Management Discussion and Analysis

Strategic Imperatives


Value Creation and Capital Formation

This integrated report shows the value we have created to date for the benefit of our stakeholders. This is reflected in the different types of capital described below and, more importantly, in our continued ability to generate value from these capitals over the short, medium and long term.

The use of a “multi-capital” model to conceptualise an organisation's value creation process is one of Integrated Reporting’s fundamental principles. The Bank is better able to capture and disclose a wide range of information about the duality of the value creation process by considering value creation beyond just financial value. These factors are intimately connected since the Bank's capacity to generate wealth for its stakeholders and for itself is intricately intertwined. The greater the value the Bank provides for its stakeholders, the greater the value it can receive from its stakeholders in return. Delivering value basically means creating financial and non-financial value for stakeholders such as investors, customers, employees, business partners, government institutions and regulators, society and the environment, and so on. This will drive the Bank’s future earnings and allow it to create value for itself.

Financial capital, Manufactured capital, Intellectual capital, Human capital, Social and relationship capital, and Natural capital are the products of this process. The Bank is driven to sustainably create value into the future by these capitals.

This duality of the process of value creation is depicted in Figure 10 above.

The six capitals in the Statement of Capital Position in the section on Statement of capital position provide a snapshot of the value the Bank has been able to create over the past 103 years. The Bank’s future expansion and capacity to generate value will be fueled by these robust capitals, which are unmatched among private sector banks.

However, the reader will notice that this Management Discussion and Analysis is structured on the three pillars of the Bank’s Sustainability Framework: Sustainable Banking, Responsible Organisation and Community Sustainability (refer the four Strategic Imperatives: Prudent Growth, Leading through Innovation, Customer Centricity, and Operational Excellence (refer Figure 11). The Bank addresses its sustainability pillars and strategic imperatives by executing certain strategic actions (commonly referred to as value driver activities on the Business Model) to grow its stock of capitals and create value. The growth in capitals that is depicted in the Statement of Capital Position is the result of these strategic actions as well as the interactions, relationships, and interconnectivities that are created as a result of them. As a result, besides showing how the Bank created value during the year under review, we believe that this structure which reports on the Bank’s plans to create value in the short, medium, and long terms, complements the multi-capital model.


Figure - 11

Strategic actions
  • Creating long-term value by keeping the interests of all stakeholders at heart for sustainable value creation
  • Focusing on pure banking by remaining true to our original ideals of being a banker first and foremost
  • Managing risks prudently by strengthening risk governance and management to enhance asset quality and minimise operational losses
  • Remaining well capitalised and liquid by maintaining sound capital and optimum liquidity in the spirit of their requirements
  • Being well diversified by minimising concentration into any particular geography, customer, product, sector or currency
  • Making responsible investments by financing Green projects and employing a Social and Environmental Management System to assess sustainability in all lending activities

Prudent growth

Growing the business astutely with a long-term perspective

Strategic actions
  • Growing corporate customer base by being a trusted partner and providing better business solutions
  • Remaining relevant to mass market customers by offering a seamlessly integrated omnichannel banking experience
  • Augmenting SME customer value proposition by providing greater opportunities for growth through networking and education
  • Strengthening ties with micro customers by driving responsible lending and financial inclusion through closer interaction
  • Enhancing focus on high networth customers by driving stronger relationships and greater engagement
  • Supporting the community by investing in innovative solutions for the well-being of both existing and potential customers

Customer centricity

Providing the experience, simplicity, and convenience that customers value most today


Activities leading to value creation are detailed under the four strategic imperatives in the section on Sustainable banking – Value creation

Stakeholders to whom value was delivered and from whom value was derived




Business partners

Government institutions and regulators

Society and environment

Capitals in which the outcome is reflected

Financial Capital

Manufactured Capital

Intellectual Capital

Human Capital

Social and Network Capital

Natural Capital

Innovating to enhance the quality of stakeholder interactions and experience

Leading through innovation

Strategic actions
  • Fortifying digital leadership by leveraging platforms and technologies to align with changing customer aspirations
  • Creating complete digital banking platforms integrated with all system networks and eco-systems to provide a one-stop-shop experience for customers across all segments
  • Increasing the proportion of digital usage by facilitating and encouraging digital transactions and interactions
  • Segmenting customers through data analytics to identify and serve unique banking needs and deliver personalised user experiences
  • Redesigning conventional banking processes as digital processes to create end-to-end digital solutions

Enhancing operational efficiencies for better productivity and customer service

Operational excellence

Strategic actions
  • Centralising work processes to enable branches concentrate more on business development and managing customer relationships
  • Re-engineering business processes to deploy technological advancements for meeting changing business needs and service standards
  • Optimising resources by maintaining an optimum mix of CAPEX and OPEX models
  • Investing in employees to better align them with the changing needs and to improve productivity
  • Safeguarding the environment by continuously reducing our carbon footprint to contribute to the fight against climate change