On a Journey of Growth and Transformation
Dear Stakeholders,
Namaskar
I am glad to report that your Bank delivered good performance numbers
during the FY 2022-23 amid significant economy-wide challenges and uncertainties. Your
Bank successfully navigated the uncertain environment surrounding inflation, liquidity,
and interest rates. Throughout this period, your Bank diligently pursued a
well-thought-out strategy to foster and reinforce a highly sustainable business model
capable of delivering consistent long-term results, while ensuring we are equipped to meet
the needs of the future.
Amidst this complex macro environment, we delivered strong performance
across deposits, loan portfolio, and lending.
As we celebrate six years as a Bank, we have transformed into a
stronger institution, constantly challenging the status quo to enhance the experiences of
our customers and employees. We are now embarking on our 'Forever' banking journey of
growth and innovation.
Our aim is to create a legacy that will endure for generations, as we
have the right mindset, constructive and positive approach, vision with passion, and
aspiration to pursue our journey along this transformative path.
Performance
Throughout FY 2022-23, we remained resolute in our performance, given
our strong risk management and governance capabilities that brought significant value and
stability to your Bank's business.
As the year came to a close, we achieved remarkable milestones,
including a 32% increase in deposits while making
it more granular with a CASA ratio of 38.4%, a 26% growth in advances,
and 26% rise in profit after tax (PAT) with robust RoA, RoE, and maintained a strong
capital adequacy ratio, indicating a healthy financial position.
Retail Focus Drives Confidence and Stability
Our high retail deposit base continued to grow during the year,
generating all round confidence and stability, further reinforcing the effectiveness of
our retail focus and the vast opportunity it offers. As we look ahead, we aim to expand
our deposit base further and strategically extend our reach. We place our customers at the
heart of our operations, recognising the importance of building and nurturing strong
relationships with them.
Digital Innovation Fuels Competitiveness
We have fully embraced "digital" DNA as a vital component of
our business strategy. We are actively seeking out emerging technologies and investing in
state-of-the-art tools to continuously enhance the quality of our services. By engaging in
ongoing customer interactions, we gain valuable insights into their needs, preferences,
and interests, enabling us to offer tailored products and personalised experiences.
Leveraging the power of data analytics, we stay ahead of the curve, seamlessly delivering
what our customers desire for their delightful experience. We firmly believe that the
future is digital, and thus, we make prudent strategic decisions to effectively implement
digital initiatives while ensuring cost- effectiveness.
32%
Deposit growth in FY 2022-23
26%
Advances growth in FY 2022-23
Our goal is to serve our customers in the best possible way, with a
digital-first approach while still valuing human interactions.
From Domestic Success to Cross-border
In April 2023, we received regulatory approval from the Reserve Bank of
India (RBI) to engage in foreign exchange transactions, a significant milestone for us.
This achievement has unlocked a multitude of new opportunities, and we are fully prepared
to capitalise on them. Our current focus lies in exploring cross border trade, with a
specific emphasis on trade and customer remittances, as a new avenue for growth. While we
currently prioritise MSME, agriculture, and vehicle lending in our domestic operations, we
have strategic plans to extend our services for the international requirement of our
customers as well, offering crucial foreign exchange and trade support.
We are invigorating our treasury function to handle increased
liquidity, while making our governance practices more robust.
Our aim is to create a legacy that will endure for generations.
Empowering Communities, Enriching Lives
As a Bank, we deeply embed our environmental, social, and governance
(ESG) agenda into our roles and responsibilities, to address societal challenges.
We seamlessly integrate ESG principles into our business model and
embed them in our products and services, with formal guidelines and policies, guided and
supported by a dedicated Sustainability Committee. Our efforts extend to minimising our
environmental impact, promoting gender balance, empowering women, and fostering financial
inclusion for the underbanked and unbanked. We continuously strive to improve our services
based on their needs, aiming to provide comprehensive financial solutions that empower and
create financial security within communities.
Through our commitment to ‘Badlaav Flumse Hai', we strive to
bring enhanced value and fulfilment to stakeholders. Additionally, our corporate social
responsibility (CSR) initiatives have had a positive impact on numerous lives, and we
remain avowedly committed to making a difference in society.
Warm regards,
Raj Vikash Verma
Chairman