Comparative Financial Performance Evaluation of The ‎Selected Lease Financing Companies in India

  • Authors

    • P. Senthil Kumar Ph. D Research Scholar (Part-Time) PG and Research Department of Commerce, Thiruvalluvar Government Arts College, ‎Rasipuram, Namakkal District 637401. Tamilnadu
    • Dr. B. Rajendran Associate Professor, PG and Research Department of Commerce, Thiruvalluvar Government Arts College, Rasipuram, ‎Namakkal District 637401 Tamil Nadu
    https://doi.org/10.14419/61xnrh96

    Received date: July 21, 2025

    Accepted date: September 25, 2025

    Published date: October 15, 2025

  • Lease Financing; Liquidity; Performance Evaluation; Profitability

  • Abstract

    Lease financing is a typical form of financial assistance provided to borrowers. In this case, the loan is not provided to the borrowers. However, if they purchase fixed assets, the cost of such assets is paid by the lease financing companies to the vendors directly. The borrowers must repay the cost of assets in installments along with interest payable. Many lease financing companies are functioning in India. It is to be noted that since these companies are involved in providing financial assistance, their financial performance is to be evaluated frequently to understand the financial position of these companies. This study has been undertaken to evaluate the comparative financial performance of the selected lease financing companies in India. This study has delved into the comparative financial performance of Cholamandalam Finance Limited, Poonawalla Fincorp Limited, and Bajaj Finance Limited. These companies have been selected under a simple random sampling method among the lease financing companies in India. The study covers a period of 10 financial years, starting from 2014-15 to 2023-24. The secondary data collected from the annual reports of the selected companies have been analyzed using mean, standard deviation, coefficient of variation, compounded annual growth rate, and coefficient of correlation. The results revealed that the performance of Cholamandalam Finance was better with reference to profitability, while the liquidity performance of Poonawalla Fincorp Limited was better than the other companies.

  • References

    1. Balakrishnan, V., Kothandapani, G., Krithika, M.A (2017). Study on profitability ratio analysis of the Sundaram Finance Ltd in Chennai. Interna-tional Journal of Innovative Science and Research Technology, 2(5), 135–137.
    2. Brindadevi, V.A (2013). Study on Profitability Analysis of Private Sector Banks in India. IOSR Journal of Business and Management, 13(4), 45–50. https://doi.org/10.9790/487X-1344550.
    3. Dhanasekar, D., Natarajan, B., Soundarya, S., Rajarajeswari, S., & Kavyashree, K. (2025). Analyzing valuation dynamics in non-banking financial companies: A Tobin’s Q approach. International Journal of Research in Finance and Management, 8(2), 151–156. https://doi.org/10.33545/26175754.2025.v8.i2b.540.
    4. Feng, Y., Cao, Y., & Ni, J. (2024). Does Fintech affect shadow banking of non-financial firms? Evidence from the entrusted loans. International Review of Financial Analysis, 94, 103268–103268. https://doi.org/10.1016/j.irfa.2024.103268.
    5. Geetha N. (2016). Performance of Non-Banking Financial Institutions in India. International Journal of Advanced Research in Innovative Ideas and Engineering. 1(3):288–91.
    6. Gupta, D.S, Kushwaha, V.S. (2020). A Study on Performance Analysis of Gold Loan NBFCs based on CAMEL Model. Unnayan, 12, 127–45.
    7. Hena, N. (2015). Profitability Analysis and Financial Evaluation of Select Leasing Company in India. African Journal of Basic & Applied Sciences. 7(3):147–52.
    8. Mulchandani, K., & Mulchandani, K. (2016). Impact of internal factors on profitability of selected listed gold loan companies in India. Internation-al Journal of Applied Research, 2(4):85–91.
    9. Niharika, & Devi, L. (2025). Financial Performance and Dividend Strategies: A Study of Leading Non-Banking Financial Companies. Cuestiones de Fisioterapia, 54(3). https://doi.org/10.48047/CU/54/03/505-514.
    10. Shital, S., & Yash, P.A. (2023). Study on the Non-Banking Financial Companies (NBFCs) in India. International Journal of Research Publication and Reviews, 4(6), 15–9. https://doi.org/10.55248/gengpi.4.623.44522.
    11. Sudhir, P.R., & Patnaik, D. (2022). Assessment of Volatility Spill-over in Non-Banking Financial Companies in India. Journal of Applied Manage-ment, 14(2):15–23.
    12. Swetha, C., Karuna, M. (2024). An Empirical Study on Comparative Financial Evaluation between Mannapuram Finance Limited and Muthoot Fi-nance Limited, Bangalore. RVIM Journal of Management Research. 10(2):30–41.

  • Downloads

  • How to Cite

    Kumar, P. S. ., & Rajendran, D. B. . . (2025). Comparative Financial Performance Evaluation of The ‎Selected Lease Financing Companies in India. International Journal of Accounting and Economics Studies, 12(6), 587-594. https://doi.org/10.14419/61xnrh96