A Research Paper on Financial Performance Analysis of Bajaj Finance Ltd. And Shriram Finance Ltd.

Abstract

The Non-Banking Financial Company (NBFC) sector plays a significant role in the Indian financial system by enhancing credit accessibility and supporting financial inclusion. This research paper presents a comparative financial performance analysis of two leading NBFCs—Bajaj Finance Limited and Shriram Finance Limited. The study evaluates their performance over a five-year period using key financial indicators such as profitability, liquidity, solvency, and asset quality.The analysis is based on secondary data collected from annual reports and financial statements. Tools such as ratio analysis, trend analysis, and the CAMEL framework are used. The findings reveal that Bajaj Finance demonstrates superior profitability and operational efficiency driven by digital lending and diversified portfolios, while Shriram Finance shows strong resilience in rural and commercial vehicle financing segments. The study provides insights into their comparative strengths and strategic positioning within the NBFC sector.