Top NBFCs in India
Non-Banking Financial Companies (NBFCs) are emerging as promising institutions that are offering a variety of services and meeting demands of the consumers. As per the study conducted by the Microfinance Institutions Network, NBFCs and Microfinance institutions have reported over 50 percent growth in the gross loan portfolio at Rs 51,878 crore in April-June in 2018 as compared to the same period in 2017.
The Banking & Finance Post, Asia and the Middle East’s premier magazine on banking and financial sector, therefore is pleased to present the second edition of “India’s Top 50 Non-Banking Financial Companies Ranking”.
The “India’s Top 50 NBFCs Ranking 2018” has been conducted to offer significant insights pertaining to this emerging segment of the Indian economy. This comprehensive ranking will give you a list of leading NBFCs in India.
Our rankings, 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 linked to them.
India’s Top 50 NBFCs Ranking 2018 has been carried out on the basis of two parameters: Annual turnover and social media engagement.
As is evident by the name, under the annual turnover parameter, NBFCs were ranked based on their yearly turnover. Under the social engagement parameter – 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 the highest cumulative score was ranked first, while the institution with the lowest score was ranked last. It has categorised the types of NBFCs on the basis two parameters. In the final results of ranking that we are presenting here, readers will be able to find NBFCs’ list and their performances in terms of Annual Turnover and Social Media Engagement.
The NBFCs are rapidly emerging as an alternative to traditional banking. They are playing a significant role in transforming the Indian Financial System and exhibiting immense potential in reaching out to the underbanked by taking forward the Central Government’s agenda of Financial Inclusion.
NBFCs’ contribution to the Indian economy has developed exponentially over the years. These institutions today are not merely focused on the traditional methodologies of lending such as commercial vehicle financial but they have now spread their services across products namely personal loans, housing loans, education loans and many more.
According to MFIN, NBFC-MFIs disbursed 76 lakh loans worth Rs 17,836 crore witnessing a growth of 36 percent in the number of loans disbursed and 52 percent in loan amount disbursed in Financial Year 2018-2019.
The overall microfinance industry has grown by 39 percent year-on-year in the April-June quarter of the fiscal and total size of the microfinance industry stands at Rs 1,48,097 crore.
Keeping the continual growth of NBFCs in mind, India’s Top 50 NBFCs Ranking 2018 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||267377.40||1|
|Rural Electrification Corporation Limited||224403.10||2|
|Bajaj Finance Limited||133292.20||3|
|Shriram Transport Finance Company Limited||122768.30||4|
|Indian Railway Finance Corporation Limited||110202.32||5|
|Mahindra & Mahindra Financial Services Limited||72061.20||6|
|HDB Financial Services Limited||70619.90||7|
|Muthoot Finance Limited||62432.00||8|
|Cholamandalam Investment and Finance Company Limited||54257.60||9|
|L&T Finance Limited (erstwhile Family Credit Limited)||52460.00||10|
|Shriram City Union Finance Limited||51015.70||11|
|Tata Capital Financial Services Limited||45553.70||12|
|Aditya Birla Finance Limited||44800.00||13|
|India Infrastructure Finance Company Limited||38364.40||14|
|Capital First Limited||36282.50||15|
|Reliance Capital Limited||33150.00||16|
|Kotak Mahindra Prime Limited||31946.21||17|
|Manappuram Finance Limited||29498.59||18|
|L&T Infrastructure Finance Company Limited||27344.15||20|
|Sundaram Finance Limited||26963.40||21|
|India Infoline Finance Limited||25051.90||22|
|Tata Motors Finance Limited||23934.64||23|
|IL&FS Financial Services Limited||22943.00||24|
|Magma Fincorp Limited||20371.10||25|
|Hinduja Leyland Finance Limited||19543.60||26|
|Indian Renewable Energy Development Agency Limited||17800.00||27|
|SREI Infrastructure Finance Limited||17736.20||28|
|Ujjivan Financial Services Limited||15820.00||29|
|Religare Finvest Limited||15726.75||30|
|Bajaj Holdings & Investment Limited||14744.20||31|
|PTC India Financial Services Limited||11902.50||32|
|ICICI Securities Primary Dealership Limited||11128.00||33|
|Satin Creditcare Network Limited||9766.40||34|
|JM Financial Credit Solutions Limited||9599.30||35|
|Indiabulls Commercial Credit Limited||9311.40||36|
|Kotak Mahindra Investments Limited||9131.45||37|
|IndoStar Capital Finance Limited||8304.70||38|
|Axis Finance Limited||7215.00||39|
|L&T Infra Debt Fund Limited||5675.20||40|
|Credila Financial Services Private Limited||4885.80||41|
|STCI Primary Dealer Limited||4526.40||42|
|Edelweiss Finance & Investments Limited||4398.30||43|
|Tata Motors Finance Solutions Limited||4211.57||44|
|PNB Gilts Limited||4099.37||45|
|Muthoot Capital Services Limited||3980.85||46|
|Edelweiss Retail Finance Limited||3676.22||47|
|STCI Finance Limited||3576.90||48|
|SBI DFHI Limited||3475.40||49|
|Tata Investment Corporation Limited||3097.66||50|
Social Media Engagement
India’s online lending technology ecosystem is booming at a fast pace. To stay relevant in this digital era, lending firms are heavily investing and relying on the digitally fetched data to understand consumer’s loan eligibility.
More importantly, digital technologies and interfaces, besides being a channel, are significant to building relevant, superior customer experiences. Brands that have a better understanding of their customer’s demand highly focused content-led winning marketing strategies and building both awareness and engagement and sales.
Social Media and Social CRM coupled with Social Commerce are becoming vital sources for critical non-traditional viable channels for communication, engagement and business. With the help of these tools, Non-Banking Financial Companies today can inform, engage and convert customers instantly while on social platforms.
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 Non-banking financial companies are socially engaged with their customers.
The power of digital assets across the web, mobility and social media are enabling the NBFCs in strengthening customer advocacy and customer-centricity approach. Emerging as one of the strongest contenders NBFCs, like their other banking counterparts, making proper utilisation of social media in connecting with their customers.
Strengthening Connectivity: Social engagements with the help of various social media channels are helping Non-Banking Financial Companies in enhancing their connectivity with the customers. As the target customers of NBFCs mainly are Micro, Small and Medium Enterprises (MSMEs), social media is emerging as a significant platform in promoting the connect of NBFCs with these enterprises.
Community Building: Promoting product and services across social media are acting as a great medium in reaching out to potential customers and enterprises. The community, that are commonly known as followers are helping non-banking financial companies in showcasing their innovations even in remote locations of the country.
Stimulate Knowledge: In this digital era where almost everyone has a smartphone, social media network used by NBFCs are helping them in keeping their target audience updated. NBFCs are also using social media as an opportunity to bridge the knowledge gaps by sharing relevant information. Having an online presence helps strengthen connectivity without any limitations on proximity.
|Social Engagement and Reach|
|Capital First Limited||1|
|India Infoline Finance Limited||2|
|L&T Finance Limited||3|
|Motilal Oswal Financial Services Limited||4|
|HDB Financial Services Limited||5|
|Reliance Capital Limited||6|
|Tata Capital Financial Services Limited||7|
|Fullerton India Credit Company Limited||8|
|Religare Enterprises Limited||9|
|Magma Fincorp Limited||10|
|Muthoot Fincorp Limited||11|
|L&T Infrastructure Finance Company Limited||12|
|Shriram Transport Finance Company Limited||13|
|Mahindra & Mahindra Financial Services Limited||14|
|Vistaar Financial Services Private Limited||15|
|SREI Infrastructure Finance Limited||16|
|JM Financial Limited||17|
|JM Financial Credit Solutions Limited||18|
|Tata Motors Finance Limited||19|
|Cholamandalam Investment and Finance Company Limited||20|
|Hinduja Leyland Finance Limited||21|
|IL&FS Financial Services Limited||22|
|Satin Creditcare Network Limited||23|
|Balmer Lawrie Investments Limited||24|
|Manappuram Finance Limited||25|
|Muthoot Finance Limited||26|
|Shriram City Union Finance Limited||27|
|Religare Finvest Limited||28|
|Rural Electrification Corporation Limited||29|
|IndoStar Capital Finance Limited||30|
|Nabard Financial Services Limited||31|
|Power Finance Corporation Limited||32|
|Ujjivan Financial Services Limited||33|
|LKP Finance Limited||34|
|Aditya Birla Finance Limited||35|
|Bajaj Finance Limited||36|
|Indian Renewable Energy Development Agency Limited||37|
|Intec Capital Limited||38|
|India Infrastructure Finance Company Limited||40|
|Sundaram Finance Limited||41|
|Family Credit Limited||42|
|Sakthi Finance Limited||43|
|Axis Finance Limited||44|
|Muthoot Capital Services Limited||45|
|Indian Railway Finance Corporation Limited||46|
|The National Small Industries Corporation Limited||47|
|STCI Primary Dealer Limited||49|
|PNB Gilts Limited||50|