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Title: AN ASSESSMENT OF THE PERFORMANCE OF INDIAN NBFCS DURING THE PANDEMIC: A CASE STUDY OF 5 PAN- INDIAN NBFCS
Authors: Shritha Lakshmipathy
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Shritha Lakshmipathy Mentored by: Dr. Amit Chatterjee BSc. Economics, TYC 26, Sarla Anil Modi School of Economics, NMIMS,Mumbai
MLA 8 Lakshmipathy, Shritha. "AN ASSESSMENT OF THE PERFORMANCE OF INDIAN NBFCS DURING THE PANDEMIC: A CASE STUDY OF 5 PAN- INDIAN NBFCS." Int. j. of Social Science and Economic Research, vol. 7, no. 5, May 2022, pp. 1223-1247, doi.org/10.46609/IJSSER.2022.v07i05.006. Accessed May 2022. APA 6 Lakshmipathy, S. (2022, May). AN ASSESSMENT OF THE PERFORMANCE OF INDIAN NBFCS DURING THE PANDEMIC: A CASE STUDY OF 5 PAN- INDIAN NBFCS. Int. j. of Social Science and Economic Research, 7(5), 1223-1247. Retrieved from doi.org/10.46609/IJSSER.2022.v07i05.006 Chicago Lakshmipathy, Shritha. "AN ASSESSMENT OF THE PERFORMANCE OF INDIAN NBFCS DURING THE PANDEMIC: A CASE STUDY OF 5 PAN- INDIAN NBFCS." Int. j. of Social Science and Economic Research 7, no. 5 (May 2022), 1223-1247. Accessed May, 2022. doi.org/10.46609/IJSSER.2022.v07i05.006.
References [1]. Financial Stability Report, 2018. (2018). Reserve Bank of India. Retrieved November 06, 2021, from https://rbi.org.in/Scripts/FsReports.aspx [2]. Measuring Financial Inclusion and the Fintech Revolution. (2017). World Bank Group. Retrieved November 05, 2021, from https://globalfindex.worldbank.org/ [3]. Financial Stability Report, 2019. (2019). Reserve Bank of India. Retrieved November 10, 2021, from https://rbi.org.in/Scripts/FsReports.aspx [4]. Moneycontrol.com. (2022). Shriram City Union Finance Balance Sheet, Shriram City Union Finance Financial Statement & Accounts. Shriram Union Finance Balance Sheet. Retrieved March 31, 2022, from https://www.moneycontrol.com/financials/shriramcityunionfinance/balance-sheetVI/scu [5]. Reports. Five Star. (2022). Retrieved March 31, 2022, from http://fivestarbusinessfinance.com/reports/ [6]. Aptus. (2022). Aptus India Financials. Financials. Retrieved March 2022, from https://aptusindia.com/financials/ [7]. Veritas Finance Pvt Ltd – Non Banking Finance. (2022). Retrieved March 31, 2022, from https://veritasfin.in/annual-reports.php [8]. Annual Report. Vistaar. (2022). Retrieved March 31, 2022, from https://www.vistaarfinance.com/investors
ABSTRACT: Less than 10% of the population and about 247 million commercial enterprises do not have access to formal finance, which has resulted in vast financial exclusion in our country. NBFCs, which have about 41% share in small business loans, have been able to carve out a niche by focusing on customer needs, improving turnaround time and expanding geographically. Owing to their good performance, the NBFC sector has shown mushroom growth over the last two decades, with the emergence of a digitally savvy customer segment, rooting for digitization of lending. Though many NBFCs performed well, the defaults of IL&FS and DHFL caused the entire sector to face a liquidity crunch. This caused a significant reduction in the public perception of NBFCs following the incident. The crisis highlighted the need for closer interactions from RBI, which resulted in the implementation of regulatory and supervising policies to constantly keep up with the changing system. The Covid-19 pandemic disrupted borrowers’ income and cashflows, which made it challenging for NBFCs to make timely collections. In this paper, an attempt has been made to analyze the performance of five NBFCs during the pandemic period (2019-2021), considering several key financial ratios and indicators. The findings indicate a decreasing trend in the composite index of Sriram, Increasing trend in Aptus & Veritas and a nearly constant composite index in Five star and Vistaar. The Profit after Tax (PAT) for the selected NBFCs have increased even during the pandemic owing to reasons like: i) Lending to service sectors, ii) Reduction in Employee expenditure, iii) Moratorium by RBI, iv) Venture capital raised by few NBFCs, etc.

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