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A STUDY ON NBFC IN TATA CAPITAL FINANCIAL SERVICE

LTD

PROJECT REPORT

Submitted By

ASWATHYAS

( Reg No: MZC18MBA10)

Under the guidance of

JAINY RAJAN

(Assistant Professor, Mount Zion School of Business Management)

in partial fulfilment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION
of
A P J Abdul Kalam Technological University, Trivandrum

MOUNT ZION SCHOOL OF BUSINESS MANAGEMENT

2018-2020
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LIST OF TABLE

Table no Title of the table Page no

1 introduction 1
2 Company profile 2-3
3 Mission and values 3
4 Product and service 4
5 Theoretical 5-6
framework

6 conclusion 7
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INTRODUCTION

A Non Banking Financial Company (NBFC) is a company registered under the
Companies Act, 2013 of India, engaged in the business of loans and advances, acquisition of
shares, stock, bonds, hire-purchase insurance business or chit-fund business, but does not include
any institution whose principal business is that of agriculture, industrial activity, purchase or sale
of any goods (other than securities) or providing any services and sale/purchase/construction of
immovable property.
The working and operations of NBFCs are regulated by the Reserve Bank of India (RBI)
within the framework of the Reserve Bank of India Act, 1934 (Chapter III-B) and the directions
issued by it. On November 9, 2017, Reserve Bank of India (RBI) issued a notification outlining
norms for outsourcing of functions/services by Non-Bank Financial Institution (NBFCs) As per
the new norms, NBFCs cannot outsource core management functions like internal audit,
management of investment portfolio, strategic and compliance functions for know your customer
(KYC) norms and sanction of loans. Staff of service providers should have access to customer
information only up to an extent which is required to perform the outsourced function. Boards of
NBFCs should approve a code of conduct for direct sales and recovery agents. For debt
collection, NBFCs and their outsourced agents should not resort to intimidation or harassment of
any kind. All NBFCs’ have been directed to set up a grievance redressal machinery, which will
also deal with the issues relating to services provided by the outsourced agency.
Non-Banking Financial Companies (NBFC) are establishments that provide financial
services and banking facilities without meeting the legal definition of a Bank. They are covered
under the Banking regulations laid down by the Reserve Bank of India and provide banking
services like loans, credit facilities, TFCs, retirement planning, investing and stocking in money
market. However they are restricted from taking any form of deposits from the general public.
These organizations play a crucial role in the economy, offering their services in urban as well as
rural areas, mostly granting loans allowing for growth of new ventures.
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2.1 COMPANY PROFILE

Tata Capital Financial Services Limited is top of India’s leading NBFCs. Established
in 2007, it is a subsidiary of Tata Sons Limited. TCFS describes itseld as a one-stop financial
service provider that caters to the diverse needs of retail, corporate and institutional customers
across businesses. It is registered with RBI as ‘Systemically Important Non-Deposit Accepting
Non-Banking Financial Company (NBFC)’. Among the various products offered by TCFS to
individuals, families and businesses, are commercial finance, infrastructure finance, wealth
management, consumer loans and distribution and marketing of Tata Cards.

Tata Capital Limited is a financial and investment service provider in India. It is based in
Mumbai and has more than 100 branches across the country. The company offers consumer
loans, wealth management, commercial finance, and infrastructure finance, among others. 

Financial services are the economic services provided by the finance industry, which

encompasses a broad range of businesses that manage money, including credit
unions, banks, credit-card companies, insurancecompanies, accountancy companies, consumer-
finance companies, stock brokerages, investment funds, individual managers and
some government-sponsored enterprises.[1] Financial services companies are present in all
economically developed geographic locations and tend to cluster in local, national, regional and
international financial centers such as London, New York City, and Tokyo.
Awards

1. In 2017, the Salaam Loan initiative won Gold in the category of ‘Digital – Social
Purpose’ and Bronze in the category of ‘Public Relations – Financial Services’ at the
Spikes Asia Awards

2. In 2016, Tata Capital became the first Indian company to receive the Global EthicMark
Award for Best Advertising Campaign in the ‘For Profit’ category for its Do Right
initiative[13]
3. In 2015, the company won Gallup Great Workplace Award
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4. In 2014, Tata Capital’s online campaign, ‘Half Stories—The Journey of Doing Right’
received the Award of Excellence (Gold) in the category of Integrated Campaign – Social
Responsibility at the 20th Annual Communicator Awards and ‘Grand Prix’ at the ABBY
Awards[14]
5. In 2013, Tata Capital was credited for its Human Resource (HR) Excellence at the CII
National HR Excellence Award Confluence[15]

2.2 Mission, vision and values

Mission: We will only do what’s right for all our stakeholders ,including our employees
Vision: The most admired financial solution

Values.

Integrity: We must conduct our business fairly, with honesty and transparency. Everything we
do must stand the test of public scrutiny.
Understanding: We must be caring, show respect, compassion and humanity for our colleagues
and customers around the world, and always work for the benefit of the communities we serve.
Excellence: We must constantly strive to achieve the highest possible standards in our day-to-
day work and in the quality of the goods and services we provide.
Unity: We must work cohesively with our colleagues across the group and with our customers
and partners around the world, building strong relationships based on tolerance, understanding
and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries, communities and
environments in which we work, always ensuring that what comes from the people goes back to
the people many times over
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2.3.Products and services

product and Products are structured for both long and short tenure with exit options at
intervals for both parties. We provide tailor made solutions to meet your requirements, while
mitigating credit and price risk. Flexible payment options.

Products.
 Home loans
 Personal loan
 Wealth management

Personal loan

Tata Capital Personal Loans to cover your immediate financial requirements. We provide
Personal Loans for a variety of reasons including marriage, education, home renovation, travel or
even medical needs. With interest rates starting at 10.99 % and tenure up to 72 months, you can
find all your desires within reach.  You can get up to ₹ 25 lakhs of Personal Loan just by either
talking to our representatives, visiting a nearby branch or through the online application. We
have made the process of obtaining a Personal Loan simple and flexible for you to get quick
access to money when you’re in need.

Home Loans.

Tata Capital's Home Loan is the ideal solution to all your home loan requirements. Our
Home Loans are quick and easy and are available at an attractive interest rate of 9.25% with a
tenure up to 30 years. Whether it’s for home purchase, construction or balance transfer, leverage
our experience to work for your home loan needs. We have designed tools and calculators to
ensure you have a seamless home buying experience. Owning a home is one of the biggest
milestones in life. We at Tata Capital believe in making this possible for everyone through our
tailored Home Loans..
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2.4 Non Banking Financial Companies

A Non-Banking Financial Company (NBFC) can be defined as a company listed under
Companies Act of 1956 and is responsible for giving loans and advances, acquiring stocks/debts
etc. issued by governing authorities, leasing, chit funding etc. However, they are nowhere
associated with businesses involved in agricultural, industrial or sale/purchase of goods and
property.

Types of NBFCs
1. Loan Company (LC)
LCs are responsible for providing advances and loans for business or other purposes.

2. Asset Finance Company (AFC)

AFC is responsible for extending finances for physical assets such as automobiles, earth
movers etc.

3. Investment Company (IC)

ICs are responsible for acquiring securities like equity, debts, shares etc.

4. Infrastructure Finance Company (IFC)

IFC need to fulfil a long list of criteria, some of them including:

A minimum of 75% of total assets involved in infrastructure loans.

75% of CRAR

Net fund of at least ₹ 300 crores.

Credit rating of ‘A’.

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5. Mortgage Guarantee Company (MGC)

MGCs are those relying on 90% of the income earned from mortgage guarantee and has a
net fund ₹100 crores.

6. NBFC- Non-Operative Financial Holding Company (NBFC-NOFHC)

NBFC-NOFHC is a newly formed bank by promoters holding the bank and financial
services and is regulated by RBI.

There are more such NBFCs functioning successfully in the Indian Banking and Financial
Services market today. Each one has an individual role to play and caters to unique needs of
their customers.
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2.5 CONCLUSION

A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a

financial institution that does not have a full banking license or is not supervised by a national or
international banking regulatory agency. NBFI facilitate bank-related financial services, such as
investment, risk pooling, contractual savings, and market brokering. Examples of these include
insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending,
currency exchanges, and microloan organizations. Alan Greenspan has identified the role of
NBFIs in strengthening an economy, as they provide "multiple alternatives to transform an
economy's savings into capital investment which act as backup facilities should the primary form
of intermediation fail.

Operations of non-bank financial institutions are often still covered under a country's
banking regulations.