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Summer Internship Project OF AU Small Finance BANK

(MBA)
MBA (Kadi Sarva VishwaVidyalaya)

Studocu is not sponsored or endorsed by any college or university

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A STUDY REPORT ON
CUSTOMER SATISFACTION SURVEY TOEARD AU SMALL FINACE BANK

Submitted in the partial fulfillment of the Degree requirement of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted By : Faculty Guide :

1.Parmar Bhoomika Dr. Vaidehi Shah

21MBA23047 Assistant professor

2. Chaudhary Harsh Faculty of HR

21MBA02008

S.K PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES, GANDHINAGAR

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Declaration
This to declare that the project title 89CUSTOMER SATISFACTION SURVEY TOWARD AU SMALL
FINANCE BANKS=. is an authentic record of my original work carried out under the guidance of
Dr. vaidehi shah, Assistant professor in marketing, S.k patel institute of management and
computer studies, Gandhinagar .

The project work has been carried out solely for the purpose of submission in partial
fulfillment of Master of Business Administraction at S.k patel institute of management and
coputer studies, Gandhinagar.

I further declare that not submitted this document to any other School of University, or
Institution in whatever manner.

Date: Parmar Bhoomika

21MBA23047

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ACKNOWLEGEMENT
First of all I express my gratitude to my project guide Dr. Vaidehi Shah. Assistant professor,
S.k patel institute of management and coputer studies,Gandhinagar. His able guidance at each
step of the project helped me to broaden my outlook on the project and in successful
completion of the project. I Shall always remember his polite way of correction and constant
encouragement by asking various questions.

I convey my regards and special thanks to Dr.Vaidehi Shah. professor and Dean, S.k patel
institute of management and computer studies, Gandhinagar for giving me this opportunity for
duing this project.

I specially thank all the faculty members of the S.k patel institute of management and
computer studies for having equipped me with the skills and the ability through their
inputs,which assisted me in the completion of the project.

I wish to thank all those people who have directly or indirectly been instrumental in
successful completion of this project work.

Finally,I would like to thank my Parents,Family,Friends,Colleagues and God Almighty for

their unending inspiration and encouragement.

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Executive Summary
The summer training of a management student plays an important role to develop him into a
well groomed professional. It gives theoretical concepts a practical shape in the field of
application.

The project at AU SMALL FINACE BANK dealt with credit appraisal and henceforth analysis of
consumers who have taken loan.

The forthcoming project report is divided in phases.

Phase 1: Understanding the policies of AU SMALL FINANCE BANK regarding its products.

Phase 2: Financial Position of the company.

Phase 3: Analysis on loan taken up by consumer conferring the suggestions and

recommendations.

The research methodology was Exploratory and descriptive in nature. Both the secondary and
the primary data collection methods were taken into consideration and the conclusions of the
report were derived fundamentally on the basis of the primary data collected and thus analyzed
accordingly.

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Table of Contents
 Certificate
 Declaration
 Acknowledgements
1. Executive Summary
2. Table of Contents
3. History of Au Small Finance Bank
4. Objective of Study
5. Background of the Study
6. Review of Literature
7. Company Profile
 Company Profile
 Key Executives
 Technology used in Au Small Finance Bank
 Products and Services Segments
 Strategy of Au Small Finance Bank
 Vision & Mission Statement
 Human Resource
 Au financier converts to Small Finance Bank from NBFC
 Au Small Finance Bank By provided the service of customer
 Achievement in Au Small Finance Bank (2019-2020)
 SWOT Analysis of AU BANK
8. Topic Profile
 Introduction to the study
 Introduction to banking
 History of small finance bank in india
 Banking structure in small finance bank
 Commercial banking service
 Investment banking service
9. Research Methodology
 Research Methodology
 Research Design
 Data Collection

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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.[2] 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
crore.[10] 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-focased Non-Banking Finance company for two decades provides
speedy and customised financial solution to rural and population.

 Major event and milestone

The tables sets 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.
 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:

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Received fresh certificate oh registration under section 45IA 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 –I,respectively.
Attained the status of Ậ Systemically Important Non-Deposit Taking Asset Finance
CompanyẬ.
 2011:
Set-up a subsidiary, AuHFL, to provide hosing finance service.
 2012:
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.
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-principleẬ approval for forming an SFB from the RBI.
 2016:
Pursuant to RBI approval dated April 6, 2016, divested its shareholding in AuHFL
which was the erstwhile subsidiary company.
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 Accreditions

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.

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 2012:
Awarded the Ậ Best PE-backed Financial Service Company by VCCircle.
 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 capms in more than 50 cities on International
Yoga Day
- AU Small Finance Bank ties up with Aurionpro 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 (8The Bank9) Enter Into
Agreement With TATA AIG
 2020:
Au Small Financed Bank starts operations in eastern India.

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OBJECTIVE OF STUDY

The objective of setting up of Au Small Finance Bank will be for furthering financial
inclusion by :

1. provide of saving vehicles primarily to unserved and underserved section of

the population, and
2. supply of credit to small business units; small and farmers; micro and small
industries; and other unorganized sector entities, through high technology-low
cost operations.

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Background of the study

An internship is an opportunity to integrate career related experience into an undergraduate
education by participating in planned, supervised work. The primary goal an of internship is to
provide an on-the-job exposure to the student and giving an opportunity to translate the
theoretical concepts into practical life situation. Students are placed in different enterprises,
organization, research institutions as well as development projects to get practical knowledge.
Bearing this in mind, an internship program was being included in the MBA curriculum. The goal
of this analysis is to exposes the student in the organizational work situation and also to provide
an opportunity for applying classroom learning in practice.

There are some differences between theories and practice. The report is prepared for the
internship program consisting of a major in depth study of customer satisfactions survey for Au
Small Finance Bank.

The report is titled <Customer Satisfaction survey for AU SMALL FINANCE BANK.= As a student
of S.K PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES,GANDHINAGAR, this study
will be more significant in my practical life. I have worked at Usmanpura Branch of Au Small
Finance Bank limited to complete the internship program.

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REVIEW OF LITERATURE
 Saikat Das (2017):
AU intends to expand and strengthen its business model to offer diverse suite of
banking products and services by leveraging its assest- 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 bank 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.

 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.

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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 Limited9s 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.

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 Key Executives :

NAME DESIGNATION
Mr. Sanjay Agarwal C.A. MD, CEO & Director
Mr. Vimal Jain Chief Financial Officer
Mr. Manmohan Parnami Company Sec. & Compliance Officer
Mr. Uttam Tibrewal Exec. Director
Mr. Deepak Jain Chief Risk Officer
Mr. Sharad Goklani Chief Technology Officer
Mr. Ankur Tripathi Chief Information Officer
Mr. Prince Tiwari Chief of Financial Institutions Group
&Chief Investor Relations Officer
Mr. Vivek Tripathi Chief of HR
Mr. Manoj Tibrewal Group Head of Distribution,Enterprise
. Salary & Merchant Acquiring

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.

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TECHNOLODY USED IN AU SMALL FINANCE BANK

AU Small Finance Bank leverages cloud technolody-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 Oracle9s analytics, machine
learning, integration services, blockchain, and even chatbots.

In fact, around 80 percent of AUSFB9s technology is sourced from Oracle, from secure databases
to tablet-based fingerprint verification.

Oracle technology plays a central part in bringing financial inclusion to India9s rural unbanked,
says the bank9s 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 India9s 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 world9s 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 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.

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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

 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

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 Digital Banking:
Digital Products-
 Saving Account
 Fixed Deposit
 Vehicle Loan
 Personal Loan
 Credit Card
 Insurance & Investment

Digital Channels-

 Mobile Banking
 Netbanking
 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
 NACH/e-NACH
 Tax Payment

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STRATEGY OF AU SMALL FINANCE BANK

Our strategic objective arwe 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 borrowes
 Act as a responsible cataelyst 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
 Strengthen our environmental, social and governance (ESG)
commitments

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Vision and Mission Statement

Vision:
To be the world9s 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 India9s largest retail franchise that is admired for:

 Making every customer feel supreme while being served

 Aspiring that no India is deprived of banking
 Bias 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

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HUMAN RESOURCES
The Bank9s staffing needs continued to increase during the year particularly in the retail banking
business in line with the business growth. Total number of employees increased from 2,302 as
of March 31st , 2020, Team size 17,112, Total time spent on training 180,532 hours,
participants in trainings 13,037. The bank continues to focus on training its employees on a
continuing basis, both on the job and through training programs conducted by internal and
external faculty.

The Bank has consistently believed employee ownership of its shares has a positive impact on
its performance and employee motivation. The Bank employee stock option scheme so far
covers maximum employees.

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AU Financiers converts to small finance bank from a NBFC

Synopsis
AU was the only asset financing NBFC out of the ten applicants from across the country which was
awarded in-principle approval from RBI for SFB licence last year.
By SHILPY SINHAET Bureau

Apr 21, 2017, 01:00 AM IST

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-principle approval from RBI for SFB licence last year. It had received a final licence from RBI
on 20th December 2016 to set up a small finance bank.

"We are planning to formally launch and operationalise 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. Economist believes that although the country
has regional rural banks, cooperative banks and other small entities, besides a giant network of public
and private sector banks, however, there is still a huge void in the banking sector. This gap can be
bridged by small finance banks.

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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.

 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.

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 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
Favourite 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.

 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),

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One time transfer using IMPS to any bank account, Manage/ Add
Beneficiaries, Pull Funds from AU Bank Accounts, Multiple Transfers in one
transaction, Tag Faviourire Transactions, Repeat Recent Transactions,
Transaction History, Manage Schedule Transactions.

 Debit Cards :
Virtual Debit Card- view card number, expiry date and CVV.
Set/Reset Debit Card PIN, Block and Replace Debit Card, Temporary Block/
Unblock Debit Card, Enable/Disable Transactional usage of card- for both,
Domestic and International payments. Set limits on E-commerce Usage, Set
limits on POS Usage, Set limits on ATM cash withdrawals.

 Credit Card :
Xpress EMI (Convert transactions to EMI), Manage Card Limits,
Block/Unblock Credit Card, Block and Replace Credit Card, Activate Credit
Card for online & international transactions.

 Service Requests:
Use Video Banking for Service Request, Request for Cheque
Book, Cheque Status, Stop Cheque, Track SR/Application Status, Update
Email ID, Update Communication Address, Update Account Nickname,
Update Nominee, FD/RD Advice, Submit Form 15G/H, Raise and track
Positive Pay requests for cheque.

 Apply for Products :

Credit Card, Auto(Car) Loan, Used Car Loan, Insurance, Two-
Wheeler Loan, Personal Loan, Locker, Business Loans, Home Loan, Current
A/C, Gold Loan, QR Code, Business Banking, Agri Term Loan.

 BHIM UPI :
Register for AU UPI handle, Add beneficiary UPI handle, Balance
Enquiry (Refresh Balance), Send Money, Request Money, Transaction History,
Manage UPI, Generate QR Code, Scan & Pay via UPI, Pay to Mobile Number.

 Tax Payment :
PAN/TAN registration, Pay Direct Tax, Pay GST, Download Tax
reports.

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 Insurance :
Buy & Compare Insurance- Life, Health, Car, Two-Wheeler (Only
for Bank Account customers).

 Investment – IPO :
ASBA Registration, Apply For IPO, Get IPO Products View Applied
IPOs, Withdraw IPO, Revise BID, Status Enquiry, Hold Inquiry, NFO, Redeem &
Switch, Investor Details.

 Investment- Mutual Funds :

View Investment Accounts, Investment A/C Details-Single,
multiple, NAV Certificate, View Past Transactions, Buy Mutual Funds,
Start/View SIP, Buy More of Existing Funds, Switch Funds, Cancel SIP.

 Investment- Equity Trading :

Open 2-in-1 Demat & Tranding account, Invest in Equity
& other assets, Portfolio Snapshot, Profit & Loss Summary, Advisory under
various assest classes.

 Video Banking :
Get your queries resolved over call, 350+ services available over
a Video call, e.g. update mobile number, upgrade account, activate dormant
account and many more. Financial Transactions over Video Calls, Schedule a
Video Call.

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

 Offers :
Promotional Offers, Pre-approved Offers, Card Offers.

 Bill Payment :
Pay Utility Bills like electricity, gas, water, municipal taxes, loan
repayment, school fees, etc. Set Standing Instructions(only for Bank Account
customers), Search/Add/Manage/Delete billers, Favourite Payments.

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 WhatsApp Banking
 Loans :
Loan Summary – Auto Loan/Home Loan/Business Loans, etc. Loan
Details, Loan Statement, Disbursal Enquiry, Add/Update Nickname.

 Payment Gateway :
Login via any combination. (Username/Customer ID &
Password/mPIN).

 FASTag :
Recharge AU FASTag via UPI.

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ACHEIVEMENT IN AU SMALL FINANCE BANK (2019-20020)

Awards and accolades :

 Golden Peacock Award-Special Commendation for Excellence in Corporate

Governance – 2019.
 Golden Peacock Award for Excellence in Risk Management – 2019.
 India9s Leading Small Finance Bank – BFSI Summit & Awards 2020 by Dun &
Bradstreet.
 MSME CIBIL Award 2019 – Best Data Quality Management (SFB category).
 Best Adoption of Technology – BFSL Summit & Awards 2020 by Dun &
Bradstreet.
 ET Gamechanger of India – 2019 Mr. Sanjay Agarwal, MD & CEO, AU Bank.

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SWOT Analysis of AU Bank

SWOT analysis is a framework used to asses a company9s competitiveness and make strategic
plans. SWOT analysis assesses internal and external factors as well as current and future
potential. SWOT analysis is a strategic planning tool that AU managers can use to perform
situational analysis of their organization.

Strengths of AU Bank :

 Healthy Customer Base

 Broad Range of Portfolio
 Talent Management
 Strong Brand Recognition
 Government Support
 Limited Competitive Overlap

Weaknesses of AU Bank :

 Not in Country9s Leading

 Declining Market Share
 Concentration Risk
 High Cost to Replace Existing Professionals
 Rising Interest Risk.

Opportunities for AU Bank :

 Advancements in Technology in the Banking Sector

 Wait a minute
 Growth Potential
 Global Opportunities for AU Bank

Threats to AU Bank :

 Changing Demographics
 Shortage of Skilled Human Resources
 Dynamic Competition
 Retention of Key Management Personnel

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Introducaton To The Study

Customer satisfaction
Customer satisfaction refers to how satisfied customers are with the products or services
they receive from a particular agency. The level of satisfaction is determined not only by the
quality and type of customer experience but also by the customer9s expectations. A customer
may be defined as someone who

• has a direct relationship with, or is directly affected by your agency and

• Receives or relies on one or more of your agency9s services or products.

Customers in human services are commonly referred to as service users, consumers or

clients. They can be individuals or groups. An organization with a strong customer service
culture places the customer at the centre of service design, planning and service delivery.
Customer centric organizations will:

Determine the customer9s expectations when they plan listen to the customer as they design.

Focus on the delivery of customer service activities value customer feedback when they
measure performance.

It9s importance

There are a number of reasons why customer satisfaction is important in Banking Sector:

• Meeting the needs of the customer is the underlying rationale for the existence of
community service organizations. Customers have a right to quality services that deliver
outcomes.

• Organizations that strive beyond minimum standards and exceed the expectations of their
customers are likely to be leaders in their sector.

• Customers are recognized as key partners in shaping service development and assessing
quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback on

organizational performance are valuable tools for quality and continuous service
improvement

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Introduction To Banking
Banking means accepting the deposits from the customers for lending to the needy and
extending the other services as to issue of dd etc. nowadays after introduction of private sector
banks the banks have become a profit centre and the functions become changed and now
banks are doing the insurance and mutual funds also. but nationalised banks are still service
oriented in extending loans for Education loan, and rural development activities.

A Bank is an organization which lends money to the borrowers for a purposeful task, and
provides a facility to deposit and withdraw money when needed and charge for it.

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HISTORY OF SMALL FINANCE BANK IN INDIA

Small finance banks are a type of niche banks in India. Banks with a small finance bank
license can provide basic banking service of acceptance of deposits and lending. The aim
behind these is to provide financial inclusion to sections of the economy not being served by
other banks, such as small business units, small and marginal farmers, micro and small
industries and unorganised sector entities.

Existing non-banking financial companies (NBFC), microfinance institutions (MFI) and local
area banks (LAB) can apply to become small finance banks.

They can be promoted either by individuals, corporate, trusts or societies.

They are established as public limited companies in the private sector under the Companies
Act, 2013.

They are governed by the provisions of Reserve Bank of India Act, 1934, Banking
Regulation Act, 1949 and other relevant statutes.

The banks will not be restricted to any region.

They were set up with the twin objectives of providing an institutional mechanism for promoting
rural and semi urban savings and for providing credit for viable economic activities in the local
areas.

75% of its net credits should be in priority sector lending and 50% of the loans in its portfolio
must in ₹25 lakh (US$34,000) range.
[2]

The firms must have a capital of at least ₹200 crore (US$13 million).

The promoters should have 10 years' experience in banking and finance. The promoters
stake in the paid-up equity capital will be at least 40% initially but must be brought down
to 26% in 12 years. Joint ventures are not permitted. Foreign share holding will be
allowed in these banks as per the rules for FDI in private banks in India.

At net worth of ₹500 crore (US$67 million), listing will be mandatory within three years. Small
finance banks having net worth of below ₹500 crore (US$67 million) could also get their shares
listed voluntarily.

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Registration, licensing and regulations

The small finance bank shall be registered as a public limited company under the Companies Act, 2013.
It will be licensed under Section 22 of the Banking Regulation Act, 1949 and governed by the provisions
of the Banking Regulation Act, 1949; Reserve Bank of India Act, 1934; Foreign Exchange
Management Act, 1999; Payment and Settlement Systems Act, 2007; Credit Information
Companies (Regulation) Act, 2005; Deposit Insurance and Credit Guarantee Corporation Act,
1961; other relevant Statutes and the Directives, Prudential Regulations and other
Guidelines/Instructions issued by RBI and other regulators from time to time. The small finance banks
will be given scheduled bank status once they commence their operations, and found suitable as per
Section 42 (6) (a) of the Reserve Bank of India Act, 1934.

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BANKING STRUCTURE IN INDIA

 Scheduled Small Finance Bank:

Sl.No. Original licensee/promoter Commenced Bank name Headquarters

Ujjivan Financial Services Pvt 1 February Ujjivan Small

1 Bangalore
Ltd 2017 Finance Bank

Janalakshmi Financial Services 29 March Jana Small

2 Bangalore
Pvt Ltd 2018 Finance Bank

5 September Equitas Small

3 Equitas Holdings Pvt Ltd Chennai
2016 Finance Bank

AU Small Finance
4 Au Financiers India Ltd 19 April 2017 Jaipur
Bank

24 April Capital Small

5 Capital Local Area Bank Ltd Jalandhar
2016[10] Finance Bank

21 July Fincare Small

6 Disha Microfin Pvt Ltd Bangalore
2017[11] Finance Bank

17 March ESAF Small

7 ESAF Microfinance Thrissur
2017[12] Finance Bank

RGVN North East Microfinance 17 October North East Small

8 Guwahati
Ltd 2017[13] Finance Bank

23 January Suryoday Small

9 Suryoday Microfinance Pvt Ltd Navi Mumbai
2017[14] Finance Bank

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Sl.No. Original licensee/promoter Commenced Bank name Headquarters

23 January Utkarsh Small

10 Utkarsh Microfinance Pvt Ltd Varanasi
2017 Finance Bank

Shivalik Mercantile Co- Shivalik Small

11 26 April 2021 Noida
operative Bank Ltd Finance Bank

Centrum Financial Services 1 November, Unity Small

12 Delhi
Limited and BharatPe 2021 Finance Bank

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COMMERCIAL BANKING SERVICE IN

A commercial bank is what is commonly referred to as simply a bank. The term "commercial" is
used to distinguish it from an investment bank, a type of financial services entity which instead
of lending money directly to a business, helps businesses raise money from other firms in the
form of bonds (debt) or share capital(equity).

The primary operations of commercial banks include:

 Keeping money safe while also allowing withdrawals when needed

 Issuance of chequebooks so that bills can be paid and other kinds of payments can be
delivered by the post
 Provide personal loans, commercial loans, and mortgage loans (typically loans to
purchase a home, property or business)
 Issuance of credit cards and processing of credit card transactions and billing
 Issuance of debit cards for use as a substitute for cheques
 Allow financial transactions at branches or by using automatic teller machines (ATMs)
 Provide wire transfers of funds and electronic fund transfers between banks
 Facilitation of standing orders and direct debits, so payments for bills can be made
automatically
 Provide overdraft agreements for the temporary advancement of the bank's own money
to meet the monthly spending commitments of a customer in their current account.
 Provide internet banking system to facilitate the customers to view and operate their
respective accounts through the internet.
 Provide charge card advances of the bank's own money for customers wishing to settle
credit advances monthly.
 Provide a check guaranteed by the bank itself and prepaid by the customer, such as
a cashier's check or certified check.
 Notary service for financial and other documents
 Accepting the deposits from customers and providing credit facilities to them.
 Sell investment products like mutual funds Etc.

The United States is the largest location for commercial banking services

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INVESTMENT BANKING SERVICE

 Underwriting debt and equity for the private and public sector for such entities to raise
capital.
 Mergers and acquisitions – Work to underwrite and advise companies on mergers or
takeovers.
 Structured finance – Develop intricate (typically derivative) products for high net worth
individuals and institutions with more intricate financial needs.
 Restructuring – Assist in financially reorganizing companies
 Investment management – Management of assets (e.g., real estate) to meet specified
investment goals of clients.
 Securities research – Maintain their own department that services to assist their traders,
clients and maintain a public stance on specific securities and industries.
 Broker Services – Buy and sell securities on behalf of their clients (sometimes may involve
financial consulting as well).
 Prime Brokerage – An exclusive type of bundled broker service specifically meant to
service the needs of hedge funds.
 Private banking – Private banks provide banking services exclusively to high-net-worth
individuals. Many financial services firms require a person or family to have a certain
minimum net worth to qualify for private banking service.

New York City and London are the largest centers of investment banking services. NYC is dominated by
U.S. domestic business, while in London international business and commerce make up a significant
portion of investment banking activite.

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RESEARCH METHODOLOGY
Research is a careful investigation or inquiry especially through search for new facts in
branch of knowledge market research specifies the information. Required to address
these issues designs the method for collecting information: manage and implement the
data collection process analyses the results and communicates the finding and their
implications.

Research problem is the one which requires a researcher to find out the best solution for
the given problem that is to find out the course of action, the action the objectives can be
obtained optimally in the context of a given environment.

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RESEARCH DESIGN
A framework or blueprint for conducting the research project, it specifies the details of
the procedures necessary for obtaining the information needed to structure and/or solve
research problem. A good research design lays the foundation for conducting the project.
A good research design will ensure that the research project is conducted effectively and
efficiently. Typically, a research design involves the following components, or tasks :

 Define the information needed

 Design the research
 Specify the measurement and scaling procedures.
 Construct and present a questionnaire or an appropriate form for data collection.
 Specify the sampling process and sampling size.
 Develop a plan of data analysis.

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