For the first time, The Banking and Finance Post, Asia and Middle East’s premier magazine has come up with the ranking of India’s top 50 Non-Banking Financial Companies (NBFCs). The “India’s Top 50 NBFCs Ranking 2017” has been introduced with an aim to provide useful insights into this important segment of the economy, which is being streamlined to fund the unfunded.
NBFCs play a critical role in the Indian financial system. They provide services such as personal loans, housing loans, gold loans, insurance and loans for purchasing commercial vehicles, machinery, and farm equipment, among others. The ability of NBFCs to understand their customer profile, their credit portfolio and deliver customised products and services are driving their fast growth in India.
NBFCs are also crucial for achieving the ‘Financial Inclusion’ goals by offering lending services to the unbanked population in rural, semi-rural or few urban areas. These are also important source of financial services for the Micro, Small and Medium Enterprises (MSMEs) – the backbone of an economy like ours.
The experience of NBFCs in understanding the customers’ profile and analysing their credit needs has been invaluable. Moreover, like most of the other segments of India’s financial sector, NBFCs too are transforming rapidly by using digital technology to improve customer interface.
A recent report by the Microfinance Institutions Network (MFIN) focused on adoption of ‘cash-lite’ models among MFIs in the country revealed that over 60 per cent of the NBFC-MFIs have adopted cashless methods to disburse money.
All this guided us to carry out an objective ranking of NBFCs in the country. Through our methodologies, we have tried to break the barriers of demography. Our rankings, as you will find, are spread across the length and breadth of the country and not limited to the metros and big cities alone. It is hoped that the ranking will be equally beneficial for NBFCs and those touched by them.
“India’s Top 50 NBFCs Ranking 2017” was carried out on the basis of three parameters: Annual turnover, social media engagement and customer satisfaction. As is evident by the name, under the annual turnover parameter, NBFCs were ranked based on their yearly turnover. Under the other two parameters – social engagement and customer satisfaction – the NBFCs were ranked on the basis of the result of our survey and the perception score.
Top 50 NBFCs ranking is a unique benchmark. Based on the scores secured by the NBFCs under the parameters, the cumulative score of all the institutions was calculated. The NBFC with highest cumulative score was ranked first, while the institution with lowest score was ranked last.
Non-Banking Financial Companies (NBFCs) are fast emerging as an alternative to mainstream banking. They are playing an integral part in the Indian Financial System and have immense potential to take forward the Central Government’s agenda of financial inclusion.
Their contribution to the economy has grown exponentially over the years. As a matter of fact, the growth of NBFCs is not just driven by traditional products like commercial vehicle financing, but also financial products like personal and housing loans, etc.
The growth of the sector is accredited to cost efficiency, bad debt control, customised products and better customer services. In terms of annual turnover for financial year 2016-17, NBFCs have scripted a great success story. The financial assets of NBFCs have recorded a compound annual growth rate (CAGR) of 19 per cent over the past few years, comprising 13 per cent of the total credit which is expected to reach nearly 18 per cent by 2018-19.
Keeping the continual growth of NBFCs in mind, India’s Top 50 NBFCs Ranking 2017 considered the annual turnover as one of the parameters in judging their level of excellence.
|Top 50 NBFCs’ Ranking Based on Annual Turnover*|
|NBFCs List||“Total Income (Rs mn)”||Rank|
|Power Finance Corporation Limited||270185.70||1|
|Rural Electrification Corporation Limited||240953.50||2|
|Shriram Transport Finance Company Limited||108306.10||3|
|Bajaj Finance Limited||100033.10||4|
|Indian Railway Finance Corporation Limited||90476.60||5|
|Mahindra & Mahindra Financial Services Limited||62375.40||6|
|Muthoot Finance Limited||57467.00||7|
|HDB Financial Services Limited||57145.40||8|
|Cholamandalam Investment and Finance Company Limited||46603.50||9|
|Shriram City Union Finance Limited||44345.30||10|
|Tata Capital Financial Services Limited||41924.00||11|
|Family Credit Limited||41449.70||12|
|India Infrastructure Finance Company Limited||39026.40||14|
|Aditya Birla Finance Limited||34260.00||15|
|Manappuram Finance Limited||30084.30||16|
|Kotak Mahindra Prime Limited||29221.48||17|
|Capital First Limited||27268.50||18|
|L&T Infrastructure Finance Company Limited||26784.71||19|
|Religare Finvest Limited||25694.26||20|
|Sundaram Finance Limited||24582.90||21|
|IL&FS Financial Services Limited||23464.60||22|
|SREI Infrastructure Finance Limited||22996.20||23|
|India Infoline Finance Limited||22642.20||24|
|Reliance Capital Limited||20710.00||25|
|Magma Fincorp Limited||20220.50||26|
|Tata Motors Finance Limited||19006.15||27|
|ICICI Securities Primary Dealership Limited||16271.40||28|
|Hinduja Leyland Finance Limited||14863.10||29|
|Indian Renewable Energy Development Agency Limited||14816.71||30|
|Ujjivan Financial Services Limited||13976.00||31|
|PTC India Financial Services Limited||13518.80||32|
|Bajaj Holdings & Investment Limited||8884.30||33|
|JM Financial Credit Solutions Limited||7883.60||34|
|Satin Creditcare Network Limited||7766.70||35|
|Kotak Mahindra Investments Limited||7617.00||36|
|IndoStar Capital Finance Limited||7199.17||37|
|STCI Primary Dealer Limited||6026.60||38|
|SBI DFHI Limited||6025.54||39|
|Axis Finance Limited||5756.00||40|
|PNB Gilts Limited||5005.40||41|
|Edelweiss Finance & Investments Limited||4504.70||42|
|Tata Motors Finance Solutions Limited||4340.83||43|
|STCI Finance Limited||4219.60||44|
|Indiabulls Commercial Credit Limited||4085.98||45|
|Credila Financial Services Private Limited||3918.10||46|
|L&T Infra Debt Fund Limited||3462.35||47|
|Muthoot Capital Services Limited||2842.00||48|
|Tata Investment Corporation Limited||2713.70||49|
|Vistaar Financial Services Private Limited||2711.70||50|
Banking operations are increasingly becoming customer dictated. As far as Indian finance sector is concerned, financial institutions offering one-stop integrated financial services are on the rise. There is an intense competition in the market to gain customers. Therefore, the leaders in Indian banking domain are not only competing with each on the price factor, but also how their customers feel about their services.
Realising the customer satisfaction as the most important factor to become a business leader, all NBFCs are focusing more on better services, improved financial plans for customers and more engagement with their clients. Perceptionbased ranking under this parameter helped us determine how satisfied the customers are with NBFCs’ services
Customer Value Improved Service Quality:
In the current economic scenario, NBFCs are rendering efficient services to gain competitive advantage and, thereby, enhancing their customer relationship. The NBFCs are emphasising more on creating loyal customers by customising their services to serve their customers better as per their needs. This in turn is expected to pave the way for achieving greater customer satisfaction to a larger extent.
In the era of ICT (Information, Communication and Technology), the mode of direct pay, online financial services have gained value which leads to flexible hours of operation as per customers’ needs. Increased market competition is resulting into higher defection rates of customers.
Thus, research on service quality and satisfaction of customers in finance sector is considered important.
Handling Customer Expectations:
Meeting customer expectations plays a central role resulting into higher satisfaction ratings for any service provided by NBFCs. However, the NBFCs also have to handle negative perception about their services and have to constantly make improvements to keep their customers satisfied. At the same time, it is also true that the nonbanking institutions can improve their ratings where customers have positive preconceptions and high expectations for the services.
|Customer Satisfaction ☆ ☆ ☆ ☆ ☆|
|Bajaj Finance Limited||1|
|Tata Capital Financial Services Limited||2|
|Kotak Mahindra Investments Limited||3|
|Cholamandalam Investment and Finance Company Limited||4|
|JM Financial Limited||5|
|JM Financial Credit Solutions Limited||6|
|Manappuram Finance Limited||7|
|Capital First Limited||8|
|Ujjivan Financial Services Limited||9|
|Indiabulls Commercial Credit Limited||10|
|Reliance Capital Limited||11|
|The National Small Industries Corporation Limited||12|
|Religare Enterprises Limited||13|
|LKP Finance Limited||14|
|HDB Financial Services Limited||15|
|Indian Renewable Energy Development Agency Limited||16|
|Rural Electrification Corporation Limited||17|
|Shriram Transport Finance Company Limited||18|
|Religare Finvest Limited||19|
|L&T Finance Limited||20|
|Nabard Financial Services Limited||21|
|Vistaar Financial Services Private Limited||22|
|Family Credit Limited||23|
|Balmer Lawrie Investments Limited||24|
|Hinduja Leyland Finance Limited||25|
|Muthoot Finance Limited||26|
|IL&FS Financial Services Limited||27|
|Power Finance Corporation Limited||28|
|IFCI Factors Limited||30|
|Sustainable Agro-Commercial Finance Limited||31|
|ICICI Securities Primary Dealership Limited||32|
|Intec Capital Limited||33|
|Motilal Oswal Financial Services Limited||34|
|Tata Motors Finance Limited||35|
|Shriram City Union Finance Limited||36|
|PTC India Financial Services Limited||38|
|Muthoot Capital Services Limited||39|
|ECL Finance Limited||40|
|CSL Finance Limited||41|
|Fullerton India Credit Company Limited||42|
|Satin Creditcare Network Limited||43|
|India Infoline Finance Limited||44|
|Edelweiss Retail Finance Limited||45|
|Tata Investment Corporation Limited||46|
|L&T Infrastructure Finance Company Limited||47|
|Magma Fincorp Limited||48|
|Muthoot Fincorp Limited||49|
|SREI Infrastructure Finance Limited||50|
Social Media Engagement
In this digital era and consumption of information on the move, social media is playing a key role in social engagement not only in terms of communication with clients but also in building a brand value in the targeted domain.
Today, people and organisations remain connected and updated through various social media networks like Facebook, Twitter, Linkedin and others. The perception-based ranking under this parameter helped us determine how well NBFCs are socially engaged with their customers.
Digital assets across web, mobility and social media is also assisting nonbanking institutions to build customer advocacy and customer-centricity approach. Being an integral player in the financial segment, NBFCs, like their banking counterparts, are making optimum utilisation of social media in reaching out to their customers.
Connectivity: Social engagements through different social media channels help NBFCs enhance their connectivity with customers. As the target customers of NBFCs mainly are Micro, Small and Medium Enterprises (MSMEs), social media proves to be an excellent platform for them to connect with these enterprises. Moreover, various social media channels can also be used constantly by NBFCs for communicating with their clients by promoting and sharing relevant information.
Community Building: Social engagement is a great way to reach out to potential customers and enterprises. The community thus formed helps NBFCs to showcase their products and services even in remote locations of the country.
Stimulate Knowledge: Social media networks have wide reach and NBFCs are using these networks to keep their target audience updated. NBFCs also use social media as an opportunity to effectively fill knowledge gaps by sharing relevant information. Having an online presence helps strengthen connectivity without any limitations on proximity.
|Social Engagement and Reach|
|India Infoline Finance Limited||1|
|Edelweiss Retail Finance Limited||2|
|Reliance Capital Limited||3|
|Capital First Limited||4|
|Motilal Oswal Financial Services Limited||5|
|Tata Investment Corporation Limited||6|
|Tata Capital Financial Services Limited||7|
|Religare Enterprises Limited||8|
|Fullerton India Credit Company Limited||9|
|HDB Financial Services Limited||10|
|L&T Infrastructure Finance Company Limited||11|
|Magma Fincorp Limited||12|
|Shriram Transport Finance Company Limited||13|
|Muthoot Fincorp Limited||14|
|SREI Infrastructure Finance Limited||15|
|JM Financial Limited||16|
|JM Financial Credit Solutions Limited||17|
|Tata Motors Finance Limited||18|
|Shriram City Union Finance Limited||19|
|Bajaj Finance Limited||20|
|Cholamandalam Investment and Finance Company Limited||21|
|IL&FS Financial Services Limited||22|
|Hinduja Leyland Finance Limited||23|
|Aditya Birla Finance Limited||24|
|Mahindra & Mahindra Financial Services Limited||25|
|Religare Finvest Limited||26|
|Rural Electrification Corporation Limited||28|
|Power Finance Corporation Limited||29|
|Nabard Financial Services Limited||30|
|Manappuram Finance Limited||31|
|S. E. Investments Limited||32|
|Muthoot Finance Limited||33|
|Ujjivan Financial Services Limited||34|
|Satin Creditcare Network Limited||35|
|IFCI Factors Limited||37|
|Intec Capital Limited||38|
|Indiabulls Commercial Credit Limited||39|
|India Infrastructure Finance Company Limited||40|
|IndoStar Capital Finance Limited||41|
|Sakthi Finance Limited||42|
|Indian Railway Finance Corporation Limited||44|
|L&T Finance Limited||45|
|PNB Gilts Limited||46|
|Muthoot Capital Services Limited||47|
|Sundaram Finance Limited||48|
|STCI Primary Dealer Limited||49|
|Axis Finance Limited||50|