Synopsis

A significant study on "A STUDY ON DEBT RECOVERY TECHNICQUS OF

MUTTHOOT FINANCE LTD"

Submitted to

BANGALORE UNIVERSITY

In partial fulfillment of the requirement for the award

Of the degree of

MASTER OF COMMERCE

2018-19

Submitted by

VIJAY.R

Reg. No. 1787COM025

Under the guidance of

Assistant Prof. Kalavathy M.

M.COM , MBA

OM SAI DEGREE COLLEGE

SUNKADAKATTE, BANGALORE-560091
 Synopsis

 Title of the study-

A significant study on – “Debt recovery technique at (NBFC) Non banking financial
Company.”

 Statement of the Problem.

Some of the most common problems with money recovery start from the very inception of
the agreement with things like certainty of terms of the agreement, financial background
of the parties entering into it, etc. Some of these, the more important and crucial so that the
reader can understand and timely avoid these pitfalls.

 Objectives of the Study.

 To study the debt recovery techniques in banking sector and to indicate debts recovery
in banking sector.
 To study recommendation and improvement of debt recovery in the banking sector
 To find out how the computer aids the commission detection and prevention of
financial fraud.
 To study the effects of bad and doubtful debts in banks profitability, investors, the
public and the economy.

 Scope of theStudy.

The scope of the study is limited to Muthoot finance pvt ltd (check and wright the
comny name properly)

 Methodology.

The study is based on primary collection of data for the purpose of data analysis.
 REVIEW OF LITERATUR

Rao C.V., (1983) in his report "Deposits of Non-Banking Companies", observed that the surveys
of deposits with non-banking companies conducted by the Department of financial companies has
revealed that the increasing trend in the growth of deposits has continued. Total deposits with
companies increased by Rs.1,304 crores to 5492 crores during the year ended March 1982.'

Mithani D.M., (1985) in his book "A Treatise on Money Banking and Theory of Income",
revealed that NBFIs is a heterogeneous category of financial institutions. NBFIs are spread over
the entire range of financial markets supplying short, medium and long term credit. NBFIs
operations and saving mobilization processes are largely governed by the structure of the rate of
interest and they have to pay higher and higher interest to attract more funds. People invest their
savings with NBFIs with economic motive of earning extra incomes. Lending operations of the
NBFIs involve relatively a longer time period, since they are based on income turnover.

Sundharam K.P.M., (1988) in his book, "Money Banking and International Trade" has described
the functions of benefit funds. The nidhis, also called mutual benefit funds, are found specially in
Tamil Nadu. Benefit funds are registered under the Indian Companies Act with only nominal
shares. They receive deposits from members and lend only to members against tangible security
like house property, gold and jewelry. The loans are made for marriages, redemption of old debt,
for the construction and repairs of houses. Generally, the borrowers open a recurring deposit
account earmark for his specific loan at the end of the period, the loan is automatically
discharged and the borrowers get back his mortgaged property. Benefit funds have limited
resources and their inability to meet the full requirements of their members.

Madaiah Suguna M. and Girish (1989) in their book "Financial Intermediaries Economic
Development and Monetary Policy" revealed that the nature of the business of the mutual benefit
funds has been determined by the social customs and needs of the members. Their business is
mainly confined to cities or town in which they incorporated. The growth of these institutions has
also facilitated the mobilization and canalisation of savings in the economy. They have been aiding
the institutionalisation of saving and investment in the economy .

Rajasekaran (1991) in his study "Role of Nidhis towards Socio-Economic Aspects of the People"
observes that the Benefit Fund increase with the number of shareholders. It was mainly due to the
increase in reserves and surplus, as a result to increase the returned earnings of the companies. He
revealed that the exorbitant rate of interest, credit needs, function nature of loans, mode of
repayment and different types of deposits .