Abstract
Over the past few years, the NBFC sector in India has witnessed a noteworthy transformation by catering to employment generation, infrastructure development, wealth creation and financial upliftment of the weaker sections. With the growing credit of NBFCs, their profitability becomes an important aspect for their existence. Hence, the current student is aimed at identifying the determinants of profitability of Non-Banking Financial Companies (NBFCs) in India. The data pertaining to top 10 NBFCs listed on BSE for a period of five years from FY2015-16 to FY2019-20 was considered as sample for the study. Two different regression models were used for the data analysis where ROA and ROE were used as dependent variables. Capital adequacy, asset quality, operating profitability and net interest margin were used as independent variables in both the models. It was found that capital adequacy and operating profitability has significant impact on ROA. Whereas the factors significantly impacting ROE were capital adequacy, operating profitability and net interest margin.
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