INTERNSHIP REPORT ON

AU SMALL
FINANCE
BANK
HUMAN RESOURCE DEPARTMENT

PRESENTATION BY: AVANI TOMAR (MBA BFSI)

 CONTENTS
Here’s what you’ll find in this Presentation:

 About the Company

 Internship Department
 Internship Objective
 Description of work done during Internship
 SWOT Analysis
 Porter 5 Force Analysis
 Project Report on “ Human Resource Management in Banking Sector”
 Human Resource Management in Banks
 Data Analysis and Interpretation
 Suggestion, Recommendations and Limitation of the study
 Conclusion
ABOUT THE COMPANY

AU SMALL FINANCE
BANK
● AU is a dream that was started 25 years ago by Mr. Sanjay Agarwal, a merit holder Chartered
Accountant and a first-generation entrepreneur.

● Founded in Jaipur in 1996 as Au Financiers, a non-deposit taking Non-Banking Finance

Company (NBFC), it effectively worked on funding economic growth, especially for the
under-served and un-served low & middle-class individuals.

● In 2015, when RBI came out with the Small Finance Bank licensing guidelines, AU was the
strongest of the 10 selected entities out of 74 applicants to receive this coveted license thanks
to its strong foothold and proven track record.

● Au Financiers transformed into AU Small Finance Bank in April 2017 and the same year
they registered a stellar listing while earning trust of renowned investors.

● AU Small Finance Bank Limited (AU Bank) is a small finance bank with operations across its
500+ touch points including 306 bank branches 106 asset centres 23 offices 291 ATMs across
11 states of North West and Central India and a team of 10000+ employees.

● Today, they stand tall as a Scheduled Commercial Bank and a Fortune India 500 Company that
is enabling a convenient banking experience with many industry-first initiatives.
 AU’s PRODUCT BOUQUET AND DIGITAL
SOLUTIONS

ASSETS BRANCH BANKING DIGITAL SOLUTIONS AND

PROPERTIES
RETAIL ASSETS: DEPOSIT:
• Wheels • Current and Savings Account DIGITAL PROPERTIES:
• Two Wheeler • Fixed and Recurring Deposit • Tab
• Secured Business Loan • AU Abhi
• Home Loan SERVICES:
• Debit Card DIGITAL SOLUTIONS:
BRANCH ASSETS: • Locker • Mobile Banking
• Gold Loan • POS • Internet Banking- Retail and
• OD Against FD • ATM Corporate
• Trade/Forex • IMPS
DIGITAL ASSETS: • Domestic LC/BG • RTGS
• Consumer Finance • NEFT
DOORSTEP BANKING: • Payment Gateway
MID CORPORATE ASSETS: Third Party Products
• Real Estate Funding • Insurance
• NBFC Funding • Mutual Funds
• Business Loan- Agri/Non- Agri
• Working Capital-CC/OD/BG/LC
INTERNSHIP DEPARTMENT

HUMAN
RESOURCES
The banking sector is a wide financial and economical industry,
which depends majorly on the workforce. Thus managing and
maintaining this workforce becomes the priority for the HR
department in the banks. It is also important for the HR
management team to have a look at the present and possible
future requirements of the banks and work accordingly with the
same.

Importance of Human Resource Management in Banking Sector:

1. Plan ahead for recruitment

2. Maintaining a balance of experience and youth in the
workforce
3. Training of the manpower
4. Performance management and talent spotting
5. Keeping a tab on the personal requirements of the employee
6. Keeping a tab on retirements and resignations
HR Officers are responsible for smooth functioning of a bank since they are
in charge of getting the best out of the human resource available to the
bank. The various responsibilities carried out by these officers are:

1. Posting / Transfer of Employees

2. Arranging Training Programmes
3. Conducting Promotional Exercises
4. Designing Perks and Benefits
5. Disbursal of Retirement Benefits
6. Supervising the Performance of Staff
INTERNSHIP OBJECTIVE
Employability or interpersonal
skills
• Personal mindset
• Problem solving
• Verbal communication

Technical/ academic skills

• Planning
• Screening
• On boarding software
• Payroll
 DESCRIPTION OF WORK DONE DURING INTERNSHIP
TALENT ACQUISITION

Identifying open position in the bank. If all goes well, asking the Creating the candidate in the
Sourcing candidates for open candidate to send their system and on boarding the
positions. Contacting suitable documents. candidate profile for
candidates as per the position. processing offer letter.

1 2 3
 DESCRIPTION OF WORK DONE DURING INTERNSHIP
TALENT MANAGEMENT
Joining of on boarded New Employee Connect and Handling issues and problems
candidates as per their joining Disbursing ID Cards and of the employees regarding
date. Induction Programme other stationery to the their salary, attendance ,
for the new joinees. employees. resignation etc.

4 5 6
JOB ANALYSIS: Process of gathering and analyzing information about the content and the human requirements of jobs, as well
as, the context in which jobs are performed.
• Writing the Job Description (1st Step)
• Determine the Job Family (2nd Step)
• Determine Job Family Zone (3rd Step)

SOURCING OF CANDIDATES: Process of identifying top talent that matches your required skills, education, and interests for
the open jobs in your company or your client’s company. Some candidate sourcing techniques are:
• Online Job Postings
• Social Media Platforms
• Recruitment Database
• Employee Referrals
DOCUMENTATION PROCESS: Process includes collecting documents such as educational certificates, id proof, address
proof, previous company offer letter, relieving letters, etc. If a candidate responds positively, then it is an indicator that he/she is
actually interested in joining the organization. Documents required:
• Identity proofs (Adhaar, PAN, Driving license)
• Educational Certificates or proof
• Previous company offer letter
• Previous company Relieving letter

ONBOARDING PROCESS: Transfer your new hire’s information from your applicant tracking system to your Human Resource
Information System (HRIS) or onboarding software. Onboarding software is technology that helps employers facilitate a smooth
transition for new hires.
JOINING OF NEW EMPLOYEES: Joining formalities is the first courses of action for all the new employees of an
organization post their Interview. So on the day of joining there may be only nominal documentation process and HR Manager
can spend more time with the new employee by taking them through several other things.

EMPLOYEE CONNECTION AND ENGAGEMENT: When this employee connection exists, it creates a sense of family.
Contacting new employees and collecting certain information.
CONDUCTING TOWNHALL: It is a meeting intended for everyone in the organization, in which management reports on
policy matters, and employees are given ample opportunity to respond, ask questions and enter into discussions with managers.

PREPARING AND CONDUCTING INTERVIEWS: During the hiring process, after you have screened potential job
candidates, you need to schedule interviews with your short list. Open-ended questions will be the most relevant as they allow you
to assess the candidate’s ability to communicate in a non-structured way. This can create opportunities for you to probe into many
important aspects of the person’s experience and skills.
 SWOT ANALYSIS OF AU SMALL FINANCE
BANK

STRENGTHS: WEAKNESS:

1. Well positioned to derive benefits of both the ‘Pull’ factor of 1. Leveraging technology, along with door step servicing
being a bank, and ‘Push’ factor of its NBFC roots would enable us to rapidly gain market share. Profileration
2. Secured retail loans focussed scheduled commercial bank with of data, digital usage and smartphones is opening new
strong track record of underwriting loans to under-banked opportunities
population 2. Longstanding presence in underpenetrated regions offers
3. Comprehensive suite of products and services – a significant strong growth potential
cross-sell lever; longstanding presence in relatively untapped 3. New retail products—gold loan, home loan, two wheeler
markets loan, agri-SME loan and consumer durable loan—hold
4. Extensive phygital distribution network enabling efficient significant growth potential Scaling up of third-party
delivery of products and services to customers across urban, products (mutual funds, general insurance, health insurance
semi-urban and rural (Tier I to VI) centres Healthy capital and life insurance) could boost other income.
adequacy levels and options to augment capital to absorb
negative surprises
5. Execution focused leadership team, and stable and seasoned
second line
 SWOT ANALYSIS OF AU SMALL FINANCE
BANK

THREAT:
OPPORTUNITIES:
1. Growing competition from other banks and financial
1. Geographical Concentration: Four states (Rajasthan, Madhya
institutions
Pradesh, Maharashtra and Gujarat) together account for ~80% of
2. COVID-19 situation and related lockdown is an
our loan book
unprecedented situation and poses a threat to asset quality
2. Product Concentration: Significant concentration of wheels
and growth if situation becomes worse than expected
(~42%) in total loan assets
3. Volatility in global or domestic economy and political
uncertainty might hamper growth
 PORTER 5 FORCE ANALYSIS OF AU SMALL FINANCE BANK

INDUSTRY RIVARLY BARGAINING POWER OF SUPPLIERS

• Intense Competition • Low supplier bargaining power
• At present public sector banks, led by SBI & associates, • Subject to RBI rules and regulations
control 77.3 per cent of the banking sector • Forward Integration
• Rivalry is much aggressive in metropolitan areas • Gradually, customers have hedged inflation by investing in other
riskier avenues

THREAT OF NEW ENTRANT

• High entry barriers, as RBI & Central
BARGAINING POWER OF Bank control the issuance of licenses
CUSTOMERS • Globalization and liberalization policy THREATS OF SUBSTITUTES
• Banks are an indispensible source • High exit barriers • High threat from substitutes
of fund in India • Government policies are supportive • For deposit substitutes include
• Low switching cost investment in gold, real estate,
• Large number of alternatives equity etc. For advances
• Homogeneous services by banks substitutes include, bonds,
• Full information available with IPO/FPO1 , etc
customers
 Project Report
On
HUMAN RESOURCE
MANAGEMENT IN BANKING
SECTOR
 HUMAN RESOURCE MANAGEMENT
Human Resource Management or Personnel management is the activity of managing personnel,
usually employees. In any organization, managing personnel is the process of making sure the
employees (not the customers) are as productive as they can be. This can include hiring, firing, or
transferring people to/from jobs they can do most productively. This subject is a major at many
universities, or a minor in the business school. It is also known as personnel administration,
which is functionally an equivalent term.

Human Resource Management (HRM) deals with:

• Training
• Self-development
• Promotions
• Performance appraisal of manpower recruited in an organization.
 HUMAN RESOURCE MANAGEMENT IN BANKING
The banking sector has grown from a few institutions primarily involved in deposit
acceptance and trade finance into a complex multi-player markets where large number of
commercial banks, financial institutions and specialized banks are operating with various
products and activities.

The Human Resource field in the Banking Industry is considered as one of the process of
discovery and transformation. The field of Human Resource can be described as
emergent and dynamic within the cultural business aspect in a Banking Industry. The
success of today‘s banking business will sparsely depends on the human resources of
the organization, in which plays a crucial role in providing the services needed. The
evolution of banking system in India affected the human resource practices, recruitment
and selection practices, and training system.

A major challenge for many banks will be to develop the special competencies and skills
for credit appraisal and risk management. Therefore, the HR model of the future will
require professionals to - 13 - be both driving and anticipating change, understanding the
complexities of the new business environment and forces shaping it.
 HUMAN RESOURCE PLANNING
This is the process which assures the organization that it will have adequate number of qualified persons, at requisite
times, performing in a way to satisfy the needs of the organization & also provide satisfaction to the individual employee,
so employed. The process involves:
1. Estimating the present & future requirements of human resources based on objectives & long range plans of the
organization.
2. Calculation of net human resource requirements based on the present availability of human resources.
3. Taking suitable steps to identify, mould, change & develop the strength of existing employees so as to meet the future
requirements.
4. Preparation of action plans to acquire the balance human resources from outside the organization & to develop the
existing employees.
Recruitment: Process of searching for future employees (requirement) & ensuring they apply for jobs in the organization.
Selection: Process of ascertaining the qualifications, experience, skill, Knowledge, etc. of an applicant to ascertain
his/her suitability for the job applied.
Placement: Process of allotting to the selected candidate the most suitable job, as per the job requirements & employee
specifications.
Induction & Orientation: Procedures by which a new employee is rehabilitated in the new surroundings & introduced to
the practices, procedures, policies, people, etc. of the organization.
 HUMAN RESOURCE DEVELOPMENT
This process involves improving, moulding, & developing the skills, knowledge, creativity, attitude, aptitude, values,
commitment, etc. based on the present & future job & company requirements.

Performance Appraisal: It is the continuous & systematic evaluation of individual employees with respect to their
performance & their potential for future development. It includes: Enunciating policies, procedures & techniques.
• Assisting functional managers.
• Reviewing & summarizing reports.
• Evaluating the effectiveness of various programmes

Training: It is the process of transmitting the employees the technical & operating skills and knowledge. It includes
Identification of training needs of the individuals & for the organization.
• Developing appropriate training programmers.
• Assisting & advising the management in the conduct of training programmes.
• Transmitting requisite job skills & job knowledge to the employees.
• Assess the effectiveness of the training programmes.
 RESPONSIBILITIES OF THE HUMAN RESOURCE MANAGEMENT
DEPARTMENT IN BANKS
Responsibilities:

1. To be the principal sponsor & guardian of HR policies in the Bank.

2. To propose & obtain agreement on changes to these policies from time to time & to ensure that policies which have
been agreed are being implemented throughout the Bank.
3. To contribute fully to the task of meeting the business challenges which the bank has to face by supporting
Branch/Unit Managers in continuously developing the potential of employees & in creating conditions in which all the
employees are motivated to meet the objectives of the Bank.
4. To continuously monitor the Bank‘s strategies to ensure that HR policies are appropriate & that employee numbers &
skills are fully supportive of such strategies.
5. To deliver a full range of personnel services in support of line management. These services include manpower
planning, recruitment/transfer, remuneration, and training & employee welfare.
6. To support line management in their day-to-day management of the workforce by providing advice & consultancy on
personnel & performance management issues.
 CURRENT CHALLENGES FACED BY BANKS IN HRM
Effective work force: Higher the professional value of the vacancy, tougher is the search. Identifying the right stuff
followed by negotiation is the element which makes the job tough for the employer. Banking jobs being apparently
lucrative for many attract a large number of candidates against advertised vacancies in media creating a large database
management problem. This has been facilitated by specialized hiring agencies who may take up the job of hiring in
case of large number of vacancies.

Right People: The most difficult agenda of HRM across the banking sector is to retain the right people. Sudden growth
of retail banking & other services has put pressure on HR Managers in banks to engage more professionals within
shorter span of time thereby attracting manpower in other banks on - 39 - attractive packages has made the job market
very competing.

Compensation: How much to pay the right employee & how much to the outstanding performer. Banks have
traditionally followed pay scales with predetermined increments, salary slabs, bonuses & time based fringe benefits like
car & house advance, gratuity, pensions, etc. The situation is not the same anymore.

Job Satisfaction: Everybody in the bank wants to work in the preferential department, preferential location, city of his
own choice & boss of his liking. An administrative deviation from any of these results in lowered job satisfaction.
Although hiring is normally based on regional requirement matching the area of activity with that of employee‘s nativity
yet other elements like appointment in the department of choice & preference makes the job of HR manager quite
challenging.
 DATA ANALYSIS AND INTERPRETETION
ANALYSIS OF SECONDARY DATA
Training and Development Function in Banking Sector

TEAM MEMBER 1: IT support Project/Summer training Induction manual/ppt

Training feedback or evaluation Admin task Database management

TEAM HEAD TEAM MEMBER 2: Module design Module development Product/Process

TNI Training Project/Summer training HRIS support Best HR practices
Training calendar
Training budget
Training feedback TEAM MEMBER 3: Training initiative Concept Development Write-ups &
Training manuals Briefing Training Evaluation PD e-manual
Approvals/concept
paper

TEAM MEMBER 4: Library mgmt

Dak(In/out) database Record
Maintenance Admin follow Up
Bulletin/Board management
 KEY FINDINGS OF PRIMARY DATA
1. Mostly all the AU Employees are well aware of the role and importance of the training They are self-
motivated to attend such training program as it will result in their skill enhancement & improving their
interpersonal skill.
2. Corporate HR, AU Small Finance Bank, time to time training is provided to all the Employees and it is
continuous process.
3. Two types of training are provided to the Employees by AU -induction training and soft skill development
training.
4. Questionnaire is the most popular mean of evaluating the training program in AU Small Finance Bank.
5. Most of the Employees feel that questionnaire is the most appropriate method of evaluating the training
program.
6. Post training evaluation focus on result rather than on the effort expended in conducting the training and
it worth the time, money and effort.
7. Most of the participants are benefitted by giving feedback after attended the training. It motivated them to
do better, helped them to increase their job performance and is an aid to future planning.
8. In AU Small Finance Bank, post training evaluation is used to identify the effectiveness and valuation of
training program, to identify the ROI(return on investment), to identify the need of retraining and to
provide the points to improve the training.
9. The employees of AU Small Finance Bank want their training programme to be more subject centered
rather than trainer or trainee centered.
 SUGGESTIONS AND LIMITATION OF STUDY
SUGGESTIONS AND RECOMMENDATIONS
1. The management must commit itself to allocate major resources and adequate time to training.
2. Ensure that training contribute to competitive strategies of the firm. Different strategies need different HR
skill for implementation. Let training help employees at all levels acquire the needed skill.
3. Ensure that a comprehensive and systematic approach to training exists, and training and retraining are
done at all levels on a continuous and on-going basis.
4. Skill based training (product/process training) should also be provided.
5. Post training feedback has to be continuous and should also be taken from line manager/superior & from
peers to find out the effectiveness and valuation of training.

LIMITATION OF THE STUDY

6. The study is limited to the AU Small Finance Bank, Regional Office, Indore. So the study is subject to the
limitation of area.
7. The time period of the study was only two weeks which may provide a deceptive picture in comparison of
the study based on long run.
8. Sampling size was of only 87, because only these people had attended soft skill development training.
 CONCLUSION

1. The success of banks largely depends on the intellectual development of the employees. Effective
organization depends on having the right system of HR policies and practices in order to recruit, select
,develop, appraise, and compensate, promote or send away the employees.
2. The Banking Industry has now entered in an era of post liberalization competitiveness requiring a fresh
look at the management structure at the apex levels in terms of strategic intent to be reflected in well
articulated organizational vision, mission, and objectives.
3. Taking the banking industry to the heights of excellence, especially in the face of the a forehead-detailed
emerging realities, will require a combination of new technologies, better processes of credit and risk
appraisal, treasury management, product diversification, internal control and external regulations and, not
the least, human resources.
4. To conclude that Banks, is however bringing in innovations in their marketing and customer relation
strategies by way of formulating different products and technology based delivery systems.
5. To conclude, without such Human Resource Practices, Banking Organizations would not be able to
deliver increasing expectations of globalized customers.
QUESTIONNAIRE
QUESTIONNAIRE