Edelweiss Finance & Investments Limited
Edelweiss Finance & Investments is a Non-Banking financial company which has its headquarters at Mumbai, Maharashtra. It is a part of the Edelweiss Group which is divided into five business segments that are credit, wealth management, asset management, capital markets and insurance. Edelweiss Finance & Investments has more than 430 offices and boasts of 1.1 million clients who are serviced by over 10,000 employees. Edelweiss was founded in 1995 by Rashesh Shah and Venkat Ramaswamy. The operations were kicked off in 1996 with an initial capital of INR 10 million.
Edelweiss Finance & Investments reached the INR 50 million mark in 2000 and followed up the success in 2001 by acquiring Rooshnil Securities. In 2007, Edelweiss Finance & Investments decided to run their Initial Public offering and hence became a public company. Edelweiss Finance & Investments then went on to acquire Anagram Capital in 2011 with the aim of expanding their retail broking and distribution business.
With 2011 proving to be a stellar year, Edelweiss Finance & Investments decided to enter asset reconstruction, retail finance, and insurance business. In 2014, it acquired Forefront Capital Management and followed it up with the acquisition of JP Morgan AMC in 2016. In one of the major acquisitions of 2017, Edelweiss Finance & Investments acquired the securities arm of Religare. The versatile actor Irrfan Khan is the brand ambassador for the brand for its advertisements on Small and Medium Enterprise business loans along with the unit linked insurance plan. The greatest shuttler that India has ever seen, Saina Nehwal is also a brand ambassador for Edelweiss group. Edelweiss was also the sponsor for the entire team that represented India in the last Olympics as well as the recently concluded Commonwealth Games. Edelweiss Finance & Investments has also received the approval from the Insurance and Regulatory Development Authority giving them the green light to set up a general insurance business in India. Edelweiss Finance & Investments had an annual turnover of INR 4505 million in the financial year 2016-17.
Reliance Capital is a diversified financial company belonging to the Reliance group of companies stable. It is one of the most valuable financial services to private companies in the country. It has a varied field of services which include asset management, mutual funds, life insurance, general insurance, commercial finance, home finance, stock broking, wealth management, financial products disbursement, private equity, asset reconstruction, proprietary investments etc..
Reliance Capital has nationwide operations and boasts of more than 20 million customers who are serviced by a work force in the region of 15,000+. Anil Ambani, the younger son of Dhirubhai Ambani is the chairman of Reliance Capital whilst his son, Anmol Ambani is the Executive Director. Reliance Capital was established in Ahmedabad in 1986 as Reliance Capital & Finance Trust Limited. The name was changed to Reliance Capital in 1995. It received the license to operate as a Non-Banking Financial company in 1998. The headquarter was moved to Mumbai in 2006 after its merger with Reliance Capital Ventures Limited which helped raise the shareholder base of Reliance Capital to 1.3 million form 0.15 million. Reliance Capital is publicly listed on both Bombay Stock Exchange as well as National Stock Exchange.
Reliance Capital has a plethora of offerings in a number of business lines like Reliance Nippon Life Asset Management which manages and advises Rs. 3,58,059 crore as per March 2017, Reliance Nippon Life Insurance which has over 10 million policy holders, a strong distribution network of over 700 branches and over 75,000 advisors as on March 31, 2017, Reliance General Insurance which has a 7.3% market share in the private sector with over 24,500 agents, Reliance Home Finance which has a strong distribution network with over 1,750 distributors serving over 33,300 customers across 90 locations, Reliance Commercial Finance which has an operational presence of over 44 locations in India and an AUM of 16759 Cr. as on March 2017 and Reliance Securities which is the broking and distribution arm of Reliance Capital. Reliance Capital had an annual turnover of INR 20710 million in the financial year 2016-17.
Manappuram Finance Limited
Manappuram Finance is another Non-Banking Financial company from India which is headquartered at Thrissur, Kerala. It has more than 3200 branches throughout India with more than 15,000 employees nationwide. Manappuram Finance was founded way back in 1949 by VC Padmanabhan by the name of Manappuram General Finance and Leasing Limited. The major operation that the company undertook at that time was money lending and pawn broking on a very small scale. After the death of the founder VC Padmanabhan in 1986, his son Nandakumar took over the reigns of the one branch business. Manappuram Finance was adopted as the official name in 1992 post the economic liberalisation of India.
Manappuram Finance has a host of ‘firsts’ to its name. The company was the first NBFC in Kerala to receive a Certificate of Registration issued by the RBI. It was also first Kerala based NBFC to get a Credit Rating in 1995 of “MA” from ICRA, recognising the company’s ability to make timely repayments of the principal and interest under its then existing public deposits programme. Manappuram Finance was one of the very first NBFCs from Kerala to go for a Public Issue of its shares in 1995. Manappuram Finance was also the first Non-Banking Financial Company from Kerala to issue bonus shares in 1:1 ratio when it did so in 2007 and repeated the feat in 2010 and 2011. In a surprise bold move, Manappuram Finance was the very first Kerala based company to offer Employee Stock Options to the middle and senior management personnel.
Manappuram Finance has recently made its foray into foreign exchange when it was awarded the license by the Reserve Bank of India to deal in outward remittances for a multitude of purposes including but not limited to higher education, medical treatment, business travel etc.. It has also started Instant Money Transfer in association with companies like UAE Xchange, WallStreet and MoneyGram. Manappuram Finance had an annual turnover of INR 30084 million in the financial year 2016-17.
India Infrastructure Finance Company Limited
Established in 2006 as a wholly owned Government of India company, India Infrastructure Finance Company Limited aims to finance viable infrastructure products. The sectors that are eligible for financial help from India Infrastructure Finance Company Limited are decided by the government of India and Bradly include transportation, energy, water, sanitation, social and commercial infrastructure. India Infrastructure Finance Company Limited received its license as a Non-Banking Financial Company in September 2013. The authorised and paid up capital of the company as on 31st March 2018 stood at Rs 6,000 Crore and Rs 4,102 Crore, respectively.
On a standalone basis, till 31st March 2018, India Infrastructure Finance Company Limited made cumulative gross sanctions of Rs 81,040 Crore to 459 projects under direct lending and cumulative disbursements of Rs 60,136 Crore (including disbursements of Rs 7,231 Crore under Refinance and Rs 15,413 Crore under Takeout Finance).
India Infrastructure Finance Company Limited lends funds for both greenfields as well as brownfield projects. For Greenfield projects, India Infrastructure Finance Company Limited provides long-term funds to commercially viable infrastructure projects, taking an exposure of up to 20% of Total Project Cost. For brownfield projects, India Infrastructure Finance Company Limited can lend up to 30% of Total Project Cost. Disbursement in case of Takeout Finance generally takes place one year after the actual Commercial Operation Date. It also provides refinance to banks and other eligible financial institutions for their loans to infrastructure projects.
Under the refinance scheme, till 31st March 2018, India Infrastructure Finance Company Limited had made cumulative disbursements of Rs 7,231 Crore. India Infrastructure Finance Company Limited had an annual turnover of INR 39026 million in the financial year 2016-17.
Tata Capital Financial Services Limited
Tata Capital Financial Services is another leading Non-Banking financial company of India which provides finances and charges interest, Headquartered in Mumbai, Tata Capital Financial Services has over 100 branches through the country. Tata Capital Financial Services offers consumer loans, wealth management services, commercial finance, infrastructure finance etc.. Tata Capital Financial Services, a subsidiary of the well known and highly respected Tata Sons, was established fairly recently in 2007. It is the financial services arm of the entire Tata Group.
Tata Capital Financial Services is registered with the Reserve Bank of India as Systematically Important Deposit Accepting Non-Banking Financial Company. Tata Capital offers services like commercial finance, investment banking, consumer loans, private equity, treasury advisory, and credit cards. It serves retail, corporate as well as institutional clients.
Tata Group has always been a philanthropist organisation and with the same intention in mind, Tata Capital Financial Services launched ‘Salaam Loans’. Salaam Loans target those individuals who do not have access to organised loans. These individuals were encouraged to post their stories on social media and the stories with the most number of likes would be entitled to secure a loan of upto INR 1 lakh at discounted interest rates from Tata Capital Financial Services. The Salaam Loan initiative won Gold in the category of ‘Digital – Social Purpose’ and Bronze in the category of ‘Public Relations – Financial Services’ at the Spikes Asia AwardsIn October 2017, Tata Capital Financial Services entered into an agreement with Capital Float to provide working capital loans to SMEs throughout India on the digital platform of Capital Float.
Tata Capital Financial Services sold off its wholly owned subsidiaries when Thomas Cook India acquired its forex and travel divisions. Kusal Roy is the current Managing Director of Tata Capital Financial Services. Tata Capital Financial Services had an annual turnover of INR 41924 million in the financial year 2016-17.
Muthoot Finance is one of the oldest non-banking financial corporations of India. It is also the largest gold financing company in the entire world. It does offer a few other services in addition to gold financing like foreign exchange services, money transfers, wealth management services, travel and tourism services as well as a sale of gold coins. Muthoot Finance has its headquarters at Kochi, Kerala and boasts of more than 4500 branches in India. Overseas, Muthoot Finance has branches in the United Kingdom, the United States of America and the United Arab Emirates.
Muthoot Finance operates under the umbrella of the Muthoot Group and is listed on both Bombay Stock Exchange as well as the National Stock Exchange. Muthoot Finance mostly targets small businesses, vendors, farmers, traders, owners of Small & Medium Enterprise businesses along with salaried individuals for professional and personal loans.
Muthoot Finance was founded in 1939 by M George Muthoot and has been awarded the license by the Reserve Bank of India to operate as a Non-Banking Financial Company without accepting public deposits. Muthoot Finance is also exempt from the provisions of the Money Lenders Act of Karnataka and other such states. Muthoot Finance’s gold loan business constitutes more than 99% of its total income. Muthoot Finance won the Skoch Financial Inclusion Award 2013 in recognition of its major initiative in the area of ‘Access to Banking and Financial Services’ to the common man who had been excluded from the country’s banking network for decades.
In 2012, Muthoot Finance was voted the most trusted finance brand in India according to the Brand Trust Report 2012, a study conducted by Trust Research Advisory. In the Brand Trust Report 2013 however, Muthoot Finance was voted second-most trusted finance brand in India. It was able to regain its place as the numero uno when it was again adjudged to be India’s most trusted finance brand in the Brand Trust Report 2014. Muthoot Finance had an annual turnover of INR 57467 million in the financial year 2016-17.
Mahindra and Mahindra Financial Services Limited
Mahindra and Mahindra Financial Services are leading rural Non-Banking Financial Corporation of India. With its headquarters at Mumbai, Maharashtra, Mahindra and Mahindra Financial Services are one of the top tractor financiers through the country. It also provides a plethora of other financial products in order to fulfil the needs of its customers. Mahindra and Mahindra Financial Services has more than 1000 offices throughout the country and has an astounding ratio of having at least 1 centre for every 3 Indian villages. It has a huge customer base of more than 4.7 million.
It offers a variety of services ranging from vehicle financing which covers auto and utility vehicles, tractors, cars, commercial vehicles and construction equipment, SME financing which looks after loans for project finance, equipment finance and working capital finance, housing finance which are loans offered to rural and semi-urban population to build pukka homes, insurance broking which provides insurance solutions to its retail customers through the subsidiary Mahindra Insurance Brokers Limited, mutual funds, fixed deposits etc.
Mahindra and Mahindra Financial Services was established on 1st January 1991 as Maxi Motors Financial Services Limited and received the certificate to start off their business in February 1991. In November 1992, Maxi Motors Financial Services Limited changed their name to the currently used Mahindra and Mahindra Financial Services. It was also registered with the Reserve Bank of India as an asset finance and deposit-taking Non-Banking Financial Corporation. In 1993, Mahindra and Mahindra Financial Services financed its first Mahindra and Mahindra Utility vehicle. In 1995, Mahindra and Mahindra Financial Services decided to spread its wings and came up with their first branch outside Bombay. In 2002, it also began financing vehicles not belonging to the Mahindra and Mahindra stable.
In 2009, Mahindra and Mahindra Financial Services decided to foray into the financing of commercial vehicles as well as construction equipment. Mahindra and Mahindra Financial Services had an annual turnover of INR 62375 million in the financial year 2016-17.
Indian Railway Finance Corporation
Indian Railway Finance Corporation was established on 12th December 1986 to set up an organisation which looked after the financing of the various Indian Railway projects by borrowing funds from capital markets, both domestic as well as overseas. Indian Railway Finance Corporation is a Schedule ‘A’ Public Sector Enterprise under the administrative control of the Ministry of Railways, Govt. of India. It is also registered as Systemically Important Non–Deposit taking Non-Banking Financial Company as well as Infrastructure Finance Company with the Reserve Bank of India.
The major aim of the Indian Railway Finance Corporation is to help the Indian Railways source the ‘Extra Budgetary Resources’ which translates to funds over and above what have been set apart in the Railway budget. The modus operandi of the Indian Railway Finance Corporation is to borrow funds at the most competitive interest rates from the capital market to finance the acquisition or creation of assets. Once these assets are ready for use, they are then leased out to the Indian Railways.
Indian Railway Finance Corporation’s cumulative funding to rail sector has crossed Rs.1.80 lakh crore as of 31st March 2017 and is all set to cross Rs.2.20 lakh crore by the end of March 2018. The funds are utilised for acquiring rolling stock assets and also building up infrastructure, constituting the significant part of the annual capital expenditure of Indian Railways. So far, it has funded an acquisition of 8998 locomotives, 47910 passenger coaches, 2,14,456 wagons, which constitute around 70% of the total rolling stock fleet of Indian Railways. Since 2012, Indian Railway Finance Corporation has also made a foray into the financing of railway projects and capacity enhancement projects in trains. The major borrowers which borrow from Indian Railway Finance Corporation are Rail Vikas Nigam Limited, Railtel, Konkan Railway Corporation Limited, Pipavav Railway Corporation Limited etc..
Indian Railway Finance Corporation always tried to borrow the funds at the lowest interest rates possible whilst diversifying its portfolio in terms of the markets, investors, borrowing instruments etc.. In more than 30 years of existence, IRFC has played a significant role in supporting the expansion of the Indian Railways and related entities by financing a significant proportion of its annual plan outlay. Indian Railway Finance Corporation had an annual turnover of INR 20710 million in the financial year 2016-17.
Rural Electrification Corporation Limited
Rural Electrification Corporation is a public finance company which operates in the power sector in India. The major aim of the company is to finance and promote rural electrification projects across the country. To facilitate this, Rural Electrification Corporation deals with Central Power Utilities, State Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs, Private Power Developers etc. The company sanctions loan as a sole lender or co-lender or in consortium with or without the status of a lead financier.
It also provides consultancy, project monitoring and financial/ technical appraisal support for projects, also in the role of the nodal agency for Government of India schemes or projects. Rural Electrification Corporation has also been furnishing loans for renewable energy projects in the country. It has earmarked INR 600 million in association with KfW under the pact between India and Germany for financing renewable energy projects at lowered rates of interest. Rural Electrification Corporation enjoys the Navratna status and is listed on both the Bombay Stock Exchange as well as the National Stock Exchange.
Rural Electrification Corporation has an application called the ‘GARV’ app which has been developed and launched under the rural electrification drive of Deen Dayal Upadhyaya Gram Jyoti Yojana. The app furnishes users with real-time updates on the status of electrification of the villages. Launched on 14th October 2015 GARV App is accessible to everybody and anybody. Rural Electrification Corporation was listed on the Bombay Stock Exchange and National Stock Exchange in 2008 after it brought forward an Initial Public Offering of 156,120,000 shares which were oversubscribed by over 27 times and Rural Electrification Corporation was able to raise a total of INR 819 crores. This IPO was followed up by another one in 2010 when the issue was oversubscribed by more than 3 times and was able to raise a total of INR 26.47 billion.
Rural Electrification Corporation is ranked amongst the Top 500 Global Financial Services brands and also finds itself amongst the prestigious Forbes Global 2000 companies. Rural Electrification Corporation had an annual turnover of INR 240953 million in the financial year 2016-17.
Power Finance Corporation
Power Finance Corporation, established in 1986, is the financial backbone of the Indian power space. With an annual turnover of INR 270185 million in the financial year 2016-17, it ranks #1 amongst all Non-banking financial corporations in India. The major aim of the Power Finance Corporation is to provide financial help to power projects throughout India. These projects maybe generation, transmission, distribution or RM&U projects. Since 2015, Power Finance Corporation has also been financing those projects which somehow are largely dependent on power sectors like coal mine development, fuel transportation or oil and gas pipelines.
Power Finance Corporation enjoys a ‘Navratna’ status in the country and has its shares listed on both Bombay Stock Exchange as well as National Stock Exchange. Up until 2007, Power Finance Corporation was wholly owned by the Indian government. In January 2007, Power Finance Corporation issued an Initial Public Offering which was oversubscribed by a whopping 76 times.
The borrowers which borrow funds from the Power Finance Corporation for power projects range from State Electricity Boards to State Sector Power utilities to Central Sector power utilities to Private sector companies. Power Finance Corporation is also the central agency for the financing of the Central government projects like Ultra Mega Power Plants and the R-APDRP programs. It is also responsible for rating the different State power utilities on their performance. The major percentage of Power Finance Corporation’s funds are raised through rupee dominated bonds which enjoy the highest credit ratings and are at par with the Indian sovereign ratings. It sometimes borrows funds from banks and other financial institutions as well.
Power Finance Corporation is divided into three wings which are Commercial Division, Projects Division and Finance & Financial Operations Division each headed by a Functional Director. The current Managing Director of Power Finance Corporation is Mr Rajiv Sharma. Power Finance Corporation prides upon itself being a lean organisation and has a total strength of almost 500 employees.