Industry Profile: India has a diversified financial sector undergoing rapid expansion, both in terms of strong growth of existing financial services firms and new entities entering the market. The sector comprises commercial banks, insurance companies, non-banking financial companies, co-operatives, pension funds, mutual funds, and other smaller financial entities. The banking regulator has allowed new entities such as payments banks to be created recently thereby adding to the types of entities operating in the sector. However, the financial sector in India is predominantly a banking sector with commercial banks accounting for more than 64 percent of the total assets held by the financial system. The Government and Reserve Bank of India (RBI) have taken various measures to facilitate easy access to finance for Micro, Small, and Medium Enterprises (MSMEs). These measures include launching Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing guidelines to banks regarding collateral requirements and setting up a Micro Units Development and Refinance Agency (MUDRA). With a combined push by both government and private sector, India is undoubtedly one of the world’s most vibrant capital markets.
Driven by strong participation from retail investors and creation of awareness by the Securities and Exchange Board of India (SEBI), equity mutual funds driven by strong participation from retail investors and creation of awareness by Securities and Exchange Board of India (SEBI), equity mutual funds witnessing large inflows which were kept in banking system before 2017. The revenues of the brokerage industry in India are estimated to grow by 15-20 percent to reach Rs 18,000-19,000 crore (US$ 2.80-2.96 billion) in FY2017-18, backed by healthy volumes and a rise in the share of the cash segment.
The Indian life insurance industry has begun to recover and is likely to report 12-15 percent growth in FY 2016-17.
In 2016, 2.4 million new Demat accounts were opened by Indians, the highest number of account openings since 2008, led by a higher number of initial public offerings (IPOs) and greater interest in mutual fund investments. SBI, the second-largest issuer of credit cards in India, has reported the issuance of 115,000 new cards in December 2016, post demonetization, taking its total card issuance to 4.75 million.
Company Profile: Incorporated in 1978 as the financial services arm of the Murugappa Group, Cholamandalam Investment, and Finance company is a diversified financial services company. It Provides provides vehicle finance, home loans and corporate mortgage loans, small and medium enterprises (SME) loans, investment advisory services, stockbroking, and a range of other financial services. The Company focuses on vehicle finance, corporate finance, home equity loans, and the distribution of financial products. The Company operates from over 530 branches across India. The Company also offers Rural and Agri Loans, which include loans for the purchase of tractors and farming equipment; wealth management, which includes mutual funds, fixed deposits and bonds, life and general insurance, and home loan, and securities, which include stock and derivatives, Internet broking, De-mat services, exchange-traded funds, and bonds. Its subsidiaries include Cholamandalam Securities Limited, Cholamandalam Distribution Services Limited, and White Data Systems India Private Limited.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=189 /]
Future Prospectus: While writing this the situation of NBFCs is not looking good. Large commercial papers and other types of debt is needed to pay in very small time. What other things are there is all interensting to see.
