A Study on Profitability and Financial Soundness of Selected Non-Banking Financial Companies in India using Altman Model
- Vidhi Monani, Student, Faculty of Management, GLS University, Ahmedabad
- Dr. Yasmeen Pathan, Assistant Professor, Faculty of Management, GLS University, Ahmedabad
Abstract:
Because of the strict procedure and documentations of banks in today’s era trend of taking loans form NBFCs is increasing. Government’s vision of 5 trillion economy cannot be fulfilled without the NBFCs. So, it is important to study about profitability and financial soundness of NBFC in current situation. In this research profitability is obtained by ROA and ROE. Financial soundness is measured by Altman Z score. Here, sample of 10 companies are taken from the march 2010 to 2019 and it was found that conditions of all the NBFCs are good in the year 2018 & 2019 due to favourable government policies.
Keywords:
Profitability, Financial Soundness, NBFC, ALTMAN Model