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
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
Remaining well capitalised and liquid by maintaining
sound capital and optimum liquidity in the spirit of their
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
Growing the business astutely with a long-term perspective
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
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
Providing the experience, simplicity, and
convenience that customers value most today