It looks fine to me, like a normal bud graft. In time, that graft will almost disappear. I can't really tell much from the picture, but from what I can see, the only concern I'd have is that the graft is so far down on the cutting, giving you not a lot of trunk of the rootstock. Usually, the bud grafts I've seen for sale are at least 8-10 inches above the soil. Having so little rootstock, it would be easy to lose the graft or have it covered and destroyed.

Thank you Dave. Yes, its a Mallika Scion grafted plant. Just got it 2 weeks back. I stitched 2 photos from opposite angles for 360 degree coverage. Thought it would be obvious, apparently it isn't.

So far, I haven't seen any new leaf. So, I am not sure yet if the plant will live.

I am not sure if the stem of the graft will straighten up a bit by itself so yes, I will try to do something myself. I am just waiting for the plant to give new leaves and strengthen up a bit post transplant.

My concern is that if the grafting is not very solid the scion might get separated from the rootstock later on when it gets heavy and bulky. I would have preferred a V or cleft grafting method for that.

Dirtygardener, thanks for our comment. I never heard before that covering the graft might destroy it. As of now, the graft bud is 4 inches above the ground. My concern is the strength of the graft joint and whether it could support the full weight of a grown tree. It looks so delicate. The visible gap in the bark between the parts doesn't help much.

I would have had better peace of mind with a V graft.

It helps to see the whole plant. I think as the scion grows, the bud graft union will strengthen and the scion itself will beef up as well. Just keep it in a sheltered spot -- no real strong winds. I would still stake it though if you want a cosmetically better looking small tree.

Yes, covering the graft will kill it, so be careful about mulching when you plant it out or put it into a larger pot. What I usually do is get something like a plastic coffee container, cut off the bottom and up one side, put it around the bottom of the plant, then mulch around that. Cutting up the side allows it to spread as the tree grows. That way, it's protected from being covered and from crazy weed-eating devilment. You can also buy that black trunk protector tubing to put around it. If you eat Stax potato chips, those plastic packs are really good for protecting trunks or small plants too. (Can you tell I'm a super-frugal gardener?). Basically, anything that keep mulch or leaves from building up around the graft and protects it from string trimmers.