EVALUATION OF FINANCIAL PERFORMANCE OF SELECTED NON-BANKING FINANCIAL COMPANIES IN INDIA

Author(s)

Mani Sree Tadi

Affiliations

Symbiosis Centre for Management Studies, Noida

Abstract

Over the last five years, continuous economic shocks have impacted the economy to a great extent. Liquidity crunch and credibility have become major concerns in the financial services sector post demonetization and the Infrastructure Leasing and Financial Services ltd crisis. Unemployment and economic costs due to lockdowns have stimulated the volatility in the Indian economy after the COVID-19 pandemic. This paper potentially emphasizes finding the financial performance of Non-Banking Financial Companies based on a few selected parameters over a five-year study period from 2017 to 2021. The data gathered from the companies' annual reports and performance highlight records have been analyzed and interpreted to track their performance patterns. Trend analysis has been employed to examine the movement of the selected variables like Profit after tax, Return on assets, Non-Performing Assets, Earnings per share, capital adequacy, etc., over the study period. The study results infer that Muthoot finance ltd is performing at a more progressive place than Shriram transport finance company ltd and has a better-expanded reach into the public with its affordable services and nominal loan requirements. This paper helps understand the correlation among a few selected incomes and Non-Performing Assets variables, analyzes the effect of profits, debt-equity, and earnings retention on the return on equity, and assesses the company’s compliance with the capital adequacy norms.

Keywords

Financial performance; Non-Banking financial companies; Economic shocks; ILFS crisis; Demonetization; COVID-19 pandemic; Trend analysis; Non-Performing Assets; Correlation; Multiple regression analysis.

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