Operator: Ladies and gentlemen, good evening, and welcome to the Axis Bank Conference Call to discuss the Q4 and Annual Results FY ‘13. As a reminder, all participants will be in the listen only mode. Please note that this conference is being recorded. Participation in the conference call is by invitation only. Axis Bank reserves the right to block access to any person to whom an invitation is not sent. Unauthorized dissemination of the contents or the proceedings of the call is strictly prohibited, and prior explicit permission and written approval of Axis Bank is imperative.
The Axis Bank team is represented by Mr. Somnath Sengupta, Executive Director and Head Corporate Center; Mr. V. Srinivasan, Executive Director and Head, Corporate Banking; and Mr. Sanjeev Kumar Gupta, President and CFO.
There will be an opportunity for you to ask questions at the end of today’s presentation. On behalf of Axis Bank, I once again welcome all the participants to the Axis Bank conference call. I’d now like to hand the conference over to Mr. Somnath Sengupta, Executive Director and Head Corporate Center, Axis Bank to begin the presentation.
Over to you Mr. Sengupta.
Somnath Sengupta - Executive Director, Corporate Center: Thank you, and good evening, ladies and gentlemen. I welcome you to our conference call with a presentation on the Bank's performance in the fourth quarter and for the financial year ended 31 March 2013. I have with me, as you have just heard, my colleagues, Mr. V. Srinivasan and Mr. Sanjeev Gupta, and at the end of this presentation we will be glad to respond to your questions.
Growth continues to be weak and during 2012-13, India’s GDP growth fell to 5% from 6.2%, the lowest since FY 2004.
Tightening of monetary policies, slowing investments in the industrial sector, altering consumption demand, and stubbornly high inflation have not helped create conditions conducive for growth. The softening in headline and core inflation growth seen in the last month, however, has raised hopes that steps will be taken towards the easing of monetary policy.
Wide range in reforms have been announced by the government aimed at encouraging investments, both domestic and foreign, in different sectors of the economy. Fuel and LPG prices have been raised to curb fiscal deficit, and the government is also taking steps to remove bottlenecks in the implementation of projects, encouraging investments in the infrastructure sector.
These measures are expected to boost capital investments. The markets have reacted favorably to the announcements, leading to a strengthening of the rupee against the dollar on the back of increased inflows.
The reforms announced by the government underpinned by its commitment to fiscal discipline the dip in inflationary trends and softening commodity prices, reducing pressure on the current account deficit bode well for the economic health of the country in the medium to long term.
As on 22 March 2013, total deposits and advances in the banking system have both grown only at 14% y-o-y, respectively. In such a backdrop, we believe that the Bank has performed well.