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During the FY 2017-18 the Global economic scenario witnessed improvements in economic growth across emerging and developed markets besides wide support from the US, Europe and Asian economy. Economic activity in major market economies continued to show improvement.
Worlds largest economy, the US entered ninth straight year of growth during 2017 (2.3% compared to 1.6% in 2016). The IMF as per World Economic Outlook - April 2018, cited expectations on annual growth in global GDP to have expanded by 3.8% in 2017, which is a significant progress from 3.2% in 2016.
In US, tightening labour market improved wage gains and sales growth. Further, domestic consumption facilitated recovery of US economy during second half of the fiscal 2018. In Japan, while depressed wages & inflation resulted in sluggish domestic demand, the weakening Yen and strong exports supported by foreign consumption helped the country to achieve a robust growth during FY 2018. The Chinese economy accelerated in the fourth quarter (October to December) of 2017 at 6.18% aided by exports.
The outlook for advanced economies, notably for the Euro area is improved, but in many countries inflation remained weak. The commodity prices continued to strengthen and the increase was due to hike in crude oil and fuel prices. The price of crude oil touched at USD $ 64.94 per barrel as on 29 March, 2018 from USD $50.69, prevailing a year ago on 1 April, 2017. The price further increased to USD $ 72.83 per barrel on 22 May, 2018 due to increase in demand from China when OPEC countries cut production.
Financial markets have been mainly driven by monetary policy expectations and geo-political developments. Equity markets performance varied across regions with modest gains in Asian economies. The stocks of major emerging markets faced sell offs on account of rising dollar and expectations of further rate hikes by the Fed. In the currency markets, the USD touched its highest level USD$ 68.46 as on 23 May, 2018 since December 2017. The euro uplifted significantly against the dollar. Emerging Market Economy currencies have by and large depreciated against USD.
The price of gold and copper rose by 6% and 14% respectively during FY 2018. The base metal prices especially aluminum rose on account of US sanctions on Russia. Gold has witnessed selling pressure on a stronger dollar, but the metal gained during mid June 2018 on political uncertainty in the Euro area. While the price of oil started going up, the overall global economic performance showed signs of improvement in 2017-18.
Indian economy during FY 2017-18 saw a moderate growth of 6.7%, a notch above the governments estimate of 6.6% but lower than 7.1% of 2016-17. One could see acceleration in the growth as the year progressed, with the Indian economy registering a growth rate of 7.7% for Q4 2018. Construction, manufacturing and agriculture sectors were the main contributors to growth in the fourth quarter. The GDP growth averaged 7.3% for the period from 2014-15 to 2017-18, the highest among the major economies and achieved through lower inflation, improved current account balance and reduction in fiscal deficit to GDP.
The year under review was marked by various structural reforms by the Government and after remaining in negative territory for a couple of years, export growth rebounded during 2016-17 and strengthened in 2017-18. The increasing trend of quarterly GDP numbers indicates that the structural reforms undertaken by the government have begun paying dividends.
During Q4 2017-18, the agricultural growth increased sharply on a quarterly basis. The estimates of agriculture and allied activities have been revised upwards supported by an all time high production of foodgrains and horticulture during the year. The Indian Meterological department reaffirmed normal south west monsoon indicating a positive trend for the agricultural sector. Food inflation moderated for fourth successive month, pulled down by vegetables due to lower than the unusual seasonal increase in their prices, and pulses and sugar which continued to experience deflation. However, within the food group, inflation increased in respect of cereals, fruits etc.
Indias exports grew in April 2018 after a marginal dip in the preceding month, supported mainly by non-oil exports, particularly engineering goods and chemicals. Import growth decelerated sequentially in April 2018, a significant decline in imports of gold as well as pearl and precious stones more than offset the impact of rising crude oil prices. The trade deficit expanded in March and April from its level a year ago. External financing remained comfortable in 2017-18.
The industrial growth strengthened reflecting robust performance in manufacturing sector for the three consecutive quarters Q2 - Q4 2018 showing greater capacity utilization. The growth in services sector witnessed a decline on account of lower growth in some constituents viz., trade, hotels, transport & communication and financial services. However sales of tractors and two-wheelers are improving, suggesting better rural demand. The output of eight core industries accelerated in April 2018 on account of a sharp expansion in coal production, which reached a 42 month peak. Retail inflation measured by the year-on-year change in the CPI rose sharply to 4.6% in April, driven by a significant increase in inflation excluding food and fuel
While the net foreign direct investment in 2017-18 was broadly comparable with the previous year, the net foreign portfolio flows were stronger due to a sharp turnaround in inflows. Indias foreign exchange reserves were at US$ 412 billion on 1 June, 2018.
The Second Bi-monthly policy statement by the Monetary Policy Committee (MPC) of RBI during 2018-19, increased the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25% and consequently the reverse repo rate under the LAF stands adjusted to 6.0% and the marginal standing facility (MSF) Rate and the Bank rate to 6.5%. The MPC expressed that the economic activity of the country has shown revival signs in recent quarter. The investment activity in particular is recovering well with the advent of Insolvency
Bankruptcy Code which is a state of the art legislation. The code has replaced for the first time "Debtors in possession" system with "Creditors in possession" and provides a resolution framework that will help corporates clean up their Balance Sheets and reduce debts, ultimately reducing the stress among the Banking Sector.
Industry Structure and Developments
Private Sector Banks fared well during FY 2018 when compared to Public Sector Banks, which have been reeling under asset-quality woes over the last couple of years. As per the data released by RBI, as of March-end 2018 Private Sector Banks (PvSBs) recorded robust annual average growth in deposit and credit to record 17.4% and 20.9% respectively and all Scheduled Commercial Banks (SCBs) clocked annual average deposit and credit growth of 6.8% and 9.5% respectively. In sharp contrast, Public Sector Banks (PSBs) recorded muted annual average deposit and credit growth of 3.1% and 4.7% respectively. Aggregate deposits recorded broad-based growth (year-on-year) across all population groups (rural/semi-urban/urban/metropolitan) after moderating for two quarters, Private Banks continued to maintain double-digit growth in deposits. The Private Sector Banks recorded highest credit growth both on sequential as well as on annual basis, where it remained low for Public Sector Banks. As per the report of the rating agency "Fitch", the losses by state-run Banks have almost entirely wiped out the $13 billion capital infusion by the Government and the situation is unlikely to improve in the current fiscal year.
Notable updates in Banking Industry
Focus on financial inclusion
Debit cards radically replaced credit cards as preferred payment mode post demonetization.
Improved risk management practices to meet global standards.
Technological innovations - the digital payments systems in India has evolved the most among 25 countries including UK, China and Japan with IMPS being the only system at level 5 in the Faster Payments Innovation Index.
Wide usability of RTGS and NEFT.
Banks looking for consolidation effects to derive greater synergy benefits, economies of scale, risk diversification etc., considering the impacts of intense competition in the Industry.
Targets by UIDAI on Banks with Aadhar facility to enroll minimum number of Aadhar.
Introduction of The Banking Regulation (Amendment) Bill, 2017, which will replace the Banking Regulation (Amendment) Ordinance, 2017, to allow the RBI to guide Banks for resolving the problems of stressed assets.
Re-capitalization plan by Government of India is expected to push credit growth in the country to 15 per cent and as a result help the GDP grow by 7 per cent in FY19.
YOUR BANKS PERFORMANCE
City Union Bank achieved a moderate growth during the year. The biggest challenge faced by the Banking system was dealing with stressed assets, restructured debts and NPA accounts which resulted in credit growth remaining subdued during the year. Despite these challenges, the Bank was able to post a growth in its business by 13% with Deposit growing by 9% and Advances growing by 17%.
The Bank has made efficient use of technology to fulfill various banking needs of its customers. The Bank offers wide range of customer centric services in order to deepen the customer relationship and attain overall business growth. It is committed to the best practices in terms of product offerings, technology, service levels, risk management, audit and compliance. The Bank is committed to do so by ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. The Bank understands and respects its fiduciary role and responsibility to all stakeholders and strives to meet their expectations. The cardinal principles of independence, accountability, responsibility, transparency, fair and timely disclosures serve as the basis of our approach to good corporate governance.
The performance of the Bank during the financial year ended 31 March, 2018 remained healthy with a total income of Rs. 3,934.52 crore as compared to Rs. 3,657.73 crore during the previous year recording growth of 8% and the total net revenues (net interest income plus other income) increased by 17% to Rs. 1,962.40 crore from Rs. 1,682.71 crore in the previous financial year.
The Deposits of the Bank increased to Rs. 32,852.62 crore as on 31 March, 2018 compared to Rs. 30,115.74 crore as on 31 March, 2017. Total CASA improved by 13% from Rs. 7,038.95 crore last year to Rs. 7,956.67 crore in FY 2017- 18. The proportion of current and savings deposits to total deposits was at 24% as on 31 March, 2018.
The Gross Advances of the Bank increased by Rs. 4,126.09 crore to Rs. 28,238.58 crore from Rs. 24,112.49 crore, posting a growth of 17%. The yield on advances declined to 11.46% from 12.10% during the financial year due to stiff competition among Banks.
The Net Interest Income grew by 19% supported by loan growth of 17% coupled with a net interest margin (NIM) of 4.42% for the year ended 31 March, 2018.
Other income earned for the financial year ended 31 March, 2018 stood at Rs. 532.10 crore as against Rs. 483.95 crore recording a growth of 10%.
The yield on 10 year benchmark moved from 6.69% to 7.41% on account of increased fiscal borrowings. Bond yield hardened gradually tracking continuing concerns over inflation, crude oil prices and fiscal slippages. Despite positive triggers provided by Government of India, overall negative sentiments weighed on markets. Sensing early signs of weakness, the Bank through timely sale of securities had booked profit of Rs. 93.83 crore as against Rs. 107.78 crore during the previous year.
During FY 2018, operating expenses increased by 10% from Rs. 688.97 crore in FY 2016-17 to Rs. 754.65 crore in FY 2017-18. The establishment expenses increased from Rs. 298.14 crore last year to Rs. 315.88 crore in FY 2017-18. During the year, the Bank opened 50 new branches and installed 135 ATMs which resulted in higher infrastructure and staffing expenses. The other operating expenses increased from Rs. 390.84 crore to Rs. 438.77 crore which was due to normal increase in expenses like Rent, Lighting, Printing & Stationery, Telephones and Repairs & Maintenances etc. Cost to income ratio was at 38.46% for the year ended 31 March, 2018 as against 40.94% for the previous year.
Thus, the Bank has recorded a growth of 19% in Operating Profit from Rs. 993.74 crore in FY 2016-17 to Rs. 1207.75 crore in FY 2017-18. The operating profit to NII constitutes 84.44%.
The total provisions for FY 18 were increased by 25% from Rs. 490.97 crore to Rs. 615.75 crore. Tax provision increased to Rs. 198 crore as against Rs. 190.00 crore last year.
The provision for Bad & Doubtful debts increased from Rs. 251.50 crore last year to Rs. 303.00 crore in FY 2017-18. After making the said provision the Net Profit of the Bank grew by 18% from Rs. 502.77 crore last year to Rs. 592.00 crore in FY 2017-18.
Return on Assets of the Bank for FY 2017-18 stands improved from 1.50% to 1.60% when compared to last year. Return on equity stands at 15.37% vs 15.26% last year. The basic earnings per share increased from Rs. 8.39 to Rs. 9.18 per equity share and the diluted earnings per share stood at Rs. 9.15 vs Rs. 8.24 last year. The book value per share of the Bank increased from Rs. 59.40 to Rs. 62.63 as on31 March, 2018, as compared with previous year.
The incremental growth in the Banks operational performance, as well as certain key percentages, can be enumerated as per the following parameters :
|Particulars||Current Year||Previous Year|
|Deposits (Rs. in cr)||2,736.88||2,957.61|
|Gross advances (Rs. in cr)||4,126.09||2,859.39|
|Net Interest Income (Rs. in cr)||231.53||217.73|
|Staff productivity (Rs. in cr)||11.48||11.53|
|Cost of Deposits (%)||6.29%||6.82%|
|Yield on Advances (%)||11.46%||12.10%|
|Total Yield on Investments (%)||8.19%||8.68%|
|Number of Branches (in Nos.)||50||25|
Deposits of the Bank comprise of the following :
|Sl. No. Particulars||Amount||Percentage|
|(Rs. in cr ore)||to total (%)|
|1. Demand Deposit||2786.17||8.48|
|2. Savings Deposit||5170.50||15.74|
|3. Term Deposit||24895.95||75.78|
The total investments increased by 13% from Rs. 7,081.82 crore as at 31 March, 2017 to Rs. 8,014.98 crore as at 31 March, 2018 primarily due to an increase in investments in Govt. Securities. Investments of the Bank consist of the following :
|Sl. No. Particulars||Amount||Percentage|
|( Rs. in cr ore)||to total (%)|
|1. Government Securities||7638.02||95.30|
|2. Other Approved Securities||Nil||Nil|
|3. Shares, Debentures / Bonds and Mutual funds||35.69||0.45|
|4. Security Receipts||341.27||4.25|
Performance of various Business Segments
The Bank operates under four business segments namely Corporate / Wholesale Banking, Retail Banking, Treasury and Other Banking Operations. The segment wise contributions are as under :
|(Rs. in cr ore)||to total (%)|
|Other Banking Operations||9.85||0.82|
ASSET QUALITY AND LOAN COMPOSITION
A. Asset Quality
In fiscal 2018, the gross additions of NPAs to total closing advances were Rs. 574.87 crore (2.04%) as compared to Rs. 479.61 crore (1.99%) in FY 2017. In view of this, the Gross NPA as at 31 March, 2018 increased to Rs. 856.55 crore (3.03%) as against Rs. 681.98 crore (2.83%) in FY 2017.
There has been a recovery / upgradation of NPAs to the tune of Rs. 205.54 crore in the fiscal 2018 as against Rs. 146.15 crore in FY 2017. The Provision coverage was 64% as at 31 March, 2018.
Divergence in Asset Classification and Provisioning for NPAs :
In terms of RBI circular DBR.BP.BC.No.63 / 21.04.018/2016-17 dated 18 April, 2017, Banks are required to disclose the divergences in asset classification and provisioning consequent to RBIs annual supervisory process in their notes to accounts wherever either a) the additional provisioning requirements assessed by RBI exceed 15% of the published net profits after tax for the reference period or, b) the additional Gross NPAs identified by RBI exceed 15% of the published incremental Gross NPAs for the reference period, or both.
RBI inspection for the period up to 31 March, 2017 is over and we do not have the requirement of reporting divergence as per RBI / SEBI guidelines for the said period. Stock exchanges have been duly informed of the same by the Banks filing dated the 31 January, 2018.
B. Loan Composition
The Bank closely monitors the performance of various Industrial sectors periodically to assess the sector-wise potential risks for facilitating informed decision making w.r.t. advances. The Bank improved its Gross Advances to Rs. 28,238.58 crore as at 31 March, 2018 of which Rs. 6,798.44 crore were directed to Major Industries and Rs. 21,440.14 crore to other sectors. A comparative position of Banks Industrial & Sectoral deployment portfolio is set out hereunder:
|Industry||Amount (Rs. in cr.)||% to Total Advances|
|31 March 2018||31 March 2017||31 March 2018||31 March 2017|
|Paper & Paper Products||650.96||615.05||2%||3%|
|Rubber & Plastics||186.66||161.88||1%||1%|
|Beverage & Tobacco||39.33||10.98||-||-|
|All other Advances|
|(Agri.,Trade Service, Gold Loan etc.)||21440.14||18304.58||76%||76%|
|Sector||Amount (Rs. in cr.)||% to Total Advances|
|31 March 2018||31 March 2017||31 March 2018||31 March 2017|
|Commercial Real Estate||1399.21||1239.90||5%||5%|
|JL Non Agriculture||371.66||286.27||1%||1%|
|Other Personal Loan||1041.63||719.55||4%||3%|
|Sector||Amount (Rs. in cr.)||% to Total Advances|
|31 March 2018||31 March 2017||31 March 2018||31 March 2017|
|Loans Collateralised by deposits||497.68||427.39||2%||2%|
PRIORITY SECTOR LENDING
As per the guidelines of RBI, the Banks are required to lend 40% of their Adjusted Net Bank Credit (ANBC) to priority sectors. The Bank has achieved 58.59% of Adjusted Net Bank Credit (ANBC) against the regulatory prescription of 40% stated above. The Priority Sector
Advances as at 31 March, 2018 stood at Rs. 12,463.76 crore as compared to previous year amount of Rs. 11,813.52 crore. Further, out of the overall target of 40%, banks are required to lend a minimum 18% of their ANBC to Agriculture sector. In respect of this, the Bank had achieved 22.55% of ANBC. The total agricultural advances stood at Rs. 4,797.62 crore as at 31 March, 2018 as against Rs. 3,707.09 crore as on 31 March, 2017. As prescribed by RBI guidelines, the Bank had achieved all its priority sector lending target for FY 2018 computed on quarterly average basis.
The main objective of the risk management of the Bank is to balance between risk and return. The Bank operates within the Board approved risk appetite statement which was circulated to each of the departments. Integral to Bank business, the Bank takes on various types of risk, the most important of which are credit risk, market risk and operational risk. The identification, measurement, monitoring and management of risk remain a key focus area for the Bank. Sound risk management and balancing risk-reward trade-offs are critical to the Banks success. Business and revenue growth are therefore to be weighed in context of the risks implicit in the Banks business strategy.
The Bank has in place, a sound Risk Management Architecture established by the active involvement and supervision of Board of Directors. The Board of the Bank has constituted a Risk Management Committee which lays down the parameters establishing the frame work for Risk Management. Under the Board level Committee, the Risk Management Committee of Executives functions to ensure the policy guidelines approved by the Board are implemented and adhered to. It guides the policies, procedures and systems for managing and controlling various risks. The Committee reviews the risk level and direction, portfolio composition, risk appetite for all risks and also the stress tests for each risk.
The Bank has a Risk Management team headed by the Chief Risk Officer who reports to MD & CEO / Board of the Bank. The overall risks faced by the Bank and the risk appetites are evaluated by the team which develops policies and procedures, verifying the models that are used for pricing products, identifying new risks etc. Risk Management practices have been aligned with the best industry practices and are adaptable to a dynamic operating environment and market conditions.
The Bank is BASEL II compliant since 31 March, 2009.
The Bank has implemented the BASEL III Capital
Regulations from 1 April, 2013, by computing the Capital and Risk weighted Assets as per RBI guidelines dated 2 May, 2012. The Bank presently adopts Standardized Approach for credit risk, Standardized Duration Approach for market risk and Basic Indicator Approach for operational risk. Necessary initiatives have been taken for moving over to advanced approaches under BASEL III as per the timelines indicated by RBI. The Risk Management Department of the Bank effectively functions to measure, monitor and control all risks paving way for effective Enterprise-wide Risk Management. The Bank has implemented "Internal Capital Adequacy Assessment Process" (ICAAP) in line with the Basel III requirement commensurate with the Banks size, level of complexity, risk profile and scope of operations.
The overall risk of the Bank is being managed through three committees viz. i) Credit Risk Management Committee (CRMC)
ii) Asset and Liabilities Management Committee (ALCO)
iii) Operational Risk Management Committee (ORMC)
The Bank has put in place the following policies to manage various types of Risks apart from the overall Integrated Risk Management Policy to measure, monitor and control all the enterprise-wide risks and with the objective of integrating all the risks of the Bank.
1. Credit Risk Management Policy 2. Asset and Liability Management Policy 3. Operational Risk Management Policy 4. Stress Testing Policy 5. Pillar 3 Disclosure Policy 6. Business Continuity Plan Policy 7. Inspection and Audit Policy
8. Internal Capital Adequacy Assessment Process
9. Credit Risk Mitigation and Collateral Management
10. Integrated Risk Management Policy 11. Loan Policy (Including Recovery Policy) 12. Integrated Treasury Policy
13. Policy on Unhedged Foreign currency exposures of
corporate including SMEs 14. Market Risk Management Policy 15. New Product Assessment Policy
On the advice of the said three Committees and based on the said policy norms, the Bank is able to identify, measure, monitor, analyze, control and mitigate the risks at every stage, prescribe and monitor prudential limits and manage them to face the changing risk environment. The disclosures on Quarterly / Half Yearly / Annual Basis as per the Disclosure Policy are reported/incorporated in the Banks website / Annual Report. Stress tests are conducted on a periodical basis to gauge the level of risk in the assumed crisis situation and remedial / preventive steps have been taken to mitigate risks in all areas.
INTERNAL CONTROL SYSTEMS
The Banks Inspection function undertakes internal audit to assess the business and control risk of all branches and has formulated a risk based internal audit plan as recommended by the RBI. The inspection function provides an independent assurance to its Board of Directors and Senior Management as to the effectiveness of its internal controls, risk management systems, governance systems & processes on an on-going basis to ensure that the audited units comply with both internal and regulatory guidelines.
In line with the RBIs guideline on Audit, the Bank has adopted a Risk-Based approach of Internal Audit (RBIA). The primary focus of the audit is on key risk areas, which are of substantial importance to the Bank.
As reported in detail under Directors Report , there were certain improper transactions in the Banks ATM Switch. Also during the last quarter of FY 2018, fraudulent remittances took place through our SWIFT system, outside the purview of Banks Core Banking Solution "CBS". In this connection, post the occurrence of these events, in order to strengthen the internal controls, efforts have been taken by the Bank in SWITCH and SWIFT systems through implementation of additional security measures like installing software in a new hardened server, installing new client machines with advanced software applications, strengthening of Firewalls etc. More initiatives are being undertaken to deter the occurrence of such events in future.
Further, the Bank also subjects its operations to Concurrent Audit by audit firms to complement its internal audit function. The concurrent audit covers core activities such as credit portfolio, general computer controls, fraud risk management, financial markets, operations, policies and procedures. For each component, various check list / risk control matrix are prepared to identify those which have a material bearing. These controls are then tested for their operating effectiveness. The Bank takes corrective steps to minimize the risk, should any of them arise. The Senior Management of the
Bank is involved in taking corrective measures. The results of the audit reports are circulated to the relevant management teams and the Audit Committee of the Board for their information, guidance and monitoring.
HUMAN RESOURCE / INDUSTRIAL RELATIONS
The Bank believes the organizational success largely depends on the quality of employees. The Bank recruits and trains the young brains alongwith existing talent to carry forward the Banks glory and success as in the past. Human Resource development and Industrial atmosphere have a very big role to play in an organizations growth and the Bank has always maintained cordial relationship across all levels. It needs to be mentioned here that the Bank has not even lost a single man day due to industrial unrest, for it has maintained healthy work environment since inception. As part of HR strategy, the Bank offers various monetary and non-monetary benefits to employees based on their performance and ensures that every employee feels proud to be a part of the Bank where each one strives to deliver the best - to be best of their ability, to the best of their skills. The Bank creates and develops future leaders by offering constant training on products, technical knowledge, marketing and management skills and soft skills etc.
The management of the Bank vide a seperate MOU entered with City Union Bank Officers Association and Staff Union during the year 2016, agreed on the implementation of Performance Linked Pay PLP besides other employee welfare measures. PLP is a monetary incentive tool implemented in the Bank w.e.f. July, 2017, to encourage the employees performance with growth focus aiming at organizational goals. The Bank ensures that each and every employee is apprised of his / her goals so that everyone could get his / her monetary incentives apart from heir fixed pay.
Regular communication channels, email newsletters, other communication blogs etc., are used to keep the communication dynamic and timely. All HR strategies are aligned to have a positive impact on the overall development of employee. The Bank offers ESOPs to employees to create a sense of ownership among employees and in this regard shareholders, in the previous AGM held on 23 August, 2017, have approved the grant of additional 3 crore stock options. The strength of the work force as on 31 March, 2018 was 5,319 consisting of a fairly young workforce with an average age of 32.31 years.
The Global Banking Sector is considerably healthier now than it was 10 years ago, at the start of the global financial crisis. The largest Banks in the world have significantly improved their capital position in the years since the crisis. In recent years, the ability of Banks to maximize financial performance through growth and optimization has been hampered by regulatory change programs and compliance demands. However, the Global Banking Outlook reveals a remarkable shift in terms of evolving cyber risks. Cyber security has become the top priority for Banks in the coming year posing an array of new problems viz., finding right talents with cyber skills, integration of cyber experts into the organizations, System Audits etc.
As per RBI, Indias Banking sector is sufficiently capitalized and well-regulated. The financial and economic conditions in the country are far superior to any other country in the world. Risk management studies suggest that Indian Banks are generally resilient and have withstood the global downturn well. On the technological front, the digital payments system in India has evolved as the most Fastest Payments mode as per Faster Payments Innovation Index (FPII). However, during the FY 2018, the sector has witnessed major cyber security attacks and frauds hampering the growth of the sector and investor confidence.
Enhanced spending on infrastructure, speedy implementation of projects and continuation of reforms are expected to provide further impetus to growth. All these factors suggest that Indias Banking sector is also poised for robust growth as the rapidly growing business enterprises would turn to Banks for their credit needs. The customer centric Banking through safe and secure technology has become the epicentre of Banking business. In the given scenario, your Bank believes that with the sound risk management and capital adequacy ratio it could achieve a higher share of business and profit, ably supported by sophisticated technology and motivated staff force.