A Study and Analysis Of Financial Scheme

BAJAJ FINSERV

Joy Ankit Suna | BBA 6th Semester | Section - C

Introduction
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Objectives
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Industry Profile
Financial Services are the economic services provided by the finance industry,
which encompasses a broad range of businesses that manage money, including
credit unions, banks, credit-card companies, insurance companies, accountancy
companies, consumer-finance companies, stock brokerages, investment funds,
individual managers and some government-sponsored enterprises. Financial
services companies are present in all economically developed geographic locations
and tend to cluster in local, national, regional and international financial centers
such as London, New York City, and Tokyo.

The term financial services are not short of definitions, it can be defined in the
simplest way as to include a plethora of continuously increasing services offered by
financial institutions such as Banks, credit card companies, insurance companies,
mutual fund providers, etc. As the world becomes more complex, so are the
financial institutions. In order to meet the growing demands and compete in the
ever-growing financial market, the financial institutions are constantly innovating
and developing new products thus increasing the financial services exponentially.
To put it in other words, the financial services of today will not be the same as that
of tomorrow.

Essential components of financial services:

 Financial services are zealously focused on enhancing the experiences of the

customer.
 They are intangible.
 They have a transitory nature, meaning to say that a service’s function
comes to an end after it fulfills its purpose.
 They are the connecting blocks or the intermediaries between the two
parties in exchange, be it any exchange.
 They are innovative and solution seeking in nature.

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  They are dynamic and spontaneous. Each financial service has its own
distinct nature in accordance with the time and socio-economic context of
the place.

Types of financial services

There are several ways of classifying financial services. One way of classifying is to
divide it into traditional activities and modern activities. The more popular
classification encompassing all the services is that on the nature of the service.
They are:

 Capital market service refers to services pertaining to the capital market

engaged in the exchange of bonds, securities, etc. It includes the services
rendered by mostly the lending institution providing long-term funds.
 Money market services refers to services involving the exchange of
financial instruments with high liquidity and short maturities. The
institutions providing such services include commercial banks, central
banks, acceptance houses, discount houses, bill brokers and non-banking
financial institutions.
 Retail services involves services which are up for direct consumption by
the customers.
 Wholesale services refer to the services offered to the corporate
institution who may convert it into retail services.
 Fund based services constitute the bulk of the financial services. It refers
to services involving lending, investments, reliefs, etc. where the institution
providing the services takes a portion of equity.
 Fee-based services as the name suggests, the services rendered by the
institutions are charged with a standardized price.

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Company Profile
Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian
financial services company focused on lending, asset management, wealth
management and insurance.

The company employs over 20154 employees at 1409 locations, and is engaged in
consumer finance businesses, life insurance, and general insurance. Apart from
financial services, Bajaj Fiserv is also active in wind–energy generation with an
installed capacity of 65.2 MW.

Bajaj Finserv was ranked among The Economic Times 500 as #119 in 2014.

HISTORY

Bajaj FinServ was formed in April 2007 as a result of its demerger from Bajaj Auto
Limited as a separate entity to focus purely on the financial services business of the
group. The process of demerger was completed in Feb 2008. This demerger was
not only to unlock the value in the high growth business areas of Auto, Insurance,
Finance sectors and Wind Power but to also to independently run these core
businesses and strengthen their competencies.

The wind power project, the stakes in the life and general insurance companies
and consumer finance along with their respective assets and liabilities got vested
in Bajaj Finserv Limited. In addition to that, cash and cash equivalent of INR 8,000
million (then market value) was also transferred to the company. The demerger
has enabled investors to hold separate focused stocks and facilitated transparent
benchmarking of the companies to their peers in their respective industries.

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The constantly changing demographics and dynamics of the Indian economy, has
led to creation of various needs of the customer. The Indian customer now
demands proper avenues of channelizing their savings, financial protection and is
also desirous of spending more on valuable goods and services. All these wants to
need to be met by dynamic players in the financial services space. Bajaj Finserv was
formed specifically to cater to these needs. The company was also formed to touch
and improve the lives of a growing number of people in the country, and in doing
so, deliver superior corporate values to its shareholders. The operating companies
carry with them the Bajaj brand, which carries with its decades of commitment to
business ethics, integrity and highest standards of fiduciary responsibility.

CURRENT STATUS

2017 - 2018

A notable year of remarkable strides in business, customer convenience and

accolades.

To begin with, Bajaj Finance’s AUM stood at a high Rs.77, 970 successfully crossing
the 75000 mark and bagging the highest ever quarterly profits through the year.
Board committee of Bajaj Finance Ltd approved to raise Rs4,500 crore through a
qualified institutional placement (QIP) with an aim to diversify the investor base
in the 2 quarter of the year.

Aiming to be a well-diversified company, Bajaj Finance Ltd picked up nearly 11%

stake in mobile wallet major Mobikwik for about Rs. 225 crore acquiring shares
worth Rs. 271,050 through compulsory convertible preference shares (CCPS). Bajaj
Finance Ltd holds approximately 10.83% of Mobikwik’s equity on a fully diluted
basis.

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The Company decided to pave the digital route towards customer convenience. It
started independent Bajaj Finserv Direct Limited enabling the customer to transact
digitally, enhancing end-to end online experience. It also commenced operations
of Bajaj Housing Finance Limited for mortgage loans.

The Net Promoter Score (NPS) moved from 40 in 2017 to 46 in 2018 with upwards
trends in scores of most individual businesses. Bajaj Finserv’s market cap crossed
Rs. 1.5 trillion, reaching 16th position in overall market cap ranking.

They won the Outlook Money Award 2017 in the NBFC category as part of the
publication’s Conclave that is recognized as the single largest Personal Finance
Conclave in India. They were honored with the Mint Corporate Strategy Award (in
consultation with BCG) spearheading the Shaping category, characterized by a
nascent, unpredictable and malleable business environment where the leader
influences and establishes the rule of the game.

Bajaj Finserv is proud to be one among the ‘Best Companies to Work For’ in India
awarded by the Great Places to Work Institute for the 6th time in a row. This year,
Dun & Bradstreet honored exemplary performers of India’s BFSI sector and
awarded us as India’s Leading NBFC (Other than Infrastructure Financing).

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BRAND IDENTITY
Bajaj Finserv is the financial services company of the Bajaj Group. Its current
business lines include Lending and Wealth Advisory services through Bajaj
Finance Limited and Protection through Bajaj Allianz Life Insurance and Bajaj
Allianz General Insurance. Bajaj Finserv Limited and Bajaj Finance Limited operate
under the Bajaj Finserv brand. Bajaj Allianz Life Insurance Company Limited and
Bajaj Allianz General Insurance Company Limited operate under the Bajaj Allianz
brand. With the intention to build a set of financial service businesses in coming
years that share the Bajaj Finserv Group’s common values of reliability, innovation
and efficiency and provide customers with high quality products and services, Bajaj
Finserv has created its brand identity.

Brand ‘Bajaj Finserv’ is symbolized by a unique visual identity that aligns our
various businesses for our consumers and business partners, distinguishes it from
competitors and promotes the strong values that Bajaj Finserv stands for. Bajaj
Finserv’s brand completely embodies its growth and services.

The current Bajaj logotype identifies and stands on the very established and
respected Bajaj identity and the 3-dimensional seal with the B and F that makes
the new identity uniquely recognizable. Blue in the logo indicates confidence &
strength. The round ball symbolizes the world with focus on India.

The brand delivers a distinctive and contemporary identity, which communicates

the Bajaj Finserv values in dynamic and consistent manner and is designed to be
easily recognizable and yet differentiated to build an enriching and sustainable
relationship with all who experience it.

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 Organizational Structure

CEO

Business Head

National Sales
Manager

Zonal Sales
Manager

East West North South

Regional Sales
Manager

Area Sales
Manager

Sales Maager

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