Interview with Mr Uttam Tibrewal, ED, AU Small Finance Bank: “Every individual deserves equal opportunities regardless of their socio-economic background”

AU Small Finance Bank (AU SFB) is the largest small finance bank of India with a presence in 21 States and 3 Union Territories through 1,027 touchpoints. As a small finance bank, their business is built around the motive of providing financial support to help individuals realize their dreams of a better livelihood. They have carefully weaved their CSR framework around the same philosophy. Their primary CSR initiatives are built around the goal of improving livelihood opportunities for people.

Central to their CSR initiatives is the AU Ignite program, a remarkable endeavor that started with a singular focus on BFSI (Banking, Financial Services, and Insurance) but expanded dynamically to include sectors like ITES, Retail, Tourism, and Hospitality. 13,600 young individuals have been trained under the program with over 11,000 trainees being placed in the organized sector. The bank has strategically extended its support to sports and women entrepreneurship, embodying their core values of empowerment and inclusivity. Initiatives like "Bano Champion" and Project Udyogini stand as testaments to their dedication to nurturing talent and fostering entrepreneurship among rural women.

In this exclusive interview with TheCSRUniverse, Mr Uttam Tibrewal, Executive Director, AU Small Finance Bank, takes us through the inspiring social journey of AU SFB shedding light on key initiatives as well as the extensive need-based activities the bank undertakes in the areas that it operates in. He also touches upon their R&D efforts to strengthen their initiatives further and gives us a glimpse of the projects they plan to scale up in the near future.

Scroll down for deeper insights from the full interview:

Q. Please tell us about your flagship program, AU Skills Academy- how has it grown over the last five years? Are there any specific achievements or milestones that you would like to share with us?

A. AU Skills Academy was established in Jaipur in 2018 with the objective of delivering relevant and practical training to the marginalized youth across Rajasthan. In its pilot phase, the programme commenced in a single academy with one classroom and a computer lab, successfully training over 102 young individuals. During the expansion phase in 2019-2020, an additional academy was established in Jaipur, benefitting 541 individuals. Subsequently, the initiative witnessed significant growth with the launch of five new academies in Sikar, Bhilwara, Bikaner, jodhpur & Kota.

In the face of the pandemic in 2020-2021, we persevered, maintaining operations in all seven centers, offering both online and physical training, which led to the successful training of 2,190 individuals and an 82 percent placement rate.

In September 2021, the AU Skills Academy was inaugurated as the flagship programme under the Center of Excellence and was relaunched as 'AU Ignite - Unlocking You.' Currently, we have established 16 academies spanning 12 districts in Rajasthan and have provided training to more than 13,600 young individualswith 2,764 youths trained during FY2021-2022.Impressively, over 11,000 of these 13,600 individuals have successfully secured placements in the organized sector.

Geographical expansion through the years:

Initially, we began by offering the Business Correspondent &Business Facilitator course and progressively broadened our curriculum to encompass BFSI, Retail, Tourism Hospitality, Sales & Marketing, and eventually, the IT & ITES domain. In 2021, we elevated our programme to flagship project, ensuring that each course aligns with National Skill Development Corporation standards. This strategic alignment further solidified our dedication to delivering high qualityskills training in these sectors. Looking ahead, AU Ignite aspires to train more than 28,000 youth by 2025.

Q. AU Ignite initially started with a focus on BFSI discipline. What motivated you to include other disciplines gradually? Currently, which disciplines have the most trainees and which ones offer the best placements?

A. Skill development transcends a singular sector, and there exists substantial demand in various other fields. When we inaugurated our initial academy, we received inquiries spanning diverse domains, compelling us to broaden our course offerings from BFSI to encompass ITES, Retail, Tourism, and Hospitality. Our selection of course offerings has been meticulous, aligning with market demand and the ever-evolving trends in employment opportunities.

Our inaugural academy commenced as a pilot project, equipped with only one classroom and a lab, which initially led us to concentrate on a single domain. However, as we expanded to establish our second academy, we discerned a substantial demand for critical sectors among both trainees and the industry in Jaipur. The retail sector, known for being one of the largest employers, along with Tourism and Hospitality ranking among the top three industries in Rajasthan, and the significance of CRM due to the thriving BPO industry in Jaipur, particularly favored by female trainees, all became evident. The versatility of ITES made it applicable across all segments, and in response to the burgeoning healthcare industry and substantial demand, we also introduced healthcare courses.

Whenever we inaugurate a new center, we diligently assess the region's unique requirements, employment prospects, and available resources.

Today, BFSI stands as the largest employer in India, attracting ambitious trainees in pursuit of opportunities within this industry. Given its financial orientation, it also provides comparatively higher compensation compared to other sectors.Top of Form

Q. Being a banking company, BFSI would be an obvious strength of your academies. How do you ensure quality and rigor of trainings in other disciplines? Do you plan to include more disciplines in the future?

A. As a small finance bank, BFSI naturally serves as a substantial pillar within our academies. We enhance the learning experience of our trainees in the Banking sector by extending invitations to senior officials from AUSFB. They share their invaluable insights, expertise, and challenges, empowering our youth to unlock their full potential and thrive, ultimately making a positive impact in their lives.

To ensure the quality and depth of training in other disciplines, we collaborate with implementing partners who specialize in these skill domains. These partners deliver specialized training to our students and play a pivotal role in facilitating their placement in diverse organized sectors.

To evaluate the training's effectiveness, we collaborate with external assessment organizations that assess both the trainer's competence and the training received by the participants. Additionally, we facilitate the certification of our trainees through various entities such as sector skill councils, third-party assessment agencies, and AU Ignite. This certification equips our trainees with the qualifications needed to pursue employment opportunities within the skill sector.Going forward, we are committed to expanding our domains beyond banking and financial services. To stay aligned with market trends, we have recently introduced upskilling and reskilling courses such as Full Stack Developer, Data Analyst, and Salesforce, which are considered as future-oriented skill sets.

Furthermore, we continuously adapt and enhance our course curriculum to meet the specific demands of different industries. It's important to note that domain knowledge alone is not sufficient; we also focus on developing our trainees' soft skills, communication abilities, and core employability skills to ensure they are well-prepared for employment opportunities. This holistic approach allows us to cater to a wide range of disciplines and prepare our trainees for success in diverse fields.

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Q. It is impressive to hear that AU Ignite has expanded across 12 districts in Rajasthan while maintaining a placement assistance of 80%. In your opinion, what factors have helped you expand this initiative so efficiently?

A. The growth and success of AU Ignite across 12 districts in Rajasthan, while maintaining a placement assistance rate of 80 per cent, can be attributed to several key factors.

To begin with, our journey with AU Ignite commenced as a small pilot project exclusively in Jaipur. During the initial six months, we invested significant effort in comprehensively understanding the intricacies of the skill training domain. We closely observed the evolving needs, expectations, and aspirations of today's youth. This made us realize that a considerable gap existed between the industry's expectations from its workforce and the skills possessed by the youth in our society. To bridge this skill gap, we developed internal processes such as mobilization, counseling, an effective training curriculum, and a sharp focus on soft skills and life skills.

In 2021, we engaged external consultants to conduct a mid-term assessment of our programme, and their feedback further affirmed the need to expand. Subsequently, our board of directors gave their approval to elevate AU Ignite to our flagship programme.

Collaborating with experienced ground partners who had a track record of delivering effective training programmes in their respective regions was another critical strategy. These partners not only had the necessary team experience but also a deep understanding of the industries in their areas. In some cases, we extended support to partners requiring assistance in capacity building and financial resources to operate the programme successfully.

Our detailed programme structure along with strategic partnerships and efficient training has positively resulted in the expansion and success of AU Ignite in Rajasthan.

Q. Given that AUSFB is now present in 21 states, do you intend to replicate this model in other states as well? What strategies do you have in place to achieve your target of training 28,000 students by 2025?

A. Certainly, we do have plans to replicate this model in other states even though Rajasthan currently presents abundant opportunities for expansion. Our expansion strategy is more city specific than state specific.  We are continuously evaluating opportunities and aligning our strategy basis the penetration and demand in any local area. As Rajasthan is our home market and state of origin, it was but natural to start expansion from this state. However, as we enter newer geographies, expansion to other states is will be in normal course.

Q. What are the other focus areas for the CSR initiatives at AUSFB and how are they aligned with the bank's core values?

A. AU Small Finance Bank (AU SFB) supports the dreams of those who have the aspirations and skillsets but lack financial support. Through banking and our CSR initiatives, we serve the unbanked and under-banked segments. Enhancing livelihoods of individuals has been at the core of AU SFB.

In addition to our flagship programme, AU SFB has strategically chosen to engage in two other areas of focus: sports and women entrepreneurship, with the aim of empowering rural women and children.

Through our involvement in the "Bano Champion" initiative, our foremost objective is to develop a culture of sports in rural and semi-urban geographies. . We firmly believe that sports not only foster physical fitness but also instill invaluable life lessons, including discipline and teamwork. In this way, we offer these children a path to personal growth and success.

Likewise, our AU Udyogini programme’s primary objective is to foster entrepreneurship among rural women. We are dedicated to empowering them by providing opportunities for skill development, business training, and access to resources. Through this initiative, our goal is to create employment opportunities for these women, enabling them to achieve self-sufficiency and financial independence.

Apart from the core areas of work, AU SFB also caters to the needs of society at large through its interventions in education, preventive healthcare through medical camps, accessibility of safe drinking water, along with providing aid during a crisis.

We regularly provide public update on our CSR achievements and strategy and you may read more in our 2023 Annual Report and 2023 Sustainability Report.

Q. Can you mention a few key projects that have been undertaken within the areas mentioned above? What outcomes or impact have these projects achieved so far?

A. From unleashing the skills of youth and nurturing sports talent at the grassroots level to empowering women to become self-reliant, the AU Foundation's scope of work is diverse.

Two key projects under the core areas of work are AU Bano Champion and AU Udyogini.

A first-of-a-kind sports initiative of AU Small Finance Bank under its Corporate Social Responsibility (CSR), Bano Champion- Maidan Se Manzil Tak (From Field to Destination) aims to provide a platform of guided sports training in rural areas of Rajasthan. The programme focuses on creating champions in sports such as athletics, football, throwball, volleyball along with games of local preference.

Initiated in October 2021 initially across 30 locations, the programme had further outreached to 66 rural and semi urban locations covering 16 districts of Rajasthan. Currently, more than 7000 young children are being trained under guidance of 90 trained Coaches & Sub-coaches, besides a large support of volunteers to create a champion for tomorrow. The programme has drawn support from across, with formal partnerships with sectoral experts and association bodies, besides government support.

The initial results have been highly motivating, where over 680 young sports enthusiasts enrolled under the programme have shown exemplary results at State and National Level competitions organized by associations and federations and 5 have qualified for Khelo India Youth Games. Going further, the initiative will strengthen its functioning on technical training aspect and draw attention of prospective stakeholders for greater collaborative impact.

Besides, regular training at grassroots, the programme provides platforms to children to compete at different levels through its Village, District & State level sports tournaments. The first leg of tournament was organized last year in February & in August witnessing participation of 25000+ children. Further the tournament was conducted at District level hosting over 4300 participants.  

The State Level Sports Tournament was held at SMS Stadium in Jaipur on January 29, 2023 where1800+ participants competed across 7 sports.

Recently, 5 girl athletes from our project have been selected by the Delhi Sports School(DSS). DSS, developed by Delhi Sports University, blends sports and academics, nurturing young talents. With world-class facilities, specialized coaching, and government sponsorship, it opens doors to national and international opportunities.

Committed to empowering rural women by helping them achieve self-sufficiency, AU Udyogini Programme has grown around promoting two community-based enterprises, self-help groups and supporting women entrepreneurs in setting up individual businesses. AU’s interventions strive to empower women from distressed backgrounds and improve family incomes through its initiatives around masala business, craft, and market linkages. The programme is not only supporting women on economic front but also proving necessary technical support for instant under the individual women entrepreneurship initiative, a training on accounts is being organized for each woman to have a record of their sales and profit which can be of help in accessing formal loans for scaling business.  

The project is divided into 3 initiatives:

a. Maa Annapurna Masala (Community Enterprises) - AU Udyogini has initiated Maa Annapurna Masala, a women led community enterprise focused on delivering quality spices and pure mustard oil. 8 centers have been established to support 110 women. In the last financial year a farmer producer organization (FPO) has been registered namely "Khejdi Mahila Producer Company" to execute the functioning of women led organization. 

b. Nirjhari Women Artisans Producer Company (Community Enterprises) - Nirjhari is registered under the producer company and women are involved in making Home Furnishing, Apparels & Recycled Paper Products. The company has trained over 200 women in delivering various products. In the last financial year, the company has generated sales proceeds of INR 36 Lakhs. 

c. Individual Women Entrepreneurship - To facilitate handholding at an individual level, AU Small Finance Bank also initiated Individual Women Entrepreneurship Programme in order to enable women to fulfil their exigency. Women have been supported to start their small businesses like salon, cosmetic shop, grocery, flour mill etc. So far, the programme has nurtured over 600 women entrepreneurs.

The AU Udyogini Programme has engaged 2100+ women and helped 700+ women to earn regular income through enterprises and small-scale businesses. AU's interventions strive to promote sustainable development by supporting local communities and improving the economic wellbeing of women.

Beyond our flagship and strategic initiatives, AU Foundation also caters to an array of need-based initiatives. These CSR initiatives encompass a wide range of projects and activities undertaken by AU Small Finance Bank to positively impact society and the environment. The activities are need-based in nature and in line with the relevant CSR clauses under schedule VII of the companies act 2013 and falling outside the scope of our strategic focus area. In majority of the cases, requests for need-based activities are received by CSR team from Bank’s operational areas which includes the following –

a. AU Jal Bank: According to WHO, 1 in 3 people globally do not have access to safe drinking water. Billions around the world are suffering due to poor access of clean water. Several commuters who belong to low-income groups and travel by buses and trains face severe issues regarding drinking water. To make clean drinking water available in public places, AU Bank has installed over 370 water coolers called AU Jal Banks, across Rajasthan, Maharashtra, Punjab, and Madhya Pradesh.

b. Health: The project addresses the need for providing appropriate health infrastructure along with adopting preventive measures to address the growing concern of chronic diseases in the country. The project will contribute towards strengthening the government healthcare system and improving the overall health outcomes of the vulnerable population.
- Supporting Govt./Charitable hospitals with medical equipment & other infra facilities.

- Blood donation and medical health check-up camps
- Supporting preventive healthcare activities like installation of open-air gyms in public gardens in various cities to provide a free space for people to engage in physical activities and exercise regularly, resulting in a range of health benefits and conducting yoga activities.

c. Education: The activities under educational projects focus on improving access to quality education and create opportunities for students from disadvantaged backgrounds to create a more equitable and inclusive society. These include:
- Renovation of public-school buildings
- Supporting community led study centers
- Provision of educational resources such as uniforms, computers, notebooks, school furniture, etc.

d. Environment & Animal welfare: The objective of this project is to promote environmental awareness and encourage environmentally responsible behavior among the general public. The project aims to educate people on the importance of conserving natural resources, reducing carbon emissions, and adopting sustainable practices to help mitigate climate change.
- Tree plantation and installation of tree guards
- Environmental Awareness Campaigns
- Animal welfare – Medical camps, cow feed

e. Road Safety Initiative: The project aims at promoting road safety awareness among drivers, pedestrians, and other road users in selected areas of need, and improve road infrastructure to reduce the risk of accidents and improve road safety. Some of the key activities under this initiative are:
- Awareness campaigns in collaboration with Traffic Police, schools, colleges & community organizations
- Installation of road barricades, Signages, Banners & other IEC material
- Distribution of safety gears

f. Sports: The objective of this project is to promote sports among the youth and provide them with a platform to showcase their talent, receive training, and develop their skills in a very need-based approach. Some of the key activities under this initiative are:
- Sports Equipment
- Construction and Renovation of Sports Facilities
- Collaboration with local sports clubs and associations
- Supporting sports events and competitions to provide a platform to youth for showcasing their talent

g. Supporting economically disadvantaged section: Providing support to socially and economically disadvantaged groups, including senior citizens, and orphans. The project aims to address unequal access to resources and opportunities, and social exclusion. Activities undertaken include:
- Distribution of blankets, Woolens, other basic utilities
- Infrastructure development for all citizens, including making shelter for labourers, workers with special focus on women & senior citizens

h. Promoting Art and Culture: This initiative aims to promote art and culture in the local community by providing opportunities for artists and cultural practitioners to showcase their talents, preserving, and promoting cultural heritage, and providing access to cultural activities and events for community members. Some of the initiatives may include:
- Community-based cultural initiatives for promoting local culture
- Support to local art forms and cultural practices
- Restoration and maintenance of heritage sites

Q. You mentioned the addition of a Research & Development department in a recent announcement. How will this department contribute to enhancing the relevance and effectiveness of AU Ignite's courses and other CSR initiatives?

A. Our research and development department will cater to the following:

- Developing new curricula and teaching methods for vocational education and training programmes that are aligned with the needs of our skill industry.
- Designing new online learning platforms that are accessible and affordable for underprivileged youth.
- Developing mobile apps and games that can be used to teach new skills to youth.
- Conducting research on how to motivate and engage Indian youth in skill development activities.
- Evaluating the effectiveness of different skill development programmes in the Indian job market.
- Including IKS (Indian Knowledge System) in our training programmes and develop a new curriculum around it.
- About other CSR initiatives, planning is under process.

Q. How has AUSFB leveraged its strengths as a banking company to achieve desired social outcomes? Also, do you see any impact of your social initiatives on your core business in any way?

A. As a Small Finance Bank, we at AU SFB provide financial support to help individuals realize their dreams of a better livelihood. Our CSR framework is built upon the same philosophy, with the goal of improving the livelihood opportunities of people. Firmly believing that every individual deserves equal opportunities regardless of their socio-economic background, we are committed to empowering people, enabling them to recognize their true potential and achieve self-reliance.

In alignment with the Bank's vision, our CSR initiatives persistently contribute to value creation in society and within the community. The Bank remains steadfast in its efforts to foster growth for both society and the community, fulfilling its role as a socially responsible corporate entity.

Banking intervention is an integral part of every facet of our operations, serving as the foundation of our approach to CSR initiatives. Our skill development programme primarily focuses on empowering individuals, improving livelihoods, and assisting them in achieving sustainable lives. By equipping the youth with employment opportunities, we actively contribute to India's economic advancement. We harness our banking expertise to champion financial literacy and inclusion as fundamental components of all our CSR initiatives.

Q. What are the future plans and initiatives that AUSFB envisions for its CSR efforts? Are there any new areas, projects or partnerships on the horizon?

A. There are certain upcoming plans for AU Small Finance Bank's CSR efforts, which include the following:

- Expanding the AU Udyogini programme, both in group and individual capacities, represents a strategic move for us. Our vision is to extend this initiative beyond our current operational boundaries and reach neighboring states, especially in rural and remote areas. Our approach involves conducting thorough needs assessments to identify the unique challenges and opportunities in each geographic region, ensuring that our expansion efforts are tailored to address the specific requirements of the communities we aim to serve.

- Assisting individual athletes through scholarships for training, travel expenses, and sports equipment is aimed at enabling them to sustain their sports careers and turn their dreams into reality.

- AU Gram: AU SFB aims to provide vital support to remote, unbanked rural areas. This includes improving access to government schemes, enhancing healthcare and education infrastructure, and strengthening banking services in these communities.

- Identifying and screening local residents affected by cataracts and providing them with surgical aid to restore their vision.

- In future, our assessment bodies, training centres, research and development wing will come under the umbrella of Centre of Excellence. This will cater to future skilling and industry relevant course during that phase. 

- We plan to support our Udyoginis by helping them upscale the sales of AU Udyogini products through marketing campaigns, corporate gifting and selling our spices, oil, handcrafted products at different marketplaces.