The Indian economy continued to display resilience and growth in the year gone by. Industrial and services sector activity was strong on the back of domestic demand. Substantial public investment in infrastructure provided an impetus to growth. At the same time, the fiscal position continued to benefit from robust tax collections. The banking system has become significantly stronger in recent years and is well-placed to support the country’s growth. The regulatory framework continued to evolve with a focus on high standards of compliance, operational resilience and a proactive approach towards addressing potential risks.

During fiscal 2024, the Bank continued to focus on growth in risk-calibrated profits, pursuing opportunities across business segments and geographies, within the guardrails of risk and compliance. The growth in business was broad-based underpinned by the Bank’s focus on micromarkets and ecosystems. The Bank continued to enhance its liability franchise and focus on optimal asset-liability management. Enhancement of delivery systems, with emphasis on resilience, efficiency and customer experience, continue to be focus areas for the Bank. The Bank’s asset quality is healthy and capital levels are well above regulatory requirements. The strong balance sheet, well-recognised brand and extensive franchise provide the foundation for the Bank’s growth in the coming years.

The Bank is taking several initiatives towards simplifying the banking experience for its customers. The Bank has adopted a customer-centric approach, with the prime objective of serving all their banking needs in a holistic manner. The principle of ‘Fair to Customer, Fair to Bank’ underpins our strategy, aiming to build trust with our customers for long-term value creation and thereby growing the Bank’s share of the business opportunity. Integrity, transparency and fairness continue to be core to serving our customers and each employee is expected to uphold these values while representing the organisation.

The rapid increase in adoption of digital modes of banking in recent years has significantly increased the requirements on operational resilience and effective management of the risks associated with technology in banking. The Bank continues to strengthen the technology infrastructure based on the key pillars of scalability, resilience and security. Information security is of paramount importance and is considered to be an integral part of our technology implementation. The Bank has taken a range of initiatives towards revamping digital platforms and enhancing its core applications to cater to higher business volumes. The Bank has laid strong emphasis on continuous strengthening of operational resilience for seamless delivery of services and customer delight.

During fiscal 2024, the Bank continued to make progress on its sustainability journey. The achievements in fiscal 2024 strengthened the Bank’s commitment to environmental, social and governance (ESG) aspects of its business. The Bank achieved an increase in the proportion of renewable sources in its total energy consumption, resulting in a decline in Scope 2 emissions. The Bank has now set a target of becoming carbon neutral in Scope 1 and Scope 2 emissions by fiscal 2032. The Bank also continued to work towards integrating climate change related risks in its risk management. Building an understanding of sustainability and ESG among the employees is a key area of focus, with a view to embedding ESG in all relevant areas of the Bank’s operations.

The Bank has devoted significant resources to Corporate Social Responsibility (CSR) activities. The CSR initiatives span the thematic areas of healthcare, environment, supporting livelihood and community development. These include both large-scale projects as well as granular initiatives under the thematic areas spread across the country. Sustainability and scalability of projects are key pillars. The Bank estimates that its CSR initiatives have benefited over 12 million people thus far.

The Board is committed to maintaining the highest standard of corporate governance and will continue to review and strengthen these practices. The Board continuously endeavours to strengthen various policies and frameworks, and maintain oversight over risk management, audit and compliance with the laws of the land through its various Committees. The Board has laid strong emphasis on building an effective risk and compliance culture in the Bank. Ensuring organisational resilience and responsiveness to the evolving technological developments and cybersecurity are key focus areas. The Board will continue to maintain integrity, fairness and transparency in our engagement with all our stakeholders.

Looking ahead, while global geopolitical and economic conditions continue to remain uncertain, the prospects for the Indian economy are strong. The country’s world-leading public digital infrastructure, its vast human capital, strong base of entrepreneurship, the manufacturing opportunity, infrastructure and industrial investment potential and the robust regulatory framework can support healthy growth for several years. The Bank is well-poised to focus on profitable business opportunities with a focus on operational resilience and balancing risks and rewards. We would like to thank all our stakeholders and look forward to your continued support.

As I demit office as the Chairman of the Board, I would like to thank my colleagues on the Board, the management team and all stakeholders for their support. The progress that the Bank has made on various fronts, strengthening its franchise and its balance sheet, is commendable. I am sure the Bank will build on this foundation to create sustainable value for its stakeholders. I take this opportunity to welcome Mr. P. K. Sinha as the new Chairman of the Board and wish him, the Board and the Bank all the very best in the years to come.

With best wishes,

June 30, 2024