Economic Overview
Global Economy
The global economy is experiencing prolonged geopolitical turmoil, including conflicts between Ukraine and Russia, as well as between Israel and Palestine. However, the global economy has to a certain extent exhibited resilience and fortitude. According to the Annual Report of the Reserve Bank of India for FY24, multiple challenges exist in the form of elevated inflation, tight monetary and financial conditions, escalating geopolitical tensions, rising geo economic fragmentation, disruptions in key global shipping routes, high public debt burdens and financial stability risks. Global financial markets are on edge, with recurrent bouts of volatility as every incoming data increases uncertainty around monetary policy trajectories of major central banks.
To combat inflation, central banks in major economies implemented measured interest rate hikes. While this proved to be beneficial in reducing inflation rate, it dampened economic activity to some extent. Consequently, global growth dipped from 3.4% in CY22 to 3.3% in CY23. Additionally, the tightening of global financial conditions intensified fiscal and debt vulnerabilities in developing countries.
Growth in the Global GDP (in %)
P- projected
Source: World Economic Outlook July 2024, IMF
Since late CY2021, more than 85% of central banks worldwide have implemented monetary policy restrictions and interest rate hikes to combat rising inflation and steer clear of recessionary risks. This concerted effort reflects a proactive approach to stabilising economies and fostering sustainable growth amidst challenging global economic conditions.
Despite these hurdles, emerging economies such as India experienced substantial growth, supported by capital inflows from foreign institutional investors. Certain low-income and frontier economies reclaimed their market position as well.
Global growth is anticipated to sustain its growth momentum at 3.2% in CY2024 and 3.3% CY2025. As inflation eases more rapidly than anticipated across most regions, it is expected to ease monetary policy leading to a rebound in economic growth. This will further provide a more favourable environment for investment and development. However, with numerous elections scheduled worldwide, a cautious outlook prevails, especially with the risk of evolving geopolitical situations. These geopolitical risks, including ongoing conflicts in the Middle East and tensions in Europe, could impact economic stability and growth prospects.
Despite these challenges, high-frequency economic indicators suggest favourable momentum for most major economies. Declining inflation and increased government spending are expected to relieve fiscal pressures, paving the way for future investment and growth. However, the need for continued vigilance and strategic economic management on a global scale cannot be overlooked.
Indian Economy
Despite a sluggish global economy, India maintained its position as one of the worlds fastest growing economies. As the reported year recorded markets experiencing volatility as geo-political turmoil intensified, interest rate hikes by the US Fed turned aggressive and the global outlook deteriorated, it dampened investors sentiments. However, the Indian economy demonstrated resilience with the equities market recording a little increase in trading amidst pressure from the foreign exchange market and portfolio withdrawals. This also translates to the increase in investments done by local organisations. According to the National Statistical Office (NSO), India clocked a real GDP growth of 8.2% during FY2024.
India GDP growth rate in (in %)
(Source: PIB Press Release, May 2024)
In addition to this, the Indian banking industry has historically been one of the most stable systems globally, despite global upheavals. In FY2023-24, the Reserve Bank of India (RBI) launched the Payments Vision, expanding pilot projects in CBDC (Central Bank Digital Currency). With the aim to expand reach, the projects feature various applications for both retail and wholesale purposes. Furthermore, the RBI plans to transcends borders. For instance, the UPI-PayNow connection with Singapore allows users of both systems to make instant fund transfers, fostering cross-border interoperability of payments. In addition to this, in the reported year, UPI was introduced in UAE across its different outlets across the country.
(Source: Deloitte Indian economic outlook, April 2024)
Outlook
The Indian economy is expected to benefit from increased public investment support and improved balance sheets of both banks and corporates. According to the RBI Annual Report, the outlook for the Indian economy remains bright, underpinned by a sustained strengthening of macroeconomic fundamentals, robust financial and corporate sectors and a resilient external sector. The governments continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand.
Moreover, government consumption is supposed to gradually increase, in line with central governments efforts to lower the share of current spending. With the Government focusing on increasing capex, it is further creating a favourable environment for growth. As countries seek alternatives to China, India is steadily emerging as preferred manufacturing hub. The Indian economy is expected to become the worlds third-largest economy by 2027, surpassing Japan and Germany.
(Source: Deloitte Indian economic outlook, April 2024)
Industry overview
Indian Banking Industry
InFY2023–2024,theIndianbankingindustryexhibitedresilience and strength, underpinned by solid profitability metrics, sound capital buffers and robust asset quality. Bank credit growth sustained its momentum in 2023-24, registering a growth of 15.1% as of March 17, 2024, compared to 13.2% a year ago. This robust credit off take was broad-based, with both retail and industrial segments witnessing double-digit growth. However, due to subdued deposit growth, it resulted in decline in credit growth, leading to some tightening in liquidity conditions and upward pressure on lending rates. Furthermore, the RBI remained vigilant to emerging risks, such as the impact of monetary policy normalisation on asset quality and profitability as well as the potential build-up of vulnerabilities in specific sectors. Asset quality pressures from the previous credit cycle are subsiding, creating a favorable business environment and bolstering banks potential and appetite for growth.
*Total Deposits
204.0 Lakh Crore
*as on March 2024
Deposits form
more than 60%
of the total economy
The capital to risk-weighted assets ratio (CRAR) of scheduled commercial banks (SCBs) remained well above the regulatory requirement with the CRAR of public sector banks (PSBs) improving significantly in recent years.
Additionally, the asset quality of SCBs improved further, with the gross non-performing assets (GNPA) ratio declining to 3.0% in FY2024 from 3.4% recorded a year ago. The net NPA ratio also moderated to 1.1% from 1.3%, calculated during the same period. This improvement can be attributed to increasing recoveries, write-offs and a moderation in fresh slippages. Profitability indicators such as return on assets (RoA) and return on equity (RoE) remained robust, supported by healthy net interest margins (NIMs) and lower credit costs.
Banking Sector net profit surpassed 3 trillion
In FY 2023-24, the RBI implemented several key measures to strengthen the banking sector and ensure financial stability. One of the significant initiatives was the introduction of the Public Tech Platform for Frictionless Credit (PTPFC), developed by the RBI Innovation Hub. This platform facilitates quicker disbursement of loans by leveraging digital technologies and data analytics, thereby reducing the turnaround time for loan approvals. Additionally, the RBI continued to promote the co-lending model, enabling banks and non-banking financial companies (NBFCs) to co-originate loans, improving credit access for underserved segments.
As per the ICRA report on Indian Banking Sector Outlook, it is expected that credit growth and profitability metrics would moderate, though the same would continue to remain healthy. The compression in interest margins over the last 18 months has been driven by rising deposit cost. Despite margin compression, the growth in loan book is expected to translate into steady operating profits, aided by benign credit costs.
Consistent decline in GNPA across Banking industry
Bank credit growth sustained its momentum in 2023-24, registering a growth of 15.1% as of March 17, 2024, compared to 13.2% a year ago. This robust credit off take was broad-based, with both retail and industrial segments witnessing double-digit growth. However, due to subdued deposit growth, it resulted in decline in credit growth, leading to some tightening in liquidity conditions and upward pressure on lending rates. In addition to this, the repo rate in FY 2024 remained unchanged at 6.5%1. However, any hike in the repo rate is passed by the banks to customers, further, it makes borrowings costlier. Furthermore, the RBI remained vigilant to emerging risks, such as the impact of monetary policy normalisation on asset quality and profitability as well as the potential build-up of vulnerabilities in specific sectors.
Split of Gross Domestic Loan Book (in Lakh Cr) a. Aggregate Deposits and Credit Growth - Wedge
(Source: RBI Annual Report 2023-24)
Key measures taken by the RBI
In FY 2023-24, the RBI implemented several key measures to strengthen the banking sector and ensure financial stability. One of the significant initiatives was the introduction of the Public Tech Platform for Frictionless Credit (PTPFC), developed by the RBI Innovation Hub. This platform facilitates quicker disbursement of loans by leveraging digital technologies and data analytics, thereby reducing the turnaround time for loan approvals. Additionally, the RBI continued to promote the co-lending model, enabling banks and non-banking financial companies (NBFCs) to co-originate loans, improving credit access for underserved segments.
To improve the resolution of stressed assets, the RBI also introduced a framework for compromise settlements and technical write-offs. In addition to this, the Prompt Corrective Action (PCA) framework was extended to include government NBFCs (except those in the Base Layer), to ensure timely supervisory intervention and maintain financial health.
The RBI is also focused on enhancing the resilience of the banking sector through various supervisory initiatives. The implementation of DAKSH, an advanced supervisory monitoring system, streamlined communication and dissemination of threat intelligence to supervised entities. Additionally, the RBI also conducts comprehensive on-site cyber risk assessments of major supervised entities to mitigate cyber threats. These measures, coupled with the RBIs continuous efforts to strengthen governance and assurance functions, have significantly bolstered the stability and robustness of the Indian banking sector.
Inclusive Finance
Microfinance or Inclusive Finance as a sector has seen substantial growth in the last few years with the micro-credit industry mainstreaming within the broader financial sector. Some of the large NBFC-MFIs have become Small Finance Banks (SFBs) and some have been bought over by other banks / large NBFCs. The sector has also attracted larger banks and NBFCs who have started building their own micro-credit portfolio through BC partnerships. As a result of mainstreaming, micro-credit sector today is competitive and served by a diverse set of players - Banks, SFBs, NBFC-MFIs, BCs and NBFCs.
The Indian inclusive finance industry is anticipated to sustain its robust growth trajectory in the upcoming year, driven by the Governments focus on promoting financial inclusion and the increasing adoption of digital technologies. As per MFIN, the outstanding microfinance portfolio stood at around Rs 433,697 Crore. Additionally, the number of unique borrowers served by the microfinance industry increased to 7.8 crore, as recorded through 14.9 crore loan accounts.
Industry trends
(Source: MFIN Synopsis Issue 49)
As of March 2024, the microfinance sector remained a crucial component, with the gross loan portfolio (GLP) of NBFC-MFIs constituting 40% of the overall micro-credit outstanding across lenders. The top 10 states accounted for 84.4% of the total GLP, with Bihar remaining the largest state in terms of portfolio outstanding, followed by Tamil Nadu and Uttar Pradesh.
The growth in the microfinance sector surpassed the challenges owing to the pandemic and grew. In the present times, the growth in the microfinance sector have exhibited remarkable resilience.
(Source: MFIN Synopsis Issue 49)
Portfolio outstanding of the microfinance industry (Rs Cr)
(Source: MFIN Synopsis Issue 49)
Micro-credit loan outstanding across lenders (31 March 2024)
(Source: MFIN Synopsis Issue 49)
The Financial inclusion Index increased from 60.1 in FY 2023 to 64.2 in FY 2024.
Housing Loan
In FY 2023-24, the Indian housing loan market witnessed tremendous growth driven by supportive government policies, increased disposable incomes and rapid urbanisation. The Indian Home Loan market, which currently is at ~ INR 26 trillion, constitutes about 17% of the total credit. It is expected that the Home Loan market would double by FY28. Part of the growth is due to low mortgage penetration, in terms of home ownership or housing loans, which provides for sufficient growth potential on the back of rising affordability.
The increasing adoption of digital technologies has streamlined loan application and approval processes. For instance, the Public Tech Platform for Frictionless Credit (PTPFC) by the RBI which was launched as a pilot project in 2023 aimed to simplify the integration of vital financial data through open APIs, boosting operational efficiency. Centralizing potential borrowers information on a unified platform would lead to streamlining of processes.
Graph 3.3: Outstanding Individual Housing Loan of HFCs*
(Amount in lakh crore)
(Source: National Housing Bank)
Additionally, the weighted average lending rate for housing loans has remained stable, making home loans more affordable for a larger segment of the population. The Indian housing loan segment is anticipated to maintain its positive growth momentum, buoyed by favourable economic conditions and ongoing government initiatives to promote home ownership. There has been a visible increase in the demand for housing loans as a percentage of GDP from FY 2012 to FY 2024. The banks have played a significant role in driving the growth of the housing finance sector.
Moreover, the regulation was laid for the banks to decide the quantum of loan to be granted under the housing finance.
| Category of Loan | LTV Ratio | Risk Weight |
| (%) | (%) | |
| (a) Individual Housing Loans | ||
| 80 | 35 | |
| Upto 30 lakh | > 80 and 90 | 50 |
| Above 30 lakh & upto 75 lakh | 80 | 35 |
| Above 75 lakh | 75 | 50 |
| (b) CRE - RH | NA | 75 |
Source: Reserve Bank of India (2023)
2
https://www.pdicai.org/Docs/RBI-2023-24-08_442023155838333.PDFThe home loan provided by NBFC offers flexible eligibility criteria, competitive interest rate, streamline the application process and bring a quick approval with reduced waiting period for the borrowers. In addition to this, small finance banks also offers home loans with quick minimum documentation process and quick disbursalas compared with old legacy banks. Moreover, the technology has significantly transformed the process of home loan beginning from the final approval to final approval. Moreover, the digital advancement has further simplified the method for the fulfilling their home ownership aspiration.
Increase in Individual Home Loans (IHL)
Source: RBI & National Housing Bank (NHB) *Note: GDP at current prices is considered.
Pradhan Mantri Awas Yojana (PMAY)
Pradhan Mantri Awas Yojana (Urban) aims to provide affordable housing facilities to all individuals and families from economically backward. The PMAY also offers the benefit to the minorities, scheduled cast and scheduled tribes and also to the marginalised communities. The PMAY schemes is categorised into PMAY-G and PMAY-U, wherein, under the PMAY - U schem potential homeowners can avail subsidy paid on the interest paid on the home loans.
Section 80EE and Section 80EEA
The Government provided tax benefit through Section 80EE and Section 80EEA of the Income Tax Act. The section 80EE was special home loan tax benefit to homeowners who bought home for the first time. This initiative reduced the burden of tax and making the first purchase easier.
Whereas, 80EEA extra deduction can be claimed upto INR 1.5 lakh on the interest paid on the home loan.
Affordable Housing
According to the RBI, priority sector housing loans based upto INR 35 lakhs are categorised as affordable home loans. The key characteristics of an affordable housing loan are the customer profile (Limited formal documentation of income) and the size of dwelling unit, which generally ranges between ~300-600 sq. ft.
The Indian government has launched numerous programmes to meet the nations increasing housing needs. For example, the Pradhan Mantri Awas Yojana (PMAY) has been instrumental in driving the growth of affordable housing. As of March 2024, over 1.2 crore houses have been sanctioned under PMAY-Urban, with around 65 lakh houses completed. On the other hand, the Credit Linked Subsidy Scheme (CLSS) under PMAY has also seen significant uptake, with over 19 lakh beneficiaries availing subsidies for purchasing or constructing affordable homes. These initiatives have made home ownership more accessible to economically weaker sections and low-income groups.
Owing to incentives such as tax benefits and reduced GST rates, the affordable housing segment has also seen increased participation from private developers. The affordable housing segment accounted for nearly 40% of the total housing loan disbursements in 2024, reflecting the growing demand for affordable homes. The Governments focus on infrastructure development, including the construction of new urban centres and smart cities, has also contributed to the growth of the affordable housing sector. Overall, the affordable housing sector is poised for sustained growth in the upcoming years, addressing the housing needs of millions of Indians.
Graph 2.6: Cumulative Subsidy Disbursement by NHB under PMAY-CLSS(U) (Amount in crore)
(Source: National Housing Bank)
Owing to incentives such as tax benefits and reduced GST rates, the affordable housing segment has also seen increased participation from private developers. The Affordable Rental Housing Complexes (ARHCs) scheme has further augmented the supply of affordable rental housing units, catering to the needs of migrant workers and preventing the growth of future slums. The affordable housing segment accounted for nearly 40% of the total housing loan disbursements in 2024, reflecting the growing demand for affordable homes.
The Governments focus on infrastructure development, including the construction of new urban centres and smart cities, has also contributed to the growth of the affordable housing sector. In addition to this, the RBIs measures to enhance credit flow to the sector, such as including the co-lending model with HFCs and the extension of priority sector lending status, have facilitated easier access to finance for affordable housing projects. Overall, the affordable housing sector is poised for sustained growth in the upcoming years, addressing the housing needs of millions of Indians.
Commercial vehicle loans
Vehicle finance segment (CVs, PVs, Two-wheelers, tractors, used cars) is closely linked to the macroeconomic environment.
Overall vehicle finance segment in India stood at approximately 11.85 trillion as of FY23, witnessing a CAGR of ~11% from FY19. With the recovery on demand side post the pandemic, the vehicle financing witnessed ~ 24% y-o-y growth from FY22. It is expected to grow at a CAGR of ~ 16-18% in the next 3-4 years.
In2024,theIndianCVloanssectorexperiencedstrongexpansion, propelled by the countrys ongoing economic momentum and the governments focus on infrastructure development. As of December, 2023, the outstanding loans for commercial vehicles grew by 18.2% YoY, reflecting the strong demand for transportation services and the replacement of aging fleets. (Source: RBI Annual Report 2023-24)
The growth in CV loans was supported by several factors, including the implementation of the Vehicle Scrappage Policy, which incentivised the replacement of old vehicles with newer, more fuel-efficient models. Additionally, with the Government emphasising upon infrastructural development, initiatives such as the Bharatmala Pariyojana and the development of industrial corridors, have propelled the demand for commercial vehicles, particularly in the medium and heavy-duty segments.
Increased profitability and asset quality by the Banks have allowed them to more securely issue loans to the CV segment. Through embracing digitisation and data analytics, lenders have streamlined risk management procedures and improved underwriting procedures in the CV loan market.
The Vehicle finance segment is a heterogeneous business as there are no market leaders who dominate the overall segment and each lender has distinct competitive positioning and customer profiles. While commercial vehicle, two-wheeler and tractor financing is dominated by NBFCs, banks have a strong share in passenger vehicles and used cars segment.
On the geographical divide basis, the semi-urban market was the dominant market followed by the metro region and thereafter by the rural segment.
Despite the buoyant growth in the past few years, India still continues to be under-penetrated in respect of the automobile market when compared with both developed economies and certain developing nations, suggesting substantial untapped growth opportunities.
National Logistics Programs
The national logistic program (NLP) was launched along with the PM GatiShakt Master Plan to address the development of the logistic sector and soft infrastructure of the country. The program aimed to reduce the cost of logistics in India, improve the logistic performance index ranking and to create a data driven decision support system for an efficient logistics ecosystem. This initiative undertaken by the Indian Government is anticipated to drive the growth in the commercial vehicles in India through offering better infrastructure facilities.
National Logistics Programs
The section 80EEB of the income tax allows the individuals to claim tax savings up to INR 1.5 lakh on the interest paid for the loan taken to purchase the EV.
Secured Business Loans (SBL) / Loans Against Property (LAP)
The resurgence of economic activity and the governments focus on the MSME sector propelled the growth of the secured business loans/loans against property (SBL/LAP) segment in the year under review. The outstanding SBL/LAP portfolio of scheduled commercial banks grew by 16.2% YoY as of December 2024, compared to 13.8% growth in the previous year. This growth was primarily driven by the increasing demand for credit from micro, small and medium enterprises (MSMEs) and the self-employed segment.
(Source: RBI Annual Report 2023-24)
Effective governmental initiatives and robust monetary policies implemented by the RBI further facilitated the growth in the SBL/ LAP segment. The Emergency Credit Line Guarantee Scheme (ECLGS), which provided collateral-free loans to MSMEs and businesses, was extended until March 2024, providing further impetus to credit offtake. Additionally, the Reserve Banks co-lending model gained traction, particularly in the SBL/LAP space, improving credit flow to the last-mile borrowers.
The SBL/LAP is poised for growth, driven by Indias robust economic growth, improving asset quality of banks improving and increasing the Governments focus on promoting entrepreneurship and the MSME sector.
Company overview
Completed 7 years of Small Finance Bank (SFB)
Suryoday Small Finance Bank Ltd. (Suryoday SFB) has established itself as a leading player in the small finance banking sector in India, consistently focusing on providing financial services to the underserved and unbanked segments of the population. The Company has been operating as a SFB since 2017. The Banks aims to offer a wide range of banking products and services, including microfinance, retail loans, deposits and insurance, tailored to meet the diverse needs of its customers. As of March 31, 2024, Suryoday SFB operates through a robust network of branches, spanning 15 states and union territories, serving over 2.8 million customers.
In the financial year 2023-24, the bank demonstrated strong financial performance and operational resilience. The Banks total assets grew by 25.4% YoY, reaching 12,377.7 crore, driven by robust growth in its loan portfolio and deposit base. While the gross advances stood at 8,650 crore including IBPC of Crores, reflecting a YoY growth of 41.5%, the deposits expanded by 50.5% to 7,777 crore. Overall, the Bank maintained a healthy capital adequacy ratio, with the gross non-performing assets (GNPA) ratio improving to 2.8% from 3.1%. Suryoday SFBs commitment to digital transformation and customer-centric initiatives has aided the Bank to enhance its service delivery and boost operational efficiency, positioning the Bank for sustained growth in the coming years.
Product Portfolio
Suryoday SFB offers a diverse range of products and services catering to the financial needs of individuals, businesses and institutional clients. The banks product portfolio encompasses inclusive finance offerings such as joint liability group (JLG) loans, Vikas loans for micro-enterprises and other collateral-free credit facilities. In the retail segment, the Bank provides affordable housing loans, commercial vehicle loans, secured business loans and gold loans. In addition to this, Suryoday SFB also offers a suite of deposit products, including savings accounts, current accounts, recurring deposits and fixed deposits, to meet the varied requirements of its customers.
The bank also provides financial intermediary group (FIG) loans, including lending to microfinance institutions, non-banking financial companies, and other financial intermediaries. Additionally, Suryoday SFB offers customised solutions for corporate clients, such as cash management services, trade finance facilities and other tailor-made banking products. With the advent of digitalisation, the Bank also offers mobile banking, internet banking and other digital payment solutions. These facilities cater to the tech-savvy customers, enabling seamless and convenient banking experiences.
Asset Products
The Banks asset products are categorised into (i) Loans for Inclusive Finance segment, comprising loans to joint liability groups (JLGs) and to individuals in the form of Vikas Loan (ii) Commercial vehicle loans (iii) Mortgages and Micro Mortgages (iv) Loans to financial intermediary groups (FIGs) (v) Other loans Categorisation is largely determined by customer profile, type of security (as applicable) and end-use.
The table below sets forth the Banks Gross Loan Portfolio by product category:
| As of 31st March | ||||
| 2024 | 2023 | |||
| Products | ( crore) | % of total | ( crore) | % of total |
| JLG | 2,389 | 28% | 2,511 | 41% |
| Vikas | 2,683 | 31% | 1,232 | 20% |
| CV | 798 | 9% | 391 | 6% |
| HL | 672 | 8% | 555 | 9% |
| LAP | 681 | 8% | 405 | 7% |
| Micro-Mortgage | 235 | 3% | 87 | 1% |
| FIG | 848 | 10% | 688 | 11% |
| Partners | 130 | 2% | 113 | 2% |
| #Others | 215 | 2% | 132 | 2% |
| Total | 8,650* | 100% | 6,114 | 100% |
* including IBPC Portfolio of 400 crores
#Others include Smile OD, MBL, Overdraft against FD and Staff Loan Note: Figures may not add up due to rounding off
Inclusive Finance
The Inclusive Finance segment, which includes the Joint Liability Group (JLG) loans and Vikas individual loans, continued to be the core business for Suryoday SFB in the year under review. The segments gross advances grew by 35.5% YoY to Rs. 5,072 crores as of March 31, 2024, driven by strong disbursements across both JLG and Vikas loan portfolios.
As of March 31, 2024, the JLG portfolio stood at Rs. 2,389 crores, contributing 47% to the overall inclusive finance book. Disbursements in the JLG segment were Rs. 2,137 crores during the year, with a collection efficiency of 94.6% on a one EMI adjusted basis. The Vikas loan portfolio crossed Rs. 2,683 crores, now contributing 53% of the inclusive finance book. Vikas loan disbursements almost doubled from the previous year to Rs. 2,523 crores in FY2023-24. The collection efficiency for Vikas loans stood at 98.0% on a one EMI adjusted basis. As of March 31, 2024, the Bank had over 4.3 lakh Vikas loan customers.
With the aim to expand its reach in the inclusive finance segment, the Bank added many new branches and banking outlets during the year. The regional concentration risk also declined marginally, with the top three states accounting for 66% of the inclusive finance portfolio as of March 31, 2024. The asset quality in the inclusive finance segment remained stable, with the Gross NPA ratio at 3.5% and Net NPA ratio at 0.8% as of March 31, 2024. The Bank maintained a Provision Coverage Ratio of 78% for the inclusive finance portfolio, reflecting its prudent risk management practices.
The Bank aims to transition from being predominantly a micro-lender to becoming a micro-banker for low-income households. It plans to leverage its inclusive finance distribution network to provide holistic banking services to drive financial inclusion further.
Commercial Vehicles (CV)
The Commercial Vehicles (CV) segment continued to be an important portfolio for Suryoday SFB in FY2023-24. As of March 31, 2024, the Banks gross CV advances grew by 104% YoY to Rs. 798 crores, driven by robust disbursements of Rs. 634 crores during the year.
The collection efficiency for the CV portfolio remained healthy at 96.5% on a one EMI adjusted basis for FY2023-24 and 97.9% for March, 2024. The Bank also added a significant number of new CV customers during the year.
The asset quality in the CV segment remained stable, with the Gross NPA ratio at 0.8% and Net NPA ratio at 0.3% as of March 31, 2024. The Bank maintained a Provision Coverage Ratio of 57.6% for the CV portfolio, reflecting the Banks prudent risk management practices.
With the nation exhibiting a robust growth trajectory and the Governments increased focus on developing infrastructure, the Bank remains optimistic about the growth in the CV segment. It will continue to focus on maintaining a balanced portfolio mix while more focus on retail customers and adhering to stringent credit norms and risk management practices.
Mortgage
The mortgage segment, comprising home loans, loan against property (LAP) and micro-mortgages, played a pivotal role in driving Suryoday SFBs success in FY2023-24. The Banks mortgage portfolio, including retail and micro-mortgage loans, grew by 51.7% YoY to Rs. 1,588 crores as of March 31, 2024. As of March 31, 2024, the home loan portfolio stood at Rs. 672 crores, contributing 42% to the overall mortgage book. Disbursements in the home loan segment amounted to Rs. 220 crores during the year, with a collection efficiency of 95.4% on a one EMI adjusted basis. The Bank also increased its total home loan customer base to a substantial figure as of March 31, 2024. Similarly, the LAP portfolio crossed a significant milestone of Rs. 681 crores, currently contributing over 43% of the mortgage book. LAP disbursements grew by 45% to Rs. 374 crores in FY2023-24 compared to Rs. 257 crores in the previous year.
On the other hand, the micro-mortgage portfolio, catering to the affordable housing segment, also witnessed robust growth during the year. The micro-mortgage book stood at Rs. 235 crores as of March 31, 2024, with disbursements of Rs. 163 crores during FY2023-24. The collection efficiency for micro-mortgages remained strong at 99.5% on a one EMI adjusted basis.
The asset quality in the mortgage segment remained stable, with the Gross NPA ratio at 2.0% and Net NPA ratio at 1.5% during the financial year under review. Additionally, the Bank maintained a Provision Coverage Ratio of 26.6% for the mortgage portfolio. Looking forward, the Bank aims to further strengthen its presence in the mortgage segment, leveraging its extensive branch network and customer base. It plans to focus on product innovation, digital initiatives and strategic partnerships to drive growth in the affordable housing and self-employed segments.
The bank also intends to increase its focus on the MSME lending with focus on both the secured as well as unsecured space. Given the spread of the customers of the bank and based on the demand for MSME loans, the bank is looking to introduce bespoke products to cater to the business needs of its customers.
Financial Intermediary Group (FIG) Loans
The FIG loan portfolio, catering to financial intermediaries such as microfinance institutions and non-banking finance companies, emerged as a key contributor to the Secured Business Loan segment. As of March 31, 2024, the FIG loan book stood at Rs. 848 crores, with disbursements standing at Rs. 692 crores during the year.
The banks FIG portfolio consists of financial intermediaries who on-lend to the customers requiring microfinance loans, housing loans, consumer loans, etc.
The FIG loan portfolio maintained an impressive collection efficiency of 100% on a one EMI adjusted basis for FY2023-24, reflecting the Banks robust credit underwriting and monitoring processes.
Deposit Franchise
On the liability side, the Bank continued to focus on building a granular and sticky retail deposit base. The total deposits grew by 50.5% YoY to Rs. 7,777 crores as of March 31, 2024, with retail deposits (including CASA) contributing 78.8% to the overall deposit book.
The CASA ratio improved from 17.1% in FY2022-23 to 20.1% in FY2023-24, reflecting the Banks efforts to mobilise low-cost funds and enhance its deposit franchise. The Banks focus on geographic diversification of deposits also yielded positive results, with deposits being sourced from 15 states and union territories across the country.
Looking forward, the Bank aims to further strengthen its deposit franchise by leveraging its extensive branch network, introducing innovative product offerings and enhancing its digital banking capabilities to cater to the dynamic market needs.
There is a segment of customers who are tech-savvy and who are comfortable using digital means for banking and transacting. The Bank intends to focus on garnering deposits from these customers by building a completely digital journey. The Bank has already created a digital journey as a pilot and expects the same to contribute significantly in the coming years. The Bank would also leverage the existing branch network to penetrate in these geographies and would also expand into select geographies to expand its footprint as well as the business.
Geographical presence
The bank carries out its operations through its wide range of banking outlets. These includes URCs, the BC network, PoS terminals and various digital channels, including internet banking through its website, phone banking through its call centre and mobile banking through the mobile application.
As of 31 March 2024, the Bank operated 695 banking outlets across 15 states and Union territories.
Branch Distribution
| Particulars | FY24 | FY23 |
| Asset focused outlets | 392 | 324 |
| Liability focused outlets | 109@ | 95@ |
| Rural Centers | 194 | 158 |
| Total | 695 | 577 |
@
Includes composite branchesGeographical Mix of the Branches
| Outlets | Asset Focused | Liability Focused | Rural Centres | Total |
| Maharashtra | 76 | 42 | 56 | 174 |
| Tamil Nadu* | 65 | 22 | 32 | 119 |
| Karnataka | 76 | 12 | 23 | 111 |
| Odisha | 29 | 10 | 65 | 104 |
| Gujarat | 36 | 5 | - | 41 |
| Madhya Pradesh | 25 | 4 | 5 | 34 |
| Others | 85 | 14 | 13 | 112 |
| Total | 392 | 109 | 194 | 695 |
Key Highlights for FY23-24
Asset and Deposit Business
Gross advances stood at Rs. 8,650 crores as of March 31, 2024, an increase of 41.5% year-on-year, driven by increased disbursements across inclusive finance, commercial vehicle and mortgage segments.
The Vikas Loan (individual loan) portfolio surpassed Rs. 2,600 crores, contributing over 53% of the inclusive finance book.
Total deposits grew by 50.5% year-on-year to Rs. 7,777 crores as of March 31, 2024.
Retail deposits (including CASA) contributed 78.8% to the overall deposit book.
The CASA ratio improved from 17.1% in FY2022-23 to 20.1% in FY2023-24.
Business Performance
NII stood at Rs. 962.2 crores in FY2023-24, an increase of 28.9% year-on-year.
Total disbursements for FY2023-24 rose by 36.1% to Rs. 6,919 crores compared to the previous year.
Vikas Loan disbursements almost doubled to Rs. 2,523 crores in FY2023-24.
The Bank had a network of 695 branches as of March 31, 2024, with 109 liability-focused branches and 392 asset-focused branches.
Balance Sheet
Total assets stood at Rs. 12,377.7 crores as of March 31, 2024, an increase of 25.4% year-on-year.
Net advances (excluding IBPC and provisions) were Rs. 8,078.0 crores.
Total deposits were Rs. 7,777.3 crores as of March 31, 2024.
Borrowings stood at Rs. 2,443.0 crores, forming approximately 20% of total liabilities.
Financial Ratios
Yield improved to 20.2% in FY2023-24 from 19.3% in FY2022-23.
Cost of funds increased from 6.7% in FY2022-23 to 7.3% in FY2023-24.
NIMincreasedfrom9.5%inFY2022-23to9.8%inFY2023-24.
Cost to income ratio excluding CGFMU expenses stood at 57.1% in FY2023-24 compared to 60.0% in FY2022-23.
RoAwas2.1%inFY2023-24,comparedto0.9%inFY2022-23.
RoE was 12.9% in FY2023-24, compared to 5.1% in FY2022-23.
Asset Quality
Gross NPA ratio decreased to 2.8% as of March 31, 2024, from 3.1% as of March 31, 2023.
Net NPA ratio decreased to 0.8% as of March 31, 2024, from 1.5% as of March 31, 2023.
PCR (excluding technical write-offs) improved to 71.2% as of March 31, 2024, from 51.5% as of March 31, 2023.
Financial Review
Summary of Profit & Loss Statement
| (Figures are in Crores) | |||
| Particulars | FY24 | FY23 | YoY |
| Interest Earned | 1,588.7 | 1,183.7 | 34.2% |
| Interest Expended | 626.5 | 437.1 | 43.3% |
| Net Interest Income | 962.2 | 746.6 | 28.9% |
| Other Income | 219.4 | 97.4 | 125.2% |
| Net Total Income | 1,181.6 | 844.0 | 40.0% |
| Operating Expenses | 675.1 | 506.5 | 33.3% |
| Employee Expense | 360.8 | 242.4 | 48.9% |
| Other Expense | 314.3 | 264.2 | 19.0% |
| (Figures are in Crores) | |||
| Particulars | FY24 | FY23 | YoY |
| Operating Profit Before CGFMU | 506.5 | 337.5 | 50.1% |
| CGFMU Expense | 52.6 | 0 | N/A |
| Operating Profit After CGFMU | 453.9 | 337.5 | 34.5% |
| Provisions and Contingencies* | 166.3 | 236.6 | -29.7% |
| Profit Before Tax | 287.6 | 100.9 | 185.1% |
| Tax | 71.6 | 23.2 | 209.2% |
| Profit After tax | 216.0 | 77.7 | 178.0% |
Income
The Banks net total income increased by 40.0% year-on-year to Rs. 1,181.6 crores in FY2023-24 from Rs. 844.0 crores in FY2022-23. This was driven by a 34.2% growth in interest earned to Rs. 1,588.7 crores and a significant 125.2% increase in other income to Rs. 219.4 crores during the year.
Interest Earned
The Banks interest earned increased by 34.2% year-on-year to Rs. 1,588.7 crores in FY2023-24, driven by the 41.5% growth in the loan book to Rs. 8,650 crores as of March 31, 2024. The growth in interest income was supported by an improvement in yield from 19.3% in FY2022-23 to 20.2% in FY2023-24.
Other Income
Other income, which includes fees, commissions, and other operating income, registered a significant increase of 125.2% over the previous year to Rs. 219.4 crores in FY2023-24. This was primarily due to higher processing fees earned on the growing disbursements.
Interest Expended
Interest expended increased by 43.3% year-on-year to Rs. 626.5 crores in FY2023-24, in line with the growth in interest-earning assets and borrowings. The cost of funds increased from 6.7% in FY2022-23 to 7.3% in FY2023-24 due to the rising interest rate environment.
Operating Expenses
Operating expenses grew by 43.7% over the previous year to Rs. 675.1 crores in FY2023-24, driven by the expansion of the Banks branch network and employee base to support business growth. The cost to income ratio (excluding CGFMU expenses) improved from 60.0% in FY2022-23 to 57.1% in FY2023-24, reflecting operating leverage benefits.
Provisions and Contingencies
Provisions and contingencies decreased by 29.7% year-on-year to Rs. 166.3 crores in FY2023-24, reflecting the Banks prudent risk management practices and improved asset quality. The provision coverage ratio (excluding technical write-offs) improved significantly from 51.5% as of March 31, 2023, to 71.2% as of March 31, 2024.
Net Profit
The Banks net profit increased by a substantial 178.0% year-on-year to Rs. 216.0 crores in FY2023-24, driven by robust growth in interest income, higher other income, and improved operating leverage.
Summary of Balance Sheet
(Figures are in Crores)
| Particulars | FY24 | FY23 | YoY |
| Capital and Liabilities | |||
| Shareholders Funds | 1,805.0 | 1,584.8 | 13.9% |
| Deposits | 7,777.3 | 5,166.7 | 50.5% |
| Borrowings | 2,443.0 | 2,765.4 | -11.7% |
| Other Liabilities and Provisions | 352.5 | 344.4 | 2.4% |
| Total | 12,377.7 | 9,861.2 | 25.5% |
| Assets | |||
| Fixed Assets | 168.8 | 164.5 | 2.6% |
| Cash and Bank | 1,180.1 | 833.1 | 41.6% |
| Investments | 2,599.3 | 2,570.2 | 1.1% |
| Advances^ | 8,078.0 | 6,015.1 | 34.3% |
| Other Assets | 351.6 | 278.4 | 26.3% |
| Total Assets | 12,377.7 | 9,861.2 | 25.5% |
^Net advances excluding IBPC and Provisions
Total Assets
The Banks total assets stood at Rs. 12,377.7 crores as of March 31, 2024, an increase of 25.4% year-on-year from Rs. 9,861.2 crores as of March 31, 2023. This growth was driven by the expansion in the loan book and increased investments.
Advances
Net advances (excluding IBPC and provisions) were Rs. 8,078.0 crores as of March 31, 2024, reflecting a 34.3% increase year-on-year from Rs. 6,015.1 crores as of March 31, 2023. This growth was primarily due to higher disbursements across various loan segments.
| Fiscal Year | ||
| As of March 31(Rupees in Crore) | 2024 | 2023 |
| Cash credit, overdraft, and loan payable | 164 | 182 |
| Term Loan | 7,914 | 5,833 |
| Total | 8,078 | 6,015 |
Advances comprise micro banking (JLG) loans, home loans, commercial vehicle loans, secured and unsecured business loans and financial intermediary group loans.
Fixed Assets
Fixed assets increased by 2.6% year-on-year to Rs. 168.8 crores as of March 31, 2024 from Rs. 164.5 crores as of March 31, 2023. This increase was due to the Banks continued investment in expanding its branch network and upgrading its infrastructure.
Capital and Liabilities
The Banks capital and liabilities stood at Rs. 12,377.7 crores as of March 31, 2024, as compared to 9,861.2 in FY23.
Summary of Key Financial Ratios
| Particulars | FY24 | FY23 | YoY |
| Yield on Gross Loan Portfolio | 20.2% | 19.3% | 88 bps |
| Cost of Deposits | 7.6% | 6.9% | 76 bps |
| Cost of Funds | 7.3% | 6.7% | 67 bps |
| NIM | 9.8% | 9.5% | 34 bps |
| CASA Ratio | 20.1% | 17.1% | 302 bps |
| GNPA Ratio | 2.8% | 3.1% | -30 bps |
| NNPA Ratio | 0.8% | 1.5% | -68 bps |
| Provision coverage Ratio (%) | 71.2% | 51.5% | +1,967 bps |
Corporate Governance
The Banks Board is firmly committed to maintaining the highest standards of corporate governance. The Board and the Bank management carries out a comprehensive review and evaluation of its principles for corporate governance and its implementation, as outlined in the Banks Corporate Governance Policy.
This policy establishes abroad framework of governance through the Board of Directors and the various Board Committees. The committees deal with specific matters and the terms of reference of each Committee is well-defined.
As at March 31, 2024, there were nine (9) Committees of the Board as listed below
| Sr. No. | Name of the Committee |
| 1 | Audit Committee of Board |
| 2 | Risk Management Committee of Board |
| 3 | Nomination and Remuneration Committee |
| 4 | Stakeholders Relationship Committee |
| 5 | Corporate Social Responsibility Committee |
| 6 | IT Strategy Committee |
| 7 | Customer Service Committee |
| 8 | Credit Committee of Board |
| 9 | Special Committee of Board for Monitoring & Follow- up of cases of Frauds and Review of Wilful Defaulters (SCBF & RWD) |
Human Resources
At Suryoday Small Finance Bank, we recognize that our greatest asset is our people. The Bank believes in fostering a growth centric approach towards building a smiling Suryoday Army. The Suryoday Army, one of the pillars contributing to the growth of the Bank, has been growing strong year-on-year to reach 7,440 as of March 31, 2024.
The Bank launched 6 "ROSHNI" branches – All women branch under in Tamil Nadu, Mumbai, Odisha and Karnataka. "ROSHNI" is a dedicated all-womens branch run by Women for addressing and fulfilling financial needs of our customers with a special focus on women clientele. This is aimed at creating a supportive and empowering banking environment, fostering gender inclusivity, enhancing customer experience, and promoting womens leadership in the financial sector.
Talent Valuation
We introduced industry-first long term highly rewarding program called "RISE" to empower employees in achieving their long-term goals. This takes the Bank a step further in enabling dreams.
We have gamified the target setting and achievement for the Retail Banking segment through our Suryoday Accelerator Programme (SAP) by introducing a balanced scorecard for the branches and employees. As the name suggests, it accelerates the growth trajectory of the high performing employees in the form of increased frequency of salary revision and becoming part of an exclusively curated Learning & Development programme.
Talent Engagement
The bank regularly conducts town halls across its branches to engage with the employees. These town halls are platforms for the employees to connect with each other as well as put forth their ideas / suggestions / recommendations. The bank has also organized family trips for 223 front line officers who have displayed exceptional performance and have been a long-term Suryoday employee. The objective was to strengthen the team bond and provide a platform where colleagues got to know each other and unite them.
Talent Development
Investing in the continuous learning and development of our employees is fundamental to our success and integral to our mission of delivering exceptional service to our clients.
The Bank carried out various orientation sessions and skill enhancement workshops which covers areas such as compliance, risk management, customer service, technical skills and soft skills. Under our flagship program – Suryoday Aarambh, we have an immersive Induction Program for the Campus to Corporate hires.
In response to the evolving digital landscape, we have implemented e-learning platforms that provide flexible and accessible training opportunities. Employees can engage in self-paced learning modules, learning tiles and virtual classrooms, allowing them to enhance their skills at their convenience. In the year gone by, the Bank has trained more than 6,900 unique employees on various functional & soft skills.
At Suryoday Small Finance Bank, we will continue to prioritize learning and development, ensuring that our employees are well-equipped to meet the challenges of today and tomorrow, driving our bank towards a successful future.
7,440
Employee Count
Information Technology
Technology features as the backbone of the banking system. Given the pace at which digitisation has been taking place, the need for strong technology has become a necessity. Further, there is continuous change in the technology requiring the banks to adapt quickly to the new requirements.
The bank has in the previous year undertaken a significant project to migrate to a new Core Banking System (CBS) which was completed at a swift pace. The Bank has also invested and continues to invest in middleware solutions. Middleware allows the bank to unify access to various back-end systems in the form of an understandable and publicly available API. The CBS migration to Finacle and the investments in middle ware have resulted increating our own infrastructure to be agile to the needs of the bank. With the CBS and the middleware in place, the bank is geared to integrate third-party apps / customer interfaces and fintechs partners.
The end-objective of the digitisation is to smoothen the process in-turn enhancing the customer experience. In this regard, the bank has during the year, transformed the Inclusive Finance loan process to a completely end-to-end digital process, making it paperless, thereby ensuring limited manual intervention and better customer experience.
The Bank has also centralised the credit underwriting process coupled with local credit validation. This has become possible by ensuring that there is seamless transmission of data which ensures that the credit evaluation process is independent as well as with reduced TAT. The Bank has also tied-up with account aggregator thereby ensuring that the bank is able to undertake complete analysis on the customers financial profile and banking.
The Bank has also developed in-house proprietary tools which enable verification of the government issued documents, thereby reducing the reliance on partners and other vendor apps. The initiative in respect of "Loanaccountnumber@suryoday" which allows the customer to send funds directly to the loan account has started seeing significant traction. The proportion of our Vikas Loan customers who pay through digital means has increased and reached ~ 50%. This has been achieved by building simpler IT tools which enhances customer experience and continuous customer awareness.
Another key initiative was the digital deposits sourcing journey. The Bank has been able to source deposits digitally without the need for the customer to visit the branch. This represents the set of customers who are tech savvy and are comfortable in banking digitally. The digital deposits sourced on a daily basis is ~ Rs 2 Crore, demonstrating an additional channel for sourcing deposits. This complements the traditional bank branches which were the original deposit sourcing channels. This also provides the banks the opportunity to tap the said customers to provide holistic banking services.
The bank has also successfully implemented TIBCO, renowned in the industry for its excellence, which facilitates faster and more secure communication between our internal and external systems. Our approach has been forward-thinking, deploying a scalable API infrastructure with dedicated teams to ensure seamless integrations and ongoing support. Given the impetus on data security, the bank has implemented Samsung Knox MDM solution as multi-layereddefence mechanism to protect sensitive data and ensure device security. Knox includes features such as data encryption, secure boot, and real-time malware protection. It provides us a secure environment for running and managing applications, as well as advanced management tools for enterprise use. It also helps us to safeguard both personal and business data against various threats.
In our commitment to leveraging technology to enhance customer service and operational efficiency, the bank has successfully implemented the Genesys Auto Dialer. This implementation was launched alongside our Voice and ChatBot solutions, represents a significant advancement in our call centre operations, enabling more efficient and personalized customer interactions. This has resulted in reducing the load on the call centre. There are a host of services which are available in the ChatBot and which provide the customer ease of access to specific information.
Corporate Social Responsibility
The bank remains committed towards the holistic development of communities and creating sustainable impact through its CSR endeavours. During the financial year 2023-24, Suryoday Foundation, the Banks CSR implementation partner implemented six programmes, covering61, 802 beneficiaries a cross various focus areas such as education, healthcare and livelihood development.
In addition to it, the Bank also collaborated with Rotary Club of Chennai for a preventive dental care programme. This programme involved a mobile van visiting all Chennai Municipal Schools to provide dental check-ups and treatment to students. In FY 2023-24, a total of 38,529 students were covered under this three-year programme, which commenced in FY 2022-23.
Credit Rating
The latest ratings for the Bank by the ICRA stated that the subordinate debt programme was ICRA A (stable), reaffirmed. The certificate of deposit programme was ICRA (A+) reaffirmed and the certificate of deposit programme was ICRA A+, reaffirmed and withdrawn.
The Internal Controls
The Bank has in place three lines of defence for ensuring adherence to Internal Controls:
1. Business – functions on the laid down Policies and Processes approved at the appropriate level of authority.
2. Risk and Compliance – Monitors compliance with the laid down policies and processes as per the regulatory framework and the Banks risk appetite.
3. Internal Audit – Overviews quality and effectiveness of the internal controls and their adherence by the first line of defence, their monitoring by the second line of defence. The internal audit process is based on the Risk based Audit approach prescribed by the regulator and duly approved by the Audit Committee of the Board. All the internal control functions work independently as per regulatory guidelines and report to the Audit Committee of the Board or the Risk Management Committee of the Board as applicable.
Cautionary Statement
This report and other statements - written and oral - that the Bank periodically makes contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. The Bank has tried, wherever possible, to identify such statements by using words such as ‘anticipate, ‘estimate, ‘expects, ‘will, ‘projects, ‘intends, ‘plans, ‘believes, and words of similar substance in connection with any discussion of future performance. The Bank cannot guarantee that these forward-looking statements will be realised, although we have attempted to be prudent in our assumptions. The achievements of results are subject to risks, uncertainties, and even inaccurate assumptions. Readers should keep this in mind that in the event known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. The Bank undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Risk Management:
Risk Management plays a crucial role in the Banks strategic planning, ensuring proper collaboration and non-biased decision making. The ability of the risk management to manage multiple risk types while preparing for new regulations and complying with current ones, makes it a valuable addition to financial institutions. Banks are exposed to various risks which broadly fall under one or more of the categories of Credit Risk, Market Risk, Liquidity Risk, Operational Risk and Information and Cyber Security Risk etc. The bank has adopted a structured approach for risk management to identify, assess, monitor, mitigate and manage risks through the effective use of people, processes, data and technology. The various modes by which Risk culture is promoted in the Bank are mandatory induction, refresher and Risk related workshops. The Risk Management Committee of the Board ("RMCB") is the Board committee, which is responsible for identifying, assessing, mitigatingrisks.TheChiefRiskOfficer(CRO)oftheBankisincharge of the risk management functions under the oversight of the RMCB. The bank has a robust framework for risk management in the form of regular review of products and processes by the Compliance team, periodic internal audit of processes and operations, regular review of risk policies and periodic reporting to the RMCB and the Board. Additionally, the Bank also has various Senior Management Level Risk Committees, such as Risk Management Committee of the Executives (RMCE), Asset Liability and Market Risk Committee (ALCO), Information Technology Strategy Committee (ITSC) and Information Security Steering Committee (ISSC).
A comprehensive market and liquidity risk dashboard is maintained by the Risk team, which comprises of all the relevant information related to investment portfolio, liquidity position, depositors and borrowing. The Bank has putin place Risk and Control Self-Assessment(RCSA) for all functions/departments to identify inherent and residual risks. These tools also help identify the design and effectiveness of the controls introduced. The outcome of RCSA activities has helped provide insights into known and potential Operational Risk areas in various processes and business lines.
In this digitalage, it is imperative that banks have robust Information Security protection mechanism in place. This is necessary, since the Banks deal with customer information and there is a need to ensure that the information is safe and protected. The Bank has put in place a robust risk management framework to identify, assess and manage information security risks and has made significant progress in enhancing its information security governance through monitoring. The Bank has also deployed a layered security defence to defend and protect information and assets. A Cyber security operation centre (CSOC) is in place which monitors alerts and anomalies 24x7 in the Banks perimeter and internal network and systems
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