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ROLL NO. 12309





Submitted by: Aniruddh Keswani

ROLL NO. 12309


I hereby declare that the Project Report FINANCE PENETRATION AT CPR DISTRIBUTORS for BAJAJ FINSERV LENDING Submitted for the PGDM at International School of Business and Media, Pune - Nande is my original work and the dissertation has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles.

Place: Pune Date: (Aniruddh Keswani)

This is to certify that Mr. Aniruddh Keswani a student of BBA in Prestige Institute Of Management and Research, Indore Under Graduate Programme has received Summer Training in our organization from 01/06/10 to 19/07/10 for a period of 07 weeks. It is further certified that Summer Training period, the candidate attended the factory/office regularly and punctually and he has received training in following departments/sections of our organization:

1. Marketing and Sales. During training period he/she was absent on following working days 29/06/10 (1 Day). During training period his behavior and conduct were good. Place: Bhopa

Dated: 19/07/10

Mr.Sourabh Jain Account Manager Bhopal-M.P.

Acknowledgement is an art, one can write glib stanzas without meaning a word, on the other hand one can make a simple expression of gratitude.
Summer Inrernship is an integral part of any Business Administration program and for that purposes I had joined a company what else can be as good as Bajaj Finserv Lending, India's premier finance company. I take the opportunity to express my gratitude to all of them who in some or other way helped me to accomplish this challenging project in Bajaj Finserv Lending, No amount of written expression is sufficient to show my deepest sense of gratitude to them. I am very thankful to Mr. Devendra (Regional Sales Manager), Mr. Ajay Sharma (Area Sales Manager), Mr. Pranab Roy (Manager) Bhopal and

very grateful to all my faculties at ISB&M Pune Nande for their everlasting support and guidance on the ground of which I have acquired a new field of knowledge. The course structure created for this curriculum has benefited with the inclusion of recent development in the organizational and managerial aspects. Lastly, I am thankful to all the member of Bajaj Finserv Lending, Bhopal, which has given me valuable information in the part of my project. ANIRUDDH KESWANI ROLL NO. 12309


Pg. No.


Executive Summary

Promoted by the Bajaj Auto group in 1987 Demonstrated consistent profitability track record in lending space for the last 24 years. A UM of ` 75.71 billion, with a history of disbursing over 6.00 million loans, as of FY11. Disbursed 1.57 million loans in FY11 A diversified lending business with 9 product lines focusing on consumer finance & SME business Strong distribution reach with more than 225 points of presence and more than 4,000 distribution partner s and dealers across India Strategy is to focus on mass affluen t customers in consumer businesses and affluent and HNI customers in small businesses, through a judicious mix of: Lower risk and lower returns products, for building scale and stability Moderate risk and higher return products, for profit maximization Stable and deep management structure with top 100 management team members having experience from leading Multi National Companies and Transnational companies.

Bajaj Group structure

Bajaj Holdings and Investment Limited



Bajaj Auto Limited

Bajaj Finserv Limited

Auto Business Arm

Financial Services Arm




55.98 %

Bajaj Allianz Life Insurance Comp any Limited

Bajaj Allianz General Insurance Comp any Limited

Bajaj Financial Solutions Limited

Bajaj Finance Limited

Prote ction and Retirals

Wealth Management & Advisory


Key Business Lines

Consumer durable financing

Indicative Terms, as of June 201 1

Maturity : 8 12 months Repayment : EM I

Key Features
12% of the portfolio as of FY11 One of the few organized players with cutt ing edge technology archi tecture & robust risk management framework.

Target Customer Base

Mass Affluent and Affluent

Consumer finance

Per son al Loans Cross sell

Maturity : 12-36 months Repayment : EM I

6% of the portfolio as of FY11 Loans to existing cus tomer with very good credit performance track record.

Mass Affluent and Affluent

2 Whee ler & 3 Whee ler Finance

Maturity : 12 24 months Repayment : EM I

26% of the portfolio as of FY11 Captive financing. Financin g only Bajaj auto vehicles.

Mass customers


Maturity :60 180 months Repayment : EM I

30% of the portfolio as of FY11 Includes loan against property

Affluent and HNIs

Small business

Small Business Loan (SBL) & secured vendor financin g (VF)

Maturity :12 - 36 months (SBL) Maturity : 1 - 24 months (VF) Repayment : EMI (SBL & VF)

10% of the portfolio as of FY11 (SBL) 4% of the portfolio as of FY11 (VF) SBL to affluent small businessmen. VF to vendors of lar ge auto manufacturer 4% of the portfolio as of FY11 Launched retail loans to HNI customers in FY11.

Affluent and HNIs

Loan agains t securities

Maturity : 10 12 months Repayment : Bullet



Construction Equipment Finance

Maturity : 12-42 months Repayment : EM I

8% of the portfolio as of FY11 Launched in FY11. Assets backed funding to Small, Mid & strategic contractors.

HNIs and Affluent

Infrastructure financing

Maturity : NA Repayment : Moratorium period followed by EM I

Launched in FY12.

Medium / large infrastructure companies

What differentiates Bajaj Finance

Strong promoters Affluent & HNI customer foc used business model Promoted by erstwhile Bajaj Auto Ltd. Post the de-me rger of Bajaj Auto, the shareholding in the Company was veste d with Bajaj Finserv Debt free balance shee ts of the promoter, Bajaj Finserv and of the primary holding company, Bajaj Holdings & Investments Limited 56.07% holding with promoter and promoter group. 8 product line company focuse d on homogenous segments Profitable mix of consume r & SME business Balanced mix of secured and unse cured assets Focus on acquiring & servicing affl uen t & HNI clients (with the exception of captive 2Wheeler financing business) Integral to risk management strategy Large wallet size allows deep cross sell framework

Diversified lendin g business model

Strong Distribution Reach

More tha n 225 points of presen ce across India More tha n 4,000 distribution partne rs and dealers

High technology orient ation and robust risk management

100% dea ler Point of Sale terminalisation and E2E ente rprise dat a wa rehous e for risk management and dat a mining capabilities Distinct business, underwriting & risk management structure for robust risk management.

Stable & deep ma nageme nt structure.

Top 100 management tea m membe rs from leadin g MNCs. SBU business structure allows scalability. Top management vintage of 3 years.

Diversified lending business model

Consumer fin ance
2011 -12 2010 -11 2009 -10 2008 -09 2007 08 100% POS link up. 3 Min-TAT Started PL cross sell to existing good customers Launched POS ins. cross sell. Launched project 3sec-TAT. Launched post sale insurance cross sell. 2010 -11 Launch EM I card 3 second TAT Launch cobrand credit card. 2009 -10 2008 -09 Launched no insurance no loan. Launched cutt ing edge underwriting platform. Expanded to 23 cities. Portfolio seasoning for PSBL & Mort. Launched CE & HL. Launched partnership model

Small business
2011 -12 Launch SBS cross sell to cross collateralize portfolios and deepen wallet size.

Launched PSBL & Mortgages in n 16 cities. Unique sales & collect model.

Historical business model. 3 day TAT. No cross sell.

Consumer Durables & 2-whee lers

Personal Loans Cross-sell

Insurance services

EM I card


Credit Card Partnership




Cross sell

Rel. model S,C & C

Competitive Advantage Data Mart and Cross sell capabilities Customer Lifecycle Management Low ticket - high vol ume transaction domain


Competitive Advantage Relationship model Sales & Collect

Premium customer exper ience model Cross sell to Small Business segment

Strong Distribution Reach

Geographic presence
Business Line Sales Finance 2W - Hubs 2W - Spokes Small Businesses FY08 116 116 300 0 FY09 87 55 200 15 FY10 79 54 150 15 FY11 79 54 150 23

Business Line
Sales Finance Dealer 2W Dealer/ASCs Small Businesses Partner Small Businesses Support

FY08 19,000+ 1,400+ -

FY09 4,500+ 1,400+ 175+ 175+

FY10 2,000+ 1,275+ 225+ 225+

FY11 2,500+ 1,400+ 250+ 275+

# of New Loans Disbursed (000 s)

Business Line FY08 621 397 0 1,018 FY09 352 219 3.5 574 FY10 515 378 5 897 FY11 1,038 522 9 15,60

Map not to scale

Sales Finance 2W Small Businesses Total

Assets under management (` billion)

FY08 AUM 24.78 FY09 25.39 FY10 40.32 FY11 75.71 1

Dee p distribution, sizeable acqui sition engin e and growing balance shee t t

High technology orientation and robust risk management An illustration

Customer gets Username & Password for online access Cross Sell offers to customers @ 4 Month


3 minutes Turnaround Time (TAT)

- Call - Fax - Data SSP

Data Entry

Credit bureau

De-dupe Engine

Application Score

Data moves to Datamart and B2B / B2C


RTGS to dealer Account (<24 Hrs)

7 7


Central / national operation centre

10 4
Customer TVR i

Fraud early warning score card

Re-verification of application details by call centre

15 minut es TAT


Fales at Branch nward d

1 day

F i l e

t Branch Inw ard I

3 -4 days Product Delivere d at Home By

Dealer for address Verification

Confirmation & Verification SMS / Email to Customer

Provide KYC Documents

Processing Shop 5min

Stable & dee p management structure

Rajee v brings with him more than 18 years of exper ience in the consumer & Small Business Segment lending industry. He has been with the Company for 4 years and has worked towards stee ring the organization onto a path of fas t-paced growth and defined an ambitious trajectory of building a diversified lending institution. He has earlier worked with AIG, GE money and American Express. A Management graduate with 15 years of varied exper ience across Strategic Planning, Sales & Marketing, Product Design & Development, to Six Sigma, Collections, and Analytics. He has worked for GE & Citi. Amit manages the high growth Mortgages business for Bajaj Finserv lending. Deepak has an exper ience of 20 years in Financial Services, ITES, and Manufacturing industry. Deepak is responsible for driving people strategy for the organization and making Bajaj Finserv Lending the Employer of Choice. He earlier worked with Reliance, CRISIL and SREI.

Rajee v Jain
Chief Executive Officer

Dee pak Gupta

Chief Human Resources

Amit Gainda
Business Head Mortgages

Dee pak Redd y d

Business Head Pe rsonal & Small Business Loans

Deepak has over 20 years of exper ience in distributing Financial Services & Consumer Durables. He joined us from American Express, wher e he held various positions in their Per sonal Loans & Consumer Card businesses for over 9 years. Deepak manages our unsecured business & per sonal loans.

Ashish has 13 years of rich and varied work exper ience across manufacturing, FMCG and Retail Banking in large multi-national organizations across cred it cards, secure d and unsecure d assets as well as liabilities. He join the Company from Barclays & would be responsible for launching cred it card business.

Ashish Panchal
Business Head Credit Cards

A charter ed accountant by profession, Devang brings with him 15 years of exper ience in consulting and financial services. Joining us from AIG, wher e he worked as Vice President Business Development & CRM for the consumer finance business. Earlier he worked with GE money for 8 years.

Devang Mody
Business Head Sales Finan ce

Stable & dee p management structure (contd)

Diwakar has nearly 12 years of varied and rich work experience, with the last ten years in Risk Management. He joins us from Citigroup, wher e his last assignment was managing risk and cred it for West & South India regions for the Small & Medium Enterprises (SME) business. He would be managing the commercial credit. Rakesh has an overall exper ience of 18 years in finance & technology industry. He has played several leader ship roles encompassi ng CIO responsibilities, IT Product Mgmt., and Delivery. Currently, as the chief architect of our technology initiatives, he has successfully harne ssed technology to introduce many innovations Has earlier worked with GE money, Reliance and AIG. Sanjee v is a chartere d accountant by profession 19 years of exper ience in Retail Consumer Finance, SM E mid-markets, and Corporate Finance for sectors such as Infrastructure, Industrial, Healthcare, Transportation, Auto, and Securitization of Receivables Sanjee v manages construction equipment business in strategic & retail space He earlier worked with RBS and Citi.

Diwakar Pundir
Chief Credit Officer

Rakesh Bhatt
Chief Information Officer

Pankaj Thadani
Chief Financial Officer

Pankaj joined Bajaj Finserv Lending in 2006, bringing with him a rich exper ience of 28 years in financing, financial accounting, cost accounting, tax, and systems He is a Mathematics Graduate and a Chartered Accountant Pankaj has provi ded invaluable advice and direction that has help ed the Company grow from a single business company to a diversified NBFC. Rajesh is a management graduate with over 14 years of exper ience in financial services across consumer and commercial lending. Rajesh joins us from HSBC wher e he was handling the portfolio risk management unit for HSBCs consumer cred it risk function. Rajesh is responsible for maintaining portfolio quality. He earlier worked with GE money and Standard Chartered.

Sanjee v Vij

Business Head Construction Equipment Finan ce

Rajesh K
Chief Risk Officer

Vivek Likhite e
Corporate Audit Services

Vivek joined Bajaj Finserv Lending in 2007. He is a Chartered Financial Analyst and holds a Cost Accountant degree from ICWAI. He has an exper ience of 22 years in strategic planning, process and operations management, accounts, funds management, budgeting, and MIS He worked across operations, LA S business & is currently responsible for setting up corporate audit services.

Product line strategy

Profit Maximisers
Relatively higher RoA Lower asse t base and lower capital requirement s High risk and return

Scale Builders
Relatively lower RoA Hig her asse t base and higher capital requirement s Lower risk & return

Non qualifiers
Low ROE Lack of competitive advant age Customer segment ation


Relatively higher RoA Not a banks business Large cross sell opportunity Credit Card partn ership (WIP) Relatively high RoA Critical to full scale SF business

Relatively low RoA Captive financing E2E Integration play leadin g to higher ROA

2 Wheeler Finance

Sales Finance

Car loans Captive play

Gold loa ns & Micro finance Customer segmentation issues Relatively low RoA Un-penetrated space Mee t working capita l needs of M S M & SME clients E

Small business

Small Business Loans

Relatively higher RoA Mee t working capita l needs of M SM & SME clients E

Commercial vehicle Specialized business

Relatively higher RoA Regulatory advantage. Mee t working capita l needs of M SM & SME clients E
Construction Equipment Infra ancillary


Loan Against Securities

Relatively low RoA Dominated by non banks. Large upstream opp. Relatively low RoA High growth rate s and high deman d potential

Summary financial statement

` in billi Financi als snapshot Deployments Assets under finance Assets under management (AUM) Income from operations Interest expenses Net Interest Income (NII) Operating Expenses Loan Losses & Provision Profit before tax Income tax Profit after tax Ratios Total Opex to NII Loan loss to Assets under finance Return on Average Asset under finance Earning per share (Rs.) Return on Average Equity 58.1% 4.4% 0.9% 5.68 2.0% 30.36 24.78 24.78 5.03 1.70 3.32 1.93 1.09 0.30 0.09 0.21 FY08 FY10 24.51 94.35 25.39 72.70 25.39 75.71 5.99 14.06 1.64 3.78 4.35 10.28 2.20 4.54 1.64 2.05 0.51 3.70 0.17 1.23 0.34 2.47 FY08 FY10 50.7% 44.1% 6.4% 2.8% 1.3% 4.3% 9.27 67.47 3.2% 19.7% FY09 FY11 45.85 46% 40.32 43% 40.32 45% 9.16 41% 2.02 30% 7.15 46% 3.20 33% 2.61 23% 1.34 131% 0.45 136% 0.89 129% FY09 FY11 44.7% 6.5% 2.8% 24.43 8.0%

Financial performance trends FY-11

# of Loans Disbursed (000)
1,018 621 594 355 397 239 442 522 1,123 1,048 681 45 .85 30 .36 15 .52 14 .84 16 .68 7.83 24 .51 32 .21 13 .64 20 .34 74 .01 1,570

Disbursements (` billion)
106 %
94 .35


FY-09 2 Wheelers

FY-10 Others Total



FY-09 2 W heelers

FY-10 Others Total


AUM (` bi llion)
40 .32 24 .78 8.31 16 .47 FY-08 25 .39 13 .64 11 .75 FY-09 2 W heelers 26 .39 13 .93 FY-10 Others Total 19 .53 FY-11 FY-08 75 .71 56 .18 5.03

Revenue (` billion)
53 %
9.16 5.99 14 .06




Strong growth momentum with under-penetration

Nominal GDP Movement (` Trillion)
CAGR 12.6%
45.4 28.8 32.8 37.8 61 .3 37 .8 45.4 52.8 32 5 FY-08 FY-09 FY-10

Loan Against Proper ty in India (` Billion)

58.7 73 .1

FY05-11 CAGR 17%


FY 1014P CAGR : 28%

Market Share

5% 19% 33%

28 .8 FY-05

32 .8 FY-06



12 0











Housing Finance Co. Pvt. & For eign Banks


Source: Central Statistical Organisation (CSO)

Source: CRISIL Rese arch (Loan Against Property , December 2010)

Housing loans outstanding and % of GDP (` Billion, %)

FY 11-15P CAGR : 17%

Two wheele r finance disbu rsements and finance penetration (` Billion, %)

800 600 38 0 37% 33%
FY 11-15P CAGR : 11%


12 ,363 9.1% 6,64 0

30% 478


65 7

4,765 9.0%

5,58 8

400 200 0


72 FY09 FY10 Hous ing Loans

84 FY11-P FY15-P

99 FY- 09E New 2W Sales

150 FY- 10E FY- 11P FY- 15P Finance Penetration

Hous ing loans as % of GDP

New 2W Finance

Source: CRISIL Rese arch (Update Retail Finance Housing, Feb. 2011) and CSO

Source: CRISIL Rese arch (Update Retail Finance Auto, May 2011)

Credit Quality of Bajaj Finance customers across products

Consumer Durable Loans 90+ DPD
0.40 % 0.23% 0.84% 1.30 % 0.28 % 0.41 % 0.31 % 0.58 % 0.83 % 0.49% 0.54% 0.69% 1.60 % 1.00 %

Personal Loans 90+ DPD

4.00 %

Auto Loans

Bus iness Loans

Consumer Durables Loans

Credit Cards

Home Loans

Personal Loans Bajaj Finance Banks NBFC



Bajaj Finance

Small Business Loans 90+ DPD


Mortgage and Loan Against Proper ty 90+ DPD

0.93 % 0.75 %

0.71 % 0.42% 0.08%

Bajaj Finance



Bajaj Finance




Bajaj Auto Finance Ltd. (BAFL) was incorporated as a Private Limited Company on 25th March, 1987. It became a deemed Public Limited Company by virtue of Section 43(A) of the Companies Act, 1956 w.e.f., 20th October, 1987. Initially BAFL was promoted by erstwhile Bajaj Auto Limited and Bajaj Auto Holdings Limited. Bajaj Auto Limited is the largest manufacturer of two and three wheelers in the country and Bajaj Auto Holdings Limited is an investment company and is a wholly owned subsidiary company of Bajaj Holdings & Investment Limited. As per the Scheme of Demerger of erstwhile Bajaj Auto Limited, the shareholding of Bajaj Auto Limited in BAFL has been vested with Bajaj Finserv Limited. BAFL is an NBFC registered with RBI and authorized to accept public deposits. Consequent to the re-classification of NBFCs by RBI, BAFL has been re-classified as an Asset Finance Company (Deposit Taking) . BAFL is engaged primarily in the business of financing of two wheelers, consumer durables, personal computers, personal loans etc. BAFL made a Public Issue of Equity Shares in 1994 and its Equity Shares are listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. BAFL made Preferential Issue of Equity Shares to the Promoters and a few foreign corporate bodies and also warrants to the Promoters in 2006. BAFL made a Rights Issue of Equity Shares and Non-Convertible Debentures with detachable warrants to the existing shareholders in 200607. BAFL has its headquarters at Pune and has more than 50 branches spread across the country.

Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Whee lers under the name of Bajaj Auto Finance Ltd. We off er Consumer Durable Loans, Personal Loans, Loan against Property, Small Business Loans, Construction Equipment Loans, Loan against Securities and Insurance Services under the name of Bajaj Finserv Lending. Bajaj Finserv Lending is one of the most diversified NBFCs in the market catering to mo re than 5 milli on cust omers ac ross the coun try. Apart from bei ng a well recognized organization, we pride ourselves for holding the highest credit rati ng of FAAA/Stable for any NBFC in the country today. Our product offerings include Consumer Durable Loans, Personal Loans, Loan against Pr operty, Small Business Loans, Two-wh eel er and Three -whee ler Loans, Construction Equipment Loans, Loan against Securities and Insurance Services. Our unique products fea ture across all categories and offer a compelli ng value proposition to our customers. Our strong p resence in the Indian market for over 23 years has enabled us to establish a strong foothold here and we aim to continuou sly provide our customers with premium service and exclusive benefits.


Bajaj Finserv Lending is one of the leading financiers in the market offering consumer durable loans on EMI.

Now you can easily avail a loan for products like LCD, LED, Color TV, Refrigerator, Washing Machine, Air Conditioner, Music System, Microwave etc amongst a host of other products.

Bajaj Finserv Lending consumer durable loan comes with 0% financing and with a small fee. You can apply online on our website and get an instant approval or visit a dealership to easily avail a loan. We provide on the spot approval with minimum documentation & fast processing.


F e atu r e s

Bajaj Finance, the sole organized financier in the market offering Consumer Durable loans offers you Dreams on EMI, with 0% finance options also available. CD loans are EMI loans for Consumer Durable items like Washing Machines, Refrigerators, Color TV's, LCD's etc. These CD loans come at a very reasonable pr ice, with a very simple process. You can just walk into one of our Dealer partner showrooms and avail of this facility for the item of your choice. Loans are available for amounts more than Rs.7000. Multiple Credit programs are also available to suit your fitment. Avail loans ranging from Rs. 7,000 to Rs. 5,00,000 for Washing Machines, Refrigerators, Color TVs, LCDs and other consumer durables. Apply Online or walk in to one of our Dealer Partner showrooms and get your loan approved in 15 minutes.

Benef it s

0% finance options available (for select schemes). Simple process with minimum documentation. On the spot approvals with fastest processing. Flexible repayment options. ECS clearing, reducing hassle of arranging cheques. Extended Warranty available.

Pre-approved personal loan offers for existing customers*

E l i g i b i l i t y & D o c u me n t s

E l i g ibil i t y

If you are a salaried person your age should be between 21 years to 60 years. If you are Self Employed your age should be between 21 years to 65 years.

Doc um ent s
Salaried yes Yes Yes Self Employed Yes Yes Yes

Documents required Photo Id Proof Residence proof One Cheque in case of ECS

Credit program specific documents ( Any one of the following) Credit Card front side photocopy Visiting Card & Employee Id proof Photocopy of RC book (Not applicable for vehicles registered after 2004 & commercial cars) Bajaj Finserv Lending existing loan Repayment Loan Account Number / Schedule (subject to not later than 18 months old) Yes Yes Yes Yes No Yes



Any other Bank/NBFC Repayment Schedule Salary Slip Banking Details (latest 6 months) Account Type- OD/ CC

Yes Yes Yes

Yes No Yes

F ee s & Ch a r g e s
Amount Financed Slab Upto 15000/Between Rs.15001/- & upto Rs.30,000/-* Rs.30,001/- & above OTHER CHARGES Foreclosure Charges PDC Swapping NIL Rs. 500 Cheque Bounce - Rs. 350 per cheque Late payment penalty - Rs. 150 Processing Fees Rs.499/- to Rs.599/-* Rs.599/- to Rs.699/Rs.699/- to Rs.799/-* AMOUNT

Bounce Charges

IT Product Loans


Bajaj Finance, the sole organized financier in the market offering IT Product loans, offer s you Dream Desktop/Laptop on EMI, with 0% options also available. These IT Product loans come at a very reasonable price, with a very simple process. You can just walk into one of our Dealer partner showrooms and avail of this facility for the item of your choice. PC loans are available up to 100% of the product price. Loans are available for amounts above Rs. 20000.

Benefits 0% finance options available (for select schemes). Simple process with minimum documentation. On the spot approvals with fastest processing. Flexible repayment options. ECS clearing, reducing hassle of arranging cheques. Extended Warranty available.

Eligibility & Documents


If you are a salaried person your age should be between 21 years to 60 years. If you are Self Employed your age should be between 21 years to 65 years.

Documents Salaried Yes Yes Yes Self Employed Yes Yes Yes

Documents required Photo Id Proof Residence proof 3 Cheques

Credit program specific documents ( Any one of the following) Credit Card front side photocopy Visiting Card & Employee Id proof Photocopy of RC book (Not applicable for vehicles registered after 2004 & commercial cars) Bajaj Finserv Lending existing loan Repayment Loan Account Number / Schedule (subject to not later than 18 months old) Yes Yes Yes Yes No Yes



Any other Bank/NBFC Repayment Schedule Salary Slip

Yes Yes

Yes No

Insurance Services
Bajaj Auto Finance Limited (BAFL) has tied up with Bajaj Allianz Life (part of Bajaj Group), to offer a rich bouquet of world class life insurance products to suit the financial needs of all segments of buyers through different stages of their lives. With its successful track record and its highly acclaimed standing, Bajaj Allianz Life Insurance Company (BALI C) prides on serving over 8 million Indian customers. BAFL shares BALIC's philosophy of providing insurance solutions relevant to the customer's needs.

Pr o du ct Cat egor i e s
From luxury to comfort, from indulgence to practical, from difficult to easy - we have simplified the many little joys you wish to buy for your family. Be it the top-end LCD to bring a smile on your loved ones face or that high-end home theatre for your cricket match party or even that AC you want for your little one's room - our comprehensive loans make everything easy.

TV / CTV Washing Machine Refrigerator / Fridge Microwave Oven Home Theater Systems Product Categories LCD / LED /Plasma TV Air Conditioner


Consu mer Durable Loan Home Loan Infrastructure Equipment Finance Loan Against Propert y Loan Against Securities Personal Loan Small Business Loan Two Whee ler Loan


CERDIT RATINGS: Highest Credit Rating of FAAA/Stable from CRISIL for Fixed Deposits. P1+ rating from CRISIL for Short-Term Debt Programme. AA+/Stable from CRI SIL and LAA+ from ICRA f or Long-Term Debt Programme.

We have a network of over 2,500 Bajaj Auto and consumer durable dealerships and over 63 branch offices throughout the country to cater to all the requirements of our customers. We have earned the trust and loyalty of over 50 lacs satisfied customers across the country.

Total Sale to Finance Cases at CPR Distributors, Koh E Fiza

Findings and Limitations

Findings Majority of cases happen in the evening time between 6 PM to 10 PM. Number of cases on weekends is higher than other days of the week. Most cases are for the products ranging more than Rs. 10,000.

The client base at CPR distributors Koh E Fiza is mostly of Business Profession. Repeat sale for existing customers is increasing day by day hence this holds a great scope in future. Finance demand for products at their peak sale season is very high urging for special schemes for those categories at that time. Example Air Coolers & ACs in summers and Washing Machines in Rainy Season. Customers are unclear about the documentation requirement which creates frustration among them leading to loss of sales. Incentives to the Sales Force at CPR dist. for their Finance conversions is not provided timely which is creating disinterest in them for finance.

Limitations -

Verification process in case of IT products gets delayed very often. Potential customers unaware of the the various schemes provided by Bajaj Finserv Lending. CPR Dist. Sales Executive support is low in some sections like Microvave and Air Conditioners. Initiative taken for the sale of Insurance Product (Group Suraksha Plan) is low among the Bajaj Executives.

Negative Area list needs modification.


Strengths Monopoly player in the Consumer durable finance market. Insurance Product (Group Suraksha Plan) is an incredible product also providing cross sale. 0% finance facility.

EMI Card provided for existing customer is one of a kind service. BFL has presence at all the major retail counters throughout the country. Strong network of executives with a responsible managerial hierarchy.

Weakness -

Low Control on the Payment Default by customers. Concentration needed on cross selling. Lot of dependence on the Online Support System. Customer Service and handling needs improvement.

Opportunities -

Market has a lot of growth opportunities. Consumer Finance being an untapped market holds great scope. Use the market as a good platform for cross selling.

Create a brand identity of its own, strengthening the brand Bajaj.

Opportunities in Rural market.

Opportunities available to reach the top position amongst the Finance Companies and establish itself internationally.

Threats -

New competitors entering the market with similar offerings. (HDFC, Shriram). There is always a threat of Losses due to payment defaults in such business.

Suggestions & Recommendations

Management must encourage Executives to concentrate more on Cross Selling. Finance schemes for strong seasonal sale products should be introduced. A promotional campaign must be run clarifying the benefits and offerings of BFL which would vanish the doubts about 0 % finance & 0 processing fees.

Processing fees should not be charged from the EMI card holders in the case of Consumer Durables as it will create loyalty among customers and will help build a strong customer base even before the competitors entering the market.

A single agency must be hired for the verification purpose for the entire BFL to improve the uniformity of the process. Also, there is a great need of proper control over the verification process to reduce the lag time in verification.

Bajaj Finserv Lending provides consumer credit services which are helpful for the financial stability. Financial stability is very important not only for the businesses but also for the consumers. The businesses and as well as the consumers need the stability regarding the financial matters because without the stability no one could be very innovative in the longer run. Consumer Finance market being an untapped one in India holds a great scope for progress and market capture and BFL has been exceptional in that till date.


Annual Report Bajaj Finserv Lending. FICCI Research on Consumer Finance.