I am happy to join the Bank as Non-Executive Chairman at an arguably challenging timefor the banking sector. Notwithstanding the given challenges the Bank will continue tostrive for maximizing shareholder value by adopting best corporate governance practices inthe conduct of its business while maintaining high standards of compliance andtransparency.
Public sector banks have continued to play a pivotal role in nation building. They haverelentlessly worked towards extending banking services to the last mile customers in linewith the government's target of ensuring financial inclusion for all. Central Bank ofIndia remains fully committed to deriving positive outcomes for all stakeholders in thisregard.
The green shoots of revival in the world economy are bound to have spillovers on theIndian economy. Advanced economies particularly the United States have witnessedrelatively impressive growth leading the US Fed to resort to monetary tightening cycle.The oil exporting countries will benefit from the recent surge in crude prices. Theseexogenous factors do influence India's growth momentum. While growth has picked up fromQ3FY18 with impressive growth exhibited in agriculture construction and manufacturingsectors recent months have witnessed an increasing pressure on the rupee. Along withrising crude oil prices this is likely to affect the current account deficit and impactconsumer inflation. However with persistent reform measures being brought in place by thegovernment the economy is most likely to remain on a selfsustaining growth path.
The Banking Industry has been facing the key challenge of dealing with non-performingassets. I am hopeful that with new reforms like the enactment of the Insolvency andBankruptcy Code the Banking Industry is far better placed to ensure recovery andresolution of NPAs in the current year. We need to address the issue with due diligence.In order to meet the challenges of a changing environment our Bank continues to emphasizeon enhancing knowledge and skills in areas such as Risk Management Credit Treasury ITamong others. Usage of analytics surely helps in proper analysis of large volume of datathat enables product innovation and ensures optimal solutions. Our Bank has beenconsistently promoting digitalization and technology in the business. Finally theimportance of human resource and its contribution to the success of an organization isfully understood by our Bank. I am confident that we shall overcome the challenges byredoubling our efforts on all fronts.
With best wishes Yours sincerely
Place: New Delhi
Date: May 25 2018