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Nbfcs Project Report

Autor:   •  August 23, 2015  •  Research Paper  •  7,980 Words (32 Pages)  •  1,489 Views

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Executive Summary

NBFCs constitute an important branch of finance sector. NBFCs are known as higher risk taking capacity than the banks. NBFCs in India have been complimenting the banks in rendering financial services and over the last few years have also been instrumental in bringing about financial inclusion in the country. NBFCs offer most sorts of banking services, such as loans and credit facilities, private education funding, retirement planning, trading in money market, underwriting shares and stocks, TFCs and other obligations.Based on their liability structure, NBFCs have been divided into two categories (NBFCs-D and NBFCs-ND).


LIST OF TABLES

Sr No.

CONTENT

Page No.

1

Comparison between Banks and NBFCs provides for regulatory comparison between banks and NBFCs

2

2

Assets of NBFC and Banking (SCBs) Sectors as a % to GDP

5

3

Herfindahl–Hirschman Index

6


LIST OF CHARTS

Sr No.

CONTENT

Page No.

1

The NBFI Universe

4

2

Size of NBFC Sector

5

3

Balance Sheet Growth – NBFCs vis-à-vis Banks

15

4

Growth in Credit – NBFCs vis-à-vis Banks

16

4A

Lending to Infrastructure Sector – NBFCs vis-à-vis Banks

16

5

Trends in Public Deposits

17

6

Trends in Bank Borrowings by the NBFCs

18

7

Trends in Market Borrowings by the NBFCs

18

8

Trends in Return on Assets – NBFCs vis-à-vis Banks

19

9

Trends in Credit provided by the MFIs

21

10

Trends in Credit provided by the Gold Loan NBFCs

21

11

Assets Financing by AFCs

22

12

Trends in Housing Loan

23


LIST OF ABBREVIATIONS

  • DAPL – Dolphin Autowheels Pvt Ltd.
  • NBFCs – Non-Banking Finance Companies
  • TFCs – Term Financial Certificates
  • NBFCs-D – Non-banking Finance Companies accepting public deposits
  • NBFCs-ND – Non-Banking Finance Companies not raising public deposits
  • NBFCs-ND-SI – Systemically Important Non-Deposit taking NBFCs
  • ALM – Assets Liability Management
  • CoR – Certificate of Registration
  • NOF – Net Owned Fund
  • NBFI – Non-Banking Financial Institution
  • AFC –Asset Finance Company
  • FPC – Fair Practices Code
  • KYC – Know Your Customer
  • CRAR – Capital to Risk Assets Ratio
  • IFCs – Infrastructure Finance Companies
  • NPA – Non-Performing Assets
  • NBFCs-MFI – Non-Banking Finance Companies-Micro Finance Institutions
  • HHI – Herfindahl-Hirschman Index
  • TDS – Tax Deducted at Source
  • ITR – Income Tax Return
  • RBI – Reserve Bank of India
  • DBOD – Department of Banking Operations and Development (RBI)
  • MSMEs – Ministry of Micro Small and Medium Enterprises
  • PSBs – Public Sector Banks
  • MFIs – Micro Finance Institutions
  • RM – Relationship Manager

Chp.1 Introduction to NBFC

Non-Banking Financial Companies are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions typically are restricted from taking deposits from the public depending on the jurisdiction. Nonetheless, operations of these institutions are often still covered under a country’s banking regulations.

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