Analysis of Profitability of the select Private Sector Non-Banking Finance Companies in India

Profitability is the heart of any financial institution’s long and short-term strategy and in today’s global economic climate and regulatory environment, determining its key drivers is a critical priority. NBFCs play an important role in the financial market of a country and for this it is very important to evaluate the firms that operate in an efficient manner and also the factors which affect their profitability. In this study an attempt has been made to identify the profitability of the select private sector Non-Banking Finance Companies in India for the period of 2000-2014through the technique of Ratio Analysis. The analysis found that the Net Profit Margin, Operating Profit Margin and Return on Net Worth showed good financial performance of the select private sector NBFCs. That is, the earning capacity of the companies is considered satisfactory.