A Study of Financial Performance: A Comparative Analysis of Muthoot Finance Ltd. and Manappuram Finance Ltd.

Abstract

Gold is one of the very important assets among the entire assets class. In India gold also holds sentimental or social values. Since ancient times, it is used as a collateral asset against borrowing the money. Previously gold loan business was mainly controlled by unorganized players. Now days organized gold loan business is one of the emerging lending business segments for Non-Banking Financial Companies (NBFCs) and Banks in India. Organized sector registers record growth in last decade. Recently various regulations have changed by Reserve Bank of India (RBI) and other external factors negatively impacted the business growth and financial performance of this segment. The study is descriptive and analytical in nature. The aim of research work is to analyze and compare the financial performance of selected listed gold loan non banking financial companies in India. Muthoot Finance Ltd. and Manappuram Finance Ltd. were considered as sample and 5 financial years i.e., 2010-2011 to 2014-2015 was considered as period of the study. CAMEL rating model, financial Ratios and mean tools were deployed to fulfill the objectives of the study. Results revealed that Muthoot Finance Ltd. outperformed as compared to Manappuram Finance Ltd.