Presentation on Mahindra & Mahindra Finance
- 1. Mahindra & Mahindra Finance Project on Market Research Submitted by : Janki Parihar Presented By: Janki Parihar
- 2. Demonetization? Officially stop using particular coins or notes or a particular currency 1946- Rs. 10,000 note were demonetized 1978- Rs. 1000, 5000, 10000 note were demonetized Sweden is now totally cashless country Circulation amounted to Rs 16.42 lakh crore 500 note accounted for – 47.8% 1000 notes accounted fro - 38.6% Advantages : Help unaccounted cash It will reduce corruption Will reduce inflation Boost the economy
- 3. Literature review The great economist, novel prize winner, Professor of Harvard University, Dr. Amartya Sen refers the demonetization as “Despotic act”. The ex governor of RBI Mr. Raghuram Ranjan emphasized on tracking the data and tax administration rather than stripping the currency. Paul Krugman – Nobel Price winning ,Economist -2008 “India’s decision to drain out high-value banknotes from the economy, and the move might only force the corrupt to become more careful in the future” Mr. Arvind Panigrahyi, the Vice Chairperson of Niti (National institution of transforming India ) Ayog supports the step by saying it would help the economic growth of India in long term perspective.
- 4. Sector financial sector reforms can be categorized in two phases. 1.economic reforms that started in 1985 focused on increasing productivity, new technology import and effective use of human resources. These efforts were in line with the changes in international markets, organizations and production areas 2. 1991-92 the government aimed at reducing fiscal deficit by opening the economy to foreign investments The financial sector contributes 6 % of the India’s GDP
- 5. Conti.. Financial sector reforms during this period focused on modification of the policy framework, Improvement in financial health of the entities Creation of a competitive environment These reforms targeted three interrelated issues viz Strengthening the foundations of the banking system
- 6. Conti.. Streamlining procedures, upgrading technology and human resource development; and Structural changes in the system. Market Size Total outstanding credit by scheduled commercial banks of India stood at Rs 72,606.11 billion (US$ 1.08 trillion). The Association of Mutual Funds in India (AMFI) data show that assets of the mutual fund industry have reached a size of Rs14.21 trillion (US$ 210 billion).
- 7. Conti.. 2015 -2016 the life insurance industry recorded a new premium income of Rs 1.38 trillion (US$ 20.54 billion) Indicating a growth rate of 22.5 per cent over the previous year India is today one of the most vibrant global economies, on the back of robust banking and insurance sectors The country is projected to become the fifth largest banking sector globally by 2020 Life Insurance Council, the industry body of life insurers in the country projects a CAGR of 12–15 %
- 8. About Mahindra Finance Mahindra & Mahindra Financial Services Limited is subsidiary of the Indian conglomerate Mahindra & Mahindra It is a leading Non-Banking financial company (NBFC) They provide a range of retail products and services Such as financing utility vehicles for commercial use and personal use Like tractors, SME loans and many other financial products They also provide Mutual Fund Distribution Fixed Deposit Schemes and personal loans
- 9. Conti.. Mahindra Finance was incorporated on January 1, 1991 Maxi Motors Financial Services Limited the name was changed on 3, 1992 It commenced its journey in the rural non-banking finance industry Market Cap: 153.95 It is ranked 68th among 791 employers surveyed in India and ranked 5th in Financial Services Sector in India Vision: Top line: 5853.16 “To be a leading financial services provider in semi urban and rural area”
- 10. Product Portfolio Vehicle Financing Auto & utility Vehicles Tractors Cars Commercial Vehicles Construction Equipment Pre- Owned Vehicle Financing Cars Multi-Utility Vehicles Tractor Commercials Vehicles SME Financing Project Finance(financing of long-term infrastructure) Equipment Finance(is a common tool ,it can help improve cash flow and also improve working capital) Working Capital Finance(is a measure of both a company's efficiency and its short-term financial health)
- 11. Conti.. Housing Finance New House House Renovation & improvements Personal Loan Wedding Children education Medical Treatment Working Capital Insurance Broking Retail Customers Corporates
- 12. Market Research on Demonetization 32% 8% 42% 5% 13% Payment problems Problems in exchanging old currency Money Crises Problems in Loan payments Less business Problem due to demonetization 45% 16% 25% 14% Farmers Service Business Others No. Of respondents covered
- 13. Conti.. 49% 5% 4% 17% 25% Lower rates Better Service Lower Down payments Satisfied Others Expectation from Mahindra Finance 13% 29% 22% 16% 20% No changes Upto 20% change Upto 40% change Above 40% Unaware Effect on vehicle Industry
- 14. Conti.. Increase in credit period Aware about extra charges while using net banking 24% 48% 14% 3% 11% No Changes 15 days 1 Month 1 Month & more Unaware 67% 33% Aware Not Aware
- 15. PROBLEMS FACED BY MAHINDRA FINANCE Failure in repayments of loan installments by their customers Decrease in customers due to fall of market Decrease in share price by 18% after demonetization No new loans taken by existing customers because their savings in the form of cash was affected
- 16. Suggestion They can open account of their customer and teach them about online transaction They can increase credit period and attract more customers http://www.ibef.org/