Pradip Kumar Dey / FE Research Bureau

The total income of 34 major non-banking finance companies (NBFCs) increased by 8.1 per cent to Rs 7,496 crore during 2000-01 from the level of Rs 6,931 crore during 1999-00.

Interest, hire purchase, lease income, dividend and bill discounting have provided 77.5 per cent of the total income. Among the above sources, interest income was the single largest source of income with 45.43 per cent of the total income. Hire purchase income was the second largest source of income, accounting for another 15.69 per cent.

The share of lease income in the total income amounted to 12.51 per cent , while dividend income, the other big source, contributed 3.31 per cent. The remaining bill discounting contributed 0.55 per cent in total income during 00-01.

Of the companies under study, the top 10 in respect of interest income as a percentage of total income in 2000-01 are GIC Housing Finance (95.78 per cent), Dewan Housing Finance (92.04 per cent), LIC Housing Finance (91.74 per cent), Gruh Finance (82.46 per cent), Ashok Leyland Finance (79.41 per cent), Reliance Capital (72.03 per cent), HDFC(68.26 per cent), Walchand Capital (29.43 per cent), Tata Finance (22.31 per cent) and Kotak Mahindra (18.26 per cent).
Thirteen NBFCs showed an increase in the share of interest income to total income in 2000-01 against the previous year’s figures.

The total interest income of the 34 NBFCs increased by 13.0 per cent to Rs 3,405 crore in 2000-01 from the the level of Rs 3, 013 crore in 1999-00. So the share has increased from 43.47 per cent in 1999-00 to 45.43 per cent in 2000-01.

Hire purchase, which were the second largest source of income, total led Rs 1,176 crore or 15.69 per cent of total income. Income generated from hire purchase increased by Rs 119 crore from Rs 1,057 crore in 1999-00 to Rs 1,176 crore in 2000-01, pushing their share in total income from 15.26 per cent to 15.69 per cent.

Top 5 NBFCs in terms of share of hire purchase income to total income are First Leasing (92.49 per cent), Kinetic Finance (87.77 per cent), Kinetic Finecap (82.30 per cent), Bajaj Auto Finance (69.71 per cent) and Shriram Transport Fin (64.68 per cent).

Income collected through lease declined by Rs 93 crore from Rs 1,031 crore in 1999-00 to Rs 938 crore in 2000-01, lowering their share in the total income from 14.88 per cent to 12.51 per cent. In this case the top five NBFCs in terms of share of lease income to total income in 2000-01 are Guj Leasing Finance (67.49 per cent), L&T Finance (66.15 per cent), Harita Finance (62.85 per cent), Srei International Fin (58.18 per cent) and Nicco Uco Alliance (50.67 per cent). The other source of income was dividend, which provided Rs 248 crore in 2000-01 from the level of Rs 241 crore in 1999-00.

The share of dividend income in total income declined from 3.48 per cent in 1999-00 to 3.31 per cent in 2000-01.