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  • We are living in a dynamic and unpredictable world. There are complex set of variables that are constantly changing making it very difficult to visualize stability or predict the future with any level of accuracy. At the same time there are new opportunities for growth and success. Achieving linear growth may not be easy or possible – we are witnessing jagged movements in some respects and exponential change in others.
  • Given the period of flux that I have described, managing risk in a constantly changing environment is of utmost importance. It constitutes the theme of this annual report.
  • We have built a very capable team within the Bank for conducting Data Analytics and applying these techniques to the possible risks we face within the Bank over a wide variety of areas. This constitutes an intelligent way of observing risks embedded in the data we possess, which would not be otherwise visible, and then developing measures to mitigate these risks.
  • While the Bank has made steady progress and will continue to do so, I felt it necessary to indicate that we are very mindful of the environment that we face as we sail into the future. Stormy seas will buffet the ship but we must always point our sails in the direction of our ultimate destination. Failure to do so will quickly divert our course in a direction that is unknown and treacherous
  • The present government has taken several unique, structural and progressive steps in the last few years. Assuming conducive domestic and global environment, India is poised for solid economic growth. Interest rates are expected to decline or remain stable, therefore credit growth can be expected to be higher than the previous year.
  • The Bank’s vision is to be the most innovative and responsive neighbourhood bank in India serving entrepreneurs, individuals and businesses. In line with our vision, we began implementing a new strategy in FY 2010, which has now completed 9 years. 
  • Your Bank provides banking services to a varied base of business owners, self-employed / small businesses for example – Commodity Trader, Gold Trader, Vegetable Trader, Commission Agent, Retailer, Restaurant Owner, Caterer, Baker, Vending Machine Supplier, Consultant, Doctor, Contractor, Interior Decorator, Software Designer, Salon, Beauty Parlour, Printer, Electrical Engineer, Saw Mill, Flour Mill, Rice Mill, Grocery Store, Brick Maker, Builder, Fabricator, Artist, Writer, Auto Repair, Ship Repair, Pharmacy, Computer Specialist, Furniture Maker, Uniform Maker, Garment Shop, Fashion Tailor, Hardware Shop, Agri Processor, Pesticide Dealer, Auto Dealer, Scrap Dealer, Stationery Supplier, FMCG or Consumer Goods Dealer, Tool Maker, Agri Input Dealer, Tractor Dealer, Plastic Manufacturer, Mattress Manufacturer, Water Supplier, Computer Training Classes, Internet Café, Coaching Classes, Tour Operator, Hotel Owner, Transporter, Ticketing Agent, C&F Agent, amongst others. The list of Self Employed occupation is endless. The target market is essentially Micro, Small and Medium Enterprises both in Manufacturing and Services. (Please refer to MSMED Act, 2006). Majority of lending to MSME sector qualifies for Priority Sector Lending.
  • The Credit Risk unit ensures alignment with the objectives of achieving growth while maintaining portfolio quality by making appropriate risk / reward trade-offs. The idea is to ensure long-term sustainable performance across business cycles. Concentration risk is monitored and managed both at the customer level and at the aggregate level.
  • The Bank pays attention to issues that may create Reputational risks. Events that can negatively affect the Bank’s reputation are handled cautiously ensuring utmost compliance and in line with the values of the Bank.
  • Retail Banking has taken up the initiative to make the best of neighborhood banking through (a) micro marketing initiatives focused on catchment areas and (b) continuous customer engagements.
  • Over the last few years, Mortgage lending has been the lead product of the Bank, primarily addressing the requirements of the self-employed segment. As far as possible, tailor-made solutions for home loans and business loans are offered to meet customer needs.
  • Housing is a necessity and an integral part of the construction sector, thus an important contributor to the growth of our economy
  • CV financing was restarted in FY 2013 to improve the Bank’s ability to achieve PSL targets set by RBI.
  • Loan against Gold is offered in almost all Retail and AIB branches across the country. In FY 2019, in order to further improve the customer experience and reduce turnaround time for customers, the gold valuation process has been in-housed in select branches on a pilot basis.
  • BBPS offers integrated, interoperable and anytime anywhere bill payment service for the convenience of the bill payers across India. It facilitates seamless payment of bills through both digital and physical channels and empowers banks to operate the bill payment ecosystem.
  • The Credit Risk unit ensures alignment with the objectives of achieving growth while maintaining portfolio quality by making appropriate risk / reward trade-offs. The idea is to ensure long-term sustainable performance across business cycles. On-going efforts are made to improve risk assessment and controls.
  • Concentration risk is monitored and managed both at the customer level and at the aggregate level. The Bank, inter alia, continuously monitors portfolio concentrations by segment, ratings, borrower, group, sensitive sectors, unsecured exposures, industry and geography.
  • The Bank pays attention to issues that may create Reputational risks. Events that can negatively affect the Bank’s reputation are handled cautiously ensuring utmost compliance and in line with the values of the Bank.
  • The Bank’s focus is on creating a “Centre of Excellence” at Operations by delivering delightful experience to customers. This was achieved by in-sourcing major activities resulting in improved cycle time and reduction in errors. The Robotic Process Automation (RPA) was also used for automating various manual processes. During FY 2019, the enhanced version of NACH platform was implemented which has various features offered by NPCI.
  • The MSME sector plays a pivotal role in the economic and social development of the country. In the long run, Goods & Service Tax (GST) and other reforms are expected to be beneficial to the economy. If MSME/SMEs reflect their business/sales completely in their bank accounts, then banks will find it easier to extend credit facilities for business expansion and working capital.
  • The Bank continuously undertakes numerous measures to create brand awareness and improve its brand presence and image. The Bank has a unique concept called “micro marketing”. Low cost small scale promotions are held in the neighbourhood areas on a regular basis. In FY 2019, the Bank executed almost 8,000 micro marketing activities. In FY 2019, the Bank executed almost 8,000 micro marketing activities. In FY 2019, your Bank created and re-launched its various product communication in English and other Indian languages with the theme “Isse Mujhe Kya Milega” to promote its unique propositions in a very engaging fashion.

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