• Srishti Khanchandani
• Dr. Manu K S

The non-banking financial companies of India are devoted to the mobilizing of financial assets in the Indian economy. It holds these assets, invest them as leverage to create more wealth. In order to show that these financial companies are reliable the information about the risk in this industry and how it is mitigated are important to consider. Amongst the financial risk’s, liquidity risk, operational risk and credit risk of non-banking financial companies are most important to consider. The study considers 8 non-banking financial companies listed on NSE among the top NBFCs in India. The variables used in this study are ROI, Current Ratio (CR), Quick Ratio (QR), Operating Profit Ratio (OPR), Interest Coverage Ratio (ICR), Fixed Charges Coverage Ratio (FCCR), Debt-equity Ratio (DER) and Asset turnover Ratio (ATR). The data collection was based on secondary data and the period of the study is 2008-2018.The results clearly indicate that Financial Charges Coverage Ratio (FCCR) has a negative impact on Return on Investment of Non-Banking Financial Companies. Further, the results found that Interest Coverage Ratio (ICR) and Asset Turnover Ratio (ATR) has positive impact on Return on Investment (ROI) of Non- Banking Financial Companies. Overall the study found that there is no impact of Current Ratio (CR), Debt- Equity Ratio (DER), Operating Profit Ratio (OPR) and Quick Ratio (QR) on Return on Investment (ROI) of Non- Banking Financial Companies. The understanding of the relationship between liquidity, operational and credit risk and the returns of a non-banking financial company will help investors, fund managers, securities traders,etc. make a sound and informed decision about investments in the non-banking financial sector.

Non-Banking industry, Financial risk, Liquidity Risk and Credit Risk

"RISK MANAGEMENT OF NON-BANKING FINANCIAL COMPANIES: A CASE OF INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 6, page no.61-67, June-2019, Available :http://www.jetir.org/papers/JETIRCK06008.pdf

"RISK MANAGEMENT OF NON-BANKING FINANCIAL COMPANIES: A CASE OF INDIA", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 6, page no. pp61-67, June-2019, Available at : http://www.jetir.org/papers/JETIRCK06008.pdf