led by its twin focus on Digital enablement and people empowermentsupported by operational strength the Bank navigated the tribulations of the year todeliver exceptional numbers
Dear Shareholders Greetings!
Since we met a year ago we have remained in the throes of successivewaves of the pandemic that has gripped the country and the planet. We gratefullyacknowledge your presence with us today despite the trying times. As Mahatma Gandhi wiselyobserved "Strength does not come from physical capacity. It comes from an indomitablewill". And so we rise up chastened yet strengthened with a new resolve to face thechallenges of an evolving new world. Variety of stimulus measures across the globe ishelping countries put their economies back on the growth track and yet globally therecovery remains uneven.
In India the higher-than-expected GDp growth of 1.6% in the lastquarter of FY21 did moderate the challenge created by the pandemic to some extent.However the 7.3% contraction in GDp in FY21 as per the provisional estimates of thenational Statistical office (nSo) remains a matter of concern. While projecting a reboundfor the Indian economy to 9.3% growth in FY22 Moody's Investor Services has saidthat risks to India's financial sector have been exacerbated by the second wave ofthe pandemic. Banking sector especially has had a harder job at hand because bankers havethe dual responsibility of shaping the economic recovery as well as helping theircustomers rebuild financial health while ensuring that they and their families stay safe.reserve Bank of India (rBI) came to the immediate rescue monitored the emerging situationand deployed all resources and instruments at its command for individuals businessentities and institutions softening the impact of the pandemic quite materially. Continuedstimulus support by the rBI and the Government which has made several policyinterventions in FY21 could give a fillip to growth for the banking sector.
It is in the backdrop of this challenging macro environment that I amhappy to share your Bank's excellent performance on both financial and non-financialmetrics for the year under review. Going by the financial yardstick Q4 of FY21 proved tobe one of the best quarters in terms of performance for your Bank which recorded itshighest ever quarterly net profit coupled with nearly 59% year-on-year growth. And as abanking organisation we are relentlessly pursuing continuing improvements in quality inevery dimension which would support a strong recovery and serve our stakeholders better.led by the twin focus on digital enablement and people empowerment and supported byoperational strength the Bank navigated unprecedented challenges during the year todeliver exceptional numbers. total Business crossed the landmark figure of rs. 3 lakhregistering over 10% growth with net Interest Income growing 19% y-o-y to touch rs. 5534Crore. Annual operating profit showed a growth of 18% over the previous year. low GnpA andnpA put us among the top tier commercial banks in terms of credit quality while thecollective efforts of our teams across functions enabled collection efficiencies to above95% levels as on March 31 2021. It is our belief in the Board that behind these numberslie a story that goes beyond efficient cost management and fiscal prudence. It is a storyof the power of collective resilience grit and agility of our workforce who went theextra mile to support the Bank's Business Continuity plan (BCp) that we put intoaction immediately after the pandemic broke out. the pandemic had challenged the edificewith lockdown restrictions and safety protocols necessitating a shift from interpersonalconnect to remote customer service proposition. However striking a fine balance betweenensuring business continuity and maintaining safety of employees and customers the teammoved with extraordinary agility to sustain operations through the difficult externalenvironment that prevailed through the year. At the same time we successfully created newtouchpoints of customer connect. to ensure that critical segments and It operations wereunaffected even for a day during the lockdown our core teams got together under one roofwhere they stayed for more than a month till the business had transitioned successfullyinto the new normal that emerged with the easing of the restrictions. It underscores thedeep-rooted strengths that we have carefully nurtured through targeted strategicinterventions over the years in our quest to become the most admired.
Great administration is successful and straightforward execution ofrules which are both productive and effective. I thank my colleagues on the Board forbeing steadfast in their pursuit of the highest standards of governance and ensuring thatyour Bank has a steady line of leadership that is agile and dynamic. I take thisopportunity to heartily congratulate Mr. Shyam Srinivasan for a year that has seen therecognition of his record of exceptional leadership. He has been conferred the BusinessStandard Banker of the Year 2020'! the reward did come to a Bank which hasretained the faith of depositors and shareholders in India's banking system withoutgiving the regulator grounds to complain. the numerous awards that followed us in theprevious fiscal including the Best and Fastest Growing Bank in the mid-sized categoryaward by Business today & KpMG private sector Bank of the year by outlook MoneyGreat place to work certification all endorsing our deep-rooted strengths and therelevance of our strategy in these testing times.
In its journey towards the realisation of the goal to be the FirstChoice your Bank has pursued the mantra of staying connected with customers always!
It is to the credit of our people that they made a difficulttransformation appear seamless. on behalf of the Board I convey my heartfelt appreciationto our people and assure them and their families of the Management's continuedsupport in these hard and difficult times of the pandemic. Moving forward we areconfident that your continuing efforts as in the previous fiscal will help useffectively steer our journey to become the First Choice for a growing customer base. ourefforts at scaling up our digital interface and our people strength will help us build onthe resilience of our brand enabling us to garner a bigger mindshare of our stakeholders.Staying relevant is the mantra of our strategic approach as we focus on embracing theemerging reality through a well-balanced bouquet of superior products supported by a360-degree customer service proposition. Building on our digital innovation strengths weshall continue to enhance our customer connect without compromising our corporategovernance standards to make the Federal experience of our stakeholders even moreengaging credible and unique. All this and more we hope to accomplish while expanding ourcommunity outreach through our CSr initiatives to create a more enabling environment forthe sustenance and development of vulnerable sections particularly amid the ongoinghealth crisis. our Sanjeevani' campaign India's biggest vaccinationdrive stands testimony to our commitment to the health safety and well-being ofthese communities.
We are confident that our indomitable spirit will help us come out ofthis season stronger better and more admired. on this note on behalf of my colleagues onthe Bank's Board of Directors I would like to thank our team led by our dynamic MD& Ceo for their unflinching commitment to the Federal vision and goals. We are alsodeeply grateful to our customers shareholders and other stakeholders for their unwaveringtrust in the Bank inspiring our continuing journey towards greater excellence and valuecreation.
|With best wishes |
|grace elizabeth Koshie |