International Journal of Applied Research
Vol. 2, Issue 4, Part B (2016)
Impact of internal factors on profitability of selected listed gold loan companies in India
Ketan Mulchandani, Kalyani Mulchandani
Gold is very important asset in India due to variety of reasons such as; emotional value attached to it, auspicious importance, higher liquidity, easy to store, long term value stored in it and investment etc. Gold also serves as collateral asset. Gold loan business is very old in Indian. Now days organized gold loan companies are increasing their footprints in this lending business due to various reasons such as; higher return on investment, lower amount of exposure due to retail lending segment, soaring gold prices, lower default rates etc. The present study aims to analyze the impact of internal factors on profitability of gold loan financial companies. 5 years considered as study period i.e., 2010-2011 to 2014-2015. Two listed gold loan non-banking financial companies were considered as study sample i.e., Muthoot Finance Ltd. and Manappuram Finance Ltd. Multiple Regression and correlation statistical tools were deployed to analyze the data. Two measure of profitability i.e., Return on Assets (ROA) and Return on Equity (ROE) considered as dependent variable. Asset Quality, Capital, Management Efficiency, Operational Efficiency and Size were considered as independent variable. Results revealed that Asset Quality, Capital Management Efficiency and Operational Efficiency had negative impact on ROA and ROE. Size had positive impact on ROE and negative impact on ROA.
How to cite this article:
Ketan Mulchandani, Kalyani Mulchandani. Impact of internal factors on profitability of selected listed gold loan companies in India. Int J Appl Res 2016;2(4):85-91.