Federal Bank CEO: Focus on reaching India's underbanked and underserved with neo-banking partnerships and purpose of ‘inclusive finance’

The MD told shareholders that "notwithstanding the headwinds, we could deliver most of the targets and ambitious goals that we had set for ourselves for FY 2020-21.

Jun 18, 2021 10:06 IST India Infoline News Service

Federal Bank MD and CEO Shyam Srinivasan in his note to shareholders in the annual report for FY21 said that "our performance of FY 2020-21 was built on the bedrock of a solid foundation established by focussing on digital for the past decade. Our leading-edge digital capabilities make us a sought-after Bank in the neo-banking space."

He said, "I had indicated last year that Simple, Digital, and Contactless would be the three guiding themes for FY 2020-21. I am happy to share that, we could navigate extreme volatility and successfully scale up our customer connect as we transitioned to a contactless mode, quite seamlessly, courtesy of our alert and agile digital framework."

Talking about the financial performance, the MD told shareholders that "notwithstanding the headwinds, we could deliver most of the targets and ambitious goals that we had set for ourselves for FY 2020-21. Q4 of the FY saw the Bank record its highest ever Quarterly Net Profit of Rs477.81cr."

Going forward, Srinivasan said, "We quite optimistically believe that we will emerge stronger having overcome many challenges when we get to the other side of this once-in-a-lifetime pandemic! But our values, culture of compassion and purpose of becoming the ‘Most Admired Bank’ will remain our signpost. We will also continue to efficiently allocate our attention towards ‘Presence to Prominence’ and ‘Prominence to Dominance’ across geographies even for this FY."

"While we broaden our horizons and accelerate progress, we will focus on reaching India’s underbanked and underserved with our neo-banking partnerships and a purpose of ‘inclusive finance’," Srinivasan said.

He also pointed out the potential of small businesses and the Bank's plan to transform them.

He said, "We are constantly innovating and deploying unique differentiators in our endeavour to transform small businesses across the country. The stakes are high for small businesses in India as they are the future and make up most of the industrial fabric in our country. We are co-creating digital enablers for these businesses, to make them more sustainable and efficient. Our renewed commitment to democratise financial services using hybrid digital instruments for small businesses and deeper geographies will narrow the digital gap and deliver tangible results soon."

Further, He said, "The right digital model of reaching and enriching the underserved will surely catapult us as ‘The Perfect Banking Partner’ for these entities. Along with these, we will continue to address pressing issues such as environmental sustainability and economic inequality, and these will be the crux of our governance goals going ahead."

At around 10.39 AM, Federal Bank was trading at Rs83.20 per piece down by 2.5% on Sensex. 

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