Indore Indira business school, Indore

(Batch2021 – 2023)

Summer Internship Project Report

“Talent Acquisition Trainee At AU Small Finance bank”

Submitted By :
Faculty Mentor:
MRIDUL DADHICH ADARSH VERMA

MBA 3 RD Semester
ROLL NO.2101466
ENROLLMENT NO. RU 2103010172
 STUDENT DECLARATION

I, Adarsh Verma here by declare that the presented Summer Internship Project
Report titled “ Talent Acquisition Trainee At A U Small Finance Bank ’’is
uniquely prepared by me after the completion of 45 Days work

I also confirm that the report is prepared only for my academic requirement and
not for any other purpose. It must not be used with the interest of opposite party
of the corporation.

I also hereby declare that I have read and understood the evaluation method
(rubric) of Summer Internship Project.

…………………………….

ADARSH VERMA
(MBA– FINANCE,III Semester )

Enrollment No. 2103010172

 CERTIFICATE

This is to certify that Adarsh Verma ,the student of Master of Business Administration
Full Time program of Indore Indira Business School, Indore has
completed Summer Internship Project Report titled Talent Acquisition Trainee At
AU Small Finance Bank under my guidance and supervision. As per my knowledge
the work carried out by him is original and genuine . I wish further success to him.

(Signature)
MRIDUL DADHICH
Indore Indira Business School, Indore

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 ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to all those who helped me in the completion
of this project report. At the outset, I would take this opportunity to express my sincere
gratitude to the Director, Mridul Dadhich, Indore Indira business school, Indore
for giving me the opportunity to undertake and accomplish this project..

Compiling a project would never have been possible without valuable help of few persons
under whom I worked. I would like to express my immense gratitude to Mr Rajveer
Singh Bhadoria for their constant support and motivation that had encouraged me to
learn and come up with the results.

I am also thankful to my faculty mentor Mridul Dadhich and all the other college
authorities who have rendered their whole hearted support at all times for successful
completion of the Summer Internship Project.

I wish to extend my special gratitude to SIP coordinator Dr. Sunil Kumar Verma for
guiding me at every point and helping me to complete my report.

ADARSH VERMA

(MBA– F/M ,III Semester)

Enrollment No. 210301010172

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 CONTENT

Sr. No. Particular Page No.

1 Chapter 1: About the Industry 6-10

2 Chapter 2: About the Organization 11-12

Chapter 3: Departmental
3 13-16
Description

Chapter 4: Strengths, Weakness, of

4 17-18
the Organization

5 Chapter 5: Suggestion & Conclusion 19

Chapter 6: Weekly Overview of

6 20-28
Internship

7 Chapter 7: References 29

5
 CHAPTER 1

ABOUT THE INDUSTRY

Industry Overview

Internet banking-Internet banking is changing the banking industry and is having the major effects
on banking relationships. Banking is now no longer confined to the branches were one has to
approach the branch in person, to withdraw cash or deposit a cheque or request a statement of
accounts. In true Internet banking, any inquiry or transaction is processed online without any
reference to the branch anywhere banking at any time. Providing Internet banking is increasingly
becoming a "need to have" than a "nice to have" service.

Definition of Bank

An Organization, usually a corporation, chartered by a state or federal government which does

most or all of the following: receive demand deposits and time deposits honors instruments drawn
on them and pays interest on them; discounts notes, makes loans and invests in securities collects
Checks drafts and notes certifies depositor’s checks; and issues drafts and cashier’s Checks. A
bank is financial institution licensed to receive deposits and make loans. Banks may also provide
financial services such as wealth management currency exchange and safe deposit box. There are
several different kinds of bank including retail banks commercial or corporate bank, and
investment banks. In most country banks are regulated by the national government or central
bank.

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Structure of the Indian banking system

Market size

The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46 foreign
banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative banks
in addition to cooperative credit institutions As of November 2020, the total number of ATMs in
India increased to 209,282.

Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20.

During FY16-FY20, bank credit grew at a CAGR of 3.57%. As of FY20, total credit extended
surged to US$ 1,698.97 billion. During FY16-FY20, deposits grew at a CAGR of 13.93% and
reached US$ 1.93 trillion by FY20.

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According to the RBI, bank credit and deposits stood at Rs. 108.34 trillion (US$ 1.48 trillion) and
Rs. 151.67 trillion (US$ 2.08 trillion), respectively, as of June 04, 2021.

Credit to non-food industries stood at Rs. 108.02 trillion (US$ 1.47 trillion), as of June 04, 2021.
Non-food industries grew at 5.7% in January 2021 as against an increase of 8.5% in January 2020

Investments/Developments

• In December 2020, in response to the RBI’s cautionary message, the Digital Lenders’
Association issued a revised code of conduct for digital lending.
• As of June 2, 2021, the number of bank accounts opened under the government’s flagship
financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’ reached 42.44 crore
and deposits in Jan Dhan bank accounts totalled >Rs. 1.45 lakh crore (US$ 19.81 billion).
• On November 6, 2020, WhatsApp started UPI payments service in India on receiving the
National Payments Corporation of India (NPCI) approval to ‘Go Live’ on UPI in a graded
manner.
• In 2019, banking and financial services witnessed 32 M&A (merger and acquisition)
activities worth US$ 1.72 billion.
• In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100 million
in green bonds through private placement.
• In February 2020, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 - till
2020-21 to those RRBs which are unable to maintain minimum Capital
• The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in the last four years including record recovery of Rs.
156,746 crore (US$ 22.42 billion) in FY19.

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Government Initiatives

• As per Union Budget 2021-22, the government will disinvest IDBI Bank and privatise two
public sector banks.
• As per Union Budget 2019-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate e-way
bill.
• Government smoothly carried out consolidation, reducing the number of Public Sector
Banks by eight.
• As of September 2018, the Government of India made Pradhan Mantri Jan Dhan Yojana
(PMJDY) scheme an open-ended scheme and added more incentives.
• The Government of India planned to inject Rs. 42,000 crore (US$ 5.99 billion) in public
sector banks by March.

Achievements

• In May 2021, Unified Payments Interface (UPI) recorded 2.54 billion transactions worth
Rs. 4.91 lakh crore (US$ 67.32 billion).
• According to the RBI, India’s foreign exchange reserves reached US$ 582.41 billion, as of
April 16, 2021
• To improve infrastructure in villages, 204,000 point of sale (PoS) terminals have been
sanctioned from the Financial Inclusion Fund by National Bank for Agriculture & Rural
Development (NABARD).
• The number of transactions through immediate payment service (IMPS) reached 279.81
million (by volume) and amounted to Rs. 2.66 trillion (US$ 36.50 billion) in May 2021.

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Road Ahead

Enhanced spending on infrastructure, speedy implementation of projects and continuation of

reforms are expected to provide further impetus to growth in the banking sector. All these factors
suggest that India’s banking sector is poised for a robust growth as rapidly growing businesses
will turn to banks for their credit needs.

Also, the advancement in technology has brought mobile and internet banking services to the
fore. The banking sector is laying greater emphasis on providing improved services to their clients
and upgrading their technology infrastructure to enhance customer’s overall experience as well
as give banks a competitive edge.

India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1 trillion
by FY23 driven by the five-fold increase in the digital disbursements.

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 CHAPTER 2

ABOUT THE ORGANIZATION

Company Profile

AU Small Finance Bank Limited is an Indian scheduled commercial bank that was founded as
vehicle finance company AU Financiers (India) Ltd in 1996 and converted to a small finance
bank on 19 April 2017.

AU Small Finance Bank has a long-standing track record of over two decades of being a retail-
focused and customer-centric institution; serving low- and middle-income individuals and micro
/ small businesses that have limited or no access to formal banking and finance channels. The
Bank offers a comprehensive suite of loan, deposit & payment products and services.

AU Small Finance Bank ranked 355 in the list of Fortune India 500 (2019) companies, with
annual revenue of ₹3,410.87 crore (US $ 478 million) and Total B/S Assets of ₹31,198.68
crore (US$4.4 billion). Its full market capitalization at FY18 was ₹17,655 crores (US$2.71
billion). AU Bank had Gross Asset Under Management of Rs. 21,765 Cr, Total Deposits of Rs.
14,686 Cr, Net Worth of Rs. 3,035 Cr and Gross NPA and Net NPA of 2.1% and 1.3%
respectively as of December 31, 2018. The Bank is adequately capitalized with Total CRAR of
19.0% and Tier-I CRAR of 15.5%.

History

The company as founded by Sanjay Agarwal (managing director and CEO of AU Small Finance
Bank as a private limited company, and publicly listed in an IPO on 29 June 2017. A merit holder
Chartered Accountant and a first-generation entrepreneur, he holds 28.5% stake in the Bank. He
is supported by a team of 22,484 employees.

AU Small Finance Bank is listed on NSE & BSE with market capitalization of ~Rs. 30,000
crores. On its first day of trading, the stock rose 51% to be the most expensive bank in India based
on price-to-book.
11
In November 2017, the Reserve Bank of India added the bank to its schedule of commercial
banks, further improving the bank's growth prospects by reducing the cost of short-term funds
and improving the bank's ability to provide services

Services

Due to its history as a vehicle finance company, as of March 2018 almost all the loans made by
AU Small Finance Bank were secured, unlike most small finance banks that have unsecured loans
due to their background in microfinance. This provides lower yields (lower interest rates) than
unsecured loans, so the bank has been particularly active in growing its deposits, as bank deposits
have lower cost than other sources of funds. It has also sought to diversify into savings products
like deposits, payment / transaction banking, distribution of third-party products, and additional
loan products thereby positioning itself as a holistic financial products and services provider

12
 CHAPTER 3

DEPARTMENTAL DESCRIPTION

HR Department

Human Resources forms part of the back office in a financial services firm or bank. But this by
no means implies that the professionals that work in this industry are hidden away back stage.

Responsibilities of a HR Department .

• The primary focus of any HR department is the company's people. HR covers a wide-
spanning number of areas, from payroll , employee benefits and pensions schemes, to
recruitment across all levels of the business, new hire contracts and disciplinary issues.

• The challenge that makes the work of a HR department in a financial firm unique is that of
industry culture change. As the financial industry fashions a fresh outlook on its culture
which contributed to the credit crunch a few years ago, and bangs to assimilate with new
industry regulations, it's up to HR in each company to help put these changes in place.

• They make sure the leaders (the managers) are well prepared in order to provide the most
appropriate guidance to their staff, and that they have the best people place with the right
mind set.

• Recruitment wise, HR has to work to make their career options as well tailored and
appealing to the new young talent pool and experienced professionals as possible

13
 Marketing Department

Marketing is the medium created in business to sell products and relate feedback to
management on the perceived knowledge or notion of customers about given goods and
services

The goods and services sold in a bank are products designed in different packages such as
Savings account opening ,Current account, Fixed deposit account ,Fund transfer, clearing
of cheques, point of sales terminal (POS) , Automated teller machine, Term loans and cash
advance, Charges and commission on certain services, Leasing of equipment, Saving of
valuables.

These products or services designed are to be brought to the awareness of the bank
customers through the marketing department. The personnel handling marketing issues are
trained to carry out these functions in corporate and professional manners at all times. They
are usually smartly dressed as directed in the organization's policy or manual of procedure.

Customers introduced to the bank are to be serviced by the marketers and often times
business (marketer Customer) relationship will be married by the both marketer could
parties. A bank exceeds expectations by going the length to pick up proceeds from
customers depending on arrangement between parties and management of such financial
institutions.

Operations Department

Operations in banking like every other firm are established to carry out all the day to day
transactions of the bank.

14
Operations may be involved in:

1. Account opening and follow up of details provided by the bank customer.

2. Processing of credit facilities requested by the bank customer and ensure credit
worthiness.
3. Processing of bank instruments.
4. Payments of all receipts on demand.
5. Processing of domestic and foreign fund transfer.
6. Closing of account on customer’s request
7. Acceptance of valuables of customers.
8. Proper recording of documents from the various transactions of the bank, etc

Operations in the banking sector are a department set aside to tackle and render direct and
indirect services of the bank.

Finance Department

Finance Department is the part of an organization that is responsible for acquiring funds
for the firm, managing funds within the organization and planning for the expenditure of
funds on various assets. It is the part of an organization that ensures efficient financial
management and financial control necessary to support all business activities.

Roles and Responsibilities of a Finance Department

a. Book keeping This is the most basic function of the finance department. It involves the
day-to-day recording, analysis and interpretation of a company's financial transactions.

15
b. Management of company's cash flow It is the duty of the finance department to manage
all cash flows into and out of a company and ensure that there are enough funds available
to meet the day-to-day running of the company. 12

c. Budgets and forecasting this function, the finance department works with managers to
prepare the company's budgets and forecasts and also give feedback with regards to the
financial standing of the company.

d. Advising and sourcing longer-term financing is the duty of the finance department to
advise companies on the best financing mix that could yield the company the best profit
and also help them source longer-term financing at the lowest cost such that there is a profit
level of liquidity.

e. Management of Taxes Running a company involves paying tax, and it is the duty of the
finance department to handle tax issues. f. Management of Company's Investments The
company's working capital needs to be managed efficiently in such a way maximize
profitability relative as to the amount of funds tied up since it has more implication on the
firm liquidity than its fixed asset.

g. Financial Reporting and analysis financial reporting and analysis is the function that
takes raw accounting entries and transforms them into meaningful, usable and comparable
financial statements.

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 CHAPTER-4
STRENGTH & WEAKNESS

Strengths

The company has relatively diversified product portfolio and revenue streams
The company has a healthy customer base of 280,349 active loan accounts end March 2017
and developed strong relationships with customers through in-person contact by addressing
their financial needs. The company has taken various steps to strengthen customer relationships
such as hiring local personnel, establishing relationships with vehicle manufacturers and
dealers, setting up call centers and conducting referral and other programs
The company has over 20 years of operating experience in rural and semi-urban markets of
India with 146 of 301 NBFC branches located in such markets. A large segment of Indias rural
and semi-urban population is currently unserved and underserved by formal financial
institutions.
The Gross Asset under Management (AUM) has increased at strong CAGR of 30% for four-
year period to Rs 10733.86 crore end March 2017. The disbursements have also jumped at 29%
CAGR to Rs 6730.47 crore in FY2017. About 98.99% of total receivables under financing
activity are secured.
Total income has grown at a four-year CAGR of 36% to Rs 1430.52 crore in FY2017 and profit
before exceptional item has grown at a four-year CAGR of 49% to Rs 504.58 crore in FY2017.

17
Weaknesses

The conversion to SFB poses challenges such as increase in overall funding requirement to
meet CRR and SLR requirements. The negative carry-on CRR and SLR may hurt the net
interest margins of the SFB. The operating expenses may rise on account of introduction of
new products, cost of deposit mobilization, recruitment and trainings, up-gradation of systems
and branch infrastructure in initial years.
Of the 269 branches and 121 asset centers, about 189 branches and 89 asset centers of the
company are located in western India in the states of Rajasthan, Gujarat and Maharashtra end
March 2017. About 79.29% of Gross AUM was located in such states, with Rajasthan
accounting for 53.78% of Gross AUM. Any adverse developments in this region could have an
adverse effect on business.
An increase in Gross NPA in FY2017 was primarily on account of the change in the period of
classification of loans as an NPA, from 150 days past due to 120 days past due in accordance
with guidelines issued by the RBI. As an SFB, this period will reduce further to 90 days past
due, which may result in a further increase in Gross NPA, which would increase provisioning
requirements.
Farm loan waivers, poor monsoon, natural calamities etc can spoil loan repayment capacity
and willingness in rural areas. Scrip prices of rural focused players tend to get adversely
affected by such events.

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 CHAPTER-5
SUGGESTIONS

➢ People gave their first priority to low maintenance bank account or zero maintains bank
account.

➢ AU Small Finance Bank should increase their advertising in developing towns.

➢ As City have all classes of people and poor banking services a proper market can be
generated for AU Small Finance Bank the need of branch and ATM facility require at such
places too.

➢ Educate consumers

➢ Special schemes for women applicant/co-applicant.

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 CHAPTER 6

WEEKLY OVERVIEW OF INTERNSHIP

Day Date Work Performed

Induction Programme
Monday 08/08/2021
Week
1st

Induction Programme
Tuesday 09/08/2021

Induction Programme
Wednesday 10/08/2021

Thursday 11/08/2021 Induction Programme

Friday Induction Programme

12/08/2021

20
 Day Date Work Performed

CIBIL and IRDA check.

Saturday
13/08/2021

Bank Holiday
Sunday
14/08/2021

Monday CIBIL and IRDA check

15/08/2021
Week
2nd

Tuesday Boarding process

16/08/2021

Boarding process
Wednesday 17/08/2021

Thursday Boarding process

18/08/2021

Friday 19/08/2021
Boarding process

21
 Day Date Work Performed

Saturday On boarding
20/08/2021

Bank Holiday
Sunday 21/08/2021

Monday On boarding
22/08/2021
Week
3rd

Approvals for the boarding

Tuesday
23/08/2021

Approvals for the boarding

Wednesday 24/08/2021

Thursday Approvals for the boarding

25/08/2021

Friday 26/08/2021 Approvals for the boarding

22
 Day Date Work Performed

Scrutiny Of Resumes
Saturday 27/08/2021

Sunday Bank Holiday

28/08/2021

Checking Of Resumes Before Walk In

Monday
29/08/2021 Interviews Of Candidates
Week
4th

Checking Of Resumes Before Walk In

Tuesday 30/08/2021
Interviews Of Candidates

Checking Of Resumes Before Walk In

Wednesday
31/08/2021 Interviews Of Candidates

Checking Of Resumes Before Walk In

Thursday 01/09/2021
Interviews Of Candidates

Checking Of Resumes Before Walk In

Friday 02/09/2021
Interviews Of Candidates

23
 Day Date Work Performed

Saturday Newly Hired Employees Induction Programs

03/09/2021

Sunday Bank Holiday

04/09/2021

Newly Hired Employees Induction Programs

Monday
05/09/2021
Week
5th

Newly Hired Employees Induction Programs

Tuesday
06/09/2021

Newly Hired Employees Induction Programs

Wednesday
07/09/2021

08/09/2021 Newly Hired Employees Induction Programs

Thursday

Friday Newly Hired Employees Induction Programs

09/09/2021

24
 Day Date Work Performed

Calling For Documents Required For Process

Saturday
10/09/2021

Bank Holiday
Sunday
11/09/2021

Calling For Documents Required For Process

Monday 12/09/2021
Week
6th

Calling For Documents Required For Process

Tuesday
13/09/2021

Calling For Documents Required For Process

Wednesday
14/09/2021

15/09/2021
Thursday Calling For Documents Required For Process

Friday Calling For Documents Required For Process

16/09/2021

25
 Day Date Work Performed

Saturday
Bank holiday
17/09/2021

Sunday Bank holiday

18/09/2021

Calls To Employees Regarding There

Monday
19/09/2021 Training And Vaccine Updates
7th

Tuesday Calls To Employees Regarding There

20/09/2021 Training And Vaccine Updates

Calls To Employees Regarding There

Wednesday
21/09/2021 Training And Vaccine Updates

Calls To Employees Regarding There

Thursday 22/09/2021 Training And Vaccine Updates

Calls To Employees Regarding There

Friday
23/09/2021 Training And Vaccine Updates

26
 Day Date Work Performed
Bank holiday

Saturday
24/09/2021

Bank holiday

Sunday
25/09/2021
Cheaking the status of newly hired employees

Monday
26/09/2021
Week
8th

Cheaking the status of newly hired employees

Tuesday
27/09/2021

Cheaking the status of newly hired employees

Wednesday 28/09/2021

Cheaking the status of newly hired employees

Thursday 29/09/2021

Cheaking the status of newly hired employees

Friday
30/09/2021

27
 Day Date Work Performed

Saturday Bank holiday

1/10/2021

Sunday Bank holiday

02/10/2021

Working On Report
Monday 03/10/2021
Week
9th

Working On Report
Tuesday 04/10/2021

Working On Report
Wednesday 05/10/2021

Thursday Working On Report

06/10/2021

Working On Report
Friday 07/10/2021

28
 CHAPTER 7
REFERENCES

➢ https://www.AUbank.com/

➢ https://en.wikipedia.org/wiki/AUBank

➢ https://dnh.gov.in/

➢ https://www.ibef.org/industry/banking-india.aspx

➢ https://indoreindira.com/

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