It is with a great sense of satisfaction that we present to you ourAnnual Report for FY 2018-19.
Despite being independent for the past seven decades a large majorityof the Indian populace lives under the pressure of financial coercion which is mainly dueto lack of proper access to the formal banking system. A key factor driving the growth ofthe nation is mobilisation of formal financial resources at the grassroots level. This iswhere your Bank is committed to make a difference and also contribute to improving thelives of those who have no or limited access to banks.
Your Bank has been founded with a conscious mission to transform thelives of its customers by enabling them with access to banking and financial servicesthereby furthering financial inclusion and last-mile delivery of banking services.
Your Bank has built the reputation of being a responsible bank with apan-India presence and multi-product delivery capability. However our overarchingambition remains to enable financial literacy and financial liberation to low
income borrowers and depositors in rural and semi-urban India. Wemaintain our strategic focus on customers who otherwise lack any access to the formalfinancial marketplace. In doing so we also put our forces to work in the urban centres todraw deposits for retail customers.
Points of Differentiation
Empowering the unbanked and underbanked and thereby building thenation and contributing to its growth and development has been and continues to be ourraison d'etre. Not only are we conducting our routine operations but also simultaneouslycreating huge value for society. So far through our microloans aimed at creatingsustainable livelihood we have catalysed the development of millions of entrepreneurswho in turn have generated more jobs by way of a ripple effect leading to inclusive andsustainable growth.
Further it is our keen understanding of this set of customers andtheir financial requirements that helps us serve them better and also keep our delinquencylevels low. Besides financial assistance your Bank also participates in a number ofdevelopment oriented programmes targeted at the not-so- privileged sections of thesociety. Through our implementation partners we run programmes aimed at povertyalleviation health improvement employment generation and sanitation among others.
The banking industry was at a crossroads during the year 2018-19. Whileit continued to support India's economic growth it also grappled with challenges thattested its strength and resilience.
The fag-end of the year witnessed some stability seeping into India'sbanking industry. The central bank's cutting of rates during its policy meetings alsoinjected liquidity in the system. Additional capital infusion is also likely to help inmeeting minimum capital norms.
Private Banks built their assets and increasingly focussed on theliability franchise too. Further prudent expansion and focus coupled with betterproducts and interest rates aided private sector banks and helped them gain market shareacross geographies. They also reported robust growth in credit in urban and rural marketsas against overall industry growth.
Connecting to Society
Even as the banking sector performed well rural India has clearly beenthe "missing piece" in India's banking landscape. There is a definite need forbanking services to be expanded in India's hinterlands to include those who areeconomically weaker and do not come under the purview of the formal financial marketplace.At Bandhan Bank we continue our commitment to develop and provide sustainable andscalable banking and financial solutions to millions of unbanked people.
Your Bank's principle of work underpins how we create a wide-scaleimpact on the broad stakeholders of society - country local communities and people(customers and employees alike). Our key mission is to touch the lives of our customerswho belong to the underserved households by providing them the required access to bankingand financial services and resulting in their inclusive growth.
Through our services in general banking as well as micro banking weencourage people to gain confidence and enjoy better customer service. We empower them totake control of their own economic destiny. Our objective is simple - reaching out to moreand more customers at the bottom of the pyramid while driving low-cost deposits from allcentres; and in doing so never compromising on the quality of business.
And as we remain poised to achieve this we are strategically improvingour reach to an increased population of India. By catering to all the segments -microcredit banking affordable housing and MSME credit - we continue our journey towardsbeing a "bank for all".
Moving forward your Bank will look to expand growing its portfolio ofproducts and prudently expanding geographic reach to create greater market impact. Ourdiversified teams and a well-entrenched distribution network keeps us poised to meet ourcustomers' aspirations and that of other stakeholders. This along with an experiencedand capable management enables us to grow at a healthy pace.
Finally I would like to mention that it has been a real privilege forme to serve you all as your Bank's Chairman. I remain confident that the Board and allthe 32000 plus employees will continue to work with dedication.
In doing all that we do your Bank will never deter from its corebelief- Aapka Bhala Sabki Bhalai.
Dr. Anup Kumar Sinha