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Summer Internship Project Report on “TO STUDY AND ANALYZE THE TIME TO CASH PROCESS OF BAJAJ FINSERV”

Submitted in partial fulfilment of the requirements for the degree of

Post Graduate Diploma in Management (Marketing) By SIDDHARTH KUMAR (Roll No. E2M- 40) Under the guidance of DR. MAHESH MANGAONKAR

A Study Conducted for BAJAJ FINSERV LENDING

Indira School of Business Studies, Tathawade, Pune 411033 (2015-17) 1

Acknowledgement

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organization. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. Biraj Mishra for his guidance and constant supervision as well as for providing necessary information regarding the project & also for his support in completing the project. I would like to express my gratitude towards my parents & member of Indira school of Business Management for their kind co-operation and encouragement which helped me in completion of this project. I would like to express my special gratitude and thanks to my faculty and guide Dr.Mahesh Mangaonkar who guided me in this project. My thanks and an appreciation also goes to my friends in developing the project and people who have willingly helped me out with their abilities." Siddharth Kumar ISBS PGDM (marketing)

Certificate from ISBS

This is to certify that this project report titled "To study and analyze the time to cash process of Bajaj Finserv with an aim to suggest improvement to the process” is based on an original project which was conducted by Mr. Siddharth Kumar under my guidance. This finds less scope for duplication and was not submitted for the award of any degree or diploma from other university or institution.

Dr.Renu Bhargava (Director ISBS)

Date: Place :

Dr. Mahesh Mangaonkar (Indira School of Business Management)

Certificate from Company

TO WHOM IT MAY CONCERN

This is to certify that Mr. Siddharth Kumar student of Indira school of business studies, has done his Summer Training Project from 2015 on the subject of “A project to analyze the time to cash process of Bajaj Finserv with an aim to suggest improvement to the process” in our esteemed organization under). During this training period we found him sincere, well discipline & hard working during this tenure. We wish him Good Luck for the career endeavours.

Thanks & Regards,

Executive Summary The project titled “To study and analyse the time to cash process of Bajaj Finserv with an aim to suggest improvement to the process” in Pune city. The prime objective is to study about time to cash process of Bajaj Finserv and find problems in the complete process. Project mainly focused on the working method of the sales executives and what problem they faced during completing the file or preparing the file. How many days were taken by the sales executive and the sales manager to prepare and disburse the amount to the dealer and were they maintain the time to cash. This research is based on primary as well secondary data, however primary data collection was given more importance. Research has been done by primary data collection, and primary data has been collected by interacting with sales executives and sales managers, and it was constructed in a manner of getting maximum information from the sales executive. Secondary data has been collected from company annual report and database. The study was conducted based on questionnaires to collect the necessary data: question were asked and the necessary information was filled on the basis of the respondent answer. The questionnaires are in the structured form, the research study was done with the structured personal interview. This project also focuses the loan procedure and its approval by studying the cases and records of the company, which documents are necessary for approval of loan and also to show the SWOT analysis of company. Through this project, the researcher has learnt how to give a loan on consumer durable product and how to solve difficulties about the documentation. The project deals with time to cash , completing their files and getting the approval online from Bajaj server called as “Galaxies” portal and disbursement of cash to the dealer. This process helped me to better understand the loan procedure of consumer durable product at Bajaj Finserv lending and how time is important in each and every part of the process.

Table of content

CONTENT

CH. NO.

PAGE NO.

1

INTRODUCTION

9

2

INDUSTRY /COMPANY OVERVIEW

10

3

REVIEW OF LITERATURE /THEROTICAL BACKGROUND

25

4

OBJECTIVES OF THE STUDY

29

5

RESEARCH METHODOLOGY

30

6

DATA ANALYSIS

33

7

CONCLUSION

37

8

LIMITATION OF THE PROJECTS

38

9

RECOMMENDATIONS

39

List of tables

Serial no

Page no

Table no 2.1 organization chart of Bajaj Finserv

17

Table no 6.1 T2C knowledge about T2C

33

Table no 6.2

34

Table no 6.3

35

Table no 6.4

36

List of figures

Figure no

Particulars

Page no.

Figure no 2.1

Different department

13

Figure no 2.2

Organizational hierarchy

14

Figure no 2.3

Product profile of the organization

18

Figure no 6.1

T2C knowledge about T2C

33

Figure no 6.2

Reason for increase in T2C

34

Figure no 6.3

Problem regarding manpower

35

Figure no 6.4

No of member know T2C in a Team

36

1. Introduction What is the project? T2C stands for “Time to Cash” It refers to How many days (Time) taken liquidate cash to the Dealer. T2C provides a very practical framework that helps dealer to focus on the essentials start-up and that provides a guide for a number of elementary strategic Decision to take less to cash to dealer. T2C starts with Initial stage (Login) to last stage (DM) Disbursement Memo but Now T2C starts with from Invoice date to Disbursement Memo. Definition and purpose of the project T2C is the complete process of a loan application starting from the login by the FOS till the QDP happens to the dealer and the LAN is generated to the customer.

“T2C is the process of liquidation of cash time taken by the Dealers to improve working process faster through cash within the time”. T2C refers to that process which convert customer needs into cash within less time to make payment to dealer is known as Time to cash. Scope of the Project: 

To reduce the process of time to cash at different counters of bajaj finserv during a fixed period of time.

. 1.4 Salient Contributions of the project  

Provided service as an intern for 60 days Helped in reducing many counters by working with themHelped sales executive to understand the importance of time to cash.

Outline of the project 

The project was to reduce the time to cash at different counters of Bajaj Finserv.

 The main work was to reduce the process to time to cash within 5 days.  There were different problems due to which the time to cash increased in different counters.  Visiting the stores and observing and finding the stores and finding out the reason for increase in T2C.

2.

Company Profile

Do whatever you think best, but be best at whatever you do Rahul Bajaj, chairman - Bajaj group What started off as a sugar manufacturing factory in 1931 has grown to become one of the country’s largest business houses. with activities that encompass a whole range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. At the turn of the new millennium, this business conglomerate is ranked amongst one of the largest business family in India by the centre for monitoring Indian economy (cmie). It has under its umbrella over 25 companies and strength of over 25000 employees. It’s core strength, however, is the unshakeable foundation based on its tradition of trust Bajaj finserv was formed in April 2007 as a result of its demerger from Bajaj auto limited to further the group’s interests in financial services. This demerger enabled Bajaj finserv to independently run the core businesses of lending, insurance and wealth advisory. Bajaj finserv limited is the holding company for the financial services businesses of the Bajaj group. Its insurance joint ventures with Allianz se, Germany namely Bajaj Allianz Life Insurance Company limited and Bajaj Allianz general insurance company limited are engaged in life and general insurance business respectively. Its subsidiary Bajaj finance limited is a nonbanking finance company engaged in consumer finance, sme finance and commercial lending and wealth management. At Bajaj finserv, we operate with a simple philosophy of never settling for good, and always aiming for great. Our wide and growing portfolio of products across lending, insurance and wealth advisory bears testimony to this belief. FINANCE Bajaj Finance Limited is the consumer finance lending arm of Bajaj Finserv Limited. It is the most diversified non-bank in the country, the largest financier of consumer durables in India and one of the most profitable firms in the category INSURANCE Bajaj Finserv Limited forayed into insurance through a joint venture with Allianz SE, Germany, and formed Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited. Allianz SE has over 119 years of financial experience and is present in over 70 countries around the world.

WEALTH Bajaj Finserv Wealth Management provides simple and effective long term financial planning concepts and tools for assisting our customers in making informed decisions for their saving and investment needs HISTORY OF BAJAJ FINSERV LTD BAJAJ FOUNDING FATHER

Shri Jamnalal Bajaj (4 November 1889 – 11 February 1942) was an industrialist, a philanthropist, and freedom fighter. He was a close associate and follower of Mahatma Gandhi who is known to have adopted him as his fifth son. He founded the Bajaj Group of companies in 1926 which now has 24 companies, including 6 listed ones. Shri Jamnalal Bajaj was born into a poor Marwari family, the third son of Kaniram and Birdibai, and was later adopted as a grandson by Seth Bachhraj and his wife Sadibai Bachhraj, a rich Rajasthani merchant couple of Wardha. Under the guidance of Seth Bachhraj, Jamnalalji got involved in the family and acquired the know-how of being a tradesman - keeping strict accounts and buying and selling commodities - excelling in his work by the time Seth Bachhraj expired. In 1926 he founded what would become the Bajaj group of industries. During the First World War, the British government appointed Jamnalal an honorary magistrate. When he provided money for the war fund, they conferred on him the title of Rai Bahadur, a title he later surrendered during the non-co-operation movement of 1921. Upon Gandhiji's return from South Africa, Jamnalalji took an interest in Gandhiji's way of life, his principles, such as Ahimsa (non-violence), and his dedication to the poor. He could understand Gandhi's vision that home-made goods were the answer to India's poverty and strongly advocated that cause while touring the length and breadth of India promoting Khadi.

In 1920, Jamnalalji was elected chairman of the reception committee for the Nagpur session of the Indian National Congress. He gave up the title of Rai Bahadur conferred on him by the British government, and joined the non-co-operation movement in 1921. Later, in 1923, he participated in the flag Satyagraha, defying a ban on flying the national flag in Nagpur, and was detained by British forces. This earned him national admiration. He was later elected a member of the Congress Working Committee and as the treasurer of Congress in 1933.

With the intent of eradicating untouchability, he fought the non-admission of Harijans into Hindu temples in his home town of Wardha. Amidst strong objections, he opened his own family temple, the Laxmi Narayan Mandir, in Wardha, for the Harijans in 1928. This was the first temple in India to do so. Jamnalalji dedicated much of his wealth to the poor. He felt this inherited wealth was a sacred trust to be used for the benefit of the people. This was in line with the trusteeship concept proposed by Gandhi. That he was treasurer of the Indian National Congress for more than 20 years despite having just 4 years of formal education, is an insight into the mind of a man who knew no limits Structure of Bajaj Finserv S.NO.

SECTORS

PRODUCTS

1

Consumer Durable

2

FINANCE SERVICES Insurance

3

Life Insurance

Bajaj Allianz life insurance

4

Wealth Management

5 6

Asset Management Lifestyle

Financial planning concept and tools for assisting our customers for their saving and investment needs Fixed asset and Current Asset Loans on apparels

Allianz SE, Germany,

Vision and Mission of the Organization: Vision: Bajaj Finserv has a vision to become a full-fledged financial services company and be the financial partner to the Indian consumer and help him across his financial needs, whether for finance, for investment management, for protection or for post-retirement support, throughout his lifecycle. Mission: Bajaj Finserv aims to be the most useful, reliable and efficient provider of Financial Services. It is our continuous endeavour to be a trustworthy advisor to our clients, helping them achieve their financial goals.

Objective of the Organization: Our main objects as contained in our Memorandum of Association include: 1. To Finance industrial by way advance ,deposit or lend money, securities and propertied or with any Company, Body corporate, trust, firm, person or association whether falling under the same management or otherwise, with or without security and on such terms as may be determined from time to time, and to carry on and undertake the business of finance and investment and to provide venture capital, seed capital, loan capital and to participate in equity preference share capital or to give guarantees on behalf of the company in the matter and to promote companies engaged in industrial and trading business and to act as Financial Consultants, Management Consultants, Brokers, Dealers, Agents and to carry on the business of share broking, money broking ,exchange broking, bill broking and general brokers for shares ,debentures, debenture-stock, bonds, units, obligations, securities ,commodities, bullion currencies and to manage the funds of any person, firm, body corporate or trust by investment in various avenues like Growth Fund, income fund, risk fund, tax exempt funds, pension /superannuation funds and to pass on the benefits of portfolio investments to the investor as dividends, bonus, interest, etc. To carry on the business as an investment company and to underwrite, sub-underwrite, to investigating , and acquire by gift or otherwise and hold, sell, buy or otherwise deal in shares debentures, debentures-stocks, bond, units, obligations and securities issued or guaranteed by Indian or Foreign Governments, States, Dominions, Sovereign

2.2.4 Organization structure Figure No. 2.1: Different Departments

Departments

Administration

Credit Team

Collections

Marketing

Human Resources

Product

Operations 13

Sales

: Organization Hierarchy: A key issue in accomplishing the goals identified in the planning process is structuring the work of organization. Organizations are group of people, with ideas and resources working toward common goals. The purpose of the organizing function is to make the best use of the organizations resources to achieve organizational goals. Organizational Structure is the formal decisions making framework by which job tasks are divided, grouped and coordinated. Formalization is an important aspect of structure. It is the extent to which the unit of organization is explicitly defined and its policies, procedures and goals are clearly stated. It is the official organizational structure conceived and built by top management. The formal organization can be seen and represented in chart form. An organization chart displays the organizational structure and shows job titles, lines of authority and relationship between departments. Organizational Structure allows the expressed allocation of responsibilities for different functions and processes to different entities. Ordinary description of such entities is as branch site, department, work group and single group of people. Figure No.2.2 Organizational Hierarchy

Rahul Bajaj [Chairman]

Nanoo Pamnani [Vice-Chairman]

Rajeev Jain [Ceo]

Rakesh Bhat [Coo]

Devang Mody [President Consumer Business]

14

Deepak Reddy [Chief Human Resources]

Manev Mianwal [Group Marketing Head]

Pankaj Thadan [Chief Compliance Officer]

Amit Gainda Business Head - Mortgages

Rajesh K [Chief Risk Officer]

Ashish Panchal [Business Head - Credit Cards & Loan]

Diwakar Pundir [Chief Credit Officer]

Ashish Sapra [Business Head - Cross Sell]

Amit Raghuvanshi [Business Head - Sales Finance] 15

Atul Jain [Chief Collections Officer]

Samir Mehta [Business Head Commercial

B. Sreenivas [Business Head - Insurance

Vivek r. Likhite [group corporate audit head]

M M Muralidharan [Treasurer]

Deepak Bagati [Business Head - Business Loans]

Samir Satyam [BH - Loan Against Securities]

Sanjeevvij [BH - Construction Equipment]

16

Table No.2.1: Organization Chart of Bajaj Finserv: Name

Designation

Rahul Bajaj

Chairman

Nanoo Pamnani

Vice-chairman

Madhur Bajaj

Major director

Rajiv Bajaj

Director

Sanjiv Bajaj

Non-executive director

D.S.Mehta

Major director

D.J.Balajirao

Director

Dipak Poddar

Director

Ranjan Sanghi

Director

Rajendra Lakhotia

Director

Omkar Goswami

Director

2: Product Profile of the Organization: Bajaj Finserv Lending offers loans for various needs. We offer loans for Bajaj Auto Two Wheelers under the name of Bajaj Auto Finance Ltd. We offer 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 more than 5 million customers across the country. Apart from being a well-recognized organization,

they pride us for holding the highest credit rating of FAAA/Stable for any NBFC in the country today. The product offerings include Consumer Durable Loans, Perso...