Nfbc Case Study

EXECUTIVE SUMMARY

NBFC is emerging as a strong financial intermediary in the retail finance space. Retail NBFC has grown at a compound annual growth rate (CAGR) of 20 percent between 2011 and 2013. NBFC continue to gain market share at the expense of bank; NBFC’s share in retail finance is expected to almost match that of banks.

NBFCs higher penetration in smaller towns, products and process innovation, continued focus on core business, will be the key enablers of its steady growth and competitive position in Retail finance. On the other hand increased regulatory coverage and movement towards secured asset classes will strengthen he sector and provide stability. These factors signal a stronger and more mature retail

The role of NBFCs as effective financial intermediaries has been well recognized as they have inherent ability to take quicker decisions, assume greater risks, and customize their services and charges more according to the needs of the clients. While these features, as compared to the banks, have contributed to the proliferation of NBFCs, their flexible structures allow them to unbundle services provided by banks and market the components on a competitive basis. The distinction between banks and non-banks has been gradually getting blurred since both the segments of the financial system engage themselves in many similar types of activities. At present, NBFCs in India have become prominent in a wide range of activities like hire-purchase finance, equipment lease finance, loans, investments, etc. By employing innovative marketing strategies and devising tailor-made products, NBFCs have also been able to build up a clientele base among the depositors, mop up public savings and command large resources as reflected in the growth of their deposits from public, shareholders, directors and their companies, and borrowings by issue of non- convertible debentures,

It is one of India's leading, most valuable and fastest growing financial services companies in the private sector.

Reliance Capital has interests in asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services.

Reliance Mutual Fund is India's largest Mutual Fund with over seven million investors. Reliance Life Insurance is one of India's fastest growing life insurance companies and among the top four private sector insurers. Reliance General Insurance is one of India's fastest growing general insurance companies and among the top three private sector insurers. Reliance Money is one of India‘s leading retail brokerage houses and distributors of financial products and services.

Reliance Capital has a net worth of Rs. 7,712 crore (US$ 2 billion) and total assets of Rs. 26,003 crore (US$ 6 billion) as on March 31,