Journal Press India^®

Author Details ( * ) denotes Corresponding author

This paper delves into the unexplored territory of ownership group characteristics and their impact on the profitability of Non-Banking Financial Companies (NBFCs), particularly Housing Finance Companies (HFCs) in India. In a rapidly growing sector marked by increased diversification of ownership, this study investigates the influence of three primary ownership types - government, large business groups, and commercial banks - on HFC profitability using a panel dataset spanning 13 years from 2010 to 2022. The empirical analysis employs fixed-effects regression models using four proxies for HFC profitability: Return on Assets (ROA), Net Interest Margin Ratio (NIM Ratio), Operating Profit Ratio (OPROA), and Return on Equity (ROE). Findings indicate that bank-promoted HFCs tend to exhibit higher profitability, while government-owned and large business group-affiliated HFCs display lower profitability. This research contributes to the limited literature on ownership effects within the context of HFCs and NBFCs, shedding light on the role of ownership groups in shaping their financial performance.

Keywords

Housing Finance Companies (HFCs); Profitability; Governments; Business Groups; Banks; Non-Banking Financial Companies (NBFCs)

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