At the outset I would like to convey that I am indeed humbled to havebeen given the honour and privilege to chair this prestigious institution and look forwardto contributing to its growth.
As we reflect on the year gone by after a long period of subduedgrowth the global economy has experienced a broad-based cyclical recovery aided by arebound in investment and trade. Despite some of the more recent global volatility drivenby protectionist trends and geopolitical tensions the positive trend is expected tosustain. On the domestic front India too benefited from this global upward momentum withrobust GDP growth FDI inflows strong foreign exchange reserves and increased publicinvestment in infrastructure. Corporate India has also started seeing green shoots andrecovering from the effects of demonetisation and GST as is evident from improvingresults.
2017-18 has however been a testing & challenging time for thebanking sector largely due to legacy issues. Despite this our global business grew by 6%to `4.96 lakh crore. Profits of many banks eroded due to higher provisions against NPA andstressed assets mark to market (MTM) losses and reduced profits from treasury operationsdue to which there was pressure on capital.
As a result most of the PSBs resorted to measures to strengthen theircapital position in the Financial Year 2017-18. Towards this objective your Bank alsoraised an amount of `1150.80 crore through QIP and received capital infusion of `2839crore from the Government of India.
This infusion is however at best an interim solution. We need a clear& sustainable strategy that will establish us as India's premier bank in theyears to come.
Fortunately in many ways your bank is well positioned with some uniquestrengths:
1. We have an extensive and enviable footprint with over 4000 branchesnationwide.
2. We have a strong and credible brand with a rich history and legacy
3. We have a committed team of around 35000 professionals
4. We have a loyal customer base.
5. We have over the years built a strong infrastructure and assetbase.
Our single biggest challenge however is the urgent need to enhanceour competitiveness and become a customer-centric organization. With the rapidlyaccelerating pace of change and the constantly evolving external environment agility andresponsiveness is the new normal. We too need to reinvent ourselves. Speed is of theessence.
To position us to succeed in this new reality your bank has embarkedon an ambitious transformation initiative called "Project Ananya" to radicallyoverhaul our systems and position ourselves for the future.
The four pillars of Project Ananya are:
Business Process Reengineering (BPR)
Customers relationship management (CRM)
Human Resource Development.
The most critical of these is building a culture of performanceproductivity and accountability while continuing to improve transparency and goodgovernance. This includes leveraging technology building a strong analytics capabilityenhancing skills and becoming a process driven organization all with our customersat the center.
Simultaneously we are focused on building the next generation ofleaders and we are making significant investments in this area. This is a subject I ampersonally passionate about and remain committed to implementing. We are at a crucialinflexion point and our response will determine our future. I am confident we will emergestronger and regain our past glory as these new initiatives begin to bear fruit.
In closing I would like to express my sincere appreciation to ourdiverse Board for their active engagement and contribution to this national endeavor.
I would also like to thank our employees and all our other stakeholdersfor their dedicated and continued support as we march on to a great future.
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|Place: Manipal || |
(Ajay Vipin Nanavati)
|Date : May 31 2018 || |