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Non Banking Financial Companies PPT

Date post: 17-Dec-2015
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a project on nbfc
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Non Banking Financial Companies
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  • Non Banking Financial Companies

  • Which is a NBFC?"Non-banking financial company" means-a financial institution which is a company;a non banking institution and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner;such other non-banking institution or class of such institutions, as the bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify.

  • Classification of NBFC are:

    EQUIPMENT-LEASING COMPANY; HIRE-PURCHASE COMPANY; LOAN COMPANY; INVESTMENT COMPANY MUTUAL FUND COMPANY CHIT FUNDS RESIDUARY FINANCE COMPANY HOUSING FINANCE COMPANY

  • EQUIPMENT- LEASING COMPANY Means a company which is a financial institution carrying on as its principal business, the activity of leasing of equipment. EQUIPMENT LEASE - An agreement that specifies the rights and obligations between a lessor (who owns equipment) and a lessee (to whom the lease gives certain rights to possess and use the equipment). Obtaining the use of machinery, vehicles or other equipment on a rental basis. This avoids the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has the actual use of it

  • HIRE PURCHASE COMPANYIt is a company which is a financial institution carrying on its main activity as hire purchase transactions or the financing of such transactions

  • LOAN COMPANYIt means any company which is a financial institution carrying on as its main business by providing finance whether by making loans or advances

  • INVESTMENT COMPANYAn investment company is a company whose main business is holding securities of other companies purely for investment purposes. The investment company invests money on behalf of its shareholders who in turn share in the profits and losses.

  • MUTUAL FUNDA mutual fund is a type of investment company that pools money from many investors and invests the money in stocks, bonds, money-market instruments, other securities, or even cash

  • CHIT FUNDCHIT means a transaction whether called chit, chit fund, chitty, kury or by any other name or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.

  • RESIDUANRY FINANCE COMPANYResiduary Non-Banking Company-class of NBFCPrincipal business the receiving of deposits, under any scheme or arrangement or in any other manner and not being investment, asset financing, loan company.The functioning of these companies is different from those of NBFCs in terms of method of mobilization of deposits and requirement of deployment of depositors' funds.

  • HOUSING FINANCE COMPANYIndian Real Estate-on its way to donning the image of an organized industry-global standards-as fragmentation, disorganization, poor governance and inefficient infrastructure; take a backseat

    Most financial institutions- home loans to both Indian and NRI customers- floating and fixed rate of interest or blended ones- customized packages- purposes of constructing/ buying a new house, vacant plot or extension and even home improvement. BRIEF BACKGROUND Housing Finance has accumulated expert experience spanning over 40 years in construction/project finance with emphasis in multiple housing developments.

  • Role of NBFCsAs recognized by RBI and expert committeesDevelopment of sectors like Transport & InfrastructureSubstantial employment generationHelp & increase wealth creationBroad base economic developmentIrreplaceable supplement to bank credit in rural segmentsmajor thrust on semi-urban, rural areas & first time buyers / usersTo finance economically weaker sectionsHuge contribution to the State exchequer

  • ROLE OF NBFC.contd70-80% of Commercial Vehicles are finance driven

    Indian economy is more dependent on roadsHeavy Govt. outlay for mega road projectsHeavy replacement demand anticipated 30 lacs commercial vehicles by the year 2007Another Rs.6000 Crores required for phasing out old commercial vehiclesCRISIL in its study has placed commercial vehicle financing under low risk categoryEach commercial vehicle manufactured, sold and financed gives employment to minimum 20 persons (direct and indirect)

  • WHY NBFC ?WHYNOTBANK ?

  • It makes a study of what special is there in NBFCs that provide them an edge over the Banking sector.If the NBFCs can prosper and flourish in the future or would it be subsided due to the Banking sector? Banks-covered major section of the nation-but still some under-served sections exist -need for financial institutions for them-NBFCs CAME INTO PICTURE. BANKS-focus on the METRO-BASED MODEL-but NBFCs concern NON-METRO-FOCUSSED MODEL

  • NBFCs concentrate their activities on areas NOT ENTERTAINED by the BANKING sector -like- 1. HIRE-PURCHASE 2. LEASING 3. EQUIPMENT-LEASING 4. LOANS 5. CHIT FUNDING,etc.Cost efficiency -NBFCs are better than Banks-greater LEEWAY on the balance sheet-WORLD OVER.NBFCs-important role in the provision of QUALITY CUSTOMER SERVICES -much better than banks can ever do.

  • SUBMITTED BY :

    LAV MOHAN

  • ***


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