A STUDY ON THE LOAN PORTFOLIO ANALYSIS OF NONBANKING FINANCIAL COMPANIES (NBFCs) WITH SPECIAL REFERENCE TO KB FINANCE


Aswin Kumar.B, Dr. Anitha
Department of Management Studies, Saveetha Engineering College, Chennai
Abstract
The Non-Banking Financial Company (NBFC) sector plays a vital role in the financial system by providing credit to individuals and businesses that are underserved by traditional banking institutions. The performance and sustainability of NBFCs largely depend on the quality and management of their loan portfolio. This study focuses on the loan portfolio analysis of KB Finance, examining its growth, composition, and impact on overall financial performance. The study adopts a descriptive and analytical research design using both primary and secondary data. Primary data were collected from 50 respondents through a structured questionnaire to assess customer perception regarding loan services. Secondary data were obtained from financial statements and income records over a six-year period. The financial analysis indicates a steady increase in total income from ₹20,00,000 to ₹30,20,000, supported by effective loan disbursement and portfolio expansion. The study also highlights diversification in income sources, including rental income, which contributes to financial stability. Statistical tools such as percentage analysis, mean score, ANOVA, and Chi-square tests were used to evaluate customer satisfaction and its relationship with loan portfolio performance. The findings reveal that efficient loan processing, transparent policies, and strong customer relationships contribute significantly to the quality of the loan portfolio. The Chi-square test confirms a significant relationship between customer satisfaction and portfolio growth, while ANOVA results indicate uniform satisfaction across different respondent groups. The study concludes that effective loan portfolio management, supported by digital transformation and customer-centric strategies, plays a crucial role in enhancing the financial performance and sustainability of NBFCs.
Keywords: NBFC, Loan Portfolio, Credit Management, Financial Performance, Customer Satisfaction, KB Finance
Journal Name :
EPRA International Journal of Environmental Economics, Commerce and Educational Management

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Published on : 2026-03-30

Vol : 13
Issue : 3
Month : March
Year : 2026
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