SUMMER TRAINING REPORT

On

Credit and Retail Business

AT

AU Small Finance

Bank
Submitted in partial fulfillment of the requirement for the award of the degree of

Bachelors of Business Administration (Banking and Insurance)

BATCH 2021-24

Maharaja Surajmal Institute

Recognized by UGC u/s 2(f), NAAC Accredited ‘A’ Grade

Affiliated to Guru Gobind Singh Indraprastha University, DelhiC-4, Janakpuri, New Delhi-110058

Guide: Submitted by: Harsh Kumar

Ms. Ruchi Kalia 04721201821

1
 Certificate

I, Mr. Harsh Kumar, Roll No. 04721201821 certify that the Summer Training Report

[Paper Code: BBA (B&I) 315] entitled “Credit and Retail Business AT AU Small Finance

Bank” is done by me and it is an authentic work carried out by me.

The matter embodied in this has not been submitted earlier for the award of any degree or

diploma to the best of my knowledge and belief.

Signature of the Student

This is to certify that Project Report entitled “Credit and Retail Business AT AU Small

Finance Bank” which is submitted by Harsh Kumar in partial fulfillment of the requirement for

the award of degree of Bachelor in Business Administration (Banking and Insurance) To

Maharaja Surajmal Institute Affiliated to Guru Gobind Singh Indraprastha University, C-

4, Janakpuri, New Delhi-110058 is a record of the candidate own work Carried out by him

under my supervision.

The matter embodied in this report is original and has not been submitted for the award of any

other degree.

Signature of the Guide

Name of the Guide: Ms. Ruchi Kalia

Designation: Assistant Professor

2
3
 ACKNOWLEDGEMENT

I express my sincere thanks to my project guide Ms. Ruchi Kalia for guiding me right from the
beginning till the successful completion of the project. This report is the result of the dedicated
support of many individuals.

The internship opportunity I had with AU Small Finance Bank company was a great chance for
learning and working professionally. Therefore, I consider myself a lucky individual as I was
provided with an opportunity to be a part of it.

My deepest gratitude and special thanks to Mr. Gaurav for guiding and supporting throughout
this period.

A special note of thanks to our trainer who in spite of being busy with his duties, took time out
to listen, guide and correct me. With the support of his I was able to learn everything very
easily.

4
 TABLE OF CONTENT

SI.NO PAGE.NO
CONTENTS

1
CHAPTER1 6-14
INTRODUCTION
2
CHAPTER 2 15-23
PROFILE OF COMPANY

3 CHAPTER 3 24-29
CONCEPTUA L FRAMEWORK

CHAPTER 4
4 Analysis and interpretation of data 30-39

40-42
CHAPTER 5 CONCLUSION AND
6 RECOMMENDATIONS

7 43
REFERENCES

5
 CHAPTER 1
INTRODUCTION

INTRODUCTION
6
HISTORY OF AU SMALL FINANCE BANK

The company was 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 23,486 employees.

AU Small Finance Bank is listed on NSE & BSE with market capitalization of "Rs. 37,942
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. [12]

The desire was turned into reality and in 1996, AU Financiers, was established. Headquartered in
Jaipur, Rajasthan, the retail-focused Non-Banking Finance company for two decades provides

speedy and customized financial solution to rural and population.

➤ Major event and milestone

The tables set forth some of the major events in the history of the company:

➤ 1996:
Incorporated as a privet limited company in Rajasthan with an authorized share capital of Rs.0.1
million.

7
➤ 2000:
Received certificate of registration under section 45 I A of RBI Act from the RBI to carry on the
business of non-banking financial institution without accepting public deposits.
➤ 2005:
Became commercial associate of HDFC Bank for carrying on the business of financing
commercial vehicles.

➤ 2006:
Expanded operation into Maharashtra.

➤ 2008:
Obtained investment of? 200 million from India Business Excellence Fund and India Business
Excellence Fund-1.

➤ 2009:
Forayed into Gujarat, the third state where the Company commenced its operations.

➤ 2010:
Received fresh certificate oh registration under section 451A of RBI has Act from the RBI
pursuant to which RBI has classified the Company as a NBFC-ND-AFC. Obtained investment of
350 million,60 million and 140 million, from IFC, IBE Fund and IBE Fund -1, respectively.
Attained the status of Ậ Systemically Important Non-Deposit Taking Asset Finance Company A.

➤ 2011:
Set-up a subsidiary, AUHFL, to provide housing finance service.
Obtained investment of 1,500n million and 330.44 million from Redwood and IFC,
respectively. Received upgrade of credit rating from CRISIL BBB+/Stable to CRISIL A/Stable
for long term bank facilities by CRISIL Ratings.

8
➤ 2012:
Set-up a subsidiary, Au Insurance Broking Services Private Limited, to provide insurance and
broking services.
➤ 2015:
Received upgrade of credit rating to CARE A+ for long-term banking facilities by CARE Rating.
Assigned a credit rating of Ind A+ /Stable for long term banking facilities and NCDs by India
Ratings.
Received Ậ in-principle, approval for forming an SFB from the RBI.
Pursuant to RBI approval dated April 6, 2016, divested its shareholding in AU HFL
which was the erstwhile subsidiary company.

➤ 2016:
Pursuant to RBI approval dated September 6,2016, divested 29.53% of the total shareholding of
M Power Micro Finance Private limited.

➤ 2017:
Commenced operation as an SFB and the same was notified via RBI press release dated April
19, 2017.

Received upgrade of credit rating outlook from Ind A+ / Stable to IND A + / POSITIVE for long
term banking facilities and NCDs by India Ratings.

• Awards and Accreditations

We have received the following awards and accreditations:

➤ 2011:
Shortlisted for the Financial Times Inter-National Finance Corporation-Sustainable Finance
Awards in the Ậ Achievement in the Financing at the Base of the Pyramid Ậ category.

9
➤ 2012:
AUCE Awarded the Ậ Best PE-backed Financial Service Company by VC Circle.

➤ 2017:
Adjudged runner-up in the best Retail NBFC category by outlook Money Awards, 2016.

➤ 2018:
AU BANK STARTS SOCIAL CONNECT INITIATIVES WITH PAKHI
AU Bank received Rajasthan Best BAND Award 2018
AU Bank organized Free yoga camps in more than 50 cities on International Yoga Day
AU Small Finance Bank ties up with Aurion pro Solution
AU Small Finance Bank Has Entered into Agreement with The New India Assurance Company
Limited.

➤ 2019:
Au Small Finance Bank-AU SMALL FINANCE BANK LIMITED ('The Bank') Enter Into
Agreement With TATA AIG

➤ 2020:
Au Small Financed Bank starts operations in eastern India.

10
 OBJECTIVE OF STUDY

We aim to empower every Indian with financial freedom and digital literacy and the most
effective way to achieve this is by bridging the gap between the cosmopolitan India and the
emerging India.

We are bringing efficiency in intermediation between the two markets and customer segments to
ensure that the surplus money is efficiently invested to best-in-class returns whereas the deficient
has access to capital at the right cost, seamlessly.

We aim to provide the right tools, opportunities and environment for individuals to realize their
true potential – be it employees or the customers.

A strong compliance culture, empathy, integrity and responsible banking are some key values
which can help us become a credible bank.

As a credible Bank, we aim to play our role very responsibly in an ethical, fair and transparent
manner with a sustainable and consistent value proposition for our customers. We aim to provide
right product at right pricing in an easy to approach and convenient manner.

11
 REVIEW OF LITERATURE

➤ Saket Das (2017):

AU intends to expand and strengthen its business model to offer diverse suite of banking
products and services by leveraging its assets-based lending strength. Existing customer base,
cost efficient and technology driven hub-and-spoke branches will be the three-pronged operating
model for AU to kick-start the bank.

➤ Pritesh Bumb R Sreesankar Vidhi Shah (2017):

Transformation to small finance bank will enable AU Small Finance Bank to meets its funding
requirement through term deposits which will impart stability to the business. Besides, as small
finance banks the company will be able to offer a wide bouquet of lending products thereby
adding to its scalability.

➤ Dan Goldblum, Mahima Khanna (2015):

Financial Intermediaries like AU Financiers which provide access to finance for Micro, Small
and Medium Enterprises is underserved markets, are expected to have significant financial
inclusion and job creation effects and positively affects financial performances of micro small
and medium enterprises.

➤ Ajay Kumar Motwani (2011):

A vibrant and a well-developed market which has been shown to facilitate consumption &
investment, by providing loans to different segments has a lot of potential in the coming years.
The lenders as well as borrowers in the country are growing at a very fast pace.

12
➤ Mandira Sarma Jesim Pais (2008):

The paper attempts to identify the factors that are significantly associated customer satisfaction.
Levels of human development and customer satisfaction in a country move closely with each
other, although a few exceptions exist. Among socio-economic factors, as expected, Income is
positively associated with the level of customer satisfaction. Going beyond income, inequality,
literacy and urbanization are other important factors.

13
CHAPTER 2
PROFILE OF
COMPANY

14
 COMPANY PROFILE

AU Small Finance Bank limited provides various banking and financial services India, It
operates through Treasury, Retail Banking, Wholesale Banking, and other Banking Operations
segments. The company offers savings and current accounts, escrow accounts, fixed and
recurring deposits, and COVID shield deposit; debit and credit cards; locker services; and
investment products. It also provides car, commercial vehicle, tractor, two-wheeler, home,
construction and equipment, business term, personal, gold, secured business, and real estate
project loans; agri-business credit and infrastructure loans, as well as lending to non-banking
financial companies; and lease rental discounting loans, as well as cash credit and overdraft
facilities. In addition, the company offers bank guarantee, letters of credit, discounting of letter
of credit, clean bill discounting, import and export bill collections, and inward and outward
remittance services; digital banking services, such as Internet and mobile banking, collection and
receivables, and payment and other merchant payment services; and government banking
services to central government, states governments, central and state public sector undertakings,
boards, defense, urban local bodies, and other government departments. Further, the company
provides points of sale machines; mutual funds; and home, travel, personal accident, two-
wheeler, motor, fire, life, and health insurance products. As of March 31, 2021, it operated 552
bank branches, 177 correspondents banking outlets, 15 business correspondents, and 343 ATMs.
The company was formerly known as AU Financiers (India) Limited and changed its name to
AU Small Finance Bank Limited in May 2017. AU Small Finance Bank Limited was
incorporated in 1996 and is headquartered in Jaipur, India.

Corporate Governance:
AU Small Finance Bank Limited's ISS Governance Quality Score as of N/A is N/A. The pillar
scores are Audit: N/A; Board: N/A; Shareholder Rights: N/A; Compensation: N/A.
Corporate governance scores courtesy of Institutional Shareholder Services (ISS). Scores
indicate decile rank relative to index or region. A decile scores of 1 indicates lower governance
risk, while a 10 indicates higher governance risk.

15
 Key Executives

NAME
Mr. Sanjay Agarwal C.A.
Mr. Vimal Jain
Mr. Manmohan Parnami
Mr. Uttam Tibrewal
Mr. Deepak Jain
Mr. Sharad Goklani
Mr. Ankur Tripathi
Mr. Prince Tiwari
Mr. Vivek Tripathi
Mr. Manoj Tibrewal
DESIGNATION
MD, CEO & Director
Chief Financial Officer
Company Sec. & Compliance Officer
Exec. Director
Chief Risk Officer
Chief Technology Officer
Chief Information Officer
Chief of Financial Institutions Group &Chief Investor
Relations Officer
Chief of HR
Group Head of Distribution, Enterprise, Salary & Merchant
Acquiring
[figure no. 1.1]

Amounts are as of December 31, 2021 and compensation values are for the last fiscal year
ending on that date. Pay is salary, bonuses, etc. Exercised the value of options exercised during
the fiscal year. Currency in INR.

16
 TECHNOLOGY USED IN AU SMALL FINANCE BANK

AU Small Finance Bank leverages cloud technology-in addition to brick-and-mortar banks-to

bring modern-day financial services to the "unbanked" millions of citizens and business across
rural India.

Since 2017, AUSFB has built out its lending and account management systems on Oracle Cloud
Infrastructure and Oracle Database, which encompasses servers, processors, storage, memory,
and network. Beyond that core technology, AUSFB has adopted Oracle's analytics, machine
learning, Integration services, blockchain, and even chatbots.

In fact, around '0 percent of AUSFB's technology is sourced from Oracle, from secure databases
to tablet-based fingerprint verification.

Oracle technology plays a central part in bringing financial inclusion to India's rural unbanked,
says the bank's senior vice president for technology, Ankur Tripathi.

With Oracle Cloud keeping customer data timely, accurate, accessible, and secure, AUSFB is
bridging the digital divide between India's prosperous cities and poor rural towns and villages.

Oracle Cloud portfolio

1.Oracle Database Cloud Service: Oracle database services and product offer customers cost-
optimized and high-performance versions of Oracle Database, the world's leading converged,
multi-model database management system, as well as in-memory, NoSQL and MySQL
databases. Oracle Autonomous Database, available on premises via Oracle Cloud@Customer or
in the Oracle Cloud Infrastructure, enables customers to simplify relational database

17
environments and reduce management workloads.

2.Oracle Cloud Infrastructure: Larry Ellison and Satya Nadella announced Oracle Database
Service for Microsoft Azure, bringing the enterprise- grade performance, availability, and
automation of Oracle Database to Azure customers.

PRODUCTS AND SERVICES SEGMENT

➤ Personal Banking:

Branch Banking-

 Saving Account

 Term Deposit

 Bank Locker

 Life & Health Insurance General & Fire Insurance

 Mutual Fund

 3 in 1 Trading Account

 Loan & Advances-

 Vehicle Loan

 Home Loan

 Personal Loan

 Gold Loan

 Credit Card

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➤ Commercial Banking:

 Transaction Banking-

 Current Account

 Trade & Forex

 Overdraft Facilities

 Cash Management Services (CMS)

 Non-Fund Based Facilities

➤Loan & Advances

 Secured Business Loan (SBL)

 Business banking-Term Loan, CC/OD

 Agri Banking

 NBFC Lending

 Real Estate and Construction Finance

➤ Digital Banking:

 Digital Products-

 Saving Account

 Fixed Deposit

 Vehicle Loan

 Personal Loan

19
  Credit Card

 Insurance & Investment

➤ Digital Channels

 Mobile Banking

 Net banking

 Corporate Internet Banking

 Video Banking

 WhatsApp Banking

 Auro Chatbot

 Missed Call Banking

 AU Biz Pay

➤ Payment & Services-

 Merchant Payment (UPI QR & Point of Sales- POS)

 Debit Card

 AEPS

 BHIM UPI

 Bharat Bill Payment Service (BBPS)

 NETC I FASTag

 ASBA

20
 STRATEGY OF AU SMALL FINANCE BANK
Our strategic objective are our long-term goals that we want to achieve as a Bank to fulfill our
purpose and create value for all our stakeholders. Our strategy priorities are designed to help us
achieve these objectives. In response to the rapidly changing operating environment and needs
and expectations of our stakeholders, we have defined four strategy objectives and six strategy
priorities/ focus areas that drive our value-creation journey.

Long-team objectives:

Build a credible, trustworthy and sustainable bank that inspires generations to come

Bring efficiency in intermediation between savers and borrows

Act as a responsible catalyst to serve financial needs of the unserved and unreached

Unlock human potential

Six strategy priorities:

Drive Sustainable growth from existing products and segments

Create strong brand awareness

Scale retail focused, sustainable liability franchise

Develop a highly empowered and capable team

Build a tech-lead ecosystem

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 Vision and Mission Statement

Vision
To be the world's most trusted retail bank and coveted employer that is admired as the epitome of
financial inclusion and economic success, where ordinary people do extraordinary things to
transform society at large, thereby guaranteeing Trust, Confidence and Customer Delight.

Mission
To build one of India's largest retail franchises that is admired for:
Making every customer feel supreme while being served
Aspiring that no India is deprived of banking
Blas for action, dynamism, detail orientation and product-process innovation
Globally respected standards of integrity governance and ethics
Being an equal opportunity employer, providing a collaborative and rewarding platform to all its
employees.

22
 CHAPTER 3
CONCEPTUA L
FRAMEWORK

23
AU Financiers converts to small finance bank from a NBFC

AU was the only asset financing NBFC out of the ten applicants from across the country which
was awarded in-principal approval from RBI for SFB license last year.
By SHIELDY SIMHACT
MUMBAI: Au Financiers has converted itself to Small Finance Bank from a Non-Banking
Finance Company (NBFC) changing its name to AU Small Finance Bank.
AU started as a NBFC and was engaged in business of commercial and personal vehicle loans,
Micro, Small and Medium Enterprise (MSME) loans and SME loans serving primarily low and
middle income, under-served and unreached customer segment.

As a NBFC, AU had network of 300 branches spread across 10 states - Rajasthan, Maharashtra,
Gujarat, Madhya Pradesh, Punjab, Delhi, Haryana, Himachal Pradesh, Chhattisgarh and Goa, It
intends to start Bank branches in all such locations in next couple of months.

AU was the only asset financing NBFC out of the ten applicants from across the country which
was awarded in-principal approval from RBI for SFB license last year. It had received a final
license from RBI on 20th December 2016 to set up a small finance bank.

"We are planning to formally launch and operationalize the AU Small Finance Bank soon," said
Sanjay Agarwal managing director AU Small Finance Bank. " Financial inclusion is one of the
important aims of the current Government and small finance banks with their reach in deeper
geographies and middle & lower end of pyramid can help achieve this objective very well. As a
small finance bank, we aim to support the vision of the GOI and RBI to the best of our
capability."

According to sector analysts, India has thirteen branches per 100,000 population as compared to
40 branches per 100,000 population in developed countries.

24
 AU SMALL FINANCE BANK BY PROVIDED THE
SERVICE OF CUSTOMER

➤ Services & features

1. For Non-AU Bank Customer

Savings Account:
Click here to open a FULL KYC Savings account over Video Call with us in just 5 simple step
from the comfort of your home & earn up 7% p.a. on your savings.

Fixed Deposit:
Open a Fixed Deposit, complete KYC over Video Call.

Credit Cards
Apply for AU Bank Credit Card, complete KYC over Video Call and get the card delivered at
your doorstep.

Auto Loan
New Car Loan (self-journey for Salaried People and lead capture for Self Employed)

Lead Capture for User Car Loan

Lead Capture for Two-Wheeler Loan

Video Banking
Get your queries resolved over video call.

User Profile
Add/Update Profile picture.

25
Lifestyle
Mobile/Data Card Recharge, Buy Gift Cards, Flight Booking, Book a Cab, Bus Booking, Hotel
Booking.

Offers: Promotional Offers, Card Offers, Saving Account, Fixed Deposits, Credit Card, Auto
(Car) Loan, Used Car Loan, Two-Wheeler Loan, Personal Loan.

Apply for Products

Locker, Business Loan, Home Loan, Current A/C, Gold Loan, QR Code, Business Banking, Agri
Term Loan.

Bill Payments
Pay Utility Bills like electricity, gas, water, municipal taxes, loan repayment, school fees, etc.
Search/Add/Manage/Delete billers Tag Favorite Payments.

WhatsApp Banking
WhatsApp Banking.

2. For AU Bank Customer:

Profile
Add/Update Profile picture, Add PAN details, View KYC number.

Settings
Add Secondary Users to app, Change MPIN, Manage Alerts, Deregister Mobile App, Manage
Transaction Limit, Change Security Question, Manage Users, OTP on E-mail, Enable Biometric
(for iPhone devices) authentication.

26
Account Management
Manage Saving Account, Current Account and Overdraft Account. Download Account
Statement in various Formats. View Transaction History. Update Nominee.

Deposits (FD/RD)
Manage Fixed/ Recurring Deposits, Open new FD/RD, View Deposit Details, Close FD/RD,
Update Nominee, Download Deposit Statement, FD/RD Advice (from Service Request Section),
Form 15G/H (from Service Request Section).

Fund Transfer
Fund Transfer across own linked AU accounts, AU-to-AU bank account transfers, Fund transfer
to other bank account using NEET/RTGS/IMPS, Pay Later (Schedule Future Payment One-
Time/Recurring).

27
ACHEIVEMENT IN AU SMALL FINANCE BANK (2019-
2020)
Awards and accolades

1. Golden Peacock Award-Special Commendation for Excellence in Corporate Governance-

2019.

2. Golden Peacock Award for Excellence in Risk Management - 2019.

3. India's Leading Small Finance Bank - BFSI Summit & Awards 2020 by Dun &
Bradstreet.

4. MSME CIBIL Award 2019 - Best Data Quality Management (SFB category). Best
Adoption of Technology - BFSL Summit & Awards 2020 by Dun & Bradstreet.

5. ET Gamechanger of India - 2019 Mr. Sanjay Agarwal, MD & CEO, AU Bank.

28
 CHAPTER 4
ANALYSIS AND
INTERPRETATION

29
 SWOT Analysis

Our capabilities and resources that enable us to grow and sustain in the competitive
banking landscape

• Well positioned to derive benefits of both the ‘Pull’ factor of being a bank, and ‘Push’
factor of its NBFC roots
• Secured retail loans focussed scheduled commercial bank with strong track record of
underwriting loans to under-banked population
• Comprehensive suite of products and services – a significant cross-sell lever;
longstanding presence in relatively untapped markets
• Extensive physical distribution network enabling efficient delivery of products and
services to customers across urban, semi-urban and rural (Tier I to VI) centres
• Healthy capital adequacy levels and options to augment capital to absorb negative
surprises
• Execution focused leadership team, and stable and seasoned second line.

We are consistently identifying potential areas where we can grow and enhance market
and brand prominence:

• Leveraging technology, along with door step servicing would enable us to rapidly
gain market share. Proliferation of data, digital usage and smartphones is opening
new opportunities
• Longstanding presence in underpenetrated regions offers strong growth potential
• New retail products—gold loan, home loan, two-wheeler loan, Agri-SME loan and
consumer durable loan—hold significant growth potential
• Scaling up of third-party products (mutual funds, general insurance, health insurance
and life insurance) could boost other income.

30
 WHAT I LEARNED?
FIELD INVESTIGATION GUIDELINES

PROCESS OF LOAN DISBRUSEMENT

Deals Source by Sales

CIBIL Generation

FI Request/Field Investigation

FI Report with Result

After Result case going for Credit Approval

Case process in Disbursement

31
 FI REQUEST LETTER

FI REQUEST LETTER
FI No Request Date Time Branch

Name and Address

of Guarantor Vehicle Model
Loan Amount

Signature of Sign. Of FI Co-

Sales Executive ordinator
Fl Assigned to
Executive

FI
Request
Lettler
FI No Request Date Time Branch
Name and Address Name and Address
of Applicant of Co-Applicant

Name and Address

of Guarantor Vehicle Model
Loan Amount

Signature of Sales Sign. Of Ft

Executive Co-ordinate
FI Assigned to
Executive
[figure no. 1.2]

32
 FI Deviation Matrix

ANNEXURE I-NEGATIVE VERIFICATION RESIDENCE/BUSINESS

PREMISES

FI negative-Residence Proposed

Door lock-Type not confined-Due to Add filled as per address proof but customer residence
some other address: Case will be Rejected
After reverification new address is ok with Type confirmed: No Deviation
Applicant family member not aware about vehicle loan recheck with PD or taking family
member in deal: No Deviation
Rented house no owned property in our operational area and no External guarantor of owned
house: S4
Rented house no owned property in our operational area and no External guarantor also
(Personal Car with Salary 3 times of EMI): Minimum Stability of 1 years in same company, for
low stability it should be S3 deviation
Rented house-with owned house guarantor roped as guarantor in the deal: No Deviation
In absence of applicant, details/dox not provide by family members: No Deviation
Entry restricted for residence verification high profile society, single lady in house at the time of
verification: No Deviation
Community Dominated: S2
Rude behavior with proper justification and other mitigates: S2
TPC negative about applicant and his family bad reputation about his repayment history of
another fin: S3
Money offer to Fl person with additional strong mitigates, refer to higher authority with
proper justification: S2
Applicant self-information and TPC on recheck with PD, market references & reverification: No
deviation
End use of asset-third party-confirmation from family member and TPC: S3
Slum area/tin shed house/Bachelor Accommodation (3WL/SCV segment only): No deviation

33
Slum area/tin shed house / Bachelor Accommodation (personal cars/vehicles other than
3WL/SCVS): S3
Manage/setup case capture by FI person-Reject case: S4
Vehicle taken in informal partnership: S4

ANNEXURE II-List of Negative profile / Business activity/High Risk Profile

Profile Negative Proposed

Police official (We should collect repayment from Salary account if he is applicant or in case of
other family member working in Police we should try to rope in the deal with SPDC of Salary
account): S3
Politician/Political connection: S4
Advocate: S3
Wine business/Tadi business: S4
Production or Trade in weapons: S4
Gambling, casinos, and equivalent business: S4
Production or trade in radio-active materials: S4
Property dealing, real estate business & developers: S3
Employee of any finance company: S3
Share brokers: S4
Car Bazar dealer or old vehicle sale purchase brokers: S4
Leasing business/small financers/chit fund company: S4
Collection agencies/security agencies: S4
Press and media person: S4
Trade union official: S4
RTO agents: S4
Multi-level marketing business: Case will be Rejected
Mobile sale purchase shop: S2
Automobile dealership employees: S2

34
 CIBIL: Part of Trans Union
What is a CIBIL Score?

CIBIL Score is a 3-digit numeric summary of your credit history, derived by using details found
in the 'Accounts' and 'Enquiries" Sections on your CIBIL Report and ranges from 300 to 900.
The closer your score is to 900, the higher are the chances of your loan application getting
approved.

What does my CIBIL Score mean?

Your CIBIL Score is one of the most important parameters considered by lenders before
approving your loan application. CIBIL Score also provides lenders necessary insights into your
credit history through past patterns of credit usage and loan repayment behavior. It acts as a
guiding principle for lenders, making the loan approval process faster. Any score greater than
750 is a good CIBIL Score and helps lenders in assessing and approving your loan application.

What are the major factors that affect my CIBIL Score?

There are 4 major factors that affect your CIBIL Score are:

PAYMENT HISTORY: Making late payments or defaulting your EMIs or dues (recently or
consistently) will negatively impact your score.

HIGH CREDIT UTILIZATION: An increase in the current balance of your credit card indicates
an increased repayment burden and may negatively affect your score.

MULTIPLE ENQUIRIES: If you have recently been sanctioned multiple loans and credit cards,
then lenders will view your application with caution because this behavior indicates your debt

35
burden has increased, which will negatively impact your score.

CREDIT MIX: Having a balanced mix between secured loans (such as Auto, Home loan) and
unsecured loans (such as Personal loan, Credit Card) is likely to have a more positive effect on
your score.

What does it mean when my CIBIL Score is 'NA' or 'NH'?

A CIBIL Score of 'NA' or 'NH' is not a bad thing at all. These scores can mean any 1 of 3 things
mentioned below:
a) You do not have a credit history or you do not have enough of a credit history to be scored le.
you are new to the credit system.
b) You have had no credit activity in the last couple of years.
c) You have all add-on credit cards and have no credit exposure.

It is important to note that while these credit scores are not viewed negatively by a credit
institution, some lenders' credit policy prevents them from providing loans to an applicant with
credit scores of 'NA' or 'NH' (applicants with no credit track record). Hence, you may have a
better chance of applying for a loan elsewhere.

36
 CIBIL Credit Score & Report

CIBIL SCORE:

[figure no. 1.3]

How to read your CIBIL Score and Report

Your CIBIL Report is a record of your credit payment history compiled from information
received from bankers and financial institutions help loan providers make informed lending
decisions basis your crew faster and often, at better terms the purpose to credit history quickly
and objectively. A healthy credit report can get your loan approved
CIBIL Score
This section reflects your credit score, which is widely used by loan providers to evaluate loan
applications. An individual’s CIBIL Score ranges between 300-900 and is calculated basis the
information in the "Accounts and Enquiry" section of the credit report. The closer the score to
900, the more confidence the loan provider will have in your ability to repay the loan and hence,
the better chance of your application getting approved.
Please note in some cases you might displayed a CIA Score of either “NA” or "NH" which
indicates one of the following 3 things:

1. You do not have credit history or you do not have enough credit history to be scored, i.e.,
you are new to the credit system.
2. You have no credit activity in the last couple of years.
3. You have all add-on credit cards and have no credit exposure

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 CHAPTER 5
CONCLUSION
AND
RECOMMENDATIONS

38
 CONCLUSION

The examination of AU Bank's credit and retail business has revealed a dynamic and resilient
financial institution navigating the complexities of the modern banking landscape. AU Bank has
demonstrated a robust business model, offering a diverse range of credit and retail products to
cater to the evolving needs of its customer base.
The bank's strategic approach to technology integration has positioned it favorably, enhancing
customer experiences and operational efficiency. The commitment to risk management is
evident, with a thorough evaluation of credit risks and compliance with regulatory requirements.
Despite the strengths observed, certain areas for improvement have been identified, such as the
need for continuous innovation to stay ahead in the highly competitive market. Additionally,
customer feedback suggests there may be opportunities to enhance the overall customer
experience further.
The financial performance of AU Bank in the credit and retail segments reflects stability and
growth, underlining its ability to adapt to market dynamics. The SWOT analysis highlights key
areas of strength that can be leveraged for further expansion, as well as areas that warrant careful
consideration and strategic adjustments.
In conclusion, AU Bank stands as a formidable player in the credit and retail sector, poised for
continued success. By capitalizing on its strengths, addressing identified areas for improvement,
and staying attuned to market trends, AU Bank can solidify its position as a leader in the
financial services industry.

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 SUGGESTIONS FOR THE COMPANY

 Exploring outsourcing options to reduce workload of tasks like data entry.

 Educating the client on maintaining accurate records and providing necessary documents in
advance.

 Encouraging clients to provide information and documents through secure online portals.

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 BIBLIOGRAPHY

Websites:

1. https://www.aubank.in/about-us
2. https://www.aubank.in/annual-report-2022.pdf
3. https://www.aubank.in/AU-TnC.pdf
4. https://en.m.wikipedia.org/wiki/AU_Small_Finance_Bank
5. https://www.researchgate.net/publication/
362112729_A_STUDY_ON_THE_AWARENESS_AND_PERCEPTION_ABOUT_SM
ALL_FINANCE_BANK_WITH_SPECIAL_REFERENCE_TO_ESAF_SMALL_FINA
NCE_BANK
6. https://www.reuters.com/business/finance/au-small-finance-bank-expects-credit-growth-
27-28-for-this-fy-ceo-2023-04-26/
7. https://www.aubank.in/reports
8. Product Manual
9. www.cibil.com

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