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Opportunities of Fund Mobilisation by Peerless in Gorakhpur

(a comparative analysis with PostOffice),

In the Partial fulfillment of the requirement for MBA Degree Programme of Utter Pradesh Technical University Lucknow Under The Guidence Of:

Vimal Tiwari (Branch Manger)

The Peerless General Finance & Investment Company
Gorakhpur Branch 416 Madhurika Enclave 2nd Floor, Opp. SBI Bank Road, Gorakhpur

Submitted By:


Roll No. 0412370013 MBA IIIrd Semester 2004 2006



1. Acknowledgent 2. Declaration 3. Company Profile 4. Company Current Profile 5. Product & scheme 6. Opportunities of Fund Mobilisation by Peerless in Gorakhpur. Part-I Part-II Part-III Part-IV 7. Findings 8. Suggestions 9. Conclusion


As a part of my curriculum in Master of Business Administration from U.P.Technical University, Lucknow through Saroj Institute of Technology and Management, Lucknow. I had gone through my project report on Opportunities of Fund Mobilisation by Peerless in Gorakhpur (a comparative analysis with PostOffice),

which would lead to develop my Managerial Skills and some sort of Marketing strategies.

Summer training is the mode of importing practical to the student. The objective is to prove deep insight in to practical aspects of the functioning of the organization. The summer training appraises the student actual function,

responsibilities and problem faced by an organization .It provides him with the knowledge of the various kinds of problems that crop up in the day today functioning of the organization, the way they are solved manager at the crucial time.

I am fortunate enough to complete my summer training at Peerless General Finace and Investment Company

Gorakhpur. This has give me an altogether new experience, which would be of immense help to me in my days to come.

(Durgesh Sharan Tripathi) M.B.A. IIIrd SEM


With a sense of gratitude I would like to express my thanks to Mr. Anil Kumar Vyas ( Senior Lecturer S.I.T.M Lko ), who guides and supported me from time to time in making this report successful one

I am heartly thankful to my H.O.D (Mechanical Engineering, SITM) Col. A.P. Pandey and all faculty members, who helped me to make this report.

Ashutosh Kumar B.Tech IIIrd Year


I Durgesh sharan tripathi student of MBA IIIrd semester SITM, Lucknw Batch 2004 2005 Roll No. 04123700013 hereby declare that summer training report topic Opportunities

of Fund Mobilisation by Peerless in Gorakhpur (A

Comparative analysis with Post Office).The out come of my won work and the
some has not been submitted to any university/institution for the award of any degree or professional diploma.

Date: Place: LUCKNOW

Durgesh Sharan Tripathi MBA IIIrd Semester SITM , LUCKNOW


The Peerless General Finance & Investment Company.

The Peerless General Finance & Investment Company Limited, popularly known as " PEERLESS " have a front ranking position in

mobilising small savings with most in mobilising small saving with almost 70% share among Residuary Non Banking Financial Companies.

Incorporated in 1932 as "The Peerless Insurance Co Ltd", a leading swadesi insurance company is now known as "The Peerless General Finance & Investment Co Ltd". Today Peerless is the market leader in the area of savings & investments and has emerged as India's largest Registered RNBC (Residuary Non-banking Company), having. A wide distribution network of 166 Service Points and 9 Regional Offices through-out India

Above 80% of its funds are invested in Govt. Approved Categories of RBI

Lacs of agents across India It's strong network and constant endeavour to offer need-based products and superior customer services have enabled Peerless build an excellent brand image.

With its core competence of mobilising savings from the grass-root level, Peerless continues to serve the nation by helping the common people to develop a habit to save and grow their savings. The company covers not only

the urban and semi-urban areas of the whole country, but it also penetrates deep into the remote, inaccessible terrains of rural India, for encouraging people of limited resources to save. This extraordinary rural penetration has gone a long way in popularising Peerless, as " a household name " in the country's domestic savings market.

Board of Directors
1 - Shri. D. N. Ghosh Chairman 2 - Shri. A.K. Chatterjee Vice Chairman

3 - Shri. S.K.Roy Managing Director 4 - Shri. S.M. Datta Director 5 - Shri. D.Basu Director 6 - Shri. A.C.Chakrabortti Director 7 - Shri.N.H.Thanawala Director 8 - Shri A. K. Chatterjee Director 9 - Shri. B. Lahiri Director ( Operations )

The change that we are looking for is a shift from a commission-driven collection-based organisation to a product-driven market-based organisation, to benefit the customers. --D N Ghosh (Chairman)

Our aim is to emerge as the country's largest financial super market in the private sector, for doorstep retail distribution of not only our own products but all kinds of financial products under one umbrella. --S K Roy (Managing Director)

History of Peerless
Over the years Peerless has emerged as India's Oldest and Largest Residuary Non-banking Company. It earned the distinction of being a household name in the area of savings and investment and ventured to mobilise savings at remote areas of India which were hitherto untapped.


(Rs. in Crores)

(Figures in Lacs)

(Rs. in Crores)

The Founder
A humble beginning... late Radhashyam Roy

The Peerless Insurance Co. Ltd. launched in 1932 by a 33-year old high school teacher, Late Radhashyam Roy, and like minded idealist friends, at Dhakas port of Narayanganj, now in Bangladesh.

Directing the nationalistic fervor of the time to business endeavor to address the insurance needs of Indians, a sector then monopolised by foreign companies.

Starting with paid up capital of Rs.300, it became a leading Provident Insurance Company, before moving to Kolkata.

Following nationalisation of life insurance in 1956, focus turned on small savings : Indias first Non-banking Finance Company

The Pioneer
Architect of modern Peerless...Late B K Roy

For the first time, the concept of doorstep service was introduced by Late B K Roy for mobilising small savings from semi-urban and rural areas, even from remote villages.

Free insurance benefit against accidental death, introduced in the year 1972 with savings schemes, to enable Indians save with confidence.

Introduced the concept of direct marketing through relationship and rural marketing by engaging agents through its Swarojgar Yojana.

Agency system designed to promote self-employment and leadership qualities among millions all over the country, while ensuring operational control of a massive infrastructure.

Peerless believes in certain philosophies in achieving its corporate objective "Excellence in Customer Service". The following strategies have been adopted towards its Investors, Employees, Agents and the platform for Service Delivery -

Offering a wide spectrum of need based Schemes along with excellence in service. Our focus is on total satisfaction of the Customer and this will continue to figure as our top most priority..

Human Resource Management

To Institutionalise Total Customer Responsiveness by : Providing flexibility by empowering people Learning from the best world class processes Adapting to change while remembering that change does not mean rejection of the past. It means relearning currently prevalent philosophy for a brighter future

Continuing to achieve our goals through active cooperation and involvement of our people who are our biggest strength. To become the benchmark of corporate teamwork

Financial Advisors

Providing excellent self-employment opportunities with ample scope of earning to countless men and women across the country. Our objective is to help them build up stable, secure, rewarding and prestigious marketing career under our Swarojgar Yojana

Information Technology
Enabling efficient and prompt service to our customers by continuously upgrading our IT service delivery platform. Adopting state-of-the-art technology across branches & service centers and progressing networking initiatives.

Investment policy
Our objective has been to provide our certificate holders a safe platform for depositing their savings and to ensure earning reasonable returns. Today, over 80% of the corpus of depositor's funds lie invested in Government Securities and other Approved Investments..... and that is our humble contribution to the national cause.

The Company's Investments have been on a path of steady & consistent growth over the years.

Whether it's saving for that holiday you've always wanted, or a hassle free life after retirement, investment guide can help you take an informed decision. The following sections explain the importance of saving and suggests good strategies on how to save, highlights of building a balanced financial portfolio,

things to consider before you make decisions to invest, what our customers say on the benefits they have experienced by investing in our financial products.

Making money is not an event or a particular action that happens or has to be done; making money is more of a process. It may appear slow and almost invisible but the process has to be religiously followed - The first step is to Save

Saving results in accumulating capital for investing. With this acquired capital you can invest in other types of more profitable investments. You should be saving 10 to 15 percent of your earnings regularly every month. Some people even manage to save 20 percent of their income.

Getting into the habit of saving is important. You and your family must save to have an emergency fund / secured future. People with fluctuating income, few job benefits, and little job security may need a larger emergency fund. Families with two wage earners may need a smaller emergency fund. As a rule it is best to have three to six months of take-home pay in a savings account, which has a good liquidity so that you can withdraw for emergencies. If you don't have an emergency fund you need to increase your savings. A payroll deduction plan into

a Savings Account or a Recurring Deposit is often the most painless way to achieve the best results. On the other hand, if you have been saving a surplus, you may want to consider using these funds for investing in a Fixed Deposit.

Budget your expenses. Let us take an example to show how saving only the price of a cup of tea and compound interest can do wonders with your money. Say you save the price of a cup of tea at Rs 1.50 each day with a good financial institute. Assuming you religiously save it every day at 4% compound interest and you do not withdraw anything you will have saved by five years Rs 4040, by fifteen years Rs. 15369 and by thirty years Rs. 42338. Saving can be easier than you think. Streamline your financial expense and make your money work for you.

Identify how much you can save. Before you can save, calculate the amount of money that you can put to saving on a regular basis without putting stress on your financial situation. You have plenty of options. You can choose between

Daily, Monthly, Half-yearly, Quarterly or Annual Recurring Deposits. Choose a convenient fixed Deposit Scheme. You can even invest a fixed amount in our Fixed Deposit saving scheme for a period ranging from One and half years to three years. What you could buy with Rs 100 five years ago certainly cannot be bought today. It is clear that if you are to cope with even a mild inflation, you must undertake investment strategies that maintain your real purchasing power; otherwise, you are doomed to an ever-decreasing standard of living. Investing requires a lot of planning, make no mistake in this regard. Romantic novels are replete with tales of great family fortunes lost through neglect or lack of knowledge on how to care for money. They had not worked to keep their money. Even if you trust all your funds to an investment adviser or a financial institution, you still have to know which adviser or which institution is most suitable to handle your money and your savings.

You have budgeted and identified an amount to save monthly. By investing, you want to put the money you saved to grow, making more money and increasing your wealth. Now you need to work out a good Financial Plan. Good investments

will make money; bad investments will cost money. Do your homework. Gather as much information as you can. Seek advice of trained financial advisors and financial institutions of repute. Read newspapers, magazines and other publications. Identify credible information sources on the Internet. Understand the risk vs expected return relationship : When you are saving and investing, the amount of expected return is based on the amount of risk you are willing to bear with your money. Generally, the higher the risk higher is the expected return. For lesser risk, an investor should expect a smaller return. For example, a deposit with a good financial institution that offers an assured return on maturity of the deposit , the "return" or "interest paid" on your savings / deposit will generally be less than the expected "return" on other types of risky avenues of investments. On the other hand, the return from investment in a capital market is not assured or guaranteed because it is subject to market risks & fluctuations. The amount invested may even be eroded if the portfolio does not perform as expected.

How much risk do you want to take? Here are some tips to consider while determining the amount of risk that best suits you.

Financial goals. How much money do you want to accumulate over a certain period of time? Your investment decisions should reflect your wealth-creation goals.

Time horizon. How long can you leave your money invested? If you will need your money in one year, you may want to take less risk than you would if you would not need your money for 20 years.

Financial risk tolerance. Are you in a financial position to invest in risky alternatives? You should take less risk if you cannot afford to lose your investment or have its value diminish.

Inflation risk. This reflects savings' and investments' sensitivity to the inflation rate. For example, while some investments such as a savings account have no risk of default, there is the risk that inflation will rise above

the interest rate on the account. If the account earns 5 percent interest, inflation must remain lower than 5 per-cent a year for you to realize a profit and "grow your wealth".

Liquidity of your investment is one of the most important factors to take into account. How easily can you access your money? Is there a facility for premature withdrawal in case of an emergency? Is the "lock in period" low or high? Is there a facility for obtaining a Loan against the Deposit to help you overcome interim financial needs without withdrawing your deposit? If so, can it be adjusted against the Maturity Proceeds? Are the loan repayment rules flexible enough? These are important questions, as uncertain future events or emergency may require you to withdraw your money prematurely or avail a loan against the deposit to overcome emergency with / without obligations of regular repayment of the loan. Other Value Added Benefits, apart from increasing the value of your investment, other benefits like Accidental Death Insurance, Critical Illness Insurance, Life Insurance . Or even Saving while Shopping, with exciting discounts at thousands of establishments across India with a 'savings card' offered by your financial institution ! These could be extra incentives that should

be considered. And above it what if these are provided to you absolutely free of cost ?

Create a well balanced portfolio A well balanced diet: meat, fruits, vegetables, grains and dairy products; leads to a healthy body and mind. Similarly your money should be spread across different types of investments in a well balanced manner to create a healthy financial portfolio. There are different types of investment products. Each brings different advantages and returns and may have other value added benefits attached with them. For example flexibility, liquidity, minimum deposit / loan amount, insurance coverage or some other special incentives e.g. Peerless Saving Card. You should know how much risk you can cope with based on your financial situation and take into consideration aspects like Term of the Deposit, Flexibility, Liquidity factors, Insurance coverage and also how easily you can withdraw the money in case of an emergency. Each type of investment will have its own strong point. Balance these different types of investment like balancing the protein, carbohydrates and fat contents in your diet.

Vast Distribution Network

Peerless has strong infrastructure and human resources consisting of employees, agents, financial advisors and a vast countrywide network of branches & service centers. Together, they constitute an invaluable asset and a rare strength. This astounding strength coupled with constant endeavour to improve customer services, has helped the Company build-up an excellent brand image.

Our Network of Offices :

Head Office & Registered Office Peerless Bhawan, 3 Esplanade East, Kolkata 700 069 Marketing / Development Office at 1, Chowringhee Square, Kolkata 700 069 166 Service Points across India. 9 Regional Offices - At Kolkata, Guwahati, New Delhi, Mumbai, Ahmedabad, Chennai, Trissur and Hyderabad, .

4 Regional Computer Centres - At New Delhi, Mumbai, Chennai and Hyderabad.

Central Data Processing Centre at 1, Chowringhee Square , Kolkata 700 069

Service Sector
Peerless has gone beyond savings & investments, expanding itself into certain other key areas in the service sector, like health-care, hospitality, financial services, housing etc. Such forays have given it an enviable Brand Image.

Subsidiaries and Connected Enterprises

Peerless Hospitex Hospital & Research Center Limited
360 Pancha Sayar, Garia, Kolkata 700 094 Dial : +91.033.24622394 Peerless Hospitex Hospital & Research Center Limited PEERLESS's foray into health-care is synergic with its corporate culture : rendering myriad forms of service to the society, and to enrich the quality of life. Attuned to this corporate philosophy, Peerless Hospitex Hospital & Research Center Limited opened up a

whole new vista of the latest and state-of-the-art, health-care facilities in this part of the subcontinent. Its 300-bed multidisciplinary, super-speciality hospital, Peerless Hospital & B.K. Roy Research Center is a marvel in health-care, with excellent diagnostic and treatment facilities in cardiology, neurology, orthopedics, ophthalmology, gastroenteritis and general surgery etc.

Peerless Hotels Ltd.

12, J L Nehru Road, Kolkata 700 013 Dial : +91.033.22280301/22280302

The Peerless Group of Hotels. A family of hotels and resorts spread across Kolkata, Durgapur, Port Blair ( Andaman ) and Mukut Manipur. Timeless traditions of Bengali culture find home in The Peerless Inn, along with modern amenities. The discerning traveler is left spellbound with our gentle etiquette. The Peerless Inn is friendly, warm and modern with an aesthetically pleasing ambience.

Peerless Securities Ltd.


Chowringhee Square, 2nd Floor, Kolkata 700 069

Dial : +91.033.22131407/1379

Peerless Securities Ltd. is amongst India's prominent names for Financial Services - Share & Stock Broking, Trade Settlements and Depository Services. A corporate member of the National Stock Exchange of India Ltd. and the Kolkata Stock Exchange Association Ltd. An agent of UTI, RBI Relief Bonds and Mutual Fund.It enjoys a high level of trust; a position further enhanced with the company joining the National Securities Deposit Ltd. as a Depository Participant.

Bengal Peerless Housing Devlopment Co. Ltd.

6/1A, Moira Street , Kolkata 700 017 Dial : +91.033.22836227/6230 The Government of West Bengal in an effort to combat the problem of Housing formed Joint Sector Companies with West Bengal Housing Board and Private Entrepreneurs. Thus Bengal Peerless Housing Development Company Limited was formed in 1994 with West Bengal Housing Board and The Peerless General Finance and Investment Company Limited.

Peerless Travel Pvt. Ltd.

6A, A.J.C. Bose Road Kolkata 700 017 Dial : +91.033.22479269/1052

Peerless Travel Pvt. Ltd. provides a whole gamut of travel related services. The Group has experienced success in a number of ventures in diverse fields, the most prominent being in the hospitality division. The travel wing is being managed by a team of professionals with several years of experience in the field of Travel trade. We are an IATA (International Air Transport Association) accredited organization and a member of TAAI (The travel agents association of India) .

Other Services
Social service is very much a part of the Company's activities. Peerless Polyclinics in various parts of Kolkata & Milan Thirtha an Old Age Home at Baranagar are some of the tangible instances of the company's continuing social commitment.

Poly Clinics
Polyclinic at 5/2 Fakir Dey Lane, Address : Dumdum, Kolkata 700012 Ph : 22378343

Peerless Diagnostic & Child Guidance Centre, Address : 223 Central

Avenue, Kolkata 700 006 Ph : 25558171

Address : 5/3A, DumDum, Kolkata 700 030 Ph : 25577115

Address : 190 Sarat Bose Road, Kolkata. Ph :24664173

Address : 4 Roy M N Chowdhury Street, Baranagar, Kolkata 700 036 Ph : 25579520

Oldage Home
Milan Tirtha, ddress : 4 Roy M N Chowdhury Street, Baranagar, Kolkata 700 036 h : 25579520

The assures full safety of money deposited with The Peerless General Finance & Investment Co. Ltd. Deposits mobilised are invested strictly in accordance with the Residuary NonBanking Companies (Reserve Bank) Directions, 1987 (RNBC). To ensure safety of your money, over 80% of our investments are presently held in Govt. approved categories, including large investments in Govt. Securities etc.

The strong Peerless Branch Network.

The company has a vast distribution network of 166 Service Centers & 9 Regional Offices across various states in India, apart from its Head Office, Marketing / Development and Centralised EDP Center at Kolkata.

Peerless schemes promise abnormally high returns.

No. Current schemes of the Company provide reasonable, competitive and assured returns during the tenure, without being affected by market fluctuations.

All the schemes are flexible

Peerless offers A Scheme For Every Dream : Our

schemes are tailor-made financial solutions to suit various Income groups as well as diverse Savings & Investment needs.

Options available for Daily, Monthly, Quarterly, Half-

yearly and Yearly recurring Deposits.

Options available for Fixed Deposits ranging from a

period of One and Half years. to three years.

Our Schemes offer safety along with attractive returns

and value added benefits.

High liquidity is available through facilities of

Prematurity Withdrawals & Loans. Adequate flexibility is built-in through easy Loans on Deposits even for shortduration schemes, with options to choose your own repayment terms.

The various value additions that Peerless provides to its Depositors .

By forging strategic alliances with market leaders, Peerless also offers the following types of value-added privileges to its Certificate-holders through its deposit schemes :

Free Accidental Death Insurance Benefit, as per


Free Critical Illness Insurance Cover, as per contract. Free Life Insurance Cover, as per contract.

Free Peerless Savings Card - for availing attractive discounts on purchases from thousands of establishments countrywide (conditions apply).

The factors make Peerless unique

Prompt Doorstep Service to depositors through a

countrywide network of 171 Service Points and lakhs of Peerless Agents / Financial Advisors.

First Company in India to pioneer the concept of

Payment Melas at convenient places, closer to customers doorsteps, facilitating prompt payment of maturity proceeds.

First Company in India to pioneer the concept of

"Designated Banker" to ensure full safety of depositor's money.

Unblemished, default-free track record of having

disbursed over Rs. 6500 Crores to more than 1.5 Crore satisfied depositors across India. Rich heritage of over 70 years; Trusted by Millions of Depositors

The other areas of activity

Peerless Hospital & B.K. Roy Research Centre An

ISO 9002 certified, multi-disciplinary super-speciality Hospital.

Peerless Polyclinics - Catering to the under-privileged

in need of medical attention.

Old-Age Home Caring for the needy Senior Citizens

of Society.

Peerless Securities- Our financial services company,

offering stock / security broking, investment advisory and depository services.

Peerless Hotels - At Kolkata, Durgapur & Andaman

Favorite attractions for Tourists as well as Business Travellers.

Bengal Peerless Housing Development Company Ltd.

- Building quality Homes, not merely Houses, in collaboration with the Govt. of West Bengal. Peerless Travels Offering excellent Travel, Tour and Leisure Packages.

Head Office & Regional Offices

Name & Address Phone No. 033 2248 3247/3001, 033 2243 6758, 033 2220 3740 Fax : 033-2248 5197 033 2248 9353, 033 2243 4828 Fax : 033-2248 9701

Head Office 'Peerless Bhavan' 3, Esplanade East, Kolkata-700 069 Development Office 1-Chowringhee Square, Kolkata - 700 069 HO/Annexe 13-A, Dacres Lane, Kolkata-700 069 Peerless Computer Centre 1 Chowringhee Square, 1st Floor Kolkata -700 069 Eastern Regional Office 13A, Dacres Lane, 1st Floor Kolkata - 700 069 North Eastern Regional Office Ulubari Chariali, G S Road, Gauhati - 781 007 Northern Regional Office

033 2248 8996/1103

033 2242 8317/8318/8319

Fax : 033-2242 0118

033 2242 1001/1564 /0809

0361 2523878/2522146

011 23346421 / 23340683

61, Regal Building (East) Connaught Place, New Delhi - 110 001

011 23744869

Western Regional Office UNIT -I World Trade Centre, Centre -I, 19th Floor Cuffe Parade Colaba Mumbai - 400 005 Western Regional Office UNIT -II Sanskrut,Old Gujrat High Court Road, Off Ashram Road, Ahemedabad - 380 009 Southern Regional Office UNIT -I Raheja Complex, 834, Anna Salai, 2nd Floor, Chennai 600 002 Southern Regional Office

022 22183291/22187334 022 22159250/22153168

079 6581247

044 28535326/28530335

0487 2323877/2323878

UNIT -II Suharsha Towers, 3rd Floor Round North, Trissur -680001 South Central Regional Office 040 1-7-143, Kancharla Towers, Golconda X Croads, Musheerabad, Hyderabad - 500 020 27617176/27617177/27602243