BUSINESS MODEL

Strategic Direction

Backed by a strong balance sheet and a dynamic and capable team, the Bank is well poised to play a leading role in supporting the national vision and the emerging scenario in the banking sector.

The Bank has in place a very clear strategy spanning the medium and the long term, which well aligns the Bank’s vision, mission and values in to one nexus. This strategy spans across 2014 to 2018 and has been developed in consultation with the management and the Board of Directors. Thus, this strategy well encapsulates the thoughts and opinions of the very people who will be driving and actualising this strategy. The Bank remains strongly committed to an exemplary corporate governance regime and the propagation of a truly sustainable business model that nurtures and delivers value to all its stakeholders.

The Bank has defined clear and ambitious growth targets in the five year strategy covering key areas of market share, maximising sustainable profits, effective cost management, balance sheet growth, return on assets, return on equity, asset quality and a strong capital base. The articulation of this strategy is not devoid of the national growth prospects and economic conditions. We have well taken into consideration the direction and the momentum of the national economic development that the country aspires to achieve. Strengthening of the SME and micro business sectors embedded within a rural centric development strategy, per capita income target of USD 4,000 by year 2016, construction, power and tourism industry resurgence are few such national development priorities that we have captured in our business strategy.

The projected growth in the Banking Industry will be stimulated by the large business opportunities arising via the South Asian Economic Hub concept discussed earlier. The Group, as a financial conglomerate has inimitable in house expertise in all of these key areas and is well prepared with their five year strategy to efficiently grasp and execute on these new developments as they unfold.

The Strategic Approach

In realising the above strategy, the Bank has identified seven pillars of strategic execution backed by a strong Corporate Governance framework and staying committed to Corporate Social Responsibility.

The seven pillars of strategy execution

• Profitable balance sheet growth
  Aggressive broadening of the asset base through new products; exploring untapped markets coupled with optimum management of net interest margins and share of fee income; efficient allocation of resources.
• Operational excellence
  Focusing on customers’ needs; keeping employees energized and empowered; continuous improvement of systems and procedures to achieve greater efficiency and effectiveness.
• Strong sales culture
  Identifying and optimizing customer value creation; capitalizing on cross selling opportunities.
• Growth in fee-based income
  Seeking opportunities for cross selling within the Group and additional services such as consultancy, legal and custodial services through a linked platform across the Group.
• Cost optimization
  Balancing costs and benefits without compromising on the brand value of the Bank.
• Best in class, engaged and inspired team
  Focusing on delivering on business goals through people programmes, plans and initiatives; having an efficient and agile structure with an appropriate mix of skills, technical knowledge and analytical capability coupled with a streamlined work processes to enable flawless administration and execution.
• Exemplary governance, transparency and compliance
  Identifying and managing the various types of risks faced; cultivating an ethical culture throughout the organization while ensuring compliance with all applicable laws, regulations and standards.