Industry Profile: India has a diversified financial sector undergoing rapid expansion 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. In addition, 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 the Credit Guarantee Fund Scheme for Micro and Small Enterprises, issuing banks’ collateral requirements guidelines, 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.
They were driven by strong participation from retail investors and awareness by the Securities and Exchange Board of India (SEBI). Equity mutual funds are driven by strong participation from retail investors and result of attention by the Securities and Exchange Board of India (SEBI). Equity mutual funds witnessed large inflows kept in the 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: the company is a financial services company operating in rural and urban areas. The Rural Business segment offers farm equipment, microfinance, and two-wheeler finance services. The Housing Business segment provides loans against property and real estate finance. The Wholesale Business segment offers infrastructure finance, structured corporate loans, and supply chain finance. The Defocused Business segment provides commercial vehicle finance, construction equipment finance, SME term loans, and leases. The company was founded in 1994 and is headquartered in Mumbai, India. The company has established its presence in 21 states in India. The company has five subsidiaries, namely L&T Finance Ltd, L&T Infrastructure Finance Company Ltd, L&T Investment Management Ltd, L&T Mutual Fund Trustee Ltd, and India Infrastructure Developers Ltd. They have four business groups: the Infrastructure Finance Group, the Retail Finance Group, the Corporate Finance Group, and the Investment Management Group.
Shareholding pattern: BSE Data
Financials and Ratios : [table id=131 /]
Future prospectus: The company was not growing for a long time, fighting. For some time after IPO, The stock was not increasing, and neither showed any growth. The company worked on it. They sold the general insurance business to HDFC, and it’s all good. Still today, the company holds Mutual Fund, Housing Finance, and Infrastructure Finance. It is a holding company, so the profile of L&T Finance, Aditya Birla Capital Bajaj Finserv is very similar. NBFCs are growing fast as PSU banks are having problems. Having a parent like L&T, it’s straightforward to say that they will be successful.
