NBFC's PRESENTATION

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Presentation Transcript

NON BANKING FINANCIAL COMPANIES : 

NON BANKING FINANCIAL COMPANIES GROUP NO. :-FIVE ATUL MISHRA (CO-OD.) ANKUR VERMA JEETENDRA RAI SHISHIR GUPTA SANGARSH KUMAR ANURAG SONKER

NBFCs : OVERVIEW : 

NBFCs : OVERVIEW 13000+ players registered under RBI : A & B categories Spread all across the country Approx. 570 NBFCs authorized to accept public deposits (Catg. A) Assets worth Rs. 15000 Crore financed annually & growing steadily Asset financing Commercial vehicles Passenger cars Multi-utility & multi-purpose vehicles Two-wheelers & Three-wheelers Construction equipments Consumer durables

WHAT IS NBFC ? : 

WHAT IS NBFC ? THE COMPANY REGISTERED UNDER COMPANIES ACT,1956 REGISTERED UNDER RBI ACT,1934 UNDER SECTION 45-IA PROVIDES BANKING SERVICES WITHOUT MEETING LEGAL DEFENATION OF BANK SUCH AS HOLDING A BANKING LICENSE

Cont…. : 

Engaged in the business of loans and advances, acquisition of shares/stock/bonds/debentures/ securities issued by government or local authority or other securities of like marketable nature, leasing, hire-purchase, insurance business, chit business, but does not include any institution whose principal business is that of agriculture activity, industrial activity, sale/purchase/construction of immovable property. Cont….

HOW NBFC IS DIFFER FROM BANK : 

HOW NBFC IS DIFFER FROM BANK A NBFC can not accept DEMAND DEPOSITS. It is not a part of PAYMENT and SETTLEMENT system that’s why it can not issues cheques to its customers. Deposit insurance facility of DICGC is not available for NBFC depositors.

Does NBFC registered with RBI : 

Does NBFC registered with RBI IN section 45-IA RBI Act,1934 NBFC should be registered with RBI. BUT not for all category of NBFC’s. There are certain category of NBFC which are regulated by other regulators

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As….. Housing finance companies are regulated by NATIONAL HOUSING COMPANIES Venture capital fund ,Stock broking companies are registered with SEBI. Insurance companies holding a valid certificate of registration issued by IRDA. Nidhi companies registered under section 620-A companies Act 1956.

Requirement for registration : 

Requirement for registration A Non Banking financial Company should have minimum net owned fund 2 crore. The company is required to submit it’s application for registration in the prescribed format along with necessary documents for bank consideration.

TYPES OF NBFC’s : 

TYPES OF NBFC’s EQUIOPMENT LEASING COMPANY HIRE-PURCHASE COMPANY LOAN COMPANY INVESTMENT COMPANY

FROM 6,DEC 2006 THE NBFC ARE… : 

FROM 6,DEC 2006 THE NBFC ARE… Investment Company (IC) Loan Company (LC). Asset Finance Company (AFC) 'AFC' is defined as a financial institution whose principal business is that of financing the physical assets which support various productive/economic activities in the country.

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Other names of NBFC’s 1. Non-banking financial institutions 2. Non-depository credit intermediaries 3. Lending companies

CAN ALL NBFC ACCEPT PUBLICDEPOSITS ? : 

CAN ALL NBFC ACCEPT PUBLICDEPOSITS ? NO all nbfc are not accept public deposits SO WHAT ARE THE REQUIREMENTS FOR ACCEPTING ? let us…..

Know….. : 

Know….. Holding a valid certificate of registration with authorization to accept it. Should have minimum stipulated net owned fund. Comply with the directions issued by the bank

IS there any ceiling on acceptance of public deposit? : 

IS there any ceiling on acceptance of public deposit? An NBFC required NOF\CRAR complying with these norms…….. Category of NBFC Ceiling on public deposits AFC maintaining CRAR of 15% with out credit rating LC\IC with CRAR of 15% and having min investment grade credit rating 1.5 times of nof

Rate of interest and period of deposit : 

Rate of interest and period of deposit Max rate of interest a NBFC can offer is 11% The interest may be paid or compounded at rest not shorter than monthly rest Minimum period of time 12 month Maximum period of time 60 month

NBFC REGULATION RELATING TO DEPOSITS : 

NBFC REGULATION RELATING TO DEPOSITS NBFC CANNOT OFFER GIFTS /INCENTIVES TO THE DEPOSITORS. THE REPAYMENT OF DEPOSITS BY NBFC IS NOT GURANTEED BY RBI. THE DEPOSIT WITH NBFC ARE NOT INSURED. NBFC SHOULD HAVE MIN INVESTMENT GRADE CREDIT RATING.

Minimum investment grade rating : 

Minimum investment grade rating CRISIL:FA-(FA MINUS) ICRA:MA-(MA MINUS) CARE:CARE BBB(FD) FITCH RATING INDIA Pvt. Ltd

IN CASE OF NBFC DEFAULTS IN REPAYMENT OF DEPOSIT : 

IN CASE OF NBFC DEFAULTS IN REPAYMENT OF DEPOSIT THE DEPOSITOR CON APPROCH COMPANY LAW BORAD CONSUMER FORUM FILE A CIVIL SUIT

IN RELATION TO NBFC : 

IN RELATION TO NBFC OWNED FUND & NET OWNED FUND

Responsibilities of NBFC accepting Public Deposits : 

Responsibilities of NBFC accepting Public Deposits Statutory annul return of deposits- NBS1. Quarterly return on liquid assets. Half yearly return on prudential norms. A copy of the credit rating obtained once a year along with one of the half yearly return prudential norms.

Role of NBFCs : 

Role of NBFCs As recognized by RBI & Expert Committees / Taskforce Development of sectors like Transport & Infrastructure Substantial employment generation Help & increase wealth creation Broad base economic development Irreplaceable supplement to bank credit in rural segments major thrust on semi-urban, rural areas & first time buyers / users To finance economically weaker sections Huge contribution to the State exchequer

Cholamandalam Financial Services Group : 

Cholamandalam Financial Services Group Retail Finance Capital Markets Insurance Securities Broking, PMS Distribution Advisory Services AMC Mutual Funds NBFC Automobile Finance General Insurance Risk Services

Cholamandalam FSG Today : 

Cholamandalam FSG Today Around Rs.8000 crores of assets under management Live relationships with over 10 lac +stakeholders Over 1500+ employees Over 2+ million transactions per annum Operating in over 150+ locations in India

SREI’s introduction : 

SREI International Finance Ltd. (SREI) was set up in 1989 Major player in infrastructure project financing – Power, Roads and Ports Market leader in financing infrastructure construction equipment by way of Lease 32 offices spread across India Total assets under management over US$ 450 million Shareholders’ Funds of about US$ 50 million Disbursement of more than US$ 265 million during last year Credit rating in ‘AA’ category – signifying high credit quality & high investment grade Recipient of prestigious Willis Harman Spirit of Work Award SREI’s introduction

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THANK YOU