PROJECT ON COMMERCIAL BANKING

SYSTEM
Phase 2

Submitted By
Abin Thomas
Sam Varghese
MBA (18-20)

Submitted To
Mr. Subramoniam K
Associate Professor
(Faculty, Department of MBA)

SAINTGITS INSTITUTE OF MANAGEMENT

Kottukulam Hills, Pathamuttom, Kottayam-686 532
Operational Highlights
As of now, ESAF Small Finance Bank has 436 banking outlets, including 238 new retail
banking outlets and 198 Ultra Small Branches and 208 ATMs spread across 14 states and 113
districts in India, covering the regions of Kerala, Tamil Nadu, Karnataka, Maharashtra,
Chhattisgarh, Madhya Pradesh, Bihar, Pondicherry, New Delhi, Jharkhand, West Bengal,
Assam, Andhra Pradesh and Odisha.

The Bank offers a host of modern banking services like ATMs, Debit Card, Safe Deposit
Lockers, Internet banking, Mobile Banking, Agent banking, SMS banking, RTGS, NEFT,
CTS etc. The door step delivery services, Free video calling facility at branches and Hrudaya
Deposit Scheme are some of the exclusive features offered by ESAF Small Finance Bank. A
unique deposit scheme of ESAF Small Finance Bank, namely Hrudaya deposit scheme, as the
name suggests, stands for a social cause, through which, the Bank provides the customers an
opportunity to be a part in economic development of the bottom of the pyramid. As an
organization it strives for financial peace by bridging the gap between the haves and the
have-nots.

Board Of Directors
SL. NO NAME
1 Mr. Prabha Raveendranathan
2 Mr. Kadambelil Paul Thomas
3 Dr. Joseph Vadakkekara Antony
4 Mr. George Joseph
5 Mr. Assan Khan Akbar
6 Mr. Saneesh Singh
7 Mrs. Asha Morley
8 Mr. Alex Parackal George
DESIGNATION
Chairman and Non-Executive Independent
Director
Managing Director & CEO
Non-Executive Independent Director
Non-Executive Independent Director
Non Executive Director
Non-Executive Director
Non-Executive Independent Director
Non-Executive Independent Director

SWOT ANALYSIS OF THE BANK

The SWOT analysis has revealed the strength, weakness, opportunities and threats of the
company. It has detailed below:
 Strengths
 Focused business model and a global presence in key transport markets
 Conservative business policy
 Transparent structures and swift decisions
 Qualified and experienced staff
 Extensive and award-winning market and asset expertise
 Intensive, industry-specific client service
 Diversified credit portfolio
 Granular and matched-maturity funding
 Sound capital base
Weakness
 Higher liquidity costs, compared to most competitors
 Relatively high sector exposure
 Global presence requires high staff resources
 No material client deposits
 Exposure to the euro/US dollar exchange rate, with an impact on growth and results
 Dependence on geopolitical developments
 Low Brand image
Opportunities
 Realization of margins in line with risks taken
 Building new client relationships
 Broaden the product portfolio and enhance cross-selling
 Expanding the advisory and other services offered to clients, banks, and investors
Threats
 High level of early repayments, which have a negative impact on the net interest margin
 Rising threat of recession, on a global scale
 Distortions on the global financial markets
 Indebtedness of certain industrial nations and emerging economies
 Furthur increasing regulatory requirement
VARIOUS PRODUCTS OF THE BANK

CURRENT ACCOUNT

For business customers across industries, ESAF bank offer a wide range of Current Account
products in a convenient, hassle free manner. Tailor made accounts for entrepreneurs, business
men and individual customers are our specialty. The catalogue of Current Accounts include
Basic, Classic, Premium and Diamond categories.

Current Accounts are designed to suit to the daily business requirements of Entrepreneurs in
terms of higher number of transactions, multi locational payments and deposits, cash
management facilities, local and upcountry cheque collection facilities, Net Banking facilities
etc.

Current Account with ESAF bank can be opened by:

(i) Individual(s)

(ii) Entities like Sole proprietorship, Partnership, Limited Liability partnerships, Companies,
etc.

(i)Individual(s) : Any person competent to contract and KYC complied to the satisfaction of
the Bank may open an account in his/her own name. .Accounts may be opened in Individual
name or in the names of two or more persons and may be made payable to

(a) Self

(b)Any one or more of them.

(c) Any one or more of the survivors.

(d) Either or anyone or more of them or the survivors jointly, or survivor.

(e) 'former or survivor' or 'latter or survivor', subject to the condition that the second (first in
the case of latter or survivor) named accountholder will be entitled to the balance lying in the
account only on the death of the former (latter in the case of latter or survivor)
accountholder.(ii) Entities : Accounts can be opened for sole proprietorship firms, partnership
firms, private limited and public limited companies, Joint Hindu families, trusts, clubs,
associates ,societies etc. satisfactorily introduced to the Bank and on fulfilling the laid down
KYC requirements and tendering required credentials.
SAVINGS ACCOUNTS

ESAF bank offer the finest savings accounts for all categories of customers. The customized
options can ideally serve the needs of the end customers. With user-friendly online banking
features, accessing your Savings Account could not get any better.

i. An account may be opened in the name of one person or jointly in the names of two or more
persons.

ii. All Savings Bank Accounts irrespective of their mode of operations must comply with KYC
standards/Anti Money Laundering Measures (AML)/ Combating Financing of Terrorism
guidelines (CFT) and Customer Identification Procedure (CIP).

iii. Application to open a Savings Bank Account should be made on the Bank's prescribed
forms duly completed with all details like name, address, occupation etc . Each applicant will
be required to sign the application, containing a declaration to the effect that he/she/they
has/have read and accepted the Savings Bank Rules. The application should be accompanied
with recent color passport size photograph and copies of KYC documents. The originals of the
KYC documents to be produced for verification

iv. Minor : A Savings Bank account of a minor may be opened to be operated by the natural
guardian of the minor or by the guardian appointed by the Court. A Savings Bank Account
may also be opened in the single name of a minor aged 10 years or more to be operated by the
minor OR in the joint names of two minors who have completed the age of 10 years to be
operated by them jointly.

v. Illiterate Customer: Any depositor unable to read and write must attend in person and (in the
presence of an approved witness who knows the depositor and is known to the Bank) affix his
thumb impression to the application and other forms in the presence of a Bank official and have
it attested by the signature of the approved witness. The application should be accompanied
with recent color passport size photograph and copies of KYC documents. The originals of the
KYC documents to be produced for verification.

No cheque book will be issued in these accounts. On specific request, after properly sensitizing
the customer, Debit card will be issued in the account.

vi. In approved cases, an account may be opened in the names of associations, clubs, co-
operative societies (with the permission of the Registrar of Co-operative Societies), Trusts or
other non-trading Institutions for purposes of depositing savings, provided the relevant bye
laws, rules, etc. are found acceptable to the Bank and are strictly adhered to.

Interest Rates for Savings Bank accounts (Resident, NRO & NRE)

Savings Bank Account- Slab (Day end balance) Rate of Interest

effective from 25th October 2017
Up to and including Rs.1 lakh 4.00%
Above Rs.1 lakh up to and including Rs.10 lakhs
(i.e for incremental amount above Rs.1 lakh) 6.50%
Above Rs.10 lakhs (i.e for incremental amount above Rs.10 lakhs) 7.00%

FIXED DEPOSITS

To earn the best interest rates, customers can invest their money in the regular FD account of
ESAF Small Finance Bank. They can invest their money with effortless ease, thanks to the
well-established processes set for the same. From Regular FD and Tax savers FD account,
customers can choose the best one that fits their needs. With amazing interest rates and add on
features, ESAF is the bank customers can bank on.

Salient features:

 Reinvestment option available

 Lien can be marked on specific request.

 Nomination facility available

 Joint account available

 Overdraft / Loan against FD available

 Auto renewal facility available

 Multiple amount deposit option available

 Premature closure allowed with applicable penal cut

 FD statement to be made available on request

 TDS certificate will be issued

Interest:

Interest payout frequency:

 Quarterly

Interest pay out option on discounted value:

 Monthly

Interest rate:

 As per Tariff / Rate Card

 Differential interest rate for senior citizens

 Differential interest rate above INR 1 Cr

 Differential interest rate (Non-premature closure for FDs > INR 15 Lakhs)

HRUDAYA DEPOSITS

As the name suggests, Hrudaya deposits innovated by ESAF stand for a cause, the cause of
fighting the partiality of prosperity. Through this, they invite socially responsible citizens to
join them in initiating social transformation. During 2017-18, they have opened 104 branches
and have raised a total of Rupees 135 mn as Hrudaya Deposits. In total, 3956 low income
customers enjoyed the benefits, so far.

Beyond serving the customers with excellent banking products, it is a joy for them to see their
lives transforming to better standards. It was possible through various asset products likes
Income Generation Loan, Education Loan, Clean Energy Loan, Water and Sanitation Loan,
Home Improvement Loan etc.

The Micro Recurring Deposits is innovated to inculcate saving habits among the much
vulnerable low income families. The Micro RD product is providing an opportunity for low
income families to save little by little (weekly recurring pattern) so that the money gets
accumulated over a period of time.

Through Hrudaya Deposits, ESAF Small Finance Bank has come up with an innovative
solution to provide affordable financial services to our members.

An Opportunity to engage with the lowest strata of the society and can extend the engagement
to other social classes.
An opportunity for depositors to partake in the journey of serving the unbanked and under
banked segments of the society.

Performance reports of the funds will be delivered to you at regular intervals.

You have the freedom to select the group of borrowers, freedom to choose your geography and
the freedom to choose the purpose for which you want to map your deposit with.

Tenure: Up to 2 years (No premature facility available.)

Minimum deposit amount: Rs.15 Lacs

Other Features:

Relationship banking facility available

Open for both Resident and Non Resident Indian individuals.

Can invest online at your leisure and convenience

RECURRING DEPOSITS

Recurring Deposits from ESAF allows customers to build up their small savings. Small
investments made at fixed intervals can be availed to meet their personal needs. With a wide
range of options to choose from and with features such as online banking, depositing money
could never get better. Over and above, they have an excellent customer support team to answer
customers queries, From among the options such as regular RD, Flexible RD and Group based
RD, choose the account that best fits the customers needs.

LOANS

ESAF bank have designed appropriate loan products that meet the needs of the customers. They
understand that financial support is inevitable for holistic development of the society. With
social upliftment as the prime focus area, their loan products are designed to cater to a multitude
of customer segments. They provide a wide range of loans like micro housing loans & loans
against property, business loans for entrepreneurs and ‘Agri’ loans to support farmers. Personal
loans and micro financial loans are also provided to meet the needs of the customers.

(1) Dream Home Loan

For the construction of your dream house or purchase of a new house/ flat/ villa and for
renovations of an existing property.
Salient Features:

 Loan amount from 10 lakhs to 50 lakhs.

 Interest rate of 9.90 % fixed

 Maximum tenure of 25 years

(2) Business Loan

Business loan can be availed for:

 Purchase of assets, business expansion, Working Capital requirements etc.

 Any Long term/Working capital requirement in Manufacturing / Trading / Service

segments.

 Agriculture : Production, Processing and Trading of Agri / Allied Agri products

 Any other income generation activity

Basic Features:

Loan size

 Minimum loan size INR 50,000 to INR 10 lakh with collateral

Loan tenure

 1 to 7 Years with collateral

Interest rate

 Fixed; Prevailing interest rates

Repayment Frequency

 Monthly/Fortnightly/Weekly

(3) ESAF Haritha Loan

For all agricultural activities including ancillary activities like purchase of implements,
developmental activities undertaken in the farm, vermi-composting, undertake farm work for
farmers on contract basis, etc.

Salient Features
 90% of the project cost will be funded

 Limits up to INR 2.5 lakhs

 80% of the project cost for limits above INR 2.5 lakhs

 Tenure: 1-5 years

 Loan size: INR 50,000 to INR 5,00,000

(4) Micro Housing Loan

Purpose

 For purchase of constructed house/flat

 For new house construction

 For renovation

 For extensions - incremental / progressive constructions

Salient features

 Simplified documentation procedures

 Flexible repayment options

 Safe storage of documents

 Balance Transfer facility

 Loan size: INR 1 Lakhs to INR 20 Lakhs

 Loan tenure: 1 to 20 Years

 Interest rate: Fixed; Prevailing Interest rates

SERVICES PROVIDED BY THE BANK

ESAF SFB branches are envisaged to comprehensively serve all the customer requirements
with respect to Banking services. Provided below is an indicative list of services offered in
ESAF SFB branches.

Financial Services

 Availing CASA, Deposits, Loan products etc

 Fund transfer to own and third party account within and outside Bank

 Standard Instruction for fund transfer at regular frequency to own and third party accounts

 Cash deposit and withdrawal services

 Availing Investment products like Insurance, Mutual Funds, Pension etc

Enquiry Services

 Information on CASA Balance & activity, Periodic average balance, TDS details etc.

 Information on Term Deposit Accounts, Interest statement, TDS details etc.

 Information on Loan accounts, Statements, Tax statement etc.

 Information on Investment products

 Status of Cheque payment, Debit Card, Chequebook request etc.

Service Request

 Upgradation of existing relationships like CASA, Deposits etc.

 Modification of limits for cash transaction and fund transfer, disputes related to transactions
etc.

 Emergency services like Debit Card Hotlisting, Stop cheque payment etc.

 Registration/De-registration into services like Internet Banking, Mobile Banking,

SMS/Missed Call Banking etc.

 Request for account related services like Account statement, Debit card, Chequebook etc.

 Updation of personal information such as Mobile Number, Communication Address,

Aadhar Number, Pan number, Nominee details etc.

 Issues related to Fund transfer, Cash deposit/withdrawal