1. One of the key themes of the 2007 World Economic Forum in Davos is driving growth. How does your bank propose to drive growth in the coming year?
India has emerged as one of the fastest-growing economies in the world, driven by a resurgence in corporate investment and continuing consumer-led growth. Our bank seeks to tap the growing opportunity in corporate banking while maintaining focus on leadership in the retail market, as well as in allied areas such as insurance management.
Expanding banking operations to the rural areas and tapping the vast potential of our large rural population forms a significant part of our growth strategy. With increasing global linkage of corporates in India and the growing Indian diaspora abroad, international banking operations are important to our growth strategy.
2. What are the main challenges facing the global economy in 2007 and how will your bank cope with them?
The main challenges facing the global economy are volatility in oil prices and the global commodity cycle and a rising interest rate environment. However, we believe that the momentum in economic growth will continue and the overall business environment will remain conducive towards growth. We are closely monitoring the growth, liquidity and inflation situation in India and the monetary policy stances in various domains.
3. These days a global bank’s brand is one of its key assets. Can you describe your bank’s approach to managing brand value?
We have made significant investments in creating a retail financial services brand since the late 1990s. We have positioned ourselves as a technology-enabled, customer-friendly provider of the full range of financial services. We leverage our brand across all our businesses, in banking, insurance and asset management.
We are among the two leading financial services brands in India and are now building our brand in identified target segments in the international market.
4. Climate change is now firmly on the mainstream political and business agenda. Can you tell us about any initiatives that your institution is taking on this or other environmental issues?
As a bank we address environmental issues in two key ways: firstly, through ensuring appropriate environment safeguards in all projects that we finance; and secondly, through channelling resources into projects aimed at reducing negative impact on the environment.
In our own operations, we focus on making our operating facilities environment-friendly through measures such as optimising energy utilisation.
5. Bank chairman and CEOs are natural optimists. What reasons do you have for being optimistic in 2007?
The Indian economy is on a high growth trajectory and growth is expected to remain strong in 2007. Corporate performance is strong and the investment cycle is under way. The Indian consumer market continues to provide opportunities for increasing penetration through wider distribution and new products.
