises of banks and housing finance companies. They have contributed to new residential home loans at a compounded annual growth rate (CAGR) of more than 30 percent during the period 2002-2007. This has been due to the combined effect of a booming economy and low interest rates.

Further, steady prices and continuation of tax concessions to self-occupied residential home borrowers are contributors to the growth of the industry. The average age of borrowers has declined over the years, while the number of double income households has grown significantly enabling them to borrow higher loan amount due to higher repaying capacity. The scenario of unprecedented growth in housing finance, driven by low interest rates, increasing purchasing power and attraction of the yield in this sector has begun to show signs of change last year. There has been a decrease in demand during the last one year. Earlier to that i.e., during 2006 to 2007 home prices increased at a CAGR of 30 to 40 percent against a 20 percent increment in salaries witnessed in metros and large cities. This had affected the buyer‘s affordability.

As the borrowing cost for banks and housing finance companies steadily increased in line with rising interest rates in the economy in the past two years up to Q3 of 2008-09, banks and housing finance companies resorted to hike in interest rates so as to maintain their interest spreads. Interest rates on new home loan originations have increased significantly by 200 basis points during April‗2008 to September October‘ 2008. As a result a higher proportion of monthly income was being paid out as home loan equated monthly installments (EMI). The combined effect of an increase in property prices and interest rates has meant that home loan buyers, who would have had to borrow less at an interest rate of 8.75 percent a year ago, now have to borrow more to buy the same property due to higher property prices at higher interest rates of 10.5 to 11 percent. This trend has resulted in both lower affordability i.e., an average home at a higher multiple of annual income, and higher debt burden (meaning that a larger proportion of income gets spent as home loan EMI). Further, the increase in interest rates on fresh loans to 10.5 to 11 percent from 8.75 percent meant increase in debt burden i.e., higher installment to income ratio. Along with, the economic down turn and consequential apprehensions of job insecurity and income reduction led to slump in the market. However,

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the scenario has taken the reverse turn in the last quarter of the financial year 2008-09, which was evident from the higher booking of flats, and sharp increase in the disbursements. Real estate developers have taken sensible decision in reducing or slashing rates in major centres specially Mumbai, Thane, Navi Mumbai, Delhi NCR and Bangalore to encash on the existing demand in the real estate market. The good deals might be offered for a few weeks or for the first ten properties or for a killer deal for a time-bound two days or similar schemes but yes, the writing is clear on the wall that the willingness to connect with the ―real‖ pricing has dawned on the developers to sell at reduced prices to encourage more and more sales. The sales teams in the builder/ developer offices are at their all-time creative best with sales tactics. They now understand clearly that with buyers unwilling to relent on unrealistic pricing, there is an even greater need to price competitively, maybe with a lower profit margin, than holding on to the price and project as the interest meter runs. These proactive steps should ensure renewed demands and increased volumes during the current year.

The Indian economy, which was on a robust growth path up to 2007-08, averaging at 8.9 per cent during the period 2003-04 to 2007-08, witnessed moderation in 2008-09, with the deceleration turning out to be somewhat sharper in the third quarter. Industrial growth experienced a significant downturn and the loss of growth momentum was evident in all categories, viz., the basic, capital, intermediate and consumer goods.

However, the fiscal stimulus packages of the Government and the monetary easing of the Reserve Bank will, however, arrest the moderation in growth and revive consumption and investment demand, though with some lag, in the months ahead. Furthermore, prospects of the agricultural sector also remain bright, and this will continue to support the rural demand. Finally, in the wake of expected improvement in agricultural production as well as low international commodity prices, inflationary pressures are also anticipated to remain at a low level through the greater part of the 2009-10.

4.1.2 Indian Housing Finance scenario

India‘s housing finance industry comprises of banks and housing finance companies. They have contributed to new residential home loans at a compounded annual growth rate (CAGR) of more than 30 percent during the period 2002-2007. The scenario of unprecedented growth in housing finance, driven by low interest rates and booming economy, has begun to show signs of change last year. There has been a decrease in home prices during the last one year.

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Earlier to that i.e., 2006 to 2008 home prices increased at a CAGR of 30 to 40 percent against a 20 percent increment in salariee witnessed in metros and larger cities. This had affected the buyer‘s affordability. The average home buyer spent around 4 times his net annual income for purchasing a new residential home in the 3-4 years till March 2005. (source CRISIL report 19th February, 2009) As the borrowing cost for banks and housing finance companies steadily increased in line with rising interest rates in the economy in the past two years upto September‘ 2008, banks and housing finance companies resorted to hike in interest rates so as to maintain their interest spreads. Interest rates on new home loan originations had increased significantly by 200 basis points during April‗ 2008 to August September‘ 2008. As a result a higher proportion of monthly incomes was paid as home loan equated monthly instalments (EMI). But, the scenario has taken the reverse turn in the last quarter of the financial year 2008-09 which was evident from the higher booking of flats and sharp increase in the disbursements. As interest rates are heading southward, public sector banks have set the pace. Housing finance companies would follow the suit. It may be mentioned here that with the decline ininterest rates, LIC Housing Finance has passed on 150 basis points rate cut to the customers i.e. 75 basis points each on 1st January, 2009 and 1st April, 2009. Our interest rates are among the lowest in the industry. This has helped our company in retaining customers and maintaining high growth rates even in tough conditions. And interest rate is just one of the factors. Transparency, hassle-free services, property prices and buyer‘s repayment capacity are equally important. The customer would not arrive at a decision solely based on the reduction in interest rates for one year. LIC Housing Finance is one of the best players in the industry in terms of EMI as our company has no hidden costs.

4.1.3 LIC Housing Finance

LIC Housing Finance Ltd. is one of the largest Housing Finance Company in India. Incorporated on 19th June 1989 under the Companies Act, 1956, the company was promoted by LIC of India and went public in the year 1994. The Company launched its maiden GDR issue in 2004. The Authorized Capital of the Company is Rs.1500 Million (Rs.150 Crores) and its paid up Capital is Rs.850 Millions (Rs.85 Crores). The Company is recognized by National Housing Bank and listed on the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE) and its shares are traded only in Demat format. The GDR's are listed on the Luxembourg Stock Exchange.

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The main objective of the Company is providing long term finance to individuals for purchase / construction / repair and renovation of new / existing flats / houses. The Company also provides finance on existing property for business / personal needs and gives loans to professionals for purchase / construction of Clinics / Nursing Homes / Diagnostic Centres / Office Space and also for purchase of equipments.

The Company possesses one of the industry's most extensive marketing network in India : Registered and Corporate Office at Mumbai, 6 Regional Offices, 13 Back Offices and 158 marketing units across India. In addition the company has appointed over 1352 Direct Sales Agents (DSAs), 7085 Home Loan Agents (HLAs) and 777 Customer Relationship Associates (CRAs) to extend its marketing reach. Back Offices spread across the country conduct the credit appraisal and administrative functions.

The Company has set up a Representative Office in Dubai and Kuwait to cater to the Non-Resident Indians in the GLCC countries covering Bahrain, Dubai, Kuwait, Qatar and Saudi Arabia. Today the Company has a proud group of over 10,00,000 prudent house owners who have enjoyed the Company's financial assistance.

Profile & Progress

 Provides loans for homes, construction activities, and corporate housing schemes.

 Around 91% of the loan portfolio derived from the retail segment and the rest from large corporate clients

 Formed three new wholly owned subsidiaries in 2007-08 to promote marketing of

 financial products and venture capital fund.

 Rated ‗AAA‘ by CRISIL for the 8th consecutive time in 2008-09; maiden Fixed Deposit

 program received an FAAA/stable rating by CRISIL.

 An offshoot of Life Insurance Corporation of India (LIC), incorporate in 1989.

 Registered & Corporate Office at Mumbai with 6 regional offices, 13 Back Offices

 and 130 marketing units across the country .

 1352 Direct Sales Agents (DSAs), 7085 Home Loan Agents (HLAs) and 777 Customer

 Relationship Associates (CRAs) comprise its pan-Indian marketing network.

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 Listed on the Bombay Stock Exchange Limited, National Stock Exchange of India

 Limited and the Luxembourg Stock Exchange.

 More than 10,00,000 satisfied customers across the country since inception.

 Reported a 23.90 percent increase in disbursals in 2008-09.

 Improved return on networth by 267 basis points to 23.80 percent in 2008-09.

 Reduced net NPA to a record low of 0.21 percent in 2008-09.

 Enhanced PAT 37.30 percent to Rs. 531.62 crore in 2008-09.

 Un-interrupted dividend payment record since 1990.

 Recommended 30 percent increase in dividend over previous year i.e from

 100 percent to 130 percent.

4.1.4 Financial Performance

Interest income from housing loans increased 34.90 percent from Rs. 2036.79 crore in 2007-08 to Rs. 2747.65 crore in 202007-08-09. The net interest income grew by 31.97 percent from Rs. 553.94 crore in 2007-08 to Rs. 731.04 crore in 2008-09. Profit after tax surged 37.30 percent from Rs. 387.19 crore in 2007-08 to Rs. 531.62 crore in 2008-09.

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Mar-05 Mar-06 Mar-07 Mar-08 Mar-09

Debt-Equity Ratio

Debt-Equity Ratio 0 5 10 15 20 25 30

RONW (%)

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PBDTM (%)

PBDTM (%) 0 100 200 300 400 500 600

PAT

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Operations:

 Funds mobilized grew 49.38 percent from Rs. 7489.70 crore in 2007-08 to Rs. 11,188.33 crore in 2008-09.

 Sanctions (Ind.+Proj.) increased 26.46 percent from Rs. 8617.88 crore in 2007-08 to Rs. 10898.47 crore in 2008-09.

 Disbursements (Ind.+Proj.) grew 23.90 percent from Rs. 7071.48 crore in 2007-08 to Rs. 8762.01 crore in 2008-09.

 Loan portfolio grew 26.18 percent from Rs. 21936.41 crore in 2007-08 to Rs. 27679.28 crore in 2008-09.

Margins:

 Net interest margin improved by 10 basis points from 2.85 percent in 2007-08 to 2.95 percent in 2008-09.

 Return on equity grew by 267 basis points from 21.13 percent in 2007-08 to 23.80 percent in 2008-09.

 Net profit margin improved by 49 basis points from 17.82 percent in 2007-08 to 18.31 percent in 2008-09. 0 5 10 15 20 25 30 35 40

ROG-Sales (%)

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 Asset Quality: Gross NPA declined by 63 basis points from 1.70 percent in 2007-08 to 1.07 percent in 2008-09.Net NPA levels declined 43 basis points from 0.64 percent in 2007-08 to 0.21 percent in 2008-09.

On funds

On the performance of the Company : In the turbulent times when Housing sector was

passing through rough patch, LIC Housing Finance largely could manage the environment well, inspite of various global as well as domestic economic challenges and was successful in producing good business growth by its inherent strength in meeting difficult challenges through unceasing and untiring efforts. The Company has not only ensured consolidation of the gains achieved in the past years, but also ensured further growth and increased profitability. The year 2008-09 has been a year of further containment of defaults and NPA levels when compared to previous years.

Lending operations

The main thrust continues on individual loans with a growth of 25 percent as against 20 percent in the previous year. However, project loans were also given due weightage

resulting in a modest growth of 20 percent over previous year. During the year, the Company sanctioned 67,886 individual loans for Rs. 8,186.02 crore and disbursed 67,237 loans for Rs. 7,351.09 crore during 2008-09. Individual retail loans constitute 75.11 percent of the total sanctions and 83.94 percent of the total disbursements for the year 2008-09 compared to the last year‘s figure of 75.84 percent and 83.47 percent respectively. The retail (individual) loan portfolio grew by over 22 percent from Rs. 20,618.78 crore as on 31st March, 2008 to Rs. 25,252.87 crore as on 31st March, 2009. The cumulative sanctions and disbursements since the incorporation, in respect of individual oans are: Amount sanctioned : Rs. 45,624.24 crore Amount disbursed : Rs. 42,993.98 crore

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Non-Performing Assets and provisions:

The amount of gross Non-Performing Assets (NPA) as on 31st March, 2009 was Rs. 297 crores, which is equivalent to 1.07 percent of the housing loan portfolio of the Company, as against Rs. 372.92 crore i.e., 1.70 percent of the housing loan portfolio as on 31st March, 2008. The net NPA as on 31st March, 2009 is reduced to Rs. 57 crore i.e. 0.21 percent of the housing loan portfolio vis-à-vis Rs. 140.90 crore i.e., 0.64 percent of the housing loan portfolio as on 31st March, 2008. The total cumulative provision towards housing loan as on 31st March, 2009 is Rs. 240.25 crore. During the year, the Company has written off Rs. 5.40 crore of housing loan portfolio as against Rs. 38.99 crore during the previous year.

Fund raising The Company raised funds aggregating to Rs. 11,188.33 crore through term loans from banks, Non-Convertible Debenture (NCD), sub-ordinate debts, commercial paper, Public Deposit and others which were used for fresh disbursements as well as repayments/prepayments of past borrowings. The Company‘s NCD issue was rated ‗AAA‘ and Public Deposit was rated as FAAA/STABLE by CRISIL.

4.1.5 Macro Economic Analysis Competition

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The Housing Finance Industry is one of the most keenly competitive segments of the Economy, with the Banking sector having a significant presence. However, Housing Finance Companies with a dedicated focus on the industry and better understanding of the underlying real estate markets stand on a better footing when it comes to understanding the needs and requirement of the customers as also assessing the risks in the industry. It may be mentioned here that with the decline in interest rates, LIC Housing Finance has passed on 150 basis points rate cut to the customers during the calendar year 2009 so far 75 basis points each on 1st January, 2009 and 1st April, 2009. Our interest rates are among the lowest in the industry. This has helped our company in retaining customers and maintaining high growth rates even in tough conditions. And interest rate is just one of the factors. Transparency, hassle-free services, property prices and customer affordability are equally important. NHB has lowered its interest rates on refinance to housing finance companies. Refinance for rural housing at concessional rate of 8 percent per annum for seven years has also been provided. Its‘ PLR has been reduced to 10.75 percent per annum. The refinance facility of Rs. 4,000 crore extended by RBI to NHB will be on-lent by NHB to housing finance companies with a cap of Rs. 400 crore per housing finance company with the condition that the refinance would be available at an interest of 8 percent, only for loans below Rs. 20 lakh. Housing Finance, the Company, through its competitive pricing, transparency in operations, wide distribution network and good customer service, has not only been able to show a good growth in new business, but has shown an improved retention rate, which is reflected in high growth of loan book.

Opportunities

There are many unique characteristics of housing distinguishing it from other goods. It is a universal necessity. Home ownership is a social goal, bringing social status to the buyer. Housing is also a relatively expensive asset, often soaking up a lifetime‘s savings. Housing properties have a downward sloping demand curve, which means that less people would effectively buy when prices are high and vice versa. At high prices, buyers postpone their buying decisions and opt for rented accommodation. At low prices, people often purchase more than one house. Disposable incomes determine purchasing power. Government policies relating to interest rates, mortgage subsidies, tax rebate and other taxes like stamp duty etc. also impact the housing property market. The housing sector is marked by a variety of taxes and regulations. These are meant to ensure the safety of houses for occupation and to confer rights of ownership to enable further transactions. Given that building or acquisition of a

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house usually involves several intermediary agents (either statutory like registration of various title documents or facilitating agents such as brokers, builders or financiers), the final cost of acquisition includes not just the price of the property that is paid to the seller (in case the property is purchased) but also all the intervening transaction costs. As for the housing property market in India, the residential housing property segment constitutes about 75 percent of the real estate market in terms of value. Real estate development activity has shifted from metros to their suburbs and tier-two cities. A gradual shift to tier-three cities and rural areas is taking place. Easy availability of finance from the housing finance companies and commercial banks at lower interest rates, increased salaries and availability of fiscal and tax benefits are propelling the demand for housing properties. The growth of the Information Technology Enabled Services (ITES), industry has been a significant contributor of housing property demand in recent years. ITES firms are moving from traditional centres like Mumbai, Delhi, Bangalore, Hyderabad and Chennai to the National Capital Region, Pune, Chandigarh, Jaipur, etc. in order to be cost effective. This is resulting in not only the boom in residential property markets but also in the institutional property markets in these cities. There is great demand for modern office buildings and commercial spaces in India.

Threats (bottlenecks)

Impact of legal charges and documentation fees

There are taxes / duties / fees payable to the state at the construction stage. There are two aspects of the cost namely:

i) monetary cost and;

ii) cost in terms of time devoted in obtaining various permissions and clearances.

The number of permissions and documentation required can be quite large. Further, permissions have to be taken from different departments and that too sequentially. This delays the process of housing construction and occupation. The actual fees imposed by the government are not necessarily high but the time taken to obtain requisite permissions is very long, procedures cumbersome and sometimes involves extra payments to facilitate the movement of files and getting the transaction through, is significant vis-à-vis the statutory fees. The delays highlight the sluggishness of the market by increasing the gap between change in demand and the market response to it.

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Future Outlook:

It is estimated that the housing finance industry will be able to maintain a higher growth in fresh origination of residential home loans over next three to five years mainly due to increased affordability of the borrower i.e. ratio of average property price to average annual income, on account of the falling loan interest rates and decrease in property prices. The average age of borrowers has declined over the years, while the number of double-income households has grown significantly thereby enabling them to borrow higher loan quantum due to increased affordability and repayment capacity. The growth drivers will continue to increase demand for self-occupied residential housing; Revival of economy will certainly lead to a steady increase in monthly incomes across key sectors. Rising proportion of double income households, renewed confidence in higher income generation, reassurance of job security and availability of variety of financing options should stimulate growth of the housing sector. All these factors will further boost the impact of increased affordability, leading to the sector‘s steady and comfortable growth. Looking forward, LIC Housing Finance would like to remain focused in end-user segment for growth and increased profitability and wish to make the coming year, a year of further consolidation and progress by crossing greater milestones.

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4.2 RELIANCE CAPITAL:

4.2.1 Indian Economy:

After several quarters of around 9 per cent GDP growth, the rate moderated to 7.6per cent and 5.3 per cent in the last two quarters of 2008, and is expected to average 7 per cent for Financial Year (FY) 2009. The slowdown has been largely caused by a deceleration in industrial growth from about 8.5 per cent in FY 2008 to 2.4 per cent in the third quarter of FY 2009. Surprisingly, the agriculture sector slowed down from 4.5 per cent in FY 2008 to -2.2 per cent in the third quarter of FY 2009. In contrast, the remarkable service sector success story remained intact as output grew 9.9 per cent in third quarter, down only slightly from 10.8 per cent in 2008. The moderation from previous years was due to several factors. The financial crisis and global slowdown affected both export growth in goods, services and hence industrial production as well as corporates‘ access to diverse and low cost funding. Moreover, high inflation during the first half of FY 2009 forced RBI to pursue a tight monetary policy, which further dampened investment and consumption. However, the fact that India‘s growth in the last few years has been fairly broad based (across sectors and regions) and balanced (with consumption, investment, savings and exports all rising) bodes well for the structural transformation of the economy as the business cycle enters a recovery phase, in the second half of FY 2010.

RBI cuts rates aggressively: India‘s Wholesale Price Index, which was as high as 12.9 per cent in August 2008 fell to 0.3 per cent by March 2009 resulting in an average inflation of around 8 per cent for FY09. The sharp fall in inflation was caused by a high base, a significant fall in commodity prices and various duty cuts announced by the Government. Inflation is expected to remainlow and may even enter the negative territory for a short time before moving up again towards the end of 2009.

Falling inflation and slowing growth gave the Central bank enough room and reason to cut rates aggressively. From September ‘08 to March ‘09, the RBI has cut Repo, Reverse Repo and CRR by 400, 250 and 400 bps respectively. This easing in monetary policy is likely to translate, with a lag, into a significant boost for the economy. India‘s Trade Deficit widens, largely due to increasing import growth: Global demand destruction due to the recent crisis led to a mere 3.4 per cent growth in exports in FY 2009 while higher commodity prices (including oil) pegged the imports growth at 14.3 per cent. This resulted in a trade deficit of

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US$119 billion in FY09 compared to US$88.5 billion in FY 2008. For the first three quarters in FY 2009, the higher trade deficit, coupled with negative capital flows, reduced India‘s Balance of Payments (BoP) surplus to a deficit of US$20.4 billion. After 10 consecutive quarters of surpluses, this is the second time in three quarters that BoP has ended in a deficit. The capital a/c balance too turned negative (-US$ 3.7 billion) in third quarter FY 2009 mainly due to net outflows under portfolio investment, banking capital and short-term trade credit. Outflows under portfolio investment were led by large sales of equities by FIIs and slowdown in net inflows under ADRs/ GDRs. India‘s foreign exchange reserves declined by about US$ 59 billion in FY 2009, but still remained at an impressive US$250 billion in March 2009. The country‘s current foreign exchange reserves far exceed its total official and private sector external debt making India‘s balance of payments position quite comfortable.

Import declines more than export in recent months, thereby improving trade deficit: Since January 2009, Imports have declined more than exports due to both lower oil import bills and slowing domestic investment and consumption. This has helped in narrowing our trade deficit further. The trade deficit for the month of March narrowed to US$4 billion (4.1 per cent of GDP, annualized) compared to US$14 billion in August 2008.

4.2.2 Reliance Capital

(RCL) is a part of the Reliance Anil Dhirubhai Ambani Group and is one of India‘s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking groups, in terms of net worth. It is a constituent of S&P CNX Nifty and MSCI India. Reliance Anil Dhirubhai Ambani Group is amongst India‘s top 3 business houses with a market cap of US$ 22 billion, and 150 million customers. It has a strong presence across a wide array of high growth consumer-facing businesses such as Telecom, Financial Services, Energy, Power, Infrastructure and Media an Entertainment Reliance Capital has interests in asset management and mutual funds, life and general insurance, private equity and proprietary investments, stock broking and depository services, consumer finance, asset reconstruction, institutional broking and distribution of financial products.

Reliance Capital, a constituent of S&P CNX Nifty and MSCI India, is a part of the Reliance Anil Dhirubhai Ambani Group (www.relianceada.com). It is one of India's leading, most valuable and fastest growing financial services companies in the private sector.

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Reliance Capital has interests in asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services.

Reliance Mutual Fund is India's largest Mutual Fund with over seven million investors. Reliance Life Insurance is one of India's fastest growing life insurance companies and among the top four private sector insurers. Reliance General Insurance is one of India's fastest growing general insurance companies and among the top three private sector insurers. Reliance Money is one of India‘s leading retail brokerage houses and distributors of financial products and services.

Reliance Capital has a net worth of Rs. 7,712 crore (US$ 2 billion) and total assets of Rs. 26,003 crore (US$ 6 billion) as on March 31, 2010.

Reliance Consumer Finance offers a wide range of products, which include personal loans, vehicle loans (car and commercial), home loans, loan against property, and SME loans. The focus in this business is primarily the asset quality and the profitability of each loan given; not merely growth or market share gains. In the September to December quarter of the year, there was a steep drop in liquidity due to the global financial meltdown that had its fallout on India. Consequently we slowed our disbursals. This naturally resulted in a smaller loan book, which fell from Rs.9,513 crore last year to Rs.8,576 crore this year Reliance Consumer Finance offers a wide range of products which include Home loans, Loans against property, Vehicle loans (cars and commercial vehicles), SME loans and Personal loans. The focus in this business is not just on the growth of credit per se but also on the quality of credit. Backed by the long-standing conservative approach, we have developed stringent in-house credit risk management systems to ensure the highest quality of credit.There was reduction the size of our loan book to Rs.8,576 crore (US$ 2 billion) as on March 31, 2009, as against Rs.8,902 crore at the end of December 31, 2008. Our loan book is spread across 1,19,759 customers and 23 locations. The loan book as on March 31, 2008 was Rs.7,120 crore. Reliance Consumer Finance generated revenues of Rs.1,200 crore (US$ 261 million) for the year ended March 31, 2009, as against Rs.395 crore for the corresponding previous period an increase of 204 per cent. For the year ended March 2009, it achieved a profit before tax of Rs.91 crore (US$ 20 million) as against Rs.36 crore an increase of 152 per cent. _ Reliance Capital‘s subsidiaries i.e. Reliance Consumer Finance Pvt. Ltd. and Reliance Home Finance

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Pvt. Ltd. have got approvals from RBI as NBFC and the National Housing Bank for doing the business of retail financing i.e. consumer finance and homes finance respectively.

Business mix of Reliance Capital

Asset Management Mutual Fund, Portfolio Management, Offshore Fund Insurance Life Insurance, General Insurance

Consumer Finance & Home Finance

Mortgages, Loans against Property , Business Loans, Loans for Commercial Vehicles, Loans for Construction Equipment, Auto Loans, Loans against shares, Business Loans

Broking and Distribution Stocks Commodities and Derivatives, Wealth Management Services, Portfolio Management Services, Investment Banking, Foreign Exchange and Offshore Investment, Third Party Products

Other Businesses Asset Reconstruction, Institutional Broking, Private Equity, Exchanges, Venture Capital

4.2.3 Financial Performance 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2

Debt-Equity Ratio

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PBDTM (%)

PBDTM (%) 0 5 10 15 20 25

RONW (%)

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The Company‘s gross income for the financial year ended March 31, 2009 increased to Rs.3,017.29 crore, from Rs.2,079.79 crore in the previous year, registering a growth of over 45.08 per cent. The operating profit (PBDIT) of the Company increased 46.24 per cent to Rs.2,334.99 crore during the year, up from Rs.1 596.69 crore in the previous year. Interest expenses for the year increased by 203.02 per cent to Rs.1,236.75 crore, from Rs.408.15 crore, in the previous year. Depreciation was at Rs.21.22 crore as against Rs.17.09 crore in the previous year. The provision for taxation during the year was Rs.109 crore. The net profit for the year decreased by over 5.60 per cent to Rs.968.02 crore from Rs.1,025.45 crore in the previous year. An amount of Rs.193.61 crore was transferred to the Statutory Reserve Fund pursuant to section 45-IC of the Reserve Bank of India Act, 1934, and an amount of Rs.96.81

-40 -20 0 20 40 60 80 100 120 140 160

ROG-Sales (%)

ROG-Sales (%) 0 200 400 600 800 1000 1200

PAT

Final Report on NBFC

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Table of Contents

A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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EXECUTIVE SUMMARY

A Comparative Study Of NBFC in India

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CHAPTER-1

A Comparative Study Of NBFC in India

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1.1 TYPES OF NBFC’S

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1.2 REGULATIONS OF NBFC’S

A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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1.3 GUIDELINES FOR NEW DEPOSITS

A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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1.4 RESPONSIBILITIES

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1.5 CURRENT SCENARIO

A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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Chapter-2

Literature

review

A Comparative Study Of NBFC in India

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2.1 IMPORTANCE OF NBFC’S

A Comparative Study Of NBFC in India

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2.2 ROLE OF NBFC’S

A Comparative Study Of NBFC in India

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2.3 ON GLOBAL CRISIS

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CHAPTER-3

RESEARCH

A Comparative Study Of NBFC in India

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3.1 RESEARCH DESIGN

3.2 OBJECTIVE

3.3 SCOPE OF THE STUDY

3.4 DATA COLLECTION

3.4.1 PRIMARY DATA

3.4.2 SECONDARY DATA

A Comparative Study Of NBFC in India

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3.5 FIELD WORK PLAN

A Comparative Study Of NBFC in India

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CHAPTER-4

MAJOR PLAYERS AND

SELECTED COMPANY FOR

A Comparative Study Of NBFC in India

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LIC HOUSING FINANCE

RELIANCE CAPITAL

SHRIRAM TRANSPORT

FINANCE

A Comparative Study Of NBFC in India

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A Comparative Study Of NBFC in India

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4.1 LIC HOUSING FINANCE