Financial Performance of NBFCs – A Comparative Study on Selected Investment and Assets Finance Companies

Non-Banking Financial Companies (NBFCs) are the companies involved in financing activities such as giving loans, charging interest and lending etc. So far classification of NBFC is concerned; with effect from December 6, 2006 the above NBFCs, registered with RBI have been classified as Asset Finance Company (AFC), Investment Company (IC), and Loan Company (LC). The scope of the study encompasses with two categories of NBFCs namely AFCs and ICs. The principal objective of the study is to make a comparative analysis of the financial performance of selected investment and assets finance companies. To compare the selected performance indicators (ROA, ROCE, ROE, DE RATIO, NPR and CR) separately between selected ICs (company-wise) and AFCs (company-wise) and to compare selected performance indicators jointly between selected ICs (company-wise) and AFCs (company-wise) for each individual year, Kruskal-Wallis test have been employed. The study concluded that there is no difference between the financial performances of each category of NBFCs apart from their nature of activities under their respective categories.