The Indian economy continued to display resilience and growth in the
year gone by. Industrial and services sector activity was strong on the back of domestic
demand. Substantial public investment in infrastructure provided an impetus to growth. At
the same time, the fiscal position continued to benefit from robust tax collections. The
banking system has become significantly stronger in recent years and is well-placed to
support the country's growth. The regulatory framework continued to evolve with a
focus on high standards of compliance, operational resilience and a proactive approach
towards addressing potential risks.
During fiscal 2024, the Bank continued to focus on growth in
risk-calibrated profits, pursuing opportunities across business segments and geographies,
within the guardrails of risk and compliance. The growth in business was broad-based
underpinned by the Bank's focus on micromarkets and ecosystems. The Bank continued to
enhance its liability franchise and focus on optimal asset-liability management.
Enhancement of delivery systems, with emphasis on resilience, efficiency and customer
experience, continue to be focus areas for the Bank. The Bank's asset quality is
healthy and capital levels are well above regulatory requirements. The strong balance
sheet, well-recognised brand and extensive franchise provide the foundation for the
Bank's growth in the coming years.
The Bank is taking several initiatives towards simplifying the banking
experience for its customers. The Bank has adopted a customer-centric approach, with the
prime objective of serving all their banking needs in a holistic manner. The principle of
‘Fair to Customer, Fair to Bank' underpins our strategy, aiming to build trust
with our customers for long-term value creation and thereby growing the Bank's share
of the business opportunity. Integrity, transparency and fairness continue to be core to
serving our customers and each employee is expected to uphold these values while
representing the organisation.
The rapid increase in adoption of digital modes of banking in recent
years has significantly increased the requirements on operational resilience and effective
management of the risks associated with technology in banking. The Bank continues to
strengthen the technology infrastructure based on the key pillars of scalability,
resilience and security. Information security is of paramount importance and is considered
to be an integral part of our technology implementation. The Bank has taken a range of
initiatives towards revamping digital platforms and enhancing its core applications to
cater to higher business volumes. The Bank has laid strong emphasis on continuous
strengthening of operational resilience for seamless delivery of services and customer
delight.
During fiscal 2024, the Bank continued to make progress on its
sustainability journey. The achievements in fiscal 2024 strengthened the Bank's
commitment to environmental, social and governance (ESG) aspects of its business. The Bank
achieved an increase in the proportion of renewable sources in its total energy
consumption, resulting in a decline in Scope 2 emissions. The Bank has now set a target of
becoming carbon neutral in Scope 1 and Scope 2 emissions by fiscal 2032. The Bank also
continued to work towards integrating climate change related risks in its risk management.
Building an understanding of sustainability and ESG among the employees is a key area of
focus, with a view to embedding ESG in all relevant areas of the Bank's operations.
The Bank has devoted significant resources to Corporate Social
Responsibility (CSR) activities. The CSR initiatives span the thematic areas of
healthcare, environment, supporting livelihood and community development. These include
both large-scale projects as well as granular initiatives under the thematic areas spread
across the country. Sustainability and scalability of projects are key pillars. The Bank
estimates that its CSR initiatives have benefited over 12 million people thus far.
The Board is committed to maintaining the highest standard of corporate
governance and will continue to review and strengthen these practices. The Board
continuously endeavours to strengthen various policies and frameworks, and maintain
oversight over risk management, audit and compliance with the laws of the land through its
various Committees. The Board has laid strong emphasis on building an effective risk and
compliance culture in the Bank. Ensuring organisational resilience and responsiveness to
the evolving technological developments and cybersecurity are key focus areas. The Board
will continue to maintain integrity, fairness and transparency in our engagement with all
our stakeholders.
Looking ahead, while global geopolitical and economic conditions
continue to remain uncertain, the prospects for the Indian economy are strong. The
country's world-leading public digital infrastructure, its vast human capital, strong
base of entrepreneurship, the manufacturing opportunity, infrastructure and industrial
investment potential and the robust regulatory framework can support healthy growth for
several years. The Bank is well-poised to focus on profitable business opportunities with
a focus on operational resilience and balancing risks and rewards. We would like to thank
all our stakeholders and look forward to your continued support.
As I demit office as the Chairman of the Board, I would like to thank
my colleagues on the Board, the management team and all stakeholders for their support.
The progress that the Bank has made on various fronts, strengthening its franchise and its
balance sheet, is commendable. I am sure the Bank will build on this foundation to create
sustainable value for its stakeholders. I take this opportunity to welcome Mr. P. K. Sinha
as the new Chairman of the Board and wish him, the Board and the Bank all the very best in
the years to come.
With best wishes,
Girish Chandra Chaturvedi
Chairman
June 30, 2024