IDBI BANK LIMITED
ANNUAL REPORT 2011-2012
CHAIRMAN`S REPORT
Dear Shareholders,
On behalf of the Board of Directors and the Management Team of IDBI Bank, I
am very happy to present the Bank`s Annual Report for the Financial Year
2011-12.
The year just past has been a difficult year for the Indian Economy in
general and for the banking sector in particular. The turbulent global
economic conditions, induced by the economic crisis and recessionary
conditions in the European economy presented fresh challenges to the Indian
economy. On the domestic front, India was confronted with rising
inflationary pressures - to contain which the policy rate had to be hiked
several times. To add to the woes, there was a marked slowdown in the
industrial production driven by the subdued overseas demand for exports and
slow growth in new orders. The investment climate, which directly impinges
on the business of the banking sector, also remained subdued.
Notwithstanding these concerns, your Bank continued to perform well in FY
2011-12. Your Bank witnessed healthy growth in all its business and
profitability parameters during the last financial year including highest
ever profit achieved in FY 2012. Our belief in "Banking for All" has seen
us undertake various initiatives to expand our reach and presence across
the expanse of this great country, as also across the entire range of
banking products and services. The branch network of your Bank has
significantly expanded allowing us to serve more customers.
A number of awards and recognitions have been bestowed on your Bank in
cognizance of its achievements. Your Bank is currently one of the largest
banks in the country with a broad network of branches and ATMs. Even on the
technological front, your Bank has continued to keep pace with the changing
times and introduced several customer friendly initiatives in a bid to
serve our customers better.
Over the last few years, your Bank has undergone a number of structural and
organizational changes in its transformation from an apex DFI into a
universal commercial bank. A need for a new Vision and Mission Statement
was felt which would reflect the Bank`s commitment towards enhancing value
for all its stakeholders. The ethos is amply reflected by the new vision
statement of your Bank "To be the most preferred and trusted bank enhancing
value for all stakeholders". Accordingly, a new Mission Statement has been
crafted which delineates the strategic goals for translating the vision
into reality.
The credit for the growing business of your Bank goes to all my colleagues
across various verticals and functions, who have committed themselves to
deliver the best banking services to our customers, so that your Bank can
achieve its vision of being a financial conglomerate that provides one-stop
financial solutions and enhances value for all its stakeholders.
The outlook for growth of the Indian economy is indeed challenging owing to
the continued stress in advanced economies. However, India remains one of
the fastest growing economies in the world. For FY 2012-13, the main focus
for India is to return to the high growth trajectory through appropriate
policy changes to induce growth in various sectors of the economy,
especially the industrial sector.
In the coming year, your Bank aims to strategically optimise business
growth & profitability parameters to reflect improvement on overall basis.
The focus of the strategies would be on raising low cost deposits, boost
credit growth, enhance fee based income and minimize costs to enhance
profitability. Concerted efforts will be undertaken to achieve Priority
Sector Lending targets & sub targets. By enlarging our network and
exploring various branch banking alternatives, we will continue to focus on
financial inclusion. By exploring alternative sources and cross selling
opportunities, your Bank would look towards enhancing its fee income. On
the assets front, your Bank will adopt strategies to expand retail
portfolio, while maintaining prominent position in corporate &
infrastructure financing. Further, the focus would continue on improving
asset quality to control fresh slippages & higher recoveries. The
operational strategies would be adequately backed by the policy strategies
to ensure the objectives are met in a rapid and sustainable manner.
It has been possible for your Bank to attain this stature owing to your
continued support and loyalty. We look forward to continuing this treasured
relationship with you in our journey towards a better tomorrow.
With best wishes to you and your families,
Yours sincerely,
Mumbai R.M. Malla
21 April, 2012 Chairman & Managing Director |