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Executive Vice President’s MessageDear Colleagues,We are into the fourth quarter of the financial year 2015-16, which meanshardly any time is left in the year for us to undertake a detailed exerciseto review our key areas of performance. While it is incumbent toshow improvement in all areas of performance, I take this opportunity torequest all the readers to channelize your energies and focus attentionon the growth of our credit portfolio while ensuring that there is nodeterioration in the asset quality.Over the last 2-3 years the bank has witnessed a regular accretion in itsnon-performing loans which needs to be arrested at the earliest. All ofus are aware of the consequences of high level of NPAs . While we areunable to recognize the income from such loans we need to makeprogressive provisions which are a drag on the P& L account of thebank. On top of it, on such non-productive assets, capital charge is alsorequired to be maintained. I therefore consider the increasing NPAs asa menace which all of you will appreciate and strategize to tackle. Ourmission is to reduce the NPAs as much as possible before the year end.Toning up of Credit Administration is the key word for achieving theabove goal. I will keenly watch the performance of all branches in thisregard.With best wishes.G.SivakumarExecutive Vice President (Credit)Mr. G Sivakumar has been appointed as Executive Vice President – Credit. He will head Credit and Legal Departments. He has over 35 Years ofExperience in Domestic and International Banking in India and Abroad. Before joining South Indian Bank, he was the General Manager and Head ofPrivate Equity Vertical in State Bank of India where he was responsible for Private Equity and Venture Capital Investments made by the Bank. He hasalso served as Head of Project Finance - South and Head of Corporate Banking and Trade Finance Department in Bahrain for State Bank of India. Hewas also a nominee director on the Board of Directors of Bill Desk, SBI Macquaire Infrastructure Trustee private limited, Oman Indian joint InvestmentFund and CSIR Tech Pvt Ltd and Investment Committee of more than ten Alternative Investment Funds. Mr.Sivakumar is a postgraduate anduniversity rank holder. He is also a Certified Associate of Indian Institute of Bankers and holds Masters Degree in Business Administration.7

Executive Vice Presidents MessageWish all SIBians a veryHappy and ProsperousNew YearDear Colleagues,I am extremely happy to note that we are coming out with the nextedition of our corporate family magazine-SIBLINK. I am sure that suchinitiatives will definitely inculcate a belongingness and involvementamong all Sibians in the spectrum of development of our bank andespecially themselves. It is indeed a pleasure for me that I have unitedto an aristocratic fabulous cultural family- SIB- in existence for morethan eight decades.Being our vision ‘Retail Banking Power House’ by 2020 and our dreamof achieving Top line - 1 lac crore during this financial year, let us worktogether to cherish our dreams. We have all the infrastructure in placeBest technology, Excellent products, Marketing Capability and also youngenergetic skilled and committed Human Capital. I am proud to say thatour bank is marching ahead in all areas and I am sure that we Sibianscan conquer greater heights in the days to come.K.N.ReghunathanExecutive Vice President (Treasury)Mr. Reghunathan has got 24 years experience in Treasury operations both domestic and foreign. Before joining SIB, he was associated with UnionBank of India and was the General Manager of Treasury and International Banking Division which covers 3 Overseas branches (Hongkong, Dubai andBelgium), 1 overseas subsidiary (London) and 4 representative officers (2 in China, 1 in Sydney and 1 in Abudhabi). He was the banks nominee on theBoard of FIMMDA and SBI Global Factors and Member of the Advisory Committee of Metropolitan Stock Exchange of India, IDFC Investment Fund,TATA Growth Fund, TATA Innovative Fund, India Advantage Fund I & II. Mr. Reghunathan is a commerce graduate and a Certified Associate of IndianInstitute of Bankers and has got over 37 years of banking experience.8

Digital Banking: Enhancing Customer ExperienceIntroduction:The banking industry’s efforts to shift to digitalchannels have been halting, at best — abusiness unit here, an upstart departmentthere. But given the industry’s financialpressures and global economic uncertainties,there is increased urgency — and opportunity— to adopt a holistic approach to going digitaland integrating that strategy across thebanking ecosystem. Embracing a fully digitalstrategy requires end-to-end modernization ofa bank’s often outdated infrastructure. Equallyimportant, it requires a transition from anaccount-based view of banking customers toone that knows them as individuals andenhances the customer experience withrelevant, convenient and personalized productsand services.“Digital modernization gives traditional banks asecond chance.A smart, enterprise-wide approachpositions them to deepen customer satisfactionand loyalty, driving long-term relationships andprofitability”.Digital modernizationDigital modernization gives traditional banksa second chance. A smart, enterprise-wideapproach positions them to deepen customersatisfaction and loyalty, driving long-termrelationships and prof itability. Such anapproach also has the potential to meetconsumers’ expectations and bring bankingback to the bank.Arun GopalanAsst. ManagerPlanning &DevelopmentThe following elements form a clear model ofsuccess for banks: Smart management of information is vitalto digital banking. Banks need to marshalonline data — the unique virtual identityfor each individual that we call a Code Halo— to offer their customers personalizedattention. We need to act, but more important, weneed to act strategically. Providing thecohesive, cross-channel experience thatcustomers expect requires an enterprisewide approach that can be implementedin localized ways, such as for specific linesof business and functional areas. Although the ROI of digital banking issubstantial, the costs are steep for notadopting digital banking. Costs include lostopportunity, customer attrition andstagnation in new-customer growth andproduct sales. Embracing the holistic shift to digital andits streamlined, cross-channel approachrequires banks to evaluate their optionscarefully and select the ones that best fittheir strategy. An enterprise roadmap is a key prerequisitefor implementing a digital bankingprogram. The roadmap balances keycustomer values (loyalty, convenience,relevance, interaction and mobility) againstthe bank’s values (profitability, loyalty,operating efficiency, market expansion andrisk mitigation).Strong financial products and services are stillessential. But smart management of digitalinformation — the Code Halos — holds thepotential to deepen customer relationships andgenerate new revenue streams.Customers are the FocusRegardless of their size, profitability and growthdemand that banks focus on serving customersat the right time, with the right level of serviceand at the right cost. Several factors are drivingthis customer focus. Number one, today’scustomers expect personalized pricing andportfolio mixes. Banks that can’t deliver willsuffer reduced profitability. While banks, bydefault, sell every product to every customer,digital banking allows customization, providingthe data and analytics capabilities needed toexamine each customer’s profitability and offerindividual-ized or segmented products andpricing.Second, churn is occurring more frequently thanever. Many customers choose — and switch —banks based on convenience and quality ofservice rather than on product and servicefeatures. In some countries, governmentregulations are encouraging additional churn.Digital Banking’s Return on InvestmentWhat is the ROI of digital banking? It’s thecombination of lower channel costs, plusincreased revenue for the benefit period, minusthe cost of deployment amortized over itsuseful life, multiplied by the internal cost offunds for that period.Beware, however, that there is no benefit untildigital adoption is achieved at scale. The benefitdrivers include digital self-service, churnreduction and new customer and productacquisition. This reality must be taken intoaccount for ROI analysis, along with the cost ofany marketing, loyalty program or other pricingbenefit used to encourage digital adoption.What can banks do to improve their competitiveposition in today’s evolving financial servicesmarketplace?To begin with, they should address these9

nontraditional rivals, are compelling banks toconsider how they can create a seamless,flexible customer experience both within thebranch and in the digital world. By buildingstrategy based on the customer’s point of view,rallying people and resources around thestrategy, and making necessary upgrades intechnology deployment and data usage, bankscan strengthen their position in what promisesto be a demanding, competitive industry future.priorities related to strategy, people, technologyand data. In setting digital strategy, it’s essentialto start from the customer’s viewpoint andexperience and work back to the bank. This isa departure from the traditional approach ofstarting with banking channels, working outto the customer and trying to figure out howto unify the channels. Customer segmentationis a core consideration in setting strategy. Thisinvolves looking at the distinct experiences ofcustomers and prospects as well as differingexpectations among various customer groups.Change the internal cultureA major hurdle many banks face internally inimplementing digital channels is political. Thepeople managing branches, sales andtransactions may see digital channels as athreat (when, in fact, digital is simply anotherchannel that complements traditionalchannels).To overcome this misconception,senior management can create and championa culture in which customer experience is thefocus. Establishing a “chief customer experienceofficer” role can be a key step in overcomingorganizational barriers to channel integration.Deploy needed technologyFirst-generation digital banking applicationsare nearing the end of life and in need ofrefreshing. Providing a seamless customerexperience will require redesign,reconfiguration and upgrading of bank IT fromthe customer interface to back-end systems.Banks will need to decide how much to rely oninternal systems vs. service providers.Technology providers are approaching banks’needs in one of two ways, either a) offering aflexible user interface (UI) that banks cancustomize to an extent for look and feel, or b)10ceding ownership of the full UI to the bank,which brings it in house and manages it.Banks may overlook valuable customer datasources in the day-to-day rush to keep theinstitution running and keep up withcompetitors. As they rely on focus groups,usability labs and one-on-one interviews togather information on customer needs andattitudes, they may be underutilizing onlineanalytics to track consumer behaviors andunderstand trends. That’s a missed opportunity,as key insights from such data can provide thefoundation for testing new products, servicesand marketingprograms.Digital Banking Enterprise RoadmapPositioning for the futureRising customer expectations, coupled withgrowing competition from traditional andLooking ForwardEmbracing a fully digital strategy requires banksto modernize end-to-end, and to adopt acustomer-centric approach.Here are five steps that can help banks ensurethat their move to digital banking will result ingreater customer satisfaction and long-termprofitability.1. Manage — and master — the informationthat’s vital to digital banking. For banks tocreate new sources of value, they need tounderstand the data that makes up theircustomers’ Code Halos, each individual’sunique virtual identity.2. Act strategically. Providing a cohesive,cross-channel experience requires anenterprise-wide approach.3. Calculate the cost of not adopting digitalbanking: Lost opportunity, customerattrition, and stagnation in new-customergrowth and product sales.4. Evaluate options carefully. Digital bankingisn’t one-size-fits-all. Banks need to selectthe options that best fit their organizationand strategy.5. Create an enterprise roadmap. A roadmapis a key prerequisite for implementing adigital banking program.

DIGITAL MARKETING- Banking technology“Marketing is building your brand, convincingpeople that your brand (meaning your product/service/company) is the best and protecting therelationships you build with your customers.”- Marjorie Clayman, Clayman Advertising, Inc.The marketing holds the key of success of aproduct/service even if the product is good ornot. The marketing strategy adopted by acompany could even convert the perception ofthe customers on a particular brand.For E.g.; the negative perception of customerson the usage of sunflower oil has now changeddue to“Healthy” promotional strategy.Ponnu ThomasRelationship OfficerHO Marketing Dept.Let’s take TV and Online media,phone / Radio/TV/Large supply of books /Computer with InternetThis survey was done by one of the leadingglobal market research company IPSOS and theresult was so interesting.Successful marketing is recognized at theprecise moment when your targeted consumerfeels so strongly about your company, theyintegrate you into them.In today’s socially networked world, theconversation between a company and acustomer is being intermediated by digitalportals and word of mouth referrals.Traditional marketers will have to work harderto get ahead of and to influence this trend. Herecomes the importance of digital marketing.Digital MarketingBefore getting into details let us look into thecurrent scenario:The growth of internet usage in India isattracting the focus of global brands, as wellas changing the way national firms marketthemselves. These changes have been fast andto reach up the market and the professionalaudiences today, the internet has to be a corepart of the strategy.Here is a question for you:If you had to live on a deserted island and couldtake only one of the following with you, whichwould you take?Options are:Newspaper subscription / Cellmigrated completely into the digital world theystill rely on the traditional methods in the casesthey feel uncomfortable. So the companies areadopting a synergy pattern of promotion as themarketing spend is little bit higher in the caseof digital marketing. So they start withconventional method and when marketingeffect become stationary, they boost up it usingonline marketing.Base 1,000 online households Source: IPSOS U.S.(Market research company)I think, now I don’t need to explain “ Why digitalMarketing”.Marketing that makes use of electronic devicessuch as computers, mobile devices, digitalbillboards, and game consoles to engage withconsumers and other business partners isDigital marketing,and Internet Marketing is amajor component of Digital marketing. Majormodes of digital marketing have beencategorized into content marketing, socialmedia, search engine optimization, emailmarketing and link buildingImplementation: Most of the leading companiesare now into Digital marketing as they coulduse their database to project their prospectcustomer from the budding stage and therebymarket right product to the right customer atthe right time.E.g. we can see personalized ads/text message/e-mails based on our browsing history. This isthe most effective promotional strategy havinghuge conversion rate.Whether traditional marketing is outdated?The traditional marketing methods are notoutdated as majority of the customers haven’tDigital Marketing Overview: BankingtechnologyThe emerging tech-savvy generation will notdial or visit branches for services and queries.With the implementation of services andtechnology, which provides personalizedsolution, will ultimately delight the customerand will increase customer retention andacquisition. The “Relevant and tailor-made”services/products will provide us a competitiveadvantage over the peer banks. It will alsoprovide an easy and convenient bankingexperience for the customers who are the majorpromoters of any organization.This is applicable in the case of marketing also.Adaptation of the ongoing trend in digitalmarketing is unavoidable to obtain newbusiness.“Every morning in Africa, a gazelle wakes up. Itknows it must run faster than the fastest lionor it will be killed. Every morning a lion wakesup. It knows it must outrun the slowest gazelleor it will starve to death. It doesn’t matterwhether you’re a lion or gazelle. When the suncomes up, you’d better be running.”As the above mentioned saying proclaims, if anorganization want to move strong among thepeer ones, they need to be always ready to runforward with technology.Now with the help of technology, theorganization could get genuine leads usingcustomer profiling for the sale of products andthereby increase the business and customer11

satisfaction.E.g.: Customer A started a Minor account witha bank. With the effective utilization of CRM,we could follow the customer and couldidentify him when he became eligible forprivilege accounts, other technical and thirdparty products. Thus we could send himrelevant and tailor made services according tohis requirements and preferences and eachstage of life.Say, when he became 18, we could send himpromotions and offers regarding educationalloan. If he is in the age 30-40, we could startpushing our housing / other loan schemes ordeposits or demat. When he reaches 40-45, wecould retarget him for health/life insurance etc.This could to done digitally by placing adsthrough Mobile banking / internet bankingscreens, e-mails, advertisements.Let us overview Digital marketing tools inbanking perspective:Content Marketing:One of the most frequentlyusing buzzwords in digital marketing, contentmarketing, is essentially storytelling for yourbrand. “Content” can be virtually anything witha clear message: a series of attention-grabbingimages, videos, blog posts, or news items onthe latest technological product updation orservices. Primarily this can be done by effectiveup to date modification of website which

OD against Property and Gold Loans. On the liability side, particular focus should be laid on CASA and NRI deposits, specially NRI-CASA. We are on the threshold of a major milestone. If all of us work concertedly, we can achieve the Rs.1.00 lac crore total business level this Financial Year itself. I call upon each SIBian to work for this dream .