SUMER PROJECT REPORT

“STUDY OF WORKING PROCESS AND INVESTMENT OPTIONS

PROVIDED BY BAJAJ FINSERV LTD, BHANDARA”

Name of the SIP organization

BAJAJ FINSERV LTD, BHANDARA.

Submitted to: -

Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur

Company Guide: -

MR. PRINCE SINGH

Submitted by: -

MR. Anup Subhashrao Kanode

Faculty Guide: -

Ajay Talwekar

CIBMRD (Central Institute of Business Management & Research

Development)

Session 2020-21
1
 CERTIFICATE

This is to certify that the investigation described in this report titled “STUDY OF

WORKING PROCESS AND INVESTMENT OPTIONS PROVIDED BY BAJAJ

FINSERV LTD, BHANDARA” has been carried out by MR. ANUP SUBHASHRAO

KANODE during the summer internship project. The study was done in the organization, BAJAJ

FINSERVE LIMITED, BHANDARA, in partial fulfillment of the requirement for the degree of

Master of Business Administration of R. T. M. Nagpur University, Nagpur. This work is the own

work of the candidate, complete in all respects and is of sufficiently high standard to warrant its

submission to the said degree. The assistance and resources used for this work are duly

acknowledged.

Ajay Talwekar Dr.

Guide & SIP In charge Principal

CERTIFICATE OF SIP ORGANISATION: -
 ACKNOWLEDGEMENT

While submitting the project on “STUDY OF WORKING PROCESS AND

INVESTMENT OPTIONS PROVIDED BY BAJAJ FINSERV, BHANDARA”

I avail this opportunity to express our gratitude towards all those who guided

and helpful to finish this project successfully.

I am grateful to Mr. PRINCE SINGH (Manager), project guide, “STUDY OF

WORKING PROCESS AND INVESTMENT OPTIONS PROVIDED BY BAJAJ FINSERV

LTD, BHANDARA” for his inspiring and kind encouragement. I express my deep

sense of Gratitude and heart full thanks to my Manager Mr.Prince Singh for his

valuable guidance and encouragement, which has played a major role in

completion of this project work. His esteem suggestion and encouragement

from time to time has always been helpful in the completion of this project.

MR. ANUP KANODE

MBA III-SEMESTER

CIBMRD, NAGPUR

DATE:

PLACE: SEWAGRAM
 INDEX

Sr. No. Page

CONTENTS No.

Part 1(A) Introduction

1.1 Theoretical Background 6

1.2 Company profile 8

(B) Review Of Literature 17
Part 2(A) Research Methodology 18

3.1 Need of The Study 19

3.2 Objective of The Study 19
3.3 Data Collection 19

3.4 Actual Work Done 20

3.5 Period of Study 20

3.6 Limitations 21
3.7 Data Analysis and Interpretation 22

(B) Findings and Suggestions

5.1 Findings 24
5.2 Suggestion 25

(C) Conclusion 25
Bibliography 26

Annexure 27

Questionnaire 28
 Part 1 A) INTRODUCTION: -

Theoretical background:

Fixed Deposit: -

Fixed deposits are the most secured saving options that let your money grow with assured returns.

Term Deposits enable you to invest for a better and secured future by offering guaranteed returns

as well as the safety of the invested amount. Deposits are a contract between you and the Bajaj

Finserv for the approved interest rate from the date of investment till maturity. Bajaj Finserv

comes with about 13 years of unchallenged trust in the Indian market, with over 5 million trusted

customer base across the length and breadth of the nation. With investment tenure ranging from 12

months to 60 months.

Recurring Deposit: -

A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by

Bajaj Finserv Ltd. Recurring deposits enable you make regular deposits and earn best in

segment returns on the investment. Due to the regular deposit factor and an interest

component, it often provides flexibility and ease of investments to investors. Similar to Fixed

deposits, Recurring Deposits are also a contract between you and the Bajaj Finserv for the

approved interest rate from the date of investment till maturity.

However, unlike Fixed Deposit in Recurring Deposits you invest amount on regular intervals

unlike one-time investment in Fixed Deposit. Bajaj Finserv comes with about 45 years of

unchallenged trust in the Indian market, with over 5 million trusted customer base across the

length and breadth of the nation. With investment tenure ranging from 12 months to 60

months
Non-Banking Financial Company(NBFC):

A Non-Banking Financial Company (NBFC) is a company registered under the Companies

Act, 1956 engaged in the business of loans and advances, acquisition of

shares/stocks/bonds/debentures/securities issued by Government or local authority or other

marketable securities of a like nature, leasing, hire-purchase, insurance business, chit

business but does not include any institution whose principal business is that of agriculture

activity, industrial activity, purchase or sale of any goods (other than securities) or providing

any services and sale/purchase/construction of immovable property. A non-banking

institution which is a company and has principal business of receiving deposits under any

scheme or arrangement in one lump sum or in installments by way of contributions or in any

other manner, is also a non-banking financial company (Residuary non-banking company).

Bajaj Group :

Bajaj Group is an Indian multinational conglomerate company founded by Jamnalal Bajaj in

Mumbai in 1926. Bajaj Group is one of the oldest and largest conglomerates based in Mumbai,

Maharashtra. The group comprises 34 companies and its flagship company Bajaj Auto is ranked

as the world's fourth largest two- and three-wheeler manufacturer. Some of the notable companies

are Bajaj Auto Ltd, Bajaj Finserv Ltd, Hercules Hoists Ltd, Bajaj Electricals, Mukand Ltd, Bajaj

Hindusthan Ltd and Bajaj Holding & Investment Ltd. The group has involvement in various

industries that include automobiles (2- and 3-wheelers), home appliances, lighting, iron and steel,

insurance travel and finance.

Bajaj Group companies
 Bachhraj and Company Pvt. Ltd. – Investment company.
 Bajaj Allianz Financial Distributors Ltd. – Distribution of financial products.
o Bajaj Allianz General Insurance Company Ltd. – General insurance business.
o Bajaj Allianz Life Insurance Co Ltd. – Life insurance business.
o Bachhraj Factories Pvt. Ltd. – Ginning and pressing of cotton bales.
 Bajaj Auto Ltd. – Manufacturers of scooters, motorcycles and three-wheeler vehicles
and spare parts.
o Bajaj Auto Holdings Ltd. – Investment Company.
o Bajaj Auto International Holdings BV – Bajaj Auto venture in Netherlands.
o PT Bajaj Auto Indonesia (PTBAI) - Bajaj Auto venture in Indonesia.
o Maharashtra Scooters Ltd. - Manufacturers of Scooters.
 Bajaj Consumer Care Ltd. (formerly Bajaj Corp), cosmetics.
 Bajaj Electricals Ltd. - Manufacturers of electric fans, highmasts, lattice closed towers
and poles.
 Bajaj Financial Solutions Ltd. – Distribution of financial products and services.
o Bajaj Finance Ltd. – Deals in financial services including hire purchase,
financing and leasing.
o Bajaj Finserv Ltd. – Financial Services.
 Bajaj Holdings & Investment Ltd. – Investment company focusing on new business
opportunities.
o Bajaj Sevashram Pvt. Ltd. – Investment activities.
o Jamnalal Sons Pvt. Ltd. – Investment and finance company.
 Bajaj Ventures Ltd. – involved in manufacturing and trading of power tools and
manufacturing of houseware and parts.
 The Hindusthan Housing Co. Ltd. – Services company.
 Hercules Hoists Ltd. – Manufactures 'INDEF' brand materials handling equipment
such as triple spur gear chain pulley blocks, chain electric hoists and wire rope.
 Hind Musafir Agency Ltd. – Travel agency.
 Hind Lamps Ltd. – Manufactures GLS, fluorescent, miniature lamps and major
components.
o Bajaj International Pvt. Ltd. – Export electric fans, GLS lamps, fluorescent
tubes, light fittings, etc.
 Kamalnayan Investments & Trading Pvt. Ltd.
 Madhur Securities Pvt. Ltd.
 Mukand Ltd. – Manufacturers of stainless, alloy and special steels including carbon
and alloy steels.
o Mukand Engineers Ltd. – Construction, fabrication and erection of industrial
and infrastructural projects and infotech business.
o Mukand International Ltd. – Trading in metals, steel and ferro alloys.
o Hospet Steels Ltd. – Steel plant consisting of Iron Making Division, Steel
Making Division and Rolling Mill Division.
 Niraj Holdings Pvt. Ltd.
 Rahul Securities Pvt. Ltd.
 Rupa Equities Pvt. Ltd.
  Sanraj Nayan Investments Pvt. Ltd.
 Shekhar Holdings Pvt. Ltd.
 Baroda Industries Pvt. Ltd. – Investment company.

COMPANY PROFILE :-

Originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, the non-bank

singularly focused on providing two and three wheeler finance. After 11 years in the auto finance

market, Bajaj Auto Finance Ltd launched its initial public issue of equity share and was listed on

the BSE and NSE.

At the turn of the 20th century, the company ventured into the durables finance sector. In the

subsequent years, Bajaj Auto Finance diversified into business and property loans as well.

In the year 2006, the company's assets under management hit the Rs.1,000 crore mark and is

currently at Rs.52,332 crore. 2010 saw the company's registered name change from Bajaj Auto

Finance Limited to Bajaj Finance Limited,

VISION AND MISSION :-

Bajaj Finserv has a well-defined vision & mission statement, which is in line with the Bajaj

group. The Vision, Mission, Objectives, Values, and Activities of Bajaj group are;

VISION

We at BCCL, to achieve our business goals, have laid down certain principles which we

staunchly stand by and follow. These principles are what drives every individual or team that is

passionate about the growth of our business.

MISSION

Striving to serve the largest number of common people through quality non-banking financial

services.
SWOT Analysis :-

Organizational strategies are the means through which companies accomplish their missions

and goals. Successful strategies address four elements of the setting within which the

company operates: the company’s strengths, its weaknesses, the opportunities in its

competitive environment, and the threats in its competitive environment. This set of four

elements—strengths, weaknesses, opportunities, and threats-when used by a firm to gain

competitive advantage, is often referred to as a SWOT analysis. SWOT was developed by

Ken Andrews in the early 1970s. An assessment of strengths and weaknesses occurs as a part

of organizational analysis; that is, it is an audit of the company’s internal workings, which are

relatively easier to control than outside factors. Conversely, examining opportunities and

threats is a part of environmental analysis-the company must look outside of the organization

to determine opportunities and threats, over which it has lesser control.

Strength and weakness are the internal factors of the organization and which are

controllable. Opportunities and threats are external factors of the organization and

which are uncontrollable.

 Strength

Unique, presence in high yield, high growth business

segments and superior sustainable returns

Strong presence in semi-urban, and rural areas of Southern and Western India Strength

● Weakness

Operates in high-risk segments. Asset quality in these segments is cyclical

Gold loan business runs on cash.

● Opportunities

Operates in underpenetrated business segments with huge growth potential

Expansion of product offering at such locations would result in higher growth

● Threats

SCUF operates in small-ticket retail finance. High Yield in this segment could attract stiff

competition

Changes in regulatory guidelines could impact the business parameters.

CORPORATE INFORMATION :-

Originally incorporated as Bajaj Auto Finance Limited on March 25, 1987, the non-bank

singularly focused on providing two and three wheeler finance. After 11 years in the auto finance

market, Bajaj Auto Finance Ltd launched its initial public issue of equity share and was listed on

the BSE and NSE.

At the turn of the 20th century, the company ventured into the durables finance sector. In the

subsequent years, Bajaj Auto Finance diversified into business and property loans as well.

In the year 2006, the company's assets under management hit the Rs.1,000 crore mark and is

currently at Rs.52,332 crore. 2010 saw the company's registered name change from Bajaj Auto

Finance Limited to Bajaj Finance Limited,

CORPORATE SOCIAL RESPONSIBILITY:-

Bajaj Group is involved in a variety of welfare activities, which are carried out with the support

of its companies and trusts. The social and welfare objectives of the Bajaj Group are being

fulfilled through the many Trusts and Foundations it has established spending up to ₹100 million

(US$1.4 million) every year.

The registration details are as follows:

Registration No. N–13.01952 dated 29 October 2009 with

Reserve Bank of India (RBI).

Registered Office:

Akurdi, Pune. 411035

Principal Office:

6th floor,

Bajaj Finserv Corporate

Office, off Pune -

Ahmadnagar Road, Viman

nagar Pune, 411014

Study of Investment Options of Bajaj Finserv Ltd

 Fixed Deposit

 Recurring Deposit

 Fixed deposits: -

Fixed deposits are the most secured saving options that let your money grow with assured

returns. Term Deposits enable you to invest for a better and secured future by offering

guaranteed returns as well as the safety of the invested amount. Deposits are a contract

between you and the Bajaj Finserv for the approved interest rate from the date of investment

till maturity. Bajaj Finserv comes with about 13 years of unchallenged trust in the Indian

market, with over 5 million trusted customer bases across the length and breadth of the

nation.
 Features of Fixed-Deposit Scheme

● High Returns on Investment

● Flexible Tenure

● Flexible Pay-outs

Types of Fixed Deposit: -

Cumulative Fixed Deposit: -

In a cumulative fixed deposit, the interest earned against the deposit will get compounded along

with the principal. The interest will not be payable in installments. Instead, it will be paid only

along with the principal amount during its maturity. Bajaj Finserv accepts fixed deposits

installments only in multiples of Rs. 1,000/- subject to a minimum amount of Rs. 5,000/- per

deposit.

Non-Cumulative Fixed Deposit: -

In this type of deposit, the interest is payable in monthly, quarterly, half-yearly, or annual

installments. It is suitable for individuals or pensioners who are looking for a periodical

income. These deposits are acceptable in multiples of Rs.1, 000/- subject to a minimum amount

of Rs.5, 000/- per Deposit.

Cumulative

Interest Rate Interest Payout Maturity Amount

7.25 % ₹ 375 ₹ 5,375

Non-Cumulative
Period Interest rate Interest payout

Monthly 7.25 % ₹ 31

Quarterly 7.30 % ₹ 92
Period Interest rate Interest payout

Half yearly 7.37 % ₹ 185

Yearly 7.50 % ₹ 376

 Recurring Deposit
A Recurring Deposit, commonly known as RD, is a unique term-deposit that is offered by

Bajaj Finserv Ltd. Recurring deposits enable you to make regular deposits and earn best in

segment returns on the investment. Due to the regular deposit factor and an interest

component, it often provides flexibility and ease of investments to investors. Similar to Fixed

deposits, Recurring Deposits are also a contract between you and the Bajaj Finserv for the

approved interest rate from the date of investment till maturity.

However, unlike Fixed Deposit in Recurring Deposits you invest an amount on regular

intervals unlike one-time investment in Fixed Deposit.

Features of Recurring Deposits Scheme

● High Returns on Recurring Deposits

Bajaj Finserv offers a lucrative 9%* interest rate on Recurring Deposits. With a high-

interest rate and stable return, it becomes easy for you to build your wealth and plan a

financially secured future inculcating the saving habits to individuals. Bajaj Finserv has

been certified with stability, and our recurring deposits are one of the best investment

options to build wealth for the future.

● Flexible Tenure
 Bajaj Finserv’s Recurring Deposits scheme offers flexible tenure options starting

from 12 months to 60 months. You can choose the duration and the regular monthly

investment amount based on your needs and financial goals. If you have a big event

planned in five years, then you can select the 60-months recurring deposit tenure for

financing the event.

Bajaj Finserv Recurring Deposit Scheme

Maturity value for

Period Rate % (p.a. at Monthly rates
Monthly installment of
(months) )
Rs.
500/-
12 7.53 6250

24 7.62 13000

36 8.68 20625

48 8.84 28875

60 9.00 38000
B) REVIEW OF LITERATURE :-

Gavini and Athma (1999) found that social considerations, tax benefits, and provision for

old age were the reasons cited for saving in urban areas, whereas to provide for old age was

the main reason in rural areas. Among the post office schemes, Indira Vikas Patra (IVP),

KVP and Post Office Recurring Deposit Account (PORD) were the most popular, in both

urban and rural areas.

Somasundaram (1998) has found that bank deposits and chit funds were the best known

modes of savings among investors and the least known modes were Unit Trust of India (UTI)

schemes and plantation schemes. Attitudes of investors were highly positive and showed their

intention to save for better future. Nearly two-thirds of the investors were satisfied with their

savings. Both income and expenses of a family influenced the level of satisfaction over

savings. A large proportion of investors were concerned about their children's well-being.

Among the dissatisfied investors, majority were of the opinion that cost of living was too

high. The most common mode of investment was bank deposits. However, a shift was

noticed from bank deposits to other forms of investment. Almost all the investors had

invested in gold and silver. Among several parameters in investing, safety of money was

considered to be the most important element. Next, the investors expected regular return from

their investments.

Shefrin (1999) defined behavioral finance as a rapidly growing area that deals with the

influence of Psychology on the behavior of financial practitioner. Belsky and Gilovich (1999)

have termed behavioral finance as behavioral economics and further defined behavioral

economics as combining the twin discipline of psychology and economics to explain why and

how people make seemingly irrational or illogical decisions when they save, invest, spend

and borrow money.

Part 2 A) RESEARCH METHODOLOGY:-

The research methodology used for this study is a combination of Descriptive research,

applied research, Quantitative research and Empirical research.

Descriptive research or Ex Post Facto research is a type of research done where the

researcher has no control over the variables, he can only report what has happened or what is

happening.

Applied research aims at finding a solution for an ongoing problem in the organization.

Research done to identify the social, economic, political or technological trends that may

affect a particular institution are examples of applied research.

Quantitative research is based on the measurement of the quantity or amount.

Empirical research relies on experience or observation alone. It is a data-based research,

coming up with conclusions that are capable of being verified by observation or experiment.

In the table of investment of fixed deposit and recurring

deposit The fixed deposit is 69% and recurring deposit is

31%. It is found that the most of the customer are with fixed

deposit.
NEED OF THE STUDY: -

● We can get a clear idea about the credit facilities provided by the Bajaj Finserv.

● The study helps us to know the performance and growth of the Bajaj Finserv.

OBJECTIVE OF THE STUDY: -

● To get acquainted with the real environment of the organization.

● To get a practical exposure of the organization.

● To Study of investment options provided by Bajaj Finserv.

DATA COLLECTION: -

Primary data: The data that is collected first hand by someone specifically for the
purpose of facilitating the study is known as primary data. So in this research the data is
collected from respondents through QUESTIONNAIRE.

Primary Sources: -

 Questionnaires
 E-mail
Secondary data: Secondary data refer to information gathered by someone other than
the researcher conducting the current study. Such data can be internal or external to the
organization and accessed through the Internet or published information.
Secondary sources of data provide a lot of information for research and problem solving.
Such data are as we have seen mostly qualitative in nature.

Secondary Sources: -

 Internet
 websites
 Organizational Reports

PERIOD OF STUDY: -

The study was undertaken for a period of 45 days from 20th July to 3rd September 2020.

ACTUAL WORK DONE: -

● During my 45-day internship with the Bajaj Finserv, I was introduced to the

investment options and the working processes of Bajaj Finserv.

● Bajaj Finserv provides the following kinds of investments to their customers.

 Fixed Deposit

 Recurring Deposit

● I was given the phone numbers weekly of the existing customers and I was asked to

follow up with them. I was also given the task to introduce them to the various

other financial services that were offered by Bajaj Finserv.

 ● I had to report weekly to my mentor about the tasks that I carried out during that

whole week. The mentor would clear my doubts and give me suggestions to improve

my performance and to communicate better with the existing customers.

● All the tasks that I performed were online. I was not required to visit the office

premises due to the lockdown.

LIMITATIONS: -

There are some limitations in doing this project study. They are as follows:

● The biggest limitation of this study was the Corona-virus outbreak. The office was

shut down for a few days during the nation-wide lockdown. It restricted me from

attending the office and participating entirely in the regular functioning of the Bajaj

Finserv. Due to the outbreak, I had to strictly work online and perform all the tasks

without physically attending the office.

● Primary data is collected as per knowledge and information given by my mentor of

the Bajaj Finserv.

DATA ANALYSIS AND INTERPRITATION: -

 Total Income of Three years: -

Year (Rs. in crores)

2017-18 5,102

2018-19 5,781

2019-20 5,887

Table 1

For the term 2017-18 the total income was 5,102rs (in crores) and the total income for the

next term 2018-19 was 5,781rs (in crores) from this data we infer that for the year 2018-19

the total income was 679rs (in crores) more than 2017-18.

And for the term 2019-20 we see that the total income amount was 5,887rs (in crores) which

was more than the previous amount 5,781rs (in crores) from this data we infer that for the

year 2019-20 the total income was 96rs (in crores) so we observed that there has been

increase in all the three consecutive terms.

  Investment of Fixed Deposit and recurring Deposit(monthly): -

Sr. No. Investment No. of Customer Percentage

(Approximate)
1 Fixed Deposit 69 69%
2 Recurring Deposit 31 31%
Total 100 100%

Table 2

Fixed DepositRecurring Deposit

69% of customers invest their money in fixed deposit and 31% of customers invest their

money in recurring deposit.

It is found that the most of the customers are with fixed deposit.
 Part 2 B) FINDINGS AND SUGGESTION

FINDINGS: -

● From table no 1 total income of three years observed that there has been

increase in all the three consecutive terms.

● From table no 2 investment of fixed deposit and recurring deposit, the fixed

deposit is 69% and recurring deposit is 31%.

● It is found that most of the customers are with fixed deposit.

● Customers are happy with the services provided by Bajaj Finserv.

● Working environment is very good at Bajaj Finserv. They are friendly to

help each other and help customers with queries.

● Bajaj Finserv does not have its own phone application.

● is not using any promotional strategy for product awareness which is highly

required.

SUGGESTIONS: -

● Due to the intense competition in the financial market, Bajaj Finserv should adopt

better strategies to attract more customers.

● should adopt effective promotional strategies to increase the awareness level

among the consumers

● They should have their phone application for customers to access their

investment status.
Part 2 C) CONCLUSION: -

● Bajaj Finserv is providing services to its customers in various ways.

● Bajaj Finserv is working in the right direction. It cannot be ignored that since its

establishment it is striving hard for maintaining its organizational status.

● After completing my 45 days of summer internship program it is clear to me how a

non-banking financial company works and how they carry out all their investment

options.
BIBLIOGRAPHY: -

● Annual report of 2019-2020 Bajaj Finserv.

● Data from internal sources Bajaj Finserv.

Websites:

● https://www.Bajajfinserv.in/

● www.google.com
 ANNEXURE

QUESTIONNAIRE: -

Que 1:- What is a fixed deposit scheme?

Ans:-Fixed deposit is investment tools offered by Bajaj Finserv, where you can deposit

your money for a higher rate of interest than savings accounts for a fixed period. You have

multiple options to choose the investment period based on your need.

Que 2:- Who can invest in Bajaj Finserv deposit scheme?

Ans:-Resident Individual, Companies, Partnership Firms, HUF, Unincorporated Association,

or Body of Individuals and Trust & Foundation can invest in Bajaj Finserv’s fixed deposit

schemes.

Que 3:- what is the minimum deposit amount for RD scheme?

Ans:-Recurring deposit will be accepted in multiples of ₹ 500/- subject to a minimum

amount of ₹ 500/- per installment

Que 4:-What is the range of tenure available for recurring deposits?

Ans:-You can open a recurring deposit with the company for a minimum tenure of 12 months

to maximum tenure of 60 months.

Que 5:-What are the installment frequencies available and modes by which the installment is

paid?

Ans:-We have Monthly – option for payment of installment, which will be auto debited from

the depositor’s bank account mentioned on the application during investment

Que 6:- Who can invest in recurring deposits with Bajaj Finserv?

Ans:-We accept investments from Individuals, and Hindu Undivided Family (HUF).