Here we can see the list of Top NBFC Finance Companies in India which is sorted out based on the Turnover. There were approximately 10,000 NBFCs in India registered with Reserve Bank of India (RBI), of which 89 deposit accepting NBFC in India.
NBFC Full Form | What is NBFC
Non-Banking Financial Company (NBFC) is the Full Form. Non-Banking Financial Company is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities.
Financial activity as principal business is when a company’s financial assets constitute more than 50 percent of the total assets and income from financial assets constitute more than 50 percent of the gross income. A company that fulfills both these criteria will be registered as NBFC by RBI.
List of Top NBFC Finance Companies in India
So here is the List of Top Non-Banking Financial Company (NBFC) Companies in India which are listed based on the Total sales in the year 2020.
10. Sundaram Finance Ltd
Sundaram Finance was established in 1954 when Sri T. S. Santhanam, the Founder, envisioned the future of hire-purchase finance in India. The company is tenth in the list of Top NBFC companies in India.
The company was started with a paid-up capital of Rs. 2 Lakhs and promoted by Madras Motor & General Insurance Company which was then one of the leading insurance companies in India prior to nationalization in 1971.
- Revenue: Rs 3,654 Cr
- Profit: 1,258 Cr
- Market Cap: 17,864 Cr.
- ROE: 15.00 %
- Sales Growth (3Yrs): 11.38 %
- Promoter holding: 35.95 %
- Debt to equity: 4.52
- Price to book value: 3.36
It has a nation-wide presence of nearly 640 branches, over two lakh depositors and three lakh commercial vehicle and car finance customers. Today, Sundaram Finance Limited has a diversified presence in Mutual Funds, Housing Finance, General Insurance, IT, Business Process Outsourcing and Retail Distribution of a wide array of financial services and products.
9. Manappuram Finance Ltd
Manappuram Finance Ltd. is one of India’s leading gold loan NBFCs. Promoted by Shri. V.P. Nandakumar, the current MD & CEO, its origins go back to 1949 when it was founded in the coastal village of Valapad (Thrissur District) by his late father Mr. V.C. Padmanabhan.
The firm was involved in pawnbroking and moneylending carried out on a modest scale. Shri Nandakumar took over the reins in 1986 after his father expired. It is ninth in the list of Top NBFC finance companies in India based on turnover.
- Revenue: Rs 4,627 Cr
- Profit: 1,179 Cr
- Market Cap: 14,580 Cr.
- ROE: 22.12 %
- Sales Growth (3Yrs): 20.23 %
- Promoter holding: 35.12 %
- Debt to equity: 3.67
- Price to book value: 2.88
Since then, it has been a story of unparalleled growth with many milestones crossed. Incorporated in 1992, Manappuram Finance Ltd. has grown at a rapid pace. Today, it has 4351 (Includes branches of subsidiary companies) branches across 28 states/UTs with assets under management (AUM) of Rs. 194.38 billion and a workforce of 25,610.
8. Muthoot Finance Ltd
The Muthoot Group was founded in 1887 as a modest trading business in the remote village of Kozhencherry in Kerala. Muthoot Finance is the largest gold loan Non-banking Finance Company (NBFC). It is 8th in the list of Top NBFC Finance companies in India based on turnover.
- Revenue: Rs 7,590 Cr
- Profit: 2,385 Cr
- Market Cap: 29,830 Cr.
- ROE: 22.41 %
- Sales Growth (3Yrs): 12.16 %
- Promoter holding: 73.48 %
- Debt to equity: 2.68
- Price to book value: 2.81
Over the decades, the Group has evolved to become a flourishing business conglomerate spanning India’s small and large towns; and is currently home to 20 diversified divisions and 4,480+ branches. The Group recently celebrated 132 years of lending services to millions of underserved Indians, leading to financial inclusion, even in the most remote and rural areas of the country.
7. Cholamandalam Investment & Finance Company Ltd
Owned by Murugappa Group, Founded in 1900 which is one of India’s leading business conglomerates. Cholamandalam Investment and Finance Company Limited (Chola), incorporated in 1978 as the financial services arm of the Murugappa Group.
- Revenue: Rs 8,000 Cr
- Profit: 1,239 Cr
- Market Cap: 23,601 Cr.
- ROE: 21.14 %
- Sales Growth (3Yrs): 18.93 %
- Promoter holding: 52.94 %
- Debt to equity: 8.26
- Price to book value: 3.49
Chola commenced business as an equipment financing company and has today emerged as a comprehensive financial services provider offering vehicle finance, home loans, home equity loans, SME loans, investment advisory services, stockbroking and a variety of other financial services to customers. Chola operates from 1029 branches across India.
The subsidiaries of Chola are Cholamandalam Securities Limited (CSEC) and Cholamandalam Home Finance Limited (CHFL). It is seventh in the list of Top NBFC finance companies in India based on turnover.
6. Edelweiss Financial Services Ltd
Edelweiss is one of India’s leading financial services conglomerates, offering a robust platform, to a diversified client base across domestic and global geographies. This is in the sixth position in the list of Top NBFC finance companies in India based on turnover.
- Credit (Retail, Corporate)
- Investment & Advisory (Wealth Management,
Asset Management and Capital Markets)
- Insurance (Life, General)
The Company experience across India’s multiple consuming facets, from industrial behemoths and large companies to small business as well as the average Indian urban and rural household.
- Revenue: Rs 10,650 Cr
- Profit: 674 Cr
- Market Cap: 10,454 Cr.
- ROE: 13.67 %
- Sales Growth (3Yrs): 27.21 %
- Promoter holding: 32.91 %
- Debt to equity: 5.40
- Price to book value: 1.34
The company has 1.2 million strong client base is serviced through a network of over 476 offices, with close to 11,000 employees. Together with a strong network of Sub-Brokers and Authorized Persons, the Group has a presence across all major cities in India.
5. Mahindra & Mahindra Financial Services Ltd
Mahindra Finance began as a captive financier of Mahindra Utility Vehicles in the early 90s. From Mahindra UVs to tractors to non-Mahindra products, the company has diversified into financial services. It is one of the best in the list of top finance companies in India.
The product portfolio consists of vehicle finance, which includes financing of passenger vehicles, utility vehicles, tractors, commercial vehicles, construction equipment; and pre-owned vehicles and SME finance, which includes project finance, equipment finance, working capital finance and bill discounting services to SMEs. The company also undertakes mutual fund distribution, fixed deposits and personal loans tailor-made to suit its unique customer set.
- Revenue: Rs 11,307 Cr
- Profit: 1,482 Cr
- Market Cap: 19,895 Cr.
- ROE: 17.30 %
- Sales Growth (3Yrs): 16.56 %
- Promoter holding: 51.19 %
- Debt to equity: 4.97
- Price to book value: 1.78
With over 33,000 employees, Mahindra Finance has a presence in every state in India and a footprint in 85% of its districts. It serves customers in more than 3, 60,000 villages– that’s one in every two villages in the country.
4. L&T Finance Holdings Ltd
L&T Finance Holdings Limited (the “Company” or “LTFH”) is a subsidiary of Larsen & Toubro Limited. The Company is registered with the Reserve Bank of India (“RBI”) as a Systemically Important Non-Deposit Accepting Core Investment Company (“NBFC-CIC”).
- Revenue: Rs 13,873 Cr
- Profit: 1,856 Cr
- Market Cap: 22,996 Cr.
- ROE: 17.96 %
- Sales Growth (3Yrs): 20.41 %
- Promoter holding: 63.86 %
- Debt to equity: 6.44
- Price to book value: 1.64
As an NBFC-CIC, the Company is a primary holding company, holding investments in its subsidiaries and other group companies and carries out only such activities as are permitted under the guidelines issued by RBI for NBFC-CICs.
The Company’s subsidiaries are engaged in businesses in the financial services sector. It is one among the list of top NBFC companies in India.
3. Aditya Birla Capital Ltd
Aditya Birla Capital Limited (ABCL) is the holding company for the financial services businesses of the Aditya Birla Group. Powered by more than 20,000 employees, the subsidiaries of ABCL have a nationwide reach with 850+ branches and more than 2,00,000 agents / channel partners and several bank partners.
- Revenue: Rs 16,131 Cr
- Profit: 998 Cr
- Market Cap: 22,022 Cr.
- ROE: 9.65 %
- Sales Growth (3Yrs): 60.85 %
- Promoter holding: 72.70 %
- Debt to equity: 5.52
- Price to book value: 2.19
Aditya Birla Capital Limited manages aggregate assets under management over Rs. 3000 billion and has a consolidated lending book of Rs. 605 billion, through its subsidiaries and joint ventures. Aditya Birla Capital Limited is a part of the Aditya Birla Group, a US$ 48.3 billion Indian multinational, in the league of Fortune 500.
ABCL is the third-largest NBFC in the list of top NBFC companies in India. Anchored by an extraordinary force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla Group operates in 34 countries across the globe.
2. Shriram Transport Finance Company Ltd
Shriram Transport Finance Company Limited (STFC) is the flagship company of Shriram Group – a diversified group with interests in financial services viz. Commercial vehicle finance, Consumer Finance, life, and general insurance, stockbroking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds.
- Revenue: Rs 16,127 Cr.
- Profit: 2,793 Cr
- Market Cap: 26,182 Cr.
- ROE: 17.37 %
- Sales Growth (3Yrs): 14.45 %
- Promoter holding: 26.25 %
- Debt to equity: 5.51
- Price to book value: 1.64
Established in 1979, STFC is an asset financing Non-Banking Finance Company. Headquartered in Mumbai. The company is the second-largest in the list of top NBFC companies in India.
Presently, the company is driven by 26,600+ motivated employees (including ~16,000 product/credit executives) championing a unique “relationship-based” business model through a pan-India network comprising 1,545 branches, 838 rural centers and partnerships with ~500 private financiers.
1. Bajaj Finance Ltd | Largest NBFC in India
Bajaj Finance Ltd is a deposit-taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI). It is a subsidiary of Bajaj Finserv Ltd. and is engaged in the business of lending. It is the Largest NBFC Finance Companies in India based on Turnover.
- Revenue: Rs 22,413 Cr
- Profit: 4,937 Cr
- Market Cap: 249,069 Cr.
- ROE: 21.98 %
- Sales Growth (3Yrs): 33.55 %
- Promoter holding: 56.15 %
- Debt to equity: 3.69
- Price to book value: 11.45
BFL has a diversified lending portfolio across retail, SME and commercial customers with a significant presence in urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. It has two 100% subsidiaries:
(i) Bajaj Housing Finance Ltd.
(ii) Bajaj Financial Securities Ltd.
There were approximately 10,000 NBFCs registered with Reserve Bank of India (RBI), of which 89 deposit accepting NBFC.
NBFC in India are regulated by the Reserve Bank of India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions issued by it.
Yes. Non-Banking Financial Company is a company registered under the Companies Act, 1956. For detailed Information read the full article from the Top.
The main Difference between bank and NBFC is NBFCs are not allowed to accept deposits which are repayable on demand whereas banks which accepts demand deposits. In NBFC, foreign Investments up to 100% is allowed.