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India’s Top 50 NBFCs Ranking 2017

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Top 50 NBFCs RankingFor 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.

Ranking Methodology:

“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.

Ranking Parameter

Top 50 NBFCs Ranking ParameterAnnual Turnover

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
IFCI Limited 40066.40 13
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

 

Customer Satisfaction

Customer SatisfactionBanking 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 ☆ ☆ ☆ ☆ ☆
NBFCs List Rank
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 Limited 29
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
SICOM Limited 37
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

Social Media EngagementIn 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
NBFCs List Rank
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
IDFC Limited 27
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 Limited 36
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
SICOM Limited 43
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

 

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