Presentation on Mahindra & Mahindra Finance

Presentation on Mahindra & Mahindra Finance

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  Mahindra & MahindraFinance Project on Market Research Submitted by : Janki Parihar Presented By: Janki Parihar
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  Demonetization?  Officially stopusing 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
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  Literature review  Thegreat 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.
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  Sector  financial sectorreforms 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
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  Conti..  Financial sectorreforms 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
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  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).
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  Conti..  2015 -2016the 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 %
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  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
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  Conti..  Mahindra Financewas 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”
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  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)
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  Conti.. Housing Finance New House HouseRenovation & improvements Personal Loan Wedding Children education Medical Treatment Working Capital Insurance Broking Retail Customers Corporates
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  Market Research onDemonetization 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
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  Conti.. 49% 5% 4% 17% 25% Lower rates Better Service LowerDown 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
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  Conti..  Increase incredit 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
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  PROBLEMS FACED BYMAHINDRA 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
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  Suggestion  They canopen account of their customer and teach them about online transaction  They can increase credit period and attract more customers http://www.ibef.org/