When a person needs money then he goes to a finance company for a loan.
The finance company gives him the required amount with a condition to repay that amount in a predefined period along with some interest.
The interest that a company gets from the customer is the company’s earnings.
This is how a finance company caters to the needs of Indian citizens.
As of the year 2023, there are around 10,000 listed finance companies in India, we have compiled a list of the 10 top finance companies in India in 2023.
Top 10 Best Finance Companies in India – Updated 2023
During 2018- 19 the finance sector grew from Rs. 26.2 lakh crore to Rs. 30.9 lakh crore.
But there are still 10 finance giants that dominate the list.
1. Bajaj Finance Ltd
- Revenue: Rs 22,413 Cr
- Profit: 4,937 Cr
- Market Cap: 249,069Cr.
- ROE: 21.98%
- Sales Growth (3Yrs): 33.55%
- Promoter holding: 56.15%
- Debt to equity: 3.69
- Price to book value: 11.45
This finance company is engaged in the lending business since 2007.
It is the largest NBFC finance company in India when it comes to turnover.
It is a subsidiary of Bajaj FinServ Ltd. It has significant dominance in urban and rural areas in India and it has two 100% subsidiaries:
- Bajaj housing finance ltd.
- Bajaj financial securities ltd.
2. Shriram Transport Finance Company Ltd
- Revenue: Rs 16,127 Cr.
- Profit: 2,793 Cr
- Market Cap: 26,182Cr.
- ROE: 17.37%
- Sales Growth (3Yrs): 14.45%
- Promoter holding: 26.25%
- Debt to equity: 5.51
- Price to book value: 1.64
This finance company empowers small commercial vehicle owners by providing financial assistance in the purchase of vehicles.
This company was founded in 1979.
This company stands strong in the second spot of the largest NBFC companies in India.
This company also invests in health, education, and other projects that are related to the development of our country.
3. Muthoot Finance Ltd
- Revenue: Rs 7,590 Cr
- Profit: 2,385 Cr
- Market Cap: 29,830Cr.
- ROE: 22.41%
- Sales Growth (3Yrs): 12.16%
- Promoter holding: 73.48%
- Debt to equity: 2.68
- Price to book value: 2.81
This finance company was set up in 1939 and has 4,480 + branches all over the country.
The roots of this company have penetrated into India’s large and small towns.
This finance company primarily deals with gold loans.
4. Manappuram Finance Ltd
- Revenue: Rs 4,627 Cr
- Profit: 1,179 Cr
- Market Cap: 14,580Cr.
- ROE: 22.12%
- Sales Growth (3Yrs): 20.23%
- Promoter holding: 35.12%
- Debt to equity: 3.67
- Price to book value: 2.88
This finance company provides a variety of services like gold loans, SME loans, pawnbroking, moneylending, etc.
It was founded in 1949 in the coastal village of Valapad, which is situated in the Thrissur district.
This company started small but now has a huge name in the finance sector.
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5. Sundaram Finance Ltd
- Revenue: Rs 3,654 Cr
- Profit: 1,258 Cr
- Market Cap: 17,864Cr.
- ROE: 15.00%
- Sales Growth (3Yrs): 11.38%
- Promoter holding: 35.95%
- Debt to equity: 4.52
- Price to book value: 3.36
This company was established in 1954 with the assistance of Madras Motor and the general insurance company.
It caters to the needs of a variety of people who need financial assistance in car finance, commercial vehicle finance, and much more.
6. Edelweiss Financial Services Ltd
- Revenue: Rs 10,650 Cr
- Profit: 674 Cr
- Market Cap: 10,454Cr.
- ROE: 13.67%
- Sales Growth (3Yrs): 27.21%
- Promoter holding: 32.91%
- Debt to equity: 5.40
- Price to book value: 1.34
This finance company was founded in 1995, today it has 400+ branches across the country.
It caters to the needs of almost every scale business owner to an average Indian urban and rural household.
7. Mahindra and Mahindra Financial Services Ltd
- Revenue: Rs 11,307 Cr
- Profit:1,482 Cr
- Market Cap: 19,895Cr.
- ROE: 17.30%
- Sales Growth (3Yrs): 16.56%
- Promoter holding: 51.19%
- Debt to equity: 4.97
- Price to book value: 1.78
This finance company was started in the early 90s as a captive financier of Mahindra utility vehicles.
This company caters to the vehicle finance sector which includes tractors, commercial vehicles, construction equipment, etc.
This company also undertakes mutual funds, fixed deposits, and personal loans.
8. L&T Finance Holdings Ltd
- Revenue: Rs 13,873 Cr
- Profit: 1,856 Cr
- Market Cap: 22,996Cr.
- ROE: 17.96%
- Sales Growth (3Yrs): 20.41%
- Promoter holding: 63.86%
- Debt to equity: 6.44
- Price to book value: 1.64
This finance company is a registered systemically important non-deposit-accepting core investment company under the Reserve Bank of India.
This company offers financial assistance to a single person or even a family.
It was established in 1994 and the current CEO of this company is Mr. Dinanath Dubhashi.
9. Aditya Birla Capital Ltd
- Revenue: Rs 16,131 Cr
- Profit: 998 Cr
- Market Cap: 22,022Cr.
- ROE: 9.65%
- Sales Growth (3Yrs): 60.85%
- Promoter holding: 72.70%
- Debt to equity: 5.52
- Price to book value: 2.19
It is a holding company of the Aditya Birla group.
This company has 850+ branches across the country and has more than 2,00,000 agents and several bank partners.
10. Cholamandalam Investment & Finance Company Ltd
- Revenue: Rs 8,000 Cr
- Profit: 1,239 Cr
- Market Cap: 23,601Cr.
- ROE: 21.14%
- Sales Growth (3Yrs): 18.93%
- Promoter holding: 52.94%
- Debt to equity: 8.26
- Price to book value: 3.49
This finance company was founded in 1900 and is owned by the Murugappa group.
It started as an equipment finance company and now provides services like vehicle finance, home loans, SME loans, etc.
This company has 1029 branches across the country.
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Conclusion
Finance companies are the backbone of each and every business in India, their function is not only limited to the catering business but has also expanded to cater to every individual who needs money.
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