PEL prioritises nurturing a robust governance culture within the organisation, anchored in the core values, and reinforced by transparent policies and procedures governing decision-making, risk mitigation, and performance oversight. This dedication extends to fostering ethical behaviour and integrity among our leaders and staff, maintaining transparency through consistent and accurate reporting, and actively involving stakeholders to solicit feedback and address their needs. Our overarching objective is to cultivate a culture of accountability and trust as we endeavour to realise our mission of empowering and safeguarding India’s prosperity and aspirations.
Amongst other functions, to bolster corporate governance, a Sustainability and Risk Management Committee has been established to supervise the enforcement of rigorous controls and protocols, drive the transition toward a more sustainable economy, and promote the uptake of technological innovations.
PEL has instituted an ESG (Environmental, Social and Governance) framework governed by the Sustainability and Risk Management Committee. This Committee convenes meeting at regular intervals to provide guidance, assess advancements toward sustainability objectives and benchmarks and enact initiatives, while monitoring data and key performance indicators (KPIs). Our ESG governance structure underscores the company’s dedication to transparency, ethical practices, and accountability in ESG deliberations.
PEL’s Board is committed to steering the Company’s vision, shaping policies, and achieving strategic objectives, while ensuring alignment with the principle of ‘Doing Well and Doing Good.’ The Board places significant importance on diversity among its members and embraces its responsibility as the custodian of the Company. By harnessing diverse perspectives, backgrounds, expertise, gender, and cultural insights, the Board strives to sustain its competitive edge and position itself as a pioneering entity. As of March 31, 2024, PEL boasts a 36% gender diversity on the Board.
PEL maintains an independent and dedicated Enterprise Risk Management (ERM) system aimed at identifying, managing, and mitigating business risks. Moreover, PEL conscientiously addresses environmental, social, and governance-related risks to ensure a sustained positive impact for stakeholders over the long term.
The Company has ingrained risk management, internal controls, and assurance processes into its operations. The ERM framework is structured around the core principles of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) framework.
The Risk Management Group (RMG) utilises internal models to assess credit, market, and concentration risks associated with its investments and loans. Based on its evaluations, the RMG proposes strategies to mitigate these risks. PEL has established enterprise-wide lending limits and delegated authority to manage transaction and portfolio-level exposures. Additionally, the Company has implemented approval matrices for transaction-level decisions.
PEL is dedicated to upholding its culture of integrity and transparency through continual enhancements to its governance practices, which encompass policies and procedures.
The Company has embraced a robust Code of Conduct to ensure that business operations are conducted openly and transparently, fostering trust and confidence. Additionally, PEL adheres to a Fair Practice Code that underscores its commitment to ethical, equitable and transparent business practices, fostering a customer-centric relationship.
Furthermore, PEL has implemented various policies, including:
At PEL, we recognise the critical importance of protecting personal information and ensuring cybersecurity in an increasingly digital world. With this understanding, we have embedded data privacy and cybersecurity measures into the core of our operations. Our approach begins with a comprehensive Information Security Governance Programme, which forms the foundation of our IT security policies and procedures.
Through this programme, we systematically identify and mitigate governance risks, continually reviewing and enhancing our strategies to stay ahead of evolving threats. Central to our commitment is transparency with our customers. We have crafted an accessible privacy policy that outlines how individuals can exercise their rights regarding their personal data, including access, correction, and deletion.
While digital transformation has brought numerous benefits, it has also introduced new cyber risks. We responded to this by implementing a robust cybersecurity framework that encompasses Policies and Procedures, Risk Management, Security Controls, Compliance and Governance, Awareness, and Incident Response. Investments in advanced technologies such as Advanced Threat Detection and Prevention, Security Analytics, and Cloud Security fortify our defences against sophisticated cyber threats. Moreover, our Third-Party Risk Management ensures that our partnerships uphold the same rigorous cybersecurity standards.
Our commitment to cybersecurity extends beyond technological solutions. We prioritise employee awareness through gamified online training, phishing assessments, and regular communication channels. We are pleased to announce that all our employees have now completed the gamified online training, a testament to our dedication to cultivating a cybersecurity-conscious culture.
In embracing this comprehensive approach, we not only safeguard our organisation and stakeholders against cyber threats, but also uphold the trust and confidence placed in us. Our ongoing commitment to proactive risk management and continuous improvement ensures that we remain vigilant in the face of evolving cyber challenges.
In the ever-evolving landscape of banking and finance, our journey of digital transformation continues to unfold, guided by a relentless pursuit of innovation and customer-centricity.
Last year, we embarked on a transformative path, laying the groundwork for digitisation across our lending operations. Our technology team spearheaded various initiatives, from automating manual tasks with Robotic Process Automation to scaling our Loan Origination Platform for new product lines. The establishment of an in-house software development team in Bengaluru marked a significant milestone, enabling us to build digital products tailored to our customers’ needs.
Building upon these foundations, this year our focus has shifted towards the realm of Artificial Intelligence and Machine Learning. These cutting-edge technologies hold the promise of revolutionising the way we understand risk, personalise customer experiences, and drive operational efficiency. By investing in AI-based underwriting and fraud detection models, we are not only enhancing the accuracy of our lending decisions, but also ensuring greater financial inclusivity for a broader segment of the population.
Yet, our quest for innovation does not stop there. We are venturing into uncharted territories with Generative AI, exploring its potential to create dynamic and personalised financial solutions. From designing bespoke loan products to crafting targeted marketing campaigns, Generative AI empowers us to push the boundaries of creativity and deliver unparalleled value to our customers.
At the heart of our digitalisation journey lies the power of data. By harnessing advanced data analytics techniques, we are gaining deeper insights into customer behaviour, market trends, and operational performance. Armed with these insights, we can make informed decisions, identify new opportunities, and optimise our strategies for sustainable growth.
Looking ahead, our sights are set on building engagement products that resonate with our customers in the rapidly evolving fintech landscape. Collaborating with fintech partners and leveraging emerging technologies, we aim to deliver innovative solutions that empower our customers on their financial journey.
In conclusion, our commitment to digitalisation is not merely about adopting modern technologies – it is about embracing a culture of innovation and agility that enables us to adapt and thrive in a rapidly changing world. As we continue to harness the power of AI, ML, Generative AI, and Data Analytics, we are not just shaping the future of finance, we are redefining what is possible and unlocking new opportunities for our customers and stakeholders alike.
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