Message from the Chairman
Global economic growth in FY2019 was powered by emerging markets as the large advanced economies witnessed subdued economic activity. Fiscal stimuli helped the US economy expand as tax cuts and spending hikes gave a fillip to demand, somewhat negating the effect of the increasingly protectionist rhetoric on trade. Slower export growth as well as political and industrial uncertainties impacted growth in the Euro region. Asia and the Pacific region continued to stay ahead of the curve as among the world''s fastest growing regions.
The Indian economy faced headwinds in the form of declining growth of private consumption, tepid increase in fixed investment and muted exports. On the brighter side, inflation was under check in FY2019, mainly driven by lower food prices, and comfortable Current Account Deficit position. India''s GDP expanded by 6.8% in FY2019. Recovery of investment and consumption, a favorable monetary policy, and fiscal policy impetus are expected to aid growth in the coming years, with IMF World Economic Outlook report projecting India''s growth at 7.3% in CY2019 and 7.5% in CY2020.
The Indian equity capital market was muted in FY2019 due to various reasons like FPI outflow for much of the year, continued pressure on mid-caps, drying out of fresh public issuances in the second half of the year, and the NBFC liquidity crisis. However, despite the regulatory changes implemented during the year, Mutual Funds continued to benefit from the growing investor interest in this financial savings instrument, and closed the year with 11.41% rise in total Assets under Management (''AUM'').
Your Company plays a key role in meeting life cycle needs of individuals as well as corporate. We are a bridge between those seeking capital (corporate, government etc.) and those having capital to deploy (retail, HNIs, FIs etc.).
India offers tremendous opportunity as we are in the midst of a structural shift under which household savings are shifting from physical assets like gold and property to financial assets like bank FDs, MFs and direct equity. There is a growing realization that equity exposure - direct or managed - is essential for long-term wealth creation.
As a one stop financial supermarket, your Company serves the entire life cycle needs of an individual by meeting their savings & investment as well as protection needs. Our award-winning trading platform icicidirect.com follows an open architecture model for investment products, backed by research, thereby helping customers make informed investment choices.
With growing GDP, there are increased institutional activities as companies either raise capital or merge or demerge businesses. This bodes well for our Corporate Finance business, as we have over the years, built a strong franchise and enjoy deep relationship with both, buy side as well as sell side stakeholders.
As a consumer-centric organization, while we are proud of our legacy; we do not rest on our laurels. We continue to invest in people, processes, and technology towards greater stakeholder value creation. Going forward, digitization is our clear focus area as we reorient our entire delivery strategy to make it more customer centric and seamless. Your Company is evaluating deployment of cutting edge initiatives like artificial intelligence, advanced analytics and machine learning to constantly improve customer experience.
On the CSR and sustainability side, we actively work with the communities to promote financial literacy, entrepreneurship, and skill development. We constantly evaluate our programmes to improve their efficacy in delivering a better impact to the society.
I would like to take this opportunity to thank all of you
- and our customers, partners, associates, employees, communities, and the regulators - for your continued support and trust in our long-term story as we complete one year of being a publicly listed Company and continue forward on this exciting path. Let me take this opportunity to also welcome Vijay Chandok as the new Managing Director & CEO of the Company, and wish him the best in his new journey.
With best wishes,
Vinod Kumar Dhall