FINLATICS

RESEARCH INSIGHTS:1E
BAJAJ FINANCE LIMITED

GENERAL OVERVIEW

Bajaj Finance Limited, the lending arm of Bajaj Finserv

Limited, is one of the most diversified NBFCs in the Indian
Market, catering to more than 50 million customers across
the country.
Headquartered in Pune, the company’s product offering
includes Consumer Durable Loans. Lifestyle Finance, Digital
Product Finance, Personal Loans, Loan against Property,
Small Business Loans, Wallet, Co-branded Credit Cards. Two-
wheeler and Three-wheeler Loans.
Commercial lending/SME Loans, Loan against Securities and
Rural Finance which includes Gold Loans and Vehicle
Refinancing Loans along with Fixed Deposits.
Sanjiv Bajaj is the chairman and the managing director of
Bajaj Finserv Limited, the holding group company for all the
financial service businesses of the Bajaj group, which is one
of the oldest and largest conglomerates of India.

BAJAJ FINANCE LTD SHARE HOLDINGS:

 Description No. of Shares (%)
Promoters 55.86%
Foreign Institutions 19.98%
Banks/Mutual Funds 8.4%
Financial Institutions 3.63%
General Public 9.65%

Shares

Promoters
Foreign Institutions
Banks/Mutual Funds
Financial Institutions
General Public

SWOT ANALYSIS OF BAJAJ FINANCE LTD:

 STRENGTH WEEKNESS

OPPORTUNITY THREAT

Through the SWOT analysis of bajaj finance limited we can

get a proper analysis of brand’s strength, weekness,
opportunity and threat.

 STRENGHTS:

 Strong brand name and track record: Bajaj

Group has a robust brand name and is among the oldest
business houses. Through various companies, the group
has a presence across several industries. Financial services
business has been in existence since 1987 through BAF has
a healthy mix of consumers, SME and commercial financial
segments.

 Diversified Player: Bajaj Finance has a well-

diversified range of financial services: products lending,
insurance and wealth management. Lending business
through BAF has a healthy mix of consumers, SME and
commercial finance segments.
 Large footprint: Bajaj Finance at the group level has
an existing customer base of 15m+ & presence at 1,000+
locations through its subsidiaries and also access to 550+
Bajaj Auto dealership and 1,700+ sub-dealers.

 WEAKNESS:

 Financial Inclusion: Bajaj Finance has been focusing

on the affluent segment of customers and thus does not
score very high in the objectives of financial inclusion.

 Concentrated Shareholding: It has a

concentrated shareholding structure, with
59% promoter holding-company shareholding in Bajaj
Finance, with 40%+ promoter shareholding in promoter
holding company.

 Lending to group vendors and customers:

Bajaj Finance has almost 21% of its books focused on
financing purchase of products of group of companies.
Hence it does not bode well as RBI is not comfortable with
connected lending.
 OPPORTUNITY:

 Rise in the Private Banking Sector Globally:

The financial service industry around the world is highly
regulated by the public sector authorities and their
respective central banks. With the emergence of private
sector banks, this sector is experiencing structural and
functional shifts, primarily due to the adaptation of new
technology and intensified competition, thereby benefiting
end customers.

 Advancements in Technology in the

Banking Sector: The banking industry has always
functioned based on technology. This is evident that digital
services provided by banks today are based on technology.
Bank should continue to adopt the latest technology
advances. To draw future generations, they should focus
on putting out newer banking and financial service by
using digital marketing skills.
Well, digital marketing skill include various subpart of
digital marketing such as website building, SEO, social
media marketing , e-commerce, online reputation and
many more.

 Global Opportunities for Bajaj Finserv: Bajaj

finserv is mainly focused on the Indian market, which
 needs to increase its reach outside the Indian market as
well making it gain more customer’s.

 THREATS:

 Government Policies: Government regulations can

directly affect the banking sector of a country, these
government policies might be unfavourable for bajaj
finserv.

 Global Uncertainty in the Financial

Ecosystem: The world is going through difficult
economic times at the moment. The international banking
sector has all been affected by trade wars, protectionist
policies, and economic downturns. If the world’s economic
condition do not change, the financial service industry will
face a bleak future.

 Lack of Proper Cyber Security Systems: The

current banking industry relies entirely on the cyber-world.
Whether it is data storage, monetary transactions, or
personal information, everything is stored digitally. This
makes the banking sector a primary target for hackers who
seeking for benefit financially by leveraging flaws in the
bank’s digital infrastructure. Bank’s need to take effective
cybersecurity steps to safeguard their records, they will
face a significant cyberspace threat.
 COMPETITIVE ANALYSIS OF BAJAJ FINANCE LIMITED:

ADITYA BIRLA CAPITAL: Aditya Birla Capital Limited

(ABCL) is the holding company for the financial services
businesses of the Aditya Birla Group.
ABCL’s subsidiaries have a strong presence across Protecting,
Investing and Financing solutions, ABCL is a universal
financial solutions group catering to diverse needs of its
customers across their life stages.  Powered by more than
30,500 employees, the subsidiaries of ABCL have a
nationwide reach with 1,048 branches and more than
2,00,000 agents / channel partners and several bank
partners.
As of March 31st, 2022, Aditya Birla Capital Limited manages
aggregate assets under management over Rs. 3,706 billion,
has a consolidated lending book of approx. Rs. 672 billion,
and an active customer base of over 35 million, through its
subsidiaries and joint ventures.
Aditya Birla Capital Limited is a part of the Aditya Birla Group,
in the league of Fortune 500. Anchored by an extraordinary
force of over 140,000 employees, belonging to 100
nationalities. Today, over 50% of Group revenues flow from
overseas operations that span 36 countries in North and
South America, Africa and Asia.

MUTHOOT FINANCE LIMITED: Even before the

word "ethos" had found a place in the corporate lexicon,
Muthoot Finance Ltd. had imbibed a work culture that was
based on conscience. Ever since its inception, the company
has nurtured trust as its most prominent value. We are
committed to keeping this heritage alive throughout the
generations to come. At Muthoot Finance Ltd. we are
committed to creating a balance. We believe in a simple yet
profound theory of "from excess or scanty, to
appropriateness".
A prominent example of this is our financial inclusion policy.
The company provides gold loans on extremely easy terms
and conditions to people of each segment of the society. Our
gold loan range begins from ₹ 1500 and there is no maximum
limit. Driven by the invaluable trust and commitment that
people have shown in us through centuries, we have created
a reputable market image.

MISSION:
To build leading customer-centric businesses enabled by
technology, maintaining the highest standards of corporate
governance and uncompromising values.

VISION:

Be the most trusted, globally diversified institution enriching

lives of the masses while contributing back to the society.
CONCLUSION:
HDFC Bank has provided tons of promising services to its
customers. Being a private bank, the company has earned
absolute trust from its customers and gained a huge
customer base throughout the country.

HDFC bank follows a pretty bold as well as a subtle business

model which has brought tremendous growth and
development to the bank and its services.