Summer Training Report

On

COMPARISON OF THE PRODUCTS OF MAHINDRA &MAHINDRA FINANCE

SERVICES LIMITED WITH SHRIRAM FORTUNE SOLUTIONS

COMPANY

SUBMITTED BY-

MUKESH KUMAR

CLASS-MBA 2nd Year

ROLL NO.-2530

UNIVERSITY SCHOOL OF BUSINESS STUDIES

PUNJABI UNIVERSITY, TALWANDI SABO

INDEX

Contents Page

Certificate of Authentification ………………………………...

Acknowledgement ……………………………………………

Preface ……………………………………………………. ..

Declaration……………………………………………………

1. Introduction ………………………………………………

Company profile About MMFLS Mission and vision

2. Review and literature………………………………………

History of the company

3. Company products range…………………………………..

Product range of MMFLS Strengths of the company

5. Fixed deposit analysis of MMFLS …………………………

Brief about the project Meaning of fixed deposit Benefits & Rules Rate of interest Objectives of fixer deposit

5. Market Strategy

Types of strategy List of Companies Documentation Brokers in Ludhiana city

6.Introduction about Sriram finance company

Comparison of MMFSL & SRFC LTD.

7. Findings …………………………………………………...

8. Limitations ………………………………………………...

9. Suggestions ………………………………………………. .

10. Conclusion………………………………………………… 11. Bibliography………………………………………………..

12. Questioner …………………………………………………

CERTIFICATE OF AUTHENTIFICATION

ACKNOWLEDGEMENT

With profound gratitude and resilience, I would like to thank management of Mahindra & Mahindra Financial Service Ltd. For giving me a dignified opportunity to carry out my summer training at their company for 6 weeks from 1st june to 30th july at Ludhiana.

I express my sincere gratitude to Mr. Manu Sharma (Sr .General Manager) for allowing us to do our Summer Training in their esteemed organization.

I express my thankful words to Mr. SachinBhaskar (MMFLS FD broker) and Mr. Samar Dev Singh Our Training In charge at Mahindra & Mahindra Financial Service Ltd. for his valuable guidance and elderly support that helped me to accomplish my task as per directions. I learned a lot from him.

I am also thankful to Mrs. Narinderkaur H.O.D. MBA for his guidance for the training. I would also like to thank the faculty of MBA department for their guidance throughout the training.

I am also thankful to all of the employees of Mahindra & Mahindra Financial Service Ltd. Ludhiana For their cooperation during the training period.

In the end I would like to thank my parents for everything they have done for me.

PREFACE

Training is a crucial part of learning, and so it plays an important role in course of

management studies. Without training, all the theory material studied in the classes goes

waste as one isn’t able to establish relationship between the latest innovations and

changes in the industry. So in the other words, training helps in strengthening our basics

of management. It also helps us in making the best use of our management studies, and

introducing us to the latest advancements.

I did my summer training at Mahindra finance ltd. with their dealer at Ludhiana

city. It has been a very enlightening experience. It helped me to clear my basic concepts

of management studies. This company deals in the fixed deposit, mutual funds, loans etc.

Although it is a medium scale company, but still it has a high annual turnover. It

provides good working conditions and a friendly environment which leads to increase the

rate of efficiency and output.

DECLARATION

I, Mukeshkumar, hereby declare that this project titled “Perception of customers for finance companies towards fixed deposit “in “MAHINDRA & MAHINDRA FINANCE SERVICE LTD.(Ludhiana).” is based on live project study conducted by me under the guidance of MR.SACHIN BHASKAR. This project has not been submitted earlier for the award of any other degree/diploma to any other institute or university.

Place: LUDHIANA

Dated:

MUKESH KUMAR

COMPANY PROFILE

The Mahindra Group is among the top ten industrial houses in India and is the only Indian

company among the top three tractor manufacturers in the world. The Mahindra group has, over

the years, established a significant presence in all the crucial sectors of the Indian economy.

Consistently setting new standards, it is now considered to be one of the key performers of the

country.

The company was originally set up in 1945 as Mahindra & Mohammed. Later, after the partition

of India, Ghulam Mohammad returned to Pakistan and became the nation's first finance minister.

Hence the name was changed from Mahindra & Mohammed to Mahindra & Mahindra in 1948.

While retaining its core values of introducing rural India to technological advancements, the

company has steadily transformed itself into a group that caters to the Indian and overseas

markets with a presence in various business sectors : automotive industry, agribusiness,

aerospace components, consulting services, defense, energy, financial services, industrial

equipment, logistics, real estate, retail, steel and two wheelers.

Steered by Chairman Keshub Mahindra and Managing Director Anand Mahindra, Mahindra &

Mahindra has constantly grown in size and stature and evolved into a group that occupies

premier position in almost all the sectors in which they operate. Making state-of-the-art

technology an accessible and affordable commodity is what takes the company from strength to

strength with every passing year. With over 64 years of manufacturing experience, the Mahindra

Group has built a strong base in technology, engineering, marketing and distribution which are

vital to its evolution as a customer-centric organization. The group employs over 144,000 people

in over 100 countries and has several state-of-the-art facilities in India and overseas. In 2011,

Mahindra featured on the Forbes Global 2000 list, a listing of the biggest and most powerful

listed companies in the world. Dun & Bradstreet also ranked Mahindra at No. 1 in the

automobile sector in its list of India's Top 500 Companies. In 2010, Mahindra featured in the

Credit Suisse Great Brands of Tomorrow. In 2011, Mahindra acquired a majority stake in

Korea's SsangYong Motor Company.

Mahindra & Mahindra Finance Services Limited (MMFSL) is a finance company based in India. It is among the top 500 Indian companies by market capitalisation. MMFSL is focused on providing financing for Utility Vehicles (UVs), Tractors, Commercial Vehicles, Used Vehicles and Cars in the rural and semi-urban sectors. MMFSL is a subsidiary of Mahindra & Mahindra Limited, a leading tractor and UV manufacturer with more than 60 years’ experience in the Indian market. Mahindra Finance has a presence spread over 600+ locations across India.

SCOPE

The study has been conducted in LUDHIANA city of Punjab.

MAHINDRA AND MAHINDRA FINANCIAL SERVICES PRIVATE

LIMITED(MMFSL).

There are thousands of NBFCs in India and Mahindra Finance is among the top 4 of these

companies.

Mahindra and Mahindra Financial Services Limited is one of India’s leading non-banking

finance companies. Through a vast network of branches, we provide personalized finance for the

widest range of utility vehicles, tractors and cars, focusing on the rural and semi-urban sector.

MMFSL’s rural financing is considered as the cornerstone of poverty reduction, rural

development and inclusive growth in many parts of the country. With a majority of our country’s

population living in rural India, our loans to over 20,00,000 customers belonging to the low

income groups have proved to be a catalyst in helping rural India surge ahead in a big way.

Our unique business model is socially inclusive as we help customers who are at the bottom of

the income or social pyramids to grow by providing them loans based on their future earning

capacities. It is also our continuous endeavor to develop skill sets at the local level. We currently

provide employment to over 8700 people who belong to the areas in which we serve, ensuring

that our employees truly understand their customers.

Since 1945, we, at the Mahindra Group, have remained and will continue to remain partners in

the progress of rural India, through both growth and turbulence. We salute the spirit of every

Indian living off the land and move ahead, trying to understand the financial needs of rural India

and tapping into this vast market of unbounded opportunities.

Our goal is to be the preferred provider of retail financing services in the rural and semi-urban

areas of India, while our strategy is to provide a range of financial products and services to our

customers through our nationwide distribution network.

For the fiscal ended 31 March 2011, Mahindra Finance recorded a standalone net profit of

463.10Croreagainst 342.70Crore in FY10-11. In the same period, Mahindra Finance’s

consolidated net profit stood at 493.66Crore compared to 356.09 Crore. Over the five quarters

preceding June 2011, Mahindra Finance reported an average growth in revenues and operating

profit of 27% and 49%, respectively. Its average operating margin is 36% and return on net

worth is 19%. MMFSL has moved from a single product company to multiple product company

as on 2011. During FY2011, MMFSL has achieved around 60% growth. MMFSL's current thrust

would be in commercial vehicle, construction equipment and second hand vehicle financing.

VISION

To be a leading financial service provider in semi urban and rural India and to continue to retain

leadership position for Mahindra products.

MISSION

To be “The Next Place To Work”

Also to be recognized as the premier provider of financial services on the basis ot its contribution

to sale of Mahindra range of vehicles.

To specialize in financing products based on applications and build on the competence

developed in its focus areas, i.e. to target all the segments of vehicle financing and deploy skills

acquired through an in-depth understanding of the chosen product market. As M & M is its most

favored customer, to provide products and services tailored to meet the needs of M&M

HISTORY OF THE COMPANY

Mahindra & Mahindra Ltd is an India-based company. The company operates in nine segments:

automotive segment comprises of sales of automobiles, spare parts and related services; farm

equipment segment comprises of sales of tractors, spare parts and related services; information

technology (IT) services comprises of services rendered for IT and telecom; financial services

comprise of services relating to financing, leasing and hire purchase of automobiles and tractors;

steel trading and processing comprises of trading and processing of steel; infrastructure comprise

of operating of commercial complexes, project management and development; hospitality

segment comprises of sale of timeshare; Stitch segment comprises of automotive components

and other related products and services, and its others segment comprise of logistics, after-

market, two wheelers and investment. Mahindra & Mahindra Ltd was incorporated on October 2,

1945 with the name Mahindra & Mohammed Ltd. The company was renamed as Mahindra &

Mahindra Ltd in the year 1948. The steel trading business was commenced in association with

suppliers in UK. In the year 1950, the company commenced the first business with Mitsubishi

Corporation and 5000 tons of wagon building plates from Yawata Iron & Steel were supplied. In

the year 1953 Otis Elevator Company (India) was established. A joint venture was made with

Rubery Owen & Company Limited, UK and established a company under the name of Mahindra

Owen. The company's Machine Tools Division was commenced its operations in the year 1958.

In the year 1960, Mahindra Sintered Products Limited was established based on a joint venture

with Bir Field (GKN Group, UK). In the year 1962, Mahindra Ugine Steel Company was

established as a joint venture between the company and UgineKuhlmann, France. In the year

1963, International Tractor Company of India was established as a joint venture with

International Harvester Company, USA. In the year 1965, the company entered into light

commercial vehicles segment. They established Vickers Sperry of India Ltd, a joint venture with

Sperry Rand Corporation, USA. In the year 1969, the company entered the world market with

export of utility vehicles and spare parts. In the year 1977, International Tractor Company of

India merged with the company and became its Tractor Division. In the year 1982, Mahindra

brand of tractors were launched and also became the market leader in the Indian tractor market.

In February 19, 1991 Maxi Motors Financial Services Limited received certificate of

commencement of business on Its name was changed to Mahindra & Mahindra Financial

Services Limited on November 3, 1992. It is registered with the Reserve Bank of India as an

NBFC. The Company is having a valid Certificate of Registration No. 13.00996 issued by the

Reserve Bank of India under section 45-IA of the Reserve Bank of India Act, 1934 classifying it

as an ‘Asset Finance Company – Deposit Taking’.

In the year 1991, the company introduced commander range of vehicles in the market. Also,

they established Mahindra Financial Services Ltd as a wholesale fund provider. In the year 1995,

Mahindra Holding & Finance Limited became a subsidiary of the company to carry out business

as an investment company. The company made a technical collaboration with Mitsubishi /

Samcor to manufacture the Mitsubishi L300. In the year 1996, Mahindra Ford India Limited was

established, a joint venture with Ford Motor Company, USA, to manufacture passenger cars. In

the year 1999, the company acquired a major stake in Gujarat Tractors and renamed it Mahindra

Gujarat Tractors Ltd. Also, Mahindra & Mahindra Financial Services Ltd became a subsidiary of

the company. In the year 2000, the company set up their first satellite tractor plant at Rudrapur.

They launched a new age tractor, Mahindra Arjun 605 DI (60 HP) in the market. Also, they

launched Bolero GLX (a utility vehicle) launched in response to the needs of urban consumers.

In the year 2001, the company launched Champion, a 3-wheeler diesel vehicle. They launched

Mahindra MaXX, a multi-utility vehicle positioned with the caption 'Maximum Space,

Maximum Comfort'. They made a tie up with Renault for Petrol Engines. In the year 2002, the

company launched Scorpio, a new generation, world-class sports utility vehicle. In the year

2003, they launched Invader, a sporty open top vehicle and MaXXPik Up. They set up second

tractor assembly plant in USA. They ventured into Industrial engine business. Also, they

launched India's first Turbo tractor, Mahindra Sarpanch 595 DI Super Turbo. In the year 2004,

the company launched Bolero and Scorpio in Latin American, Middle East and South African

markets. They signed anMoU to enter into joint venture with Jiangling Motor Company Group

(JMCG) of China, to acquire tractor manufacturing assets from Jiangling Tractor Company, a

subsidiary of Jiangling Motor Company Group. In the year 2005, the company acquired 51%

stake in SAR Transmission Private Limited, a company engaged in manufacture of gears and

transmission shafts. The company became the became the first Indian auto manufacturer to

launch the Common Rail Diesel Engine (CRDe), offering it in the Scorpio. They acquired 80%

stake in the joint venture with Jingling Motors i.e. in Mahindra (China) Tractor Company. They

established Mahindra Renault Ltd, a joint venture with Renault to manufacture and market

Logan, a mid-sized sedan, in India. Also, they established Mahindra International Ltd, a joint

venture with International Truck and Engine Corporation to manufacture trucks & buses in India.

In the year 2006, the company acquired the Stokes Group of UK, the largest automotive forgings

company in the UK. They launched the Scorpio V-series. In July 2007, the company launched

the Mahindra Pik-Up (double cab) in Chile. In November 1, 2007, a wholly owned affiliate of

Navistar International Corporation signed a joint venture agreement with the company to

produce diesel engines for medium and heavy commercial trucks and buses in India. In the year

2008, the company introduced Fuel Smart system in Bolero and Scorpio SUVs. They entered

into JV with TMI Pacific in Australia. In the year 2009, the company launched Xylo. Also, they

launched New, Mighty Muscular Scorpio in the market. During the year 2009-10, the company

hived off Mahindra Defense Systems Division into a wholly owned subsidiary, Mahindra

Defense Land Systems Pvt Ltd (now rechristened as Defense Land Systems India Pvt Ltd) with

effect from July 1, 2009. Also, the company signed a joint venture agreement on November 30,

2009 with BAE Systems Plc. to form a 74:26 Joint Venture for defence land systems products.

The company divested 46.66% of the equity share capital in Mahindra Gears & Transmissions

Pvt Ltd in favour of ICICI Venture Fund. As per the scheme of arrangement between the

company and Mahindra Shubhlabh Services Ltd, the Agri Inputs Business of along with other

common assets and liabilities of MSSL was de-merged and transferred into the company. During

the year 2010-11, the company acquired SYMC, a premier manufacturer of sports utility vehicles

and recreational vehicles in Korea. Also, the company acquired 38% of the paid-up equity share

capital through a Preferential Allotment in EPC Industry' Ltd (EPC), a company listed on the

Bombay Stock Exchange Limited. In February, 2010, the company had launched Maxximo in a

very competitive small 4-wheeler cargo segment (0.75 Ton). In June 2011, Bristlecone

International AG became a subsidiary of the company. Today, the company's operations span 18

key industries that form the foundation of every modern economy: aerospace, aftermarket,

agribusiness, automotive, components, construction equipment, consulting services, defense,

energy, farm equipment, finance and insurance, industrial equipment, information technology,

leisure and hospitality, logistics, real estate, retail, and two wheelers

PRODUCT RANGE OF MAHINDRA FINANCE

With an extensive range of products and services, we at Mahindra Finance, make sure that

there’s something that suits everyone’s needs. Our products and services are considered

instrumental in the rapid development of rural as well as semi-urban India.

Here’s a list of products and services offered by MMFSL:

Tractor

LoansCar

LoansTwo-Whee

ler Loans

Three-

Wheeler

Loans

RefinanceCommercial Vehicl

e Loans

Construction EquipmentsHome Loans

Investment Advisory

Services -

Mutual

Fund Distribution

Personal

LoansInsuranceFixed

Deposits

Utility Vehicles:

Our attractive schemes for multi-utility vehicles have helped many entrepreneurs to transform

their dreams into reality. We provide finance for the entire range of Mahindra Utility Vehicles

and also provide trade advance facilities for dealers.

Tractor Loans:

With the majority of our country’s population engaged in farming and agriculture, our farm

equipment loans have proven to be a major catalyst in helping rural India surge ahead. The

widest range of tractors of the Mahindra, Swaraj& Shakti man brands is financed by our highly

customized loans.

Car Loans:

We are the preferred financier for M&M as well as all other small car manufactures in the

country— Hindustan Motors, Hyundai, General Motors, MarutiUdyog Limited. The loan

obtaining process ensures maximum flexibility, minimum paperwork and highly customized

loans to suit our customers’ needs.

Two-Wheeler Loans:

For a wide range of two-wheelers which include motorbikes, mopeds, scooters or scooterettes,

we make sure that our customers are offered speedy loans with flexible repayment options. We

also provide loans to women customers at special rates and offer fast approvals for the same.

Three-Wheeler Loans:

Our customized financial options and quick process of sanctioning a loan makes acquiring a new

three-wheeler easier than ever before. A wide range of Mahindra three-wheelers are financed

with flexible repayment options and minimal documentation.

Refinance:

We provide fast and easy financial options to purchase used cars, utility vehicles, commercial

vehicles and tractors. We also provide expedient loans against an existing car, utility vehicle and

other commercial vehicles.

Commercial Vehicle Loans:

At Mahindra Finance, we also provide commercial vehicles and construction equipment loans.

Commercial vehicles include trucks, buses, tippers, excavators, light commercial vehicles and

more. We fund new vehicles as well as old ones and even top-up existing loans.

Construction Equipment:

Customers in need of construction equipment can avail of our range of flexible loans, and simple

loan process. We also extend financial assistance for buying second hand commercial vehicles.

Home Loans:

Mahindra Rural Housing Finance, a subsidiary of MMFSL, provides cost effective and flexible

home loans to a wide base of customers and semi-urban India. Loans are provided for home

construction, purchase, extension and improvement.

Investment Advisory Services - Mutual Fund Distribution

Our investment advisory services help customers invest their money in equity through different

Mutual Fund Schemes. We assure our client’s high returns by identifying products compatible

with their appetite for risk and best suited for their needs.

Personal Loans:

Now customers will never have to worry about that extra amount needed to fulfill all their needs.

Be it Marriage related expenses, Children’s higher education, Medical treatment, Agricultural

needs or just a temporary requirement of money.

Insurance:

Mahindra Insurance Brokers Ltd., a subsidiary of MMFSL, provides comprehensive Insurance

solutions that are highly customised to give you the most suitable options that fit your

requirements. MIBL undertakes direct insurance broking business, both in the Life and Non-Life

insurance segments with a focus on Retail and Commercial lines of businesses.

Introduction about topic

Fixed Deposit Meaning:

The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as fixed (Term) Deposit Account. The term ‘fixed deposit’ means that the deposit is fixed is repayable only after a specific period is over . Under fixed deposit account , money is deposited for fixed period say six months , one year , five year or even ten year . The money deposited in this account can not be withdrawn before the expiry of period. The rate of interest paid for fixed deposit vary (changes) according to amount, period and from bank to bank

.

Fixed Deposit Account - Bank

The account which is opened for a particular fixed period (time) by depositing particular amount (money) is known as Fixed (Term) Deposit Account.The term 'fixed deposit' means that the deposit is fixed and is repayable only after a specific period is over.

Under fixed deposit account, money is deposited for a fixed period say six months, one year, five years or even ten years. The money deposited in this account cannot be withdrawn before the expiry of period.The rate of interest paid for fixed deposit vary (changes) according to amount, period and from bank to bank.

The main features of fixed deposit account are as follows:-

1. The main purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds (extra money).

2. The amount can be deposited only once. For further such deposits, separate accounts need to be opened.

3. The period of fixed deposits range between 15 days to 10 years.4. A high interest rate is paid on fixed deposits. The rate of interest may vary as per amount, period

and from bank to bank.5. Withdrawals are not allowed. However, in case of emergency, banks allow to close the fixed

account prior to maturity date. In such cases, the bank deducts 1% (deduction percentage many vary) from the interest payable as on that date.

6. The depositor is given a fixed deposit receipt, which depositor has to produce at the time of maturity. The deposit can be renewed for a further period.

Benefits of Fixed Deposit Account

The advantages of fixed deposit account are as follows:-

1. Fixed deposit encourages savings habit for a longer period of time..2. Fixed deposit account enables the depositor to earn a high interest rate.3. The depositor can get loan facility from the bank.4. On maturity the amount can be used to make purchases of assets.5. The bank can get the funds for a longer period of time.6. The bank can lend such funds for short term loans to businessmen.7. Fixed deposits indirectly boost economic development of the country.8. The bank can also invest such funds in profitable areas.

A fixed deposit is an excellent way for an investor to make money with minimum risk. If you choose the right bank and the right term deposit, you can make a profit without losing your principal.

Here are the 6 important things to look before investing in a fixed deposit.

1. The Importance of a Bank’s Reputation

A Bank can promise anything. But without a reputation to back up such promises, you are taking a risk by investing in such a bank. So investigate a bank’s reputation and the products they offer.

Compare the interest rates of different banks and research about the consistency of the banks in delivering the interest rates. And most important of all, investigate if the bank is solvent.

To protect yourself, make sure that the deposits are insured by the Deposit Insurance and Credit Guarantee Corporation.

2. Interest Rates

We know that interest rates are boring. But make sure you understand it thoroughly before investing. There are two types of interest rates called the simple and compound interest.

Simple interest means you only apply interest to the principal. Compound interest means interest is also earned on the interest received and is compounded with principal at regular intervals.

The deposits that are compounded daily are the most beneficial for the investor. To maximize your investment, go for the fixed deposits offering compound interest.

3. Length of Commitment

Generally speaking, the longer you agree to invest your money in a Fixed Deposit, the greater the interest rate offered. But don’t get excited too soon, there is a downside to a long term commitment and, like everything else in life, an upside as well.

The interest rate for five years might be really nice in today’s market but, two years from now, it might be miserable. You will be stuck for three more years.

On the contrary, in two years, the interest rate you capture today might be even more worthwhile. Banks offer competitive rates. You have to make the decision based on your crystal ball. Remember the bank is facing the same gamble. The difference is, they have many expert advisers and a lot more experience, and so make sure you do your homework.

4. Potential Fees

The bank is in the business to make money, so make sure you keep a magnifying glass in hand to check the hidden fees in their application forms.

One of the easiest ways banks make money is by charging fees. In the case of a Fixed Deposit, the fee to fear the most is the one charged for early withdrawal. That is why it is essential that you make sure you won’t have to withdraw the money before maturity. Staggering your FD investments is a way to minimize this risk.

5. Loan Availability

Should your crystal ball prove to be cloudy, and you find yourself in need of money before the FD matures, don’t panic.If you have selected a product that can be borrowed against, it will make life easier. Instead of losing the interest you have earned, especially if you are nearing the end of the term, you will only have to pay the interest on the loan for the length of time you have it.Because the bank doesn’t want to annoy you too much, the interest rate for a loan under these circumstances is usually better than average.

6. Tax Benefits

If you give too much of what you earn to the Income tax department, FDs might not be as beneficial as you would like.

For instance, any interest received from a fixed deposit is treated as income by Indian income tax department. Depending on the overall income you make in a financial year, you might need to pay income tax around 0%-30% on this interest depending up on the tax slab you are in.

Fortunately, there are some fixed deposits that offers tax breaks if you invest in them for more than 5 years. So, pick such type of FDs to invest.

Before you make any decision, take the time to make sure you are doing the best for yourself. Establishing a positive relationship with a bank puts you in a better position to negotiate, so learn everything you can before signing on that dotted line

Putting your money in a fixed deposit is a form of investment, as it brings in returns in the form of interests. The returns may be small compared to some of the other options, but the risks are low. Deposits accepted by banks for a specified period of time are called time deposits.

Here are 8 things you must understand before you open a fixed deposit.

Points to Note

1. Interest on term deposits is paid by a bank based on the period of deposit. The bank normally pays higher interest for longer term deposits. So try to invest in fixed deposits for a longer time period.

2. The banks have full discretion to fix the interest rates on deposits. As the interest rates vary from time to time depending on market conditions, make sure, you have selected the fixed deposit scheme that is guaranteed to provide agreed returns.

3. Beware that changes made in the interest rates from time to time by a bank do not alter the interest paid on the existing deposits. So you cannot argue with bank to provide returns at current rate.

4. Interest payments are made on a quarterly basis even when the banks quote a certain percentage of interest per annum for a given period of time.

5. The depositor can either collect interest on every quarter or its discounted value at monthly rests or avail quarterly compounding benefits. He can also avail quarterly compounding benefits and receive the principal amount plus interest on maturity.

6. RBI has now allowed banks to quote higher rates of interest for individuals who deposit more than Rs.15 lakhs. So take advantage of such schemes.

7. For premature encashment of deposits, the bank is at their discretion to levy a penalty to the depositor. Banks generally pay interest to the depositor for the period which deposit has been kept with the bank and penalty can be charged for premature withdrawal. Learn about this before opening a fixed deposit.

8. Banks can allow loans against the fixed deposits. The bank can decide on the margin retained over the deposit outstanding and interest rate charged. This may vary from bank to bank. Inquire about the interest rates on such loans.

During uncertain times of money markets, people tend to invest their money in term deposits to avoid further losses. In short, fixed deposits are only recommended if you are looking for a low risk investment with periodical guaranteed returns.

Fixed Deposit Account rules

1) Opening of deposit accounts

Application for fixed/short deposits and deposits at notice is taken on Form No.401 for individuals and Form No.401A for non-individuals.All time deposit accounts shall be properly introduced. For all subsequent deposit, a simple Application-cum-Deposit slip is to be filled.

2) Period and minimum amount of different types of deposits

Minimum period:-At present, the minimum period for a term deposit shall be 7 days for deposit amount of Rs.100/- lacs and above & minimum 15 days for amounts less than Rs.100/- lacs.

Maximum period: - 120 months

In special cases, say, under the order of a court or where interest of a minor is involved and in the case of institutions, government undertakings, corporate bodies to meet their special needs like creation of sinking fund/amortization fund etc. or for individuals for any of their special needs by way of accounts  opened under special recurring/cumulative deposit scheme, the deposit may be accepted for periods over 10 years. However, the period of deposit should not exceed 20 years.

Minimum amount:-

The minimum amount accepted for fixed/short deposit is Rs.1, 000/- for a period of 15 days and above and minimum of Rs.100/- lacs and above for a minimum period of 7 days.

3) Operational instructions

Term deposit accounts can be opened with instructions payable to ’either or Survivor', payable jointly, payable to any one of the depositors etc. It can also be opened with instructions payable  to "Former or Survivor" or "Former, Survivors Jointly or Last  Survivor" or "Latter or Survivor" in which case operational/  payment instructions at the time of opening the account or  subsequent variations, if any, in these instructions, should be  signed by all the joint depositors.

4) Additional documents/forms to be obtained

PAN/GIR number or Form 60 /61.

Other documents as per KYC norms.

Photographs of the depositors except in case of existing accounts (having photographs)

5) Nomination facility-

Available

6) Deposit accounts of minors:-

In sole name – if the minor is 10 years and above and can read and write.

In joint name - with natural guardianif minors are less than 10 years of age.

The maximum amount that can be accepted for deposit in such account is Rs.1, 00, 000/-. However, there is no limit for accepting deposits from minors above the age of 14 years.

Pre-payments of fixed deposit receipts issued to minors can be allowed only on his/her attaining majority.

7) Renewal of deposits: - Requirements

1. Duly discharged fixed/short deposit receipt along with request for renewal.

2. Where receipts are held in safe custody or where only acknowledgement is issued in lieu of the deposit receipt, discharge not required.

3. Where receipts are lodged with the government  departments, as security in lieu of earnest money etc. and the  concerned authorities are not willing to part with them, amount of the deposit is renewed for a  further period without production of deposit receipt following  the

Procedure detailed hereunder:-

a. Letter of request to be given in prescribed format.b. No new receipt will be issued.c. Renewal of the deposit will be advised by a registered letter to the concerned government

department, under advice  to the depositor.d. Where an advance is granted against a deposit, the relative receipt should be discharged by all the

parties.

e. No fresh receipt is issued. Endorsements made on the space provided on the existing FDR.

8) Automatic Renewal of deposits:-

A matured term deposit will be renewed on its due date itself, for further period of one year at the applicable rate prevailing on the due date, if not instructed otherwise. In respect of term deposit issued  for less than one year, Theconcerned  matured  term  deposit  will be renewed on its due date  itself  for the same period  with the applicable  interest  rate prevailing  on the due date, if not instructed otherwise.If at a later date (i.e. after automatic renewal) the depositor

requests for  pre-payment of old deposit, before making payment the receipts duly discharged along with prepayment instructions is to be furnished.When a depositor at a later date (i.e. after automatic renewal) requests for longer maturity, prepayment as above is to be made without charging penalty and new FDR may be issued as requested.

9) Payment of deposit receipt/s on due date:-

Deposit receipt/s duly discharged by all the depositors (on revenue stamp in case of cash payment up toRs.20, 000/-) with clear payment instructions is to be given.The amount of maturity value in case of deposit under RIRD, and the principal amount along with the residual interest, if any will be paid by:-

Credit of depositors account with the Bank. Credit of depositors account with any other Bank through NEFT / RTGS. Issuance of DD / Bankers Cheque as per instruction of the depositor.

10) Payment to a third party/nominee/legal heir:-

The proceeds of a deposit receipt is not payable to a  third party or to a collecting bank unless the receipt is  discharged and is accompanied by a separate letter of authority  signed by all depositors authorizing payment to the third party or to the Bank, as the case may be.

11) Nominee vis-à-vis legal heirs:-

If on the death of the depositor, both the nominee and the legal   heir make their claims simultaneously in respect of the deposit,  the bank would take note of the legal heir holding succession  certificate.

However, such legal heirs are advised to bring from the court an injunction restraining the bank from effecting  payment to the nominee/s.

The Bank will get valid discharge by paying the nominee so far  as any legal heir has not produced, in the meanwhile, any decree, order, certificate or other authority from a court of competent jurisdiction.

12) Pre-payment of deposits (period of deposit is more than one year)

The deposit receipt duly discharged and the letter of request for prepayment signed by all the depositors is required.

Payment of interest on pre-mature withdrawal of term deposit 01.03.2012

The rate of interest applicable for premature payment without penalty will be the rate ruling on the date of accepting the deposit (i.e. the date of contract) for the period for which deposit has actually remained with the Bank or the Contracted Rate whichever is lower. Penalty is waived if following conditions are satisfied.

1. Face value of deposit does not exceed Rs.5/- lacs and2. The said Deposit has  remained with the bank for  a minimum period of 12 months.

Interest will be paid after deducting penalty of 1% from such applicable rate or the contracted rate whichever is lower in the cases which are subject to charging penalty. i.e Deposit  not satisfying any of the condition mentioned at a)  above

Further, waiver is allowed where:-

1. Deposit is renewed for a period not less than unexpired period.2. Deposit is paid to nominee / legal heirs / claimants in deceased accounts. In this case interest at

applicable rates for which deposit has actually run is paid.

13) Rules regarding payment of interest and calculation of on time deposits

Interest accrued on a time deposit, would ordinarily be paid, only on maturity. However, at the request of the depositor,  interest on deposits of -12- months and over, can be paid before  maturity on the following basis:-

Monthly, quarterly or half yearly interest on completion of the month/quarter/half year calculated from the date of deposit or end of each calendar month / quarter / half year, whichever is later.

Interest payable under the Monthly Income Plan is the discounted value of interest payable in terms of IBA code for banking practice. i.e. interest received under Monthly Income Plan will be less than simple interest.

For calculation of interest on term deposits for periods  less than -12- months, the following procedure would be  adopted:-

On deposits for period up to -182- days, the interest is calculated for the actual number of days on the basis of -365- days in a year.

On deposits for period more than -182- days, the interest is calculated on monthly basis for the completed months and for residual period, on actual number of days.

Standing Instructions are accepted for credit of periodical interest in case of monthly / quarterly / half yearly interest on deposits to customers Current / Savings Bank account.

Method of calculation of interest adopted for Term deposit (period of deposit more than a year) w.e.f. 01.03.2012

In all cases of domestic term deposits (period of deposit more than a year) where the terminal quarter is incomplete, interest will be calculated for the actual number of days, reckoning the year 365/366 days viz. the calculation of interest on such deposits will be in order of completed quarters and days.

Standing Instructions are accepted for credit of periodical interest in case of monthly / quarterly / half yearly interest on deposits to customers Current / Savings Bank account.

Rules regarding payment of interest and calculation of term deposit mentioned under FD rules –( Deposits- Term /Fixed deposit section – FD rules)

14) Higher rate of interest to Senior Citizens

An additional rate of interest @ 0.50% on the Term Deposits (including Recurring Deposits and Term Deposits under other schemes) of senior citizens resident in India who has completed the age of 60 years is paid as per guidelines.

15) Certificate of interest paid:-

At the request of accountholders, branches would issue certificates of interest paid to them on their various deposit accounts.

16) Procedure in case of lost receipts:-

a. An application from the depositor is to be given.b. Applicants must be properly identified.c. Duplicate receipt may be issued only in cases, where - the un-expired period of deposit exceeds -

12- months or the depositor requires a loan against the receipt.d. In all other cases, only a letter of acknowledgement of deposit is given to the depositor.e. An indemnity bond is to be obtained in the prescribed form in all cases.f. One or two surety/ies considered good for the amount involved, must execute the indemnity

along with the depositor/s.g. Sureties may be waived in the following circumstances.

If the deposit is renewed for a further period of at least -12- months or where the depositors maintain other well conducted accounts.

17) Addition or deletion of name in fixed deposit receipts and recurring deposit accounts

If the existing depositor/s make/s a request either to add the name of a close relative (his consent should be obtained) or delete the name of one of the existing joint accountholders (he  should also sign the letter of request), the same are allowed, as per under mentioned procedure:-

A letter signed by the depositor/all the joint depositors should be given requesting the Bank to add the name of a relative/ friend or to delete the name of one of the existing joint  depositors. However, a substitution of name is not permitted.

Fresh account opening form and KYC documents incorporating revised operational instructions, signed by the following should be obtained:-

1. In case of addition, the existing depositor/s and the person  whose name is to be added and2. In case of deletion the existing depositors except the person whose name is to be deleted.

The fact of addition of the name or deletion of the name of one of the joint depositors will be noted on the relative deposit receipt under authentication along with the date of such addition / deletion.

Fresh deposit receipt will not be issued.

In case of demise of one of the depositors, the request for deletion of his name should be in writing supported by the death certificate, signed by all the surviving depositors giving revised operational instructions. If the surviving depositor/s request/s to add name/s of relative/s, such request may be acceded to and the additions may be made on the receipts.

Deletion of name of joint accountholder/s in case of operational instruction - Payable to Former or Survivor, latter or Survivor or Former, Survivors jointly or the Last Survivor is not permitted.

18) Procedure for transfer of time deposit account to another branch:-

Proceeds of time deposit may be transferred on maturity from one branch to another at the request of the depositor, free of charge, if the deposit is renewed at the other branch for a minimum period of -30- days.

Time deposits can also be transferred before maturity to another branch, at the request of the depositors.

19) Mode of repayment of time deposits:-

In terms of Income Tax Act, 1961 as amended, where aggregate  amount of all deposits repayable after notice or repayable after  a period (i.e. all time deposits including matured time deposits) held by a person singly or jointly with others at a branch of the Bank together with interest to be paid on such deposits (i.e. excluding interest already paid) is Rs.20,000/- or more, the repayment will be made by means of "A/c  Payee" Banker's Cheque/draft or by crediting the account of such depositor.

Payment of periodical interest can be made in cash.

20) Safe custody of deposit receipts:-

At the request of depositor/s, including non-resident accountholders, FDRs / SDRs can be accepted in safe custody by obtaining specific written instructions from all the depositors regarding payment of interest, disposal of proceeds on the due date etc.

21) Deduction of income tax at source from payment of interest on time deposits (Section 194A of income tax act 1961)

(Sec.194A): The Income Tax Act has been amended w.e.f. 1st July 1995 and as per provision of the Income Tax, TDS is applicable in case of Time deposits made from 1st July 1995 and onwards.The salient provisions of this section are as under:-

Income tax is to be deducted in cases where the total interest paid or credited on all time deposits with a branch in the name of a depositor, whether singly or  jointly  (as first named person) exceeds Rs.10,000/- in a financial year.For  this purpose time deposit means deposits repayable on the expiry of a fixed period i.e. Short Deposit, Fixed Deposit, RIRD, etc. and Yatha Shakti JamaYojana.

Recurring deposit, savings deposit and current deposit are excluded for this purpose.

Tax is to be deducted either at the time of credit to the account or payment of interest to the depositor whichever is earlier.

In case the depositor submits following Form before end of June every year, no tax may be deducted.

Non-corporate customers other than Senior Citizens - Form No.15G along with PAN (w.e.f. 1st April 2010)

Senior Citizens i.e. individuals of the age of -65- years or more - Form No.15H along with PAN (w.e.f. 1st April 2010)

w.e.f. 1st April 2010 I.T.Department has made it mandatory to quote Permanent Account No. (PAN) by deductees in all cases where TDS is applicable, failure of which would attract the TDS at a higher rate of 20% (against normal rate of 10%) or normal rate whichever is higher. Further it has also been made compulsory to mention PAN on form No.15G / 15H w.e.f. 1st April 2010.

Thus, TDS is deducted where total interest exceeds Rs.10,000/- on all time deposits as under:-

For Individuals:

1. Where Form No.15G / 15H along with PAN submitted by the customer – NO TDS. Subject to individual income exempted under Income Tax for that year.

2. Where Form No.15G / 15H without PAN is submitted by the customer – TDS @20%

3. Where PAN is submitted by the customer – TDS @10%

4. Where PAN is not submitted by the customer – TDS @20% (even if Form No.15G / 15H is submitted)

5. In case of NRO deposit concession in TDS is allowed under double tax avoidance treaty. TDS is deducted as under:-

a. If PAN is submitted with a declaration applicable under Double Tax Avoidance Treaty - TDS is deducted @ applicable rate for the country of residence of the customer.

b. If PAN is submitted without declaration - TDS is deducted @30%c. If declaration is submitted without PAN - TDS @normal rate or 20% whichever is higher.d. KLIf PAN and declaration is not submitted - TDS @30%

For others:--

TDS is deducted @20%

Issue of certificate:--

A consolidated TDS certificate will be issued at the end of financial year.

Treatment of Joint Deposits-

For accepting deposits of senior citizens jointly, with other persons below the age of sixty years, under the special scheme for senior citizens, it should be ensured that the name of the senior citizen is given as the first name in the application.

22) Advances against our bank's time deposit receipts

Advances against our Bank's time deposit receipt can be sanctioned keeping a minimum margin of 5% on the amount of the deposit receipt on the terms and conditions which may be obtained from the branch.

Rate of Interest :

Cumulative Scheme

Minimum Amount: Rs. 10,000+

Period (Months) Interest */p.a. Effective Yield p.a.**

12 9.25% 9.25%

18 9.75% 10.07%

24 10.00% 10.50%

36 10.25% 11.34%

48 9.75% 11.27%

60 9.75% 11.85%

Non-Cumulative Scheme

Period (Months)Interest p.a.*#/(Half

Yearly)

Interest

p.a.*#/(Quarterly)

12 9.00% 8.90%

24 9.75% 9.65%

36 10.00% 9.90%

48, 60 9.50% 9.40%

Minimum

AmountRs. 25,000+ Rs. 50,000+

* Senior Citizens & Employees will get an additional rate of 0.25% per annum

# Interest payment for half yearly option will be made on 30th September and 31st March only

through ECS/NECS/NEFT.

Interest payment for quarterly option will be made on 30th June, 30th September, 31st December

and 31st March only through ECS/NECS/NEFT

`

MARKET STRATEGY

Marketing strategy

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.[1]

Developing a Marketing Strategy

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives.

[2] Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases.

[3] Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis.[4] Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints.[5] External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.[3][6] A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.[7]

Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation.[3] A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

Types of strategies

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

1) Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

o Leadero Challengero Followero Nicher

2) Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm’s sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.

o Product differentiation (broad)o Cost leadership (broad)o Market segmentation (narrow)

3) Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

o Pioneers o Close followerso Late followers

4) Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers:

o Horizontal integrationo Vertical integrationo Diversificationo Intensification

A more detailed scheme uses the categories[8]:

Prospector Analyzer Defender Reactor Marketing warfare strategies - This scheme draws parallels between marketing strategies and

military strategies.

Strategic model

Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their

categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketing

Real-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.

The latest campaign targets individuals from rural and semi-urban India, typically those with no access to organized forms of credit or proper documentation of income

Mahindra & Mahindra Financial Services' latest TV campaign aims to increase awareness about the brand, especially amongst consumers from rural and semi-urban India. The campaign communicates the brand's promise to help people realise their dreams, by providing speedy and hassle-free loans. The non-banking financial services company, incorporated in January 1991, provides finance for a range of utility vehicles, tractors and cars.

The target group includes consumers from SEC B and C. The campaign is primarily aimed at non-salaried people, such as farmers, traders, small businessmen and transporters, belonging to tier II semi-urban and rural areas.

In this campaign, which comprises three TVCs, Mahindra Finance claims that due to its credit appraisal system, the company can better assess the earning capability of an individual and is thus able to offer

him a loan, even though the individual may not have all the documentation that is required for loan approvals.

The creative duties for the campaign lie with Interface Communications. The common thread running through all three TVCs is the success story of sorts of a humble-looking man, who owes his transition -- from dreaming big to materialising his big dreams – to Mahindra Finance.

The tagline for the present campaign is, 'bandemeinhaidum, pehchanensirf hum'. R Balaji, vice-president, marketing and strategy, Mahindra Finance, tells afaqs! that at the company, most customers are first-time borrowers; and hence, lack credit history. Therefore, innovative assessment tools have been developed, whereby it is possible to evaluate whether the customer is in a position to repay the loan, based on earnings from his assets.

On the training we meet many brokers of Mahindra finance and we made many new brokers which are giving help to Mahindra finance to convert the customers for fixed deposit. I am showing a list of brokers of Mahindra finance who are converted by us.

For marketing of Fixed Deposit we intent to appointed as an authorized broker.

Fee Structures for your Fixed Deposit services are as below:-

Tenure                         Rate

12 month                      0.25% of the mobilized deposit amount

18 month                      0.50% of the mobilized deposit amount

24 month                      0.75% of the mobilized deposit amount

36, 48, 60 month           1.25% of the mobilized deposit amount (If you are AMFI certified)*

[*otherwise it will be 1.00% for 36, 48 & 60 month tenure to NON-AMFI certified holders]

In addition to above there will be Quarterly Volume Based Incentive for Fixed Deposit schemes.

QUATERLY VOLUME BASED INCENTIVE

Target Additional Incentive

Equal & Above  5 Lacs& Less than 10 Lacs 0.20%

Equal & Above 10 Lacs& Less than 15Lacs 0.30%

Equal & Above 15 Lacs& Less than 20Lacs 0.40%

Above 20 Lacs 0.50%

DOCUMENTATION

Documents required are for proof of identity, address, signature, and in case of senior

citizenship, age. There are a variety of documents you can produce for proof of identity

and address, such as your passport, driving license, voter's identity card, PAN card, ration

card, recent utility bills, credit card bills and so on. Signature proofs can take the form of

passport, PAN card or a signed cheque. Apart from this, some banks, such as Axis Bank,

also demand an introduction letter from an account holder.

Passport

PAN Card

Voters Identity Card

Driving License

Bank Pass book with photo

Aadhaar Card

In case the address mentioned in the above document differs from the current address, a copy of

any one of the following documents should be furnished as proof of residential address.

Telephone bill

Bank account statement

Letter from any recognized public authority

Electricity bill

Ration card

Letter from employer

SWOT analysis of Mahindra finance

1.Mahindra Finance has advantage of brand name of Mahindra &Mahindra Group.

2. Mahindra Finance has large asset base of Rs.5000 crores. 3. It has large distribution channels with 350 branches all over the nation.

4. Company has large financial base as its IPO was subscribed 26.88 times.

WEAKNESSES

-Mahindra Finance provides advisory service and they do not have share broking facility which their competitors have.

-Mahindra Finance is not known to the people.

-Mahindra Finance does not make advertisement of its product.

Opportunities

-Mahindra Finance has entered into mutual fund distribution which is growing as per Indian market development

-Automobile sector in India is growing as foreign companies entering in India which is useful for Mahindra Finance as it provides vehicle loans

-Mahindra Finance helps individuals in making financial planning which is most profitable in as investment trend is changing in India.

Threats

-The biggest threat for Mahindra Finance in the market is new entry of foreign non-banking financial institutions.

-In case of vehicle financing company has tough competition from large banks like State Bank of India, ICICI etc.

Customer Retention

Two decades ago, M&M started with a mission to empower every individual who has an ambition and is determined to achieve it. On the way, they met many such inspired souls who didn't have much to show, but had a clear vision of their path ahead. Today, they feel immensely proud to have touched over two million such lives by helping them reach closer to their dreams.

And it's truly humbling to hear back from them, to be appreciated, and to know that M&M could be part of their success story.

Work during training

Survey- I have done survey of 100 people and area was very backward and a have to face many intrruptions at the time of survey. I got different different views of respondents. Following questionnaire is used by me.

Q.1. Personal detail

a. Name--------------------------------------------------------------------------------------

b. Address------------------------------------------------------------------------------------

------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------

c. Gender Male Femaled. Age Under 40 40-60 Above 60

e. Field -------------------------------------------------------------------------------------f. Income level (monthly)-

Below 10000 Below 50000 Below 100000 Above 100000

Q.2. Are you aware about fixed deposit?

a. Yes

b. No

Q.3.Have you ever invested in fixed deposit?

a.Yesb. No

Q.4. In which bank or finance company you have invested?

a. HDFC Bank

b. Mahindra & Mahindra finance

c. ICICI Bank

d. Oriental bank

e. Sri ram finance company

f. Others

Q.5. Did you invest in fixed deposits by cash cheque or demand drafts?

a. Cash

b. Cheque

c. Demand drafts

Q.6. How much amount have you invested in fixed deposits?

a) 10,000 -100,000

b) 100,000- 10, 000, 00c) 10, 000, 00 – 100, 000, 00d) Above 100, 000, 00

Q.7. what are the reasons to invest in which you have invested?

a. High safetyb. High returnc. Maturity timed. TDS Deduction

Q.8. If you did not invested in fixed deposit till now, then are you ready to invest in future?

a. Yes

b. No

Q.9.what are the reasons due to them you don’t want to invest in fixed deposit?

a. Safety b. Return c. Long maturity time

Q. 10. Do you want to give other suggestions to improve the service of fixed deposit? _______________________________________________________________

_______________________________________________________________ ________________________________________________________________ ________________________________________________________________

BRAND AWARENESS

Brand awareness is one of major determinants of brand equity. It refers to the ability of a potential

consumer to recall and recognize the brand, linking the brand with its corresponding product class. The

level of brand awareness lies in a continuum, with brand recognition being the lowest level and the first

named brand with unaided recall being the highest level.

Brand awareness refers to customers' ability to recall and recognize the brand under different

conditions and link to the brand name, logo, and jingles and so on to certain associations in

memory. It helps the customers to understand to which product or service category the particular

brand belongs to and what products and services are sold under the brand name. It also ensures

that customers know which of their needs are satisfied by the brand through its products.

It is important for the potential consumers to be aware of a product so that it can become one of the

purchasing choices. This is due to the fact that the product needs to enter the awareness set before it

comes to the consideration set and an increase in brand awareness is conducive to a higher chance of

entering the later set. In this way, brands with higher level of awareness would be more likely to be

purchased. This could probably explain why consumers tend to buy a recognizable brand rather than an

unfamiliar one.

Brokers of Mahindra Finance in LUDHIANA city

Name Phone no.

Shavinder Kumar Mittal 9814722423

Sunehlata 9914327532

Aumeshkumarjain 98155 46510

Mukeshjain 93169 16438

List of Finance and Banking Companies in India

AAasheesh Securities Ltd.

Abhinav Capital Services Ltd.

Abirami Financial Services (India) Ltd

Action Financial Services (India) Ltd

Aditya Birla Money Limited Ad-Manum Finance Ltd

Advance Powerinfra Tech Ltd

Aeonian Investments Company Ltd.

Ajcon Global Services Ltd

AjelInfotech Ltd

AK Capital Services Ltd.

AkankshaFinvest Ltd

Alfavision Overseas (India) Ltd

Alka Securities Ltd.

Allahabad Bank Ltd

Almondz Capital &Mngt. Services Ltd

BBaid Leasing & Finance Company Ltd

Bajaj Auto Finance Ltd

Bajaj Global Ltd

Bajaj Holdings & Investment Ltd

Bajrang Finance Ltd

BalmerLawrieInvsts. Ltd

Bampsl Securities Ltd

Bank of Baroda Bank Of India Ltd

Bank of Madura Ltd.

Bank of Maharashtra Bank of Punjab Ltd

Bank of Rajasthan Ltd.

Basil Infrastructure Projects Ltd

Bengal & Assam Co Ltd

Bervin Investment & Leasing Ltd.

Beta-Kappa Investments Ltd.

Betala Global Securities Ltd

Bhagyashree Leasing & Finance Ltd

Bhandari Consultancy & Finance Ltd

Bharat Bhushan Share & Commodity Brokers Ltd

Bharat Overseas Bank Ltd.

Bhoomi Infrastructures Corporation Ltd

Bio Green Inds. Ltd

Birla Capital And Financial Services Ltd

BLB Ltd

Blue Blends Finance Ltd

Blue Chip India Ltd

BN Rathi Securities Ltd

BNK Capital Markets Ltd

Brand Realty Services Ltd

Brescon Corporate Advisors Ltd

Bridge Securities Ltd

Brijlaxmi Leasing & Finance Ltd

Brilliant Securities Ltd

Bubna Stock Broking Services Ltd

CCan Fin Homes Ltd.

Canara Bank Ltd

Capital Trust Ltd

Cap man Financials Ltd

Catholic Syrian Bank Ltd.

Ceejay Finance Ltd.

Central Bank of India Centrum Capital Ltd.

Centurion Bank of Punjab Ltd.

CFL Capital Financial Services Ltd

Chartered Capital & Investment Ltd

CHI Investments Ltd

Choice International Ltd.

Chokhani Securities Ltd

Cholamandalam DBS Finance Ltd

Cil Securities Ltd

Cindrella Financial Services Ltd.

Citi Port Financial Services Ltd

City Union Bank Ltd.

DDalal Street Investments Ltd

Database Finance Ltd

Daulat Securities Ltd

DazzelConfindive Ltd.

DB (International) Stock Brokers Ltd.

DCM Financial Services Ltd

Dena Bank Ltd

Development Credit Bank Ltd.

Devine Impex Ltd

Devki Leasing & Finance Ltd

Dewan Housing Finance Corporation Ltd.

DFL Infrastructure Finance Ltd

DGP Securities Ltd

Dhanalakshmi Bank Ltd.

Dhanprayog Investments Company Ltd

Dharani Finance Ltd

Dhruva Capital Services Ltd

Diamant Investment & Finance Ltd

DJS Stock & Shares Ltd

Dolat Investments Ltd

DSP Merrill Lynch Ltd

Dynamic Portfolio Management & Services Ltd

EEasy Fincorp Ltd

Edelweiss Capital Ltd

Electra Financial Services Ltd.

Elgi Industrial Products Ltd

Emkay Global Financial Services Ltd

Enrich Industries Ltd

Escorts Finance Ltd

Explicit Finance Ltd

Export Import Bank of India

FFDC Ltd

Federal Bank Ltd.

Ficon Lease & Finance Ltd

Fics Consultancy Services Ltd

Fidelity Investments First Custodian Fund (India) Ltd.

First Leasing Company of India Ltd.

Fortune Financial Services (India) Ltd.

Frontier Leasing & Finance Ltd

Future Capital Holdings Ltd

Futuristic Securities Ltd

GGandhinagar Leasing & Finance Ltd

Gazi Financial Services and Investments Ltd.

GDL Leasing & Finance Ltd

GE Capital Transportation Financial Services Ltd.

GE Money India Geefcee Finance Ltd

Geekay Finance & Leasing Company Ltd.

Gemstone Investments Ltd

Geojit BNP Paribas Financial Services Ltd

GIC Housing Finance Ltd

Gilada Finance & Investments Ltd.

Glance Finance Ltd

Global Capital Markets Ltd

Global Finance & Securities Ltd

Globe Stocks & Securities Ltd

Gogia Capital Services Ltd

Gold Rock Investments Ltd

Goldcrest Finance (India) Ltd.

Golden Legand Leasing & Finance Ltd

Golden Securities Ltd

HHarvic Management Services (India) Ltd

Haryana Capfin Ltd.

Hasti Finance Ltd.

HB Leasing & Finance Company Ltd

HB Portfolio Ltd

HB Stockholdings Ltd

HDFC Bank Ltd.

Himadri Credit & Finance Ltd

Housing Development Finance Corporation Ltd.

HSBC Invest Direct (India) Ltd

Hybrid Financial Services Ltd

IICDS Ltd

ICICI Bank Ltd.

ICICI Lombard General Insurance Company Limited

ICICI Securities Primary Dealership Ltd.

IDBI Bank Ltd

IFCI Ltd. IFL Promoters Ltd

IFSL Ltd

IKF Finance Ltd

IL&FS Investmart Ltd.

IMC Finance Ltd

Inani Securities Ltd

Inca Finlease Ltd

Incap Financial Services Ltd

Ind Bank Housing Ltd

Indbank Merchant Banking Services Ltd.

India Cements Capital Ltd

India Home Loan Ltd

India Infoline Ltd

India Securities Ltd

Indiabulls Financial Services Ltd.

Indiabulls Securities Ltd

Indiaco Ventures Ltd

Indian Bank Indo Asian Finance Ltd

Indo Credit Capital Ltd

Indo Green Projects Ltd

IndusInd Bank Ltd.

Industrial & Prudential Investment Company Ltd.

Industrial Investment Trust Ltd.

Infrastructure Development Finance Company Ltd

ING Vysya Bank Ltd

Intec Capital Ltd

Integra Capital Management Ltd

Integrated Finance Company Ltd

Integrated Financial Services Ltd

Inter State Finance Ltd

Interface Financial Services Ltd.

Interfit Techno Products Ltd

International Securities Ltd

Ishwarshakti Holdings & Traders Ltd

ISL Consulting Ltd

JJagsonpal Finance & Leasing Ltd

Jaisal Securities Ltd

Jammu & Kashmir Bank Ltd.

Jarigold Textiles Mfg. & Trading Company Ltd

Jayabharat Credit Ltd.

Jenson & Nicholson Financial Services Ltd

Jhaveri Credits & Capital Ltd

Jindal Capital Ltd

Jindal South West Holdings Ltd

JJ Finance Corpn. Ltd

JM Financial Ltd

Joindre Capital Services Ltd

JPT Securities Ltd

JRG Securities Ltd.

Jupiter Industries & Leasing Ltd

KKadvani Securities Ltd

KailashFicom Ltd

Kampani Consultants Ltd

Karnataka Bank Ltd.

KarurVysya Bank Ltd.

Karvy Computershare Private Ltd.

KBS Capital Management Ltd

Key Corp Ltd

Keynote Corporate Services Ltd.

Khandwala Securities Ltd.

Kiduja India Ltd

Killick Nixon Ltd.

Kirloskar Investments & Finance Ltd

KirtiFinvest Ltd

KJMC Financial Services Ltd

KJMC Global Market (India) Ltd

KLG Capital Services Ltd

Kosian Industries Ltd

Kotak Mahindra Bank Ltd

Kumbhat Financial Services Ltd

KZ Leasing & Finance Ltd

LLadderup Finance Ltd

Lakshmi Vilas Bank Ltd.

Lead Financial Services Ltd.

Libords Securities Ltd

LIC Housing Finance Ltd.

Life Insurance Corporation of India LKP Finance Ltd

Lloyds Finance Ltd

Lohia Securities Ltd

Lord Krishna Bank Ltd

Lyons Corporate Market Ltd

MMadhur Capital & Finance Ltd

Madhusudan Securities Ltd

Magma Fincorp Ltd

Magnum Ltd

MahaRashtra Apex Corpn. Ltd

Mahan Industries Ltd.

Mahanivesh (India) Ltd

Mahindra & Mahindra Financial Services Ltd

Manappuram General Finance & Leasing Ltd

Manipal FinanceCorpn. Ltd

Mansi Finance (Chennai) Ltd

Marg Projects & Infrastructure Ltd

Market Creators Ltd.

Maruti Securities Ltd.

Marvel Capital & Finance (India) Ltd

Master Trust Ltd

Mathew Easow Research Securities Ltd

Max India Ltd

NNagreeka Capital & Infrastructure Ltd

Nahar Capital Financial Services Ltd

Nalin Lease Finance Ltd

Nalwa Sons Invsts. Ltd

National Plastic Technologies Ltd

Natraj Financial & Services Ltd

NCL Research & Financial Services Ltd

NDA Securities Ltd

Nedungadi Bank Ltd.

Neelkanth Technologies Ltd

NetflierFinco Ltd.

Networth Stock Broking Ltd

NiccoUco Alliance Credit Ltd

Nikki Global Finance Ltd.

Nikki Global Finance Ltd.

Nimbus Foods Industries Ltd

Nivedita Mercantile & Financing Ltd

Nivi Trading Ltd

Niyati Industries Ltd

North Kanara G.S.B. Co-operative Bank NPR Finance Ltd

Nu-Tech Corporate Services Ltd

OOasis Securities Ltd

Ocean Infrastructure Ltd.

Octav Investments Ltd

Odyssey Corporation Ltd

Olympia Capitals Ltd

Oriental Bank of Commerce Oscar Investments Ltd

Otco International Ltd.

PPal Credit & Capital Ltd

Paragon Finance Ltd

Parichay Investments Ltd

Parsharti Investment Ltd

Parsoli Corporation Ltd

PasupatiFincap Ltd

Peerless Financial Services Ltd.

Peeti Securities Ltd.

PH Capital Ltd.

Pioneer Investcorp Ltd

PNB Gilts Ltd

Polytex India Ltd

Power Finance Corpn. Ltd

Premium Capital Market & Investment Ltd

PricewaterhouseCoopers Pvt. Ltd

Prime Securities Ltd

Punit Commercials Ltd

Punjab & Sind Bank Punjab National Bank

RRaasi Enterprises Ltd.

Raj Rayon Ltd

Rajath Finance Ltd

Ram Kaashyap Investment Ltd

Rane Holdings Ltd

Ranjit Securities Ltd

Ratnabali Capital Markets Ltd.

. Raunaq Finance Ltd

RBS Group Regency Trust Ltd

Reliance Capital Ltd.

Religare Enterprises Ltd

ReligareTechnova Ltd

Remi Securities Ltd

Residency Projects &infratech Ltd

RFL International Ltd

Rich Capital & Financial Services Ltd

Rids Securities Ltd

Rishab Financial Services Ltd

Rose Investments Ltd .

RR Financial Consultants Ltd

RR Securities Ltd

Rural Electrification Corpn Ltd

SSakthi Finance Ltd

Salora Finance Ltd

Samyak International Ltd

SanchayFinvest Ltd

Sanjay Leasing Ltd

Sanket International Ltd.

Saraswati Commercial (India) Ltd.

Savani Financials Ltd

Securities Capital Investments (India) Ltd.

Serveall Enterprise Solutions Ltd

Shalibhadra Finance Ltd

ShamraoVittal Co-operative Bank Ltd.

Shardul Securities Ltd

Sharp Trading & Finance Ltd

Sharyans Resources Ltd

Shikhar Consultants Ltd

Shree Nath Commercial & Finance Ltd

Shricon Industries Ltd

Shriram Asset Management Company Ltd.

Shriram City Union Finance Ltd

Shriram Transport Finance Company Ltd

Shyamlal Holdings & Trading Ltd

SI Capital & Financial Services Ltd

Siddha Ventures Ltd

SIEL Financial Services Ltd

Signet Overseas Ltd

Sigrun Holdings Ltd

Silicon Valley Infotech Ltd

Sita Enterprises Ltd

SKP Securities Ltd.

Skylid Telecommunication Ltd

Small Industries Development Bank of India SMC Credits Ltd

SMIFS Capital Markets Ltd.

SomDatt Finance Corpn. Ltd

South Indian Bank Ltd.

SP Capital Financing Ltd

SREI Infrastructure Finance Ltd

Standard Capital Markets Ltd

Starcom Information Technology Ltd

State Bank of Bikaner and Jaipur State Bank of Hyderabad State Bank of India State Bank of Indore Ltd.

State Bank of Mysore State Bank of Patiala State Bank of Travancore Sterling Holiday Financial Services Ltd

Stock Holding Corpn.of India Ltd.

Subhkam Capital Ltd

Subuthi Finance Ltd

Subway Finance & Investment Company Ltd

Sugal&Damani Share Brokers Ltd

Sumedha Fiscal Services Ltd

Sumeru Industries Ltd

Summit Securities Ltd

Sundaram Finance Ltd.

Sungold Capital Ltd

Supreme Holdings Ltd.

Suryanagri Fin-Lease Ltd

Swarna Securities Ltd

SwastiVinayaka Gems Corpn. Ltd

Swastika Investmart Ltd

Syndicate Bank Systematix Corporate Services Ltd

TTarrif Cine & Finance Ltd

Tashi India Ltd

Tata Investment Corpn. Ltd

TCFC Finance Ltd

TCI Finance Ltd

Times Guaranty Ltd

Titan Securities Ltd

Tokyo Finance Ltd

Trans Financial Resources Ltd

Transcon Research &Infotech Ltd.

Transpek Finance Ltd

Trans warranty Finance Ltd.

TRC Financial Services Ltd

Trinity Bio-Tech Ltd

Trishakti Electronics &Inds.Ltd.

Triumph International Finance India Ltd.

U

UCO Bank Union Bank of India United Bank of India United Credit Ltd

Universal Credit & Securities Ltd

Upsurge Investment & Finance Ltd.

Urja Global Ltd

Ushakiran Finance Ltd

UV Boards Ltd

V

Vantage Corporate Services Ltd

Vardhman Holdings Ltd

Vatsa Corporations Ltd

Vax Housing Finance Corpn. Ltd

VB Desai Financial Services Ltd

VCK Capital Market Services Ltd

Vertex Securities Ltd

VisagarPolytex Ltd

Vishvas Projects Ltd

WWall Street Finance Ltd.

Wallfort Financial Services Ltd.

Wells Fargo Williamson Financial Services Ltd

Williamson Magor& Company Ltd

Winro Commercial (India) Ltd

Wisec Global Ltd

Woolite Mercantile Company Ltd

YYash Management & Satellite Ltd

Yash Trading & Finance Ltd

Yatish Securities Ltd

YES Bank Ltd.

Yogi Infra Projects Ltd

Yule Financing & Leasing Company Ltd

ZZenzy Technocrats Ltd

ZetaticIntercorp Ltd

ABOUT SHRIRAM GROUP

Shriram City Union Finance Ltd is India's premier financial services company, specializing in

retail finance. The company is a part of three decade-old Chennai-based Shriram Group, India's

premier financial services chain. The range of services offered by the company is financing for

consumer durables, two wheelers, three wheelers, four wheeler finance, both new and pre-

owned, passenger and commercial, personal loans, small business loans and loan against gold.

They have over 650 business outlets across the country. The company has tie-ups with major

dealers and top manufacturers across the country, giving them the advantage of quick pay-offs

and sanction of loans. They focus on semi urban and rural areas with products routed through

either chit fund network of Shriram Chits or non chit fund network including dealers. Shriram

City Union Finance Ltd was incorporated on March 27, 1986 as a private limited company with

the name Shriram Hire Purchase Finance Pvt Ltd. The company started their operations with

truck financing. In October 29, 1988, the company became a public limited company and the

name was changed to Shriram Hire Purchase Finance Ltd. In March 1990, City Union Bank Ltd

acquired shareholding to the extent ofRs. 20 lakh (200,000 shares at par) after obtaining the

necessary approvals from the Reserve Bank of India. Consequently, the name of the company

was changed to Shriram City Union Finance Ltd. The company is registered as a deposit taking

asset financing NBFC with RBI and went public in 1994. Prior to 2002, the company was

exclusively engaged in transport finance with special emphasis on financing pre-owned

commercial vehicles to small road transport operators. In the year 2002, the company

discontinued the truck financing business (except for trucks > 10 year old), as that business was

consolidated in its sister concern (viz. Shriram Transport Finance Ltd). Since then, the company

product lines had expanded to include financing of consumer durables, two-wheelers, three-

wheelers, tractors, commercial vehicles and non-commercial vehicles, personal loans and

enterprise funding. In the year 2002, the company entered the business of consumer durables

financing through a tie-up with ICICI Bank. During the year 2004-05, the company increased the

production capacity of generation of power by wind mills from 7,800 kw to 12,800 kw. Also,

their shares were listed on the National Stock Exchange with effect from April 4, 2005. During

the year 2005-06, the forayed into the customer finance segment. The company ceased to be a

subsidiary of Shriram Financial Services Holding Pvt Ltd with effect from March 31, 2006,

consequent to the transfer of 1,44,21,462 equity shares aggregating 53.22% of the paid up capital

of the company to Shriram Enterprises Holding Pvt Ltd. Thus, the company became the

subsidiary of Shriram Enterprise Holdings Pvt Ltd. In April 24, 2007, the company promoted a

subsidiary company, namely ShriramNon Conventional Energy Ltd. During the year 2007-08,

they divested the shares held in ShriramNon Conventional Energy Ltd, and thus ShriramNon

Conventional Energy Ltd ceased to be a subsidiary company with effect from March 20, 2008.

During the year 2008-09, the company transferred the Bio mass plant to ShriramNon

Conventional Energy Ltd with effect from January 10, 2009 and making ShriramNon

Conventional Energy Ltd as a wholly owned subsidiary company. This transfer is mainly to

carry out only the core business of financing in the company. In July 2010, the company decided

to set up a wholly owned subsidiary company for doing housing finance, mortgage finance, other

related finances and such other activities as may be decided from time to time.

Shriram Transport Finance Company Ltd.

 Company Information

Key Executives

Mr. Puneet Bhatia Director

Mr. R Sridhar Director

Mr. RanvirDewan Director

Mr. S Venkatakrishnan Director

Comparison of the products of MMFSL with SRFS

Company

If you are looking at fixed deposits that offer higher interest rates then post office schemes and also bank

deposits, then there are two company fixed deposits that you should not ignore. The first is by Mahindra

Finance and the second is being issued by Sriram Transport Finance.

Mahindra FinanceThe Mahindra Finance fixed deposit offers you an interest rate of 10 per cent for 24 months, which means

the cumulative yield works to around 10.50 per cent per annum. The 36 months deposit offers interest

rates of 10.25 per cent and the yield here works to 11.34 per cent per annum.

It's important to note that company fixed deposits are not secure. However, Mahindra Finance has a

strong pedigree, which is why it can be recommended for investment. Also, the rates offered are far

higher then any bank fixed deposit or post office scheme. The Mahindra Finance fixed deposit scheme is

given a Crisil rating FAAA which indicates a high level of safety

Shriram Transport Finance

Shriram Transport Finance is India's largest player in commercial vehicle finance. The company is one of

the largest asset financing non-banking finance companies in India. The company's fixed deposits offers

an interest rate of 10.75 per cent for three years. The company is offering a 10.75 per cent interest rate for

three years. This is again like Mahindra Finance way beyond the rates offered by banks and post office. 

Shriram Transport Finance like Mahindra Finance has a strong pedigree, which makes the fixed deposit

relatively secure. In fact, Shriram Transport Finance is now one of the contenders for a banking license.

RESEARCH METHOLOGY

Research Project has a specified framework for collecting the data in an effective manner.

Such framework is called Research Design. The Research Process that was followed consists

of the following steps:

Primary Data: Is direct one, which is collected for the very first time and original in

character. For the purpose of collecting the data Questionnaire method was used.

Secondary Data: Indirect collection of data from sources containing past or recent past

information like Company catalogues, Website of the Company.

Research Approach: Surveys are best suited for Descriptive Research. Surveys are

undertaken to learn about people knowledge, beliefs, preference, and satisfactions and

experiences so on and to measure these magnitude in the specific people or shortlisted

candidates. Therefore I have conducted the survey based on the descriptive research.

Research Instrument: A Questionnaire was constructed for the survey. A Questionnaire

consisted of series of questions for the respondent to be answered. In this Questionnaire

having the eleven questions and every question having the subparts as I show in

questionnaire.

Sampling Plan: Convenient Sampling

Target people: - The target must be defined that has to be sampled. It is necessary so as to

develop a sampling frame so that everyone in the target population (shortlisted candidates)

has an equal chance of being sampled. Shortlisted candidates are the target population; I’m

targeting these people. because the objectives are related with my target population

satisfaction and experience.

Collecting Information: After this, I have collected the information from the respondents

with the help of the questionnaire. I was collecting the original data so I have chosen this

method to take information from target population or candidates.

Sample Size: As far as the size of sample was concerned during the project, a sample size of

100 respondents was taken; those were the selected candidates.

Sample Technique: Convenience Sampling was used in the collection of the data. Convenience

sampling is perfect to me because my target market is specific.

A. General objective:-

To check the customer perception regarding fixed deposit.

B. Specific objective

To check the response of customers towards fixed deposit services of Mahindra & Mahindra finance and its competitors.

To check the average amount of fixed deposit of sampling area. To check that which factors of fixed deposit can highly influence to the customers

To get suggestions from customers to improve the services of fixed deposit.

DATA ANALYSIS AND INTERPRETARION

Table 4.1 is showing age level of respondents.

sr. no. Age of respondents no. of respondents percentage of respondents

1 Under 40 25 25%

2 40-60 30 30%

3 Above 60 45 45%

40-6030%

Unde4025%

Above 6045%

no. of respondents

Fig.4.1

Interpretation- above 60 years people have invested 45% in fixed deposit and 25% by under 40

and 30% by 40-60.

Table no. 4.2 is showing income level of respondents.

Table no. 4.2

sr. no. options no. of respondents percentage of respondents

1    Below 10000 2 2%

2   Below 50000 96 96%

3 Below 100000 2 2%

4 Above 100000 0 0%

Below 100002%

Below 5000096%

Below 1000002%

no. of respondents

Fig. 4.2

Interpretation- 2% respondents have below 10000 income and 96% have below 100000 and 0%

have above 1 lac and 2% have less than 10000.

Table no.4.3 is showing the awareness to the public regarding fixed deposit.

Table no.4.3

Yes100%

Yes100%

Sr. no. Options No. of Respondents

Percentage of no. of

Respondents

1 Yes 100 100%

2 No 0 0

Fig.4.3

Interpretation- table no.4.3 and fig 4.3 are showing the awareness level of people in Ludhiana 1 area. All respondents are aware about fixed deposit.

Table no. 4.4 is showing investment in fixed deposits.

Table no.4.4

Sr.no. Options No. of respondents

percentage of respondents

1 Yes 95 95%

2 No 5 5%

Yes95%

No5%

Chart Title

Fig.4.4

Interpretation- Above table and figure are representing that 95% respondents have invested in fixed deposit. And 5% have not invested and they are worried about safety of money and they think that returns are also low so according to them fixed deposit is not beneficial.

Table 4.5 is showing the preference of customers regarding fixed deposit.

Table no.4.5

Sr.no. Options no. of respondents Percentage of respondents

1 HDFC Bank 21 22%

2 Mahindra & Mahindra finance

20 21%

3 ICICI Bank 11 11%

4 Sri Ram Finance company

14 14%

5 Oriental Bank 11 11%

6 others 18 18%

HDFC Bank21%

Mahindra & Mahindra finance

22%ICICI Bank

12%

Sri Ram Finance company15%

Oriental Bank12%

others19%

no. of respondents

Fig no. 4.5

Interpretation-Table no.4.5 and fig no.4.5 are displaying highest investment in fixed deposit in HDFC bank and then 21% in Mahindra finance due to highest return and highest safety (crisil’s

FAAA). In ICICI Bank 11% and in Shri Ram finance 14% due to large no. of brokers and in oriental bank 11% and in others 18%.

Table no.4.6 is showing the likings of customers to deposit their money for fixed time.

Table no.4.6

Sr.no. Options no. of respondents percentage of respondents

1 Cash 16 16.84%

2 Cheque 70 74%

3 demand drafts 18 18.94%

Fig no.4.6

cash15%

cheque67%

demand drafts17%

no. of respondents

Interpretation: In table 4.6 and fig. 4.6 are showing there are 74% like fixed deposit by cheque and 18.94% by demand drafts. We asked its reason from respondents they said by this process can be short. 16.84% are investing by cash. By cash investment is very low because people don’t want to take any type of risk like stealing or etc.

Table no.4.7 is showing amount of fixed deposit by customers.

Table no.4.7

Fig.4.7

Interpretation: we understood that Ludiana is an under developing city and here level of income is not very high and people don’t want take risk in high investments. So due to this 0 investment in above 1 crore and 35% people invested in 10 thousand to 1 lac and 32% in 1 lac to 10 lac and 33% are in 10 lac to crore.

Sr. no. Options no. of respondents percentage of respondents

1 10 thousand to 1 lac 33 35%

2 1 lac to 10 lac 30 32%

3 10 lac to 1 crore 32 33%

4 above 1 crore 0 0%

Table no.4.8 is showing factors regarding fixed deposit, which can influence to the customers

Table no.4.8

Options no. of respondents percentage of respondents

high safety 91 96%

high returns 94 99%

maturity time 3 3%

TDS deduction 85 89%

Fig no.4.8

high safety33%

high returns34%

maturity time1%

TDS deduc-tion31%

no. of respondents

Interpretation: Table 4.8 & fig 4.8 are showing that approximately 96% are giving preference to the safety and return. And mostly people invest in fixed deposit in sake of Tax Deduction.

Table no.4.9 is showing those persons who have not invested in fixed deposit till now but they are ready in future.

Table no.4.9

Options No. of respondents percentage of respondents

Yes 3 60%

No 2 40%

Fig 4.9

Yes60%

No40%

Chart Title

Interpretation- table 4.9 and fig 4.9 are showing that 60% respondents are ready to invest in future and rest are don’t want to invest.

Table no.4.10 is showing the doubts in mind of respondents regarding fixed deposit.

Table no.4.10

Options no. of respondents percentage of respondents

safety 2 100%

returns 1 50%

long maturity time 1 50%

safety50%

returns25%

long ma-turity time

25%

no. of respondents

Interpretation -table no 4.10and fig. no.4.10 are showing the 100% respondents

have doubt regarding safety of money and 50% are thinking that returns are

low.

LIMITATIONS OF THE STUDY

The research has been conducted in a limited area.

The internet information can be irrelevant.

Time has been a major constraint.

Smaller sample not always give better results. Sample may not be true representative of

the whole population.

The possibility of biased responses can’t be ruled out.

Due to language problem it is possible that the respondents are not be able to understand

the questionnaire and can cause misleading results.

Lack of availability of full information.

Lack of interest of respondents.

FINDINGS

(1) Mahindra Finance’s deposits are increasing year by year but at diminishing rate. Where deposits are increasing like 2512.69 in 1995-96, 3502.19in 1996-97 to 6223.85 in 1999-2000 and 8471.02 in 2004-05 with a decline in 2007-08 at 7840.09 as compared to previous year 2006-07with 9337.65.

(2) Main motive behind depositing money in fixed deposits is that people want their money safe and intact for some time. Generally income derived from fixed deposits is so low as compare to other investment options that people don’t consider interest income while going for fixed deposit they just want that their money can be safe for this they consider those institutes which can ensure safety of their funds

(3) Mahindra finance has been given “FAAA” rating by CRISIL and ICRA(institutions which rank financial institutions on the basis of services provided by them) of which general public is not aware of. If general public is aware of this fact then Mahindra finance can have more deposits as people only go for the institutes, which can ensure the safety of their funds.

(4) Less awareness about Mahindra financedeposits in general public. Mahindra finance ismainly recognized as loan giving institution and very few people areaware of the fact that Mahindra finance also go for fixed deposits. When 30 people were asked about Mahindra finance deposits only 8 were aware of it and22 people were unaware of Mahindra finance deposits.

a) Advertisement-People are not aware of Mahindra finance deposits therefore in order to increase the awareness level among public more advertisements should bethere. These advertisements can be in newspapers, economic journals or they can be on televisions. People should be made more aware of the fact that Mahindra finance Ltd has been given ‘AAA’ ranking by CRISIL andICRA.

b) People just want safety of their funds while depositing their money in fixed deposits and as Mahindra finance Ltd has the capability of keeping the funds safe therefore it should highlight this capability tothe public so that more funds can be gained. Today also many people believe that depositing money in government banks is more saferather to deposit the money in any private bank therefore it is veryimportant for Mahindra finance to ensure safety of their funds.

c) Better Services can fetch more customers. Sometimes it happensthat people consider old relations and services provided by the bank before going for future dealings.

d) Mahindra finance has won so many prestigious awards of which people arenot aware therefore Mahindra finance should advertise more and more so thatmore people can become aware of this fact and this can help to fetchmore deposits

After the study of whole report I have concluded that large numbers of people are not highly interested for the investment in fixed deposit. Because they have not power to keep trust on finance companies. They always demand for highest safety of their money so they don’t want to take any risk however interest rate will be very high. At time of survey I meet to many people they invest in fixed deposit just sake of tax deduction.Many respondents are not highly interested for Mahindra finance as compare to its competitors like HDFC Bank, ICICI Bank and Shri Ram finance company or IDBI Bank. Because they have not proper awareness regarding Mahindra finance as compare to other finance companies. Mahindra finance is not using higher advertisement channels. As compare to other companies Mahindra finance is famous for loan service to the public.Mahindra finance and HDFC Bank has crisil’s FAAA but in spite of this these arefailed to convert the customers’ at large level.

BIBLIOGRAPHY

BOOKS-

Marketing Management : khan and jain

Philip kotler

Marketing Research : Bound, Stash & Others

SITES-

www.fixed dep.com

www.idbi.com

www.mahindra.com

www.wikipedia.com

Questionnaire

Q.1. Personal detail

g. Name--------------------------------------------------------------------------------------

h. Address------------------------------------------------------------------------------------

------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------

i. Gender Male Femalej. Age Under 40 40-60 Above 60

k. Field -------------------------------------------------------------------------------------l. Income level (monthly)-

Below 10000 Below 50000 Below 100000 Above 100000

Q.2. Are you aware about fixed deposit?

c. Yes

d. No

Q.3.Have you ever invested in fixed deposit?

a.Yesb. No

Q.4. In which bank or finance company you have invested?

g. HDFC Bank

h. Mahindra & Mahindra finance

i. ICICI Bank

j. Oriental bank

k. Sri ram finance company

l. Others

Q.5. Did you invest in fixed deposits by cash cheque or demand drafts?

a. Cash

b. Cheque

c. Demand drafts

Q.6. How much amount have you invested in fixed deposits?

e) 10,000 -100,000

f) 100,000- 10, 000, 00g) 10, 000, 00 – 100, 000, 00h) Above 100, 000, 00

Q.7. what are the reasons to invest in which you have invested?

e. High safetyf. High returng. Maturity timeh. TDS Deduction

Q.8. If you did not invested in fixed deposit till now, then are you ready to invest in future?

a. Yes

b. No

Q.9.what are the reasons due to them you don’t want to invest in fixed deposit?

a. Safety b. Return c. Long maturity time

Q. 10. Do you want to give other suggestions to improve the service of fixed deposit? _______________________________________________________________

_______________________________________________________________ ________________________________________________________________ ________________________________________________________________