1. 12/3/2016 NBFC By: Raja Asif Nawaz

2. Non-Banking
Financial Company
(NBFC)
By: Raja Asif Nawaz)
12/3/2016 NBFC By: Raja Asif Nawaz 2

3. CONTENTS
• NBFC- Definition
• Role of NBFC
• Difference Between Banks & NBFC
• Major NBFCs in India
• Aditya Birla Finance Limited(ABFL)
12/3/2016 NBFC By: Raja Asif Nawaz 3

4. A Non-Banking Financial Company (NBFC) is a company registered under
the Companies Act, 1956
• engaged in the business of loans and advances, acquisition of
shares/stocks/bonds/debentures/securities issued by Government or
local authority or other marketable securities of a like nature, leasing,
hire-purchase, insurance business, chit business but does not include
any institution whose principal business is that of agriculture activity,
industrial activity, purchase or sale of any goods (other than securities)
or providing any services and sale/purchase/construction of
immovable property.
• A non-banking institution which is a company and has principal
business of receiving deposits under any scheme or arrangement in
one lump sum or in installments by way of contributions or in any
other manner, is also a non-banking financial company (Residuary non-
banking company).
12/3/2016 NBFC By: Raja Asif Nawaz 4

5. “principal business”
• Financial activity as principal business is when a company’s financial
assets constitute more than 50 per cent of the total assets and
income from financial assets constitute more than 50 per cent of
the gross income.
• A company which fulfils both these criteria will be registered as
NBFC by RBI.
• popularly known as 50-50 test and is applied to determine whether
or not a company is into financial business.
12/3/2016 NBFC By: Raja Asif Nawaz 5

6. Role of NBFC
• Development of sectors like transport & Infrastructure.
• Substantial employment generation.
• Help and increase wealth creation.
• To finance economically weaker sections.
• Broder Base economic Development.
12/3/2016 NBFC By: Raja Asif Nawaz 6

7. Difference between Banks &
NBFCs
• NBFC cannot accept demand deposits;
• NBFCs do not form part of the payment and settlement system and
cannot issue cheques drawn on itself;
• Deposit insurance facility of Deposit Insurance and Credit Guarantee
Corporation is not available to depositors of NBFCs, unlike in case of
banks.
12/3/2016 NBFC By: Raja Asif Nawaz 7

8. 12/3/2016 NBFC By: Raja Asif Nawaz 8

9. Aditya Birla Finance Limited(ABFL)
• Rakesh singh- CEO
• Aditya Birla Fin​ance Lim​ited (AB​FL) is one of India's most re​puted non-
banki​ng fin​​ancial companies ​​(NBFC).
• Incorporate​d in 1991 , th​​e company was certified as ISO 9001:2008
across all​ its core functional processes in March 2013 by BSI, a leading
global independent business services organization.
• They offer c​ustomized solutions in areas of Capital Market, Corporate
Finance, Commercial Real Estate & Mortgages and Infrastructure,
Project & Structured Finance.
12/3/2016 NBFC By: Raja Asif Nawaz 9

10. 1. https://www.rbi.org.in/Scripts/FAQView.aspx?Id=92
2. http://adityabirlafinance.com/about-
us/overview.aspx

11. 12/3/2016 NBFC By: Raja Asif Nawaz 11