1SCD Government College Ludhiana, India.
2Institute of Management Technology, Raj Nagar, Ghaziabad, India.
3Punjab School of Management Studies, Punjabi University Patiala, India.
This study has tried to analyze the financial performance of selected Housing Finance companies. The analysis of performance of Housing Finance Companies is made using some widely used indicators of measuring finance companies performance, namely financial ratios. To study and examine the effect of various selected independent variables on profitability of selected Housing finance companies. The independent valuables considered are Interest income, interest expenses, Non interest income, operating and administrative expenses and employee costs. In the analysis Bi-variate correlation analysis has been used to study the correlation between various variables. From the above analysis it can be conluded that as far as the overall profitability of the housing finance companies is concerned it has gone down as depicted by falling trend of return on capital employed. The correlation coefficient matrix reflects some of the interesting results discussed in the paper. The most common thing which is reflected in the analysis of all the companies is the positive correlation of interest income and interest expenditure as percentage of capital employed with return on capital employed. It can be concluded that Housing Finance companies has to spread out geographically while ensuring consistency in the processing and service standards.
