IDBI was set up under an Act of Parliament as a wholly-owned subsidiary of Reserve Bank of India in July 1964.

In February 1976, the ownership of IDBI was transferred to Government of India. In January 1992, IDBI accessed domestic retail debt market for the first time with innovative Deep Discount Bonds and registered path-breaking success. In December 1993, IDBI set up IDBI Capital Market Services Ltd. as a wholly-owned subsidiary to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services. In September 1994, in response to RBI's policy of opening up domestic banking sector to private participation, IDBI in association with SIDBI set up IDBI Bank Ltd.

IDBI Bank

verview of development banking in India

Second World War , Successive of the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide institution for reconstructions. As a result the IBRD was set up in 1945 as a worldwide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which coordinating the developmental activities of different nations with different objectives among the world. The course of development of financial institutions and markets during the post-Independence period was largely guided by the process of planned development pursued in India with emphasis on mobilisation of savings and channelising investment to meet Plan priorities. At the time of Independence in 1947, India had a fairly well-developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short-term working capital requirements of industry and agriculture. Specialised development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture. To facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions was also put in place by the Reserve Bank.

The

concept of development banking rose only after

The first development bank In India incorporated immediately after independence in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and large-scale. Then after in regular intervals the government started new and different development financial institutions to attain the different objectives and helpful to five-year plans. The early history of Indian banking and finance was marked by strong governmental regulation and control. The roots of the national system were in the State Bank of India Act of 1955, which nationalized the former Imperial Bank of India and its seven associate banks. In the early days, this national system operated along side of a large private banking system. Banks were limited in their operational flexibility by the governments desire to maintain employment in the banking system and were often drawn into troublesome loans in order to further the governments social goals. The financial institutions in India were set up under the strong control of both central and state Governments, and the Government utilized these institutions for the achievements in planning and development of the nation as a whole. The all India financial institutions can be classified under four heads according to their economic importance that are: All-India Development Banks,
Specialized Financial Institutions,

Investment Institutions, State-level institutions, Other institutions.

of India (IDBI)

Industrial Development Bank

The Industrial Development Bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBIs public issue in July 1995, the former continues to be the major shareholder (current shareholding: 58.47%). During the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and longterm projects, in consonance with national plans and priorities. Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the Government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. IDBI also provides

indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms. IDBI has played a pioneering role, particularly in the prereform era (1964-91),in catalyzing broad based industrial development in the country in keeping with its Governmentordained development banking charter. In pursuance of this mandate, IDBIs activities transcended the confines of pure longterm lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework. In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBIs foray into the retail finance sector. The fully-owned housing finance subsidiary has since been renamed IDBI Home finance Limited. In view of the signal changes in the operating environment, following initiation of reforms since the early nineties, Government of India has decided to transform IDBI into a commercial bank without eschewing its secular development finance obligations. The migration to the new business model of commercial banking, with its gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the current business model of development finance while simultaneously enabling it to diversify its client/ asset base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority Government holding;

current share: 58.47%) and transformation into a commercial bank. The provisions of the Act have come into force from July 2, 2004 in terms of a Government Notification to this effect. The Notification facilitated formation, incorporation and registration of Industrial Development Bank of India Ltd. as a company under the Companies Act, 1956 and a deemed Banking Company under the Banking Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in addition to the business being transacted under IDBI Act, 1964 from October 1, 2004, the Appointed Date notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful proposition with positive implications for all stakeholders and clients, the merger process is expected to be completed during the current financial year ending March 31, 2005. IDBI would continue to provide the extant products and services as part of its development finance role even after its conversion into a banking company. In addition, the new entity would also provide an array of wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customised and total financial solutions for all

corporate business needs, single-window appraisal for term loans and working capital finance, strategic advisory and Hand-holding support at the implementation phase of projects, among others. IDBIs transformation into a commercial bank would provide a gateway to low-cost deposits like Current and Savings Bank Deposits. This would have a positive impact on the Banks overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporates and individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large retail base on the liability side. IDBI upholds the highest standards of corporate governance in its operations. The responsibility for maintaining these high standards of governance lies with its Board of Directors. Two Committees of the Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor implementation of good corporate governance practices and making necessary disclosures within the framework of legal provisions and banking conventions.

The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one of India's leading private banks. It was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of the fledgling

Indian industry. It is currently the tenth largest development bank in the world. Some of the institutions built by IDBI are The National Stock Exchange of India (NSE), The National Securities Depository Services Ltd. (NSDL) and the Stock Holding Corporation of India (SHCIL). Today, IDBI Bank has a network of 161 branches, 369 ATMs, and 8 Extension Counters spread over 95 cities.

Vision

Statement:

"To be trusted partner in progress by leveraging quality human capital and setting global standards of excellence to build the most valued financial conglomerate".

"One of the key differentiators that IDBI Bank found in Finacle universal banking solution was its new generation technology and its use of the web paradigm. With features like StraightThrough-Processing, 24x7 banking, e-Xtensibility tool kit, Finacle has indeed proved to be the right choice. With Finacle powering our core banking operations, we have been able to bring down our End of Day processing time by more than 80%." Sanjay Sharma, Vice President & Head- Product Development Group, IDBI Bank.

Banks Policy:
1. Gifts & donations:

The Director/ officer/ employee of IDBI Ltd. shall not solicit or accept any gifts/donations of more than modest value from a constituent of IDBI Ltd. or from any subordinate employee or from existing/ potential clients or third parties having business dealings with IDBI Ltd. 2. Gender friendly workplace: As a good corporate citizen, IDBI Ltd. is committed to a gender friendly workplace. IDBI Ltd. demands, demonstrates and promotes professional behaviour and respectful treatment of all employees. 3. Prohibition against participation in politics and standing for election: No employee shall take an active part in politics or in any political demonstration, or stand for election as member of a Municipal Council, district Board or any other Local Body or any Legislative Body. 4. Protection of Banks Assets: The assets of IDBI Ltd. shall not be misused but employed for conducting the business for which they are duly authorised.

Management & Organization

IDBI is a Board-managed organization. The responsibility for the day-to-day management of operations of the Bank is vested with the Chairman & Managing Director and two Deputy Managing

Directors, who draw upon the support and expertise of a crossdisciplinary Top Management Team. As on March 31, 2006, IDBI had a combined employee base of 4548, including professionals from the fields of accountancy, management, engineering, law, computer technology, banking and economics.

Preamble:

IDBI Ltd. is committed to creating long term economic value for all its stakeholders, including shareholders, depositors, customers, employees and the society as a whole. IDBI Ltd. is committed to maintaining high standards of ethical and professional conduct in all its corporate activities. This Code of Conduct and Ethics outlines the overall standards that shall guide the actions of IDBI Ltd. and its Directors, officers and employees. 1. National Interest: IDBI Ltd. shall continue to be committed in all its actions to benefit the economic development of the nation and shall not engage in any activity that would adversely affect such objective. 2. Financial Reports & records: IDBI Ltd. shall continue to prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country. Internal accounting and audit procedures shall fairly and accurately reflect all of IDBI Ltd. business transactions and disposition of assets. 3. Corporate disclosures & practices:

IDBI Ltd. shall continue to abide by the corporate disclosure practices as specified by the appropriate external regulatory authorities.

Shareholders:

IDBI Ltd. is committed to enhance shareholder value and shall comply with all regulations and laws that govern shareholders' rights. The Board of Directors' of IDBI Ltd. shall duly and fairly inform its shareholders about all relevant aspects of the organisation business and disclose such information in accordance with the respective regulations and agreements. Every employee shall also be responsible.

Ethical Standards:
A Director/ Officer/ Employee of IDBI Ltd. shall conduct all the dealings on behalf of IDBI Ltd. with professionalism, honesty, integrity and high moral and ethical standards. Every Director/ Officer/ Employee of IDBI Ltd. shall be responsible for the implementation of and compliance with the Code in his/ her professional environment, be fair and take action not to discriminate, honour confidentiality and strive to achieve more specific professional responsibilities.

Insider Trading:
Insider Trading involves the improper use of non - public price sensitive information when dealing in securities. Specified

employees are prohibited from engaging in insider trading as detailed in the Code of Conduct for Prevention of Insider Trading.

Quality of Products & Services:

1. IDBI Ltd. shall continue to be committed to creating new industry standards of excellence in customer service. IDBI Ltd. shall provide innovative and superior quality customer service consistent with the requirements of the customers for their satisfaction. 2. Corporate Opportunity: A Director/ Officer/ Employee must not deprive IDBI Ltd. of an opportunity that belongs to IDBI Ltd., for his/ her own/other's advantage, if he/she is in a position of diverting the corporate opportunity for own benefit or to others to the detriment of IDBI Ltd. A Director/ Officer/ Employee must not compete with IDBI Ltd. in respect of any business transaction. 3. Health, Safety & Environment: IDBI Ltd. shall strive to provide a safe and healthy working environment at its work places and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the territories it operates in. 4. Corporate Social Responsibility: IDBI Ltd. shall continue to be committed to be a good corporate citizen not only in compliance with all relevant regulating laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self reliant.

Competition:

1. IDBI Ltd. shall market its products and services on its own merits. 2. Equal-Rights: IDBI Ltd shall continue to provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability etc. Applicable laws, rules, and guidelines of Government of India/ any other Competent Authority in this regard shall also be observed for this purpose. Employees of IDBI Ltd. shall be treated with dignity and in accordance with the IDBI Ltd. policy to maintain a work environment free of sexual harassment, whether physical, verbal or psychological. Employee policies and practices shall be administered on a non-discriminatory basis in all matters relating to recruitment, training, compensation, benefits, promotion, transfers and all others terms and conditions of employment. 3. Prohibited business: IDBI Ltd. shall not enter into any kind of business with any company / organisation / entity, of which any of its directors of is a proprietor, partner, director, a manager, employee or guarantor or in which one or more directors of IDBI Ltd. together hold substantial interest. Substantial interest, in relation to any company / organisation / entity, means any beneficial interest held by one or more of the directors of IDBI Ltd. or by any relative of such director, whether singly or taken together, in the shares of the company / organisation / entity, the aggregate amount paid up on which either exceeds five lakh of rupees or 5% of its paid-up share capital, whichever is lesser.

Public Representation of the Company & the Group:

1. IDBI Ltd. honours the information requirements of the public and its stakeholders. All its external communication will

be only by officials/ directors authorized for the purpose. The information for the public constituents and stakeholders, duly approved by the Compliance Officer or other authorised official, as the case may be, shall be disseminated through any of the following media: -The Accreted newspaper publications, - Web casting on official web site, - Press handouts & press releases, - Audio and audio-visuals prepared for the specific purpose.

2. Use IDBI Ltd. Logo & Trademark used: Director/ Officer/ Employee shall not use the name of IDBI Ltd., its logo or trademark for personal benefit or for the benefit of persons / entities not forming part of the IDBI Group.

Conflict of Interest:

The Directors/ officers/ employees of IDBI Ltd. shall always conduct themselves in an honest and ethical manner and in the best interest of the Bank. Towards this, the directors, officers and employees of IDBI Ltd. shall endeavour to avoid situations that may lead to an actual or potential conflict between person's private interest and the interest of the Bank, including its affiliates and employees.

Ethics & Compliance Committee:

The Ethics and Compliance Committee comprising few independent directors of the Board, an Executive Director, Chief

Vigilance Officer of IDBI Ltd. and the Compliance Officer and any other officer so nominated, will oversee the compliance of the Code of Conduct and Ethics.

IDBI have been providing many services to its customers. It divides its services into two divisions: 1. Retail Banking Services. 2. Corporate Banking Services. The following are the Retail Banking Services:

Deposits:

The bank provides normal Savings Bank Accounts, Current Accounts, Fixed Deposits, and Pension Accounts. But it also provides special accounts like Suvidha plus Fixed Deposits accounts & Sabka Accounts.

Loans:

The bank provides various loans like: 1. Home Loans. 2. Loans against home. 3. Education Loans. 4. Personal Loans. 5. Security Loans.

Easy Payments:

Bank provides its customers with a facility of easy bill payments. It provides facility of payment of tax, Stamp Duty, Easy Fill, Online Transfer, etc.

Money Transfer:

Sending money within India has never been this simple, convenient, fast and safe! IDBI's Card to Card Money Transfer facility; a first-of-its-kind money transfer service in India is the absolute way to send money anywhere, anytime to any Visa Debit or Credit cardholder in India. Bank's customers can now transfer money from their Bank account or Visa card to any other Visa debit or credit card across the country through this service. Funds can be transferred to any debit or credit card in India. Sender needs to know only the card number of the beneficiary. Can be accessed using ATM, Internet Banking or through the branch. Funds will be transferred within 2-3 working days. Cheaper, faster and more convenient than Demand Drafts, telegraphic transfers and Payable-At-Par cheques. No geographical limitation within India. Beneficiary location need not be known. Funds will be transferred within 2-3 working days. Payment of credit card bills.

Transfer Funds

We can use Internet Banking, ATMs or branches for transferring money across the country. The only information we need to know is the 16-digit card number of the transferee. To carry out a transfer, simply log on to IDBI's Internet Banking at www.idbibank.com, or visit the nearest IDBI ATM or branch and transfer the required amount. The money is directly credited into the recipient's card, no matter where he is. For any further assistance, click here to call our phone banking numbers nearest to your location.

Investment: We believe that all investors share a common goal, regardless of their objectives: superior and sustained returns with a tight control over risk. Meeting your long-term investment goal is dependent on a number of factors: your investment capital, your expected rate of return, inflation, taxes and your investment time horizon. To meet your requirements, we offer you investment options based on your risk tolerance and return expectations. Relationship Managers are equipped to advise you on various investment avenues after thoroughly understanding your investment profile. They then help you with your investments and subsequently support you by tracking your investments on a regular basis.

Mutual Funds:

Mutual funds offer a simple and effective way to diversify your investment without the hassles of tracking individual stocks on a daily basis. Click here for more details on the options we offer GoI 8.0% Savings (Taxable) Bonds. 8% GoI Savings Bonds is a good option for investors looking for high yielding risk free instruments.

Capital Gain bonds:

Invest your long-term capital gains on sale of your asset in the specified assets.

Insurance Services:

IDBI brings to you Birla Sun Life Insurance, one of the leading providers of life insurance products. To invest in an insurance policy, just walk into any of our branches and meet our Certified Insurance Officer. After studying your profile, shortterm and long-term needs and your plans for the future, he will recommend a policy that's best for you.

NRI a/c:

Being an NRI (non-resident Indian) and privy to special benefits and privileges in India, its only but natural to expect world class levels be it banking or any other service. Welcome to IDBI, where you are treated as special and your needs exclusive. While we offer basic NRI banking products like Non Resident Rupee Checking Account, Non Resident Rupee Term Deposits and Foreign Currency Non Resident Deposit, we realise that your requirements are manifold. Hence, we provide seasoned banking professionals to handle your queries and offer value added services. The value-added services we provide range from answers to online tax and foreign exchange related queries and needs with special emphasis on FEMA guidelines issued by The Reserve Bank of India from time to time. Our International Debit Card is designed to offer you the convenience of accessing your funds with us from any ATM and also pay for your purchases from any merchant establishments across the world. You can avail of our advanced funds transfer facility to transfer funds from your account to that of your family members' account held with any IDBI branch across India. Our other services, such as providing free nomination and mandate facility enables hassle free banking

operations to your family member authorised by you to operate your account. We provide high-end solutions such as high yielding foreign exchange products, wealth management and insurance.

Non-Resident External (NRE)

Repatriable account for your investment needs access your account anytime, anywhere with Internet Banking, shop at more than 8.3 million locations and withdraw funds in 140 countries

Non-Resident Ordinary (NRO)

An account for your local income and expenses, access your account at more than 250 ATM's across the country, pay your bills in India from anywhere in the world.

FCNR

Retain your funds in foreign currency, no exchange risk; earn attractive returns on your fund.

Foreign Exchange Services:

Spot Contracts: Spot contract is the simplest and most common foreign exchange transaction very widely used by the corporates to cover their receivables and payables. It is a commitment by the client to buy or sell one currency against another at a fixed rate for delivery two business days after the transaction.
Example: Say an Indian company wants to pay its overseas supplier in US dollars 5 MM. Using a Spot Contract it purchases dollars for immediate (2 business days). It has funds delivered to the

supplier's Bank Account overseas. The exchange rate is fixed by the current market. The equivalent Indian Rupees is debited to the company's account.

Forward Contracts:

With Forward contracts, you can negotiate a rate today to exchange foreign currency on a future date. Forward contract is a contract to buy or sell currency on a future date at a predetermined rate. The rate on the forward exchange contract is based on the spot rate and the differential in interest rates between the two markets involved. This type of transaction helps you manage your foreign exchange risk because, by setting the exchange rate in advance, you eliminate the uncertainty related to fluctuations in the currency until the time you pay for it or receive it. Example: Say, an Indian company has an import payable USD 5 million in three months from a US exporter. The company must protect itself from an adverse fluctuation in the exchange rate of USD/INR. Through a forward contract, the company "locks-in" an exchange rate today, and buys USD against INR for delivery 3 months in the future. With the forward contract the company protects itself against downside risk, the possible depreciation of INR in three months. There is no upside potential, however, if the INR appreciates, the company is committed to the terms of the contract.

Forward cover decisions.

Outright forward contracts.

Forward to forward. Currency switching.

 De-link cross from INR. Cover USD/INR exposure. Cover cross exposure. Partial cover. Fixed date - FC deliverable at a fixed date.

Option forward:

Deliverable during a specified period.

Maximum one calendar month. Last date holiday and declared holiday. Deliverable preceding working day.

Forward Rate Agreements:

A forward rate agreement is a financial contract between a bank and the customer to exchange interest payments for a "notional principal" amount on settlement date, for a specified period from start date to maturity date. Accordingly, on the settlement date, cash payments based on contract (fixed) and the settlement rate, are made by the bank and the customer. The settlement rate is the agreed benchmark or reference rate prevailing on the settlement date. Forward rate agreement provides means for hedging the interest rate risk arising on account of lending or borrowing made at fixed or variable interest rates.

Currency Swaps:

A foreign exchange transaction in which a bank agrees to exchange specified amount of one currency for another currency at a fixed price, i.e., the bank and the customer agree to

exchange payment streams or cash flows both in terms of principal and interest. Simply stated, currency swap is an extended forward contract and normally for periods beyond one year. An Indian company that has raised the borrowing in foreign currency can exchange the same for the equivalent INR thereby matching foreign currency liabilities. There will be series of forward contracts for both principal and interest payments at the agreed exchange rate over the period of the loan/borrowing. The company will have to execute ISDA documentation with the bank.

Phone Banking:
At IDBI, we endeavour to raise the bar to meet the rising requirements of our customers, by providing quality products and services to suit varied banking needs. Our Phone Banking service is yet another, technology and customer centric step in that direction. IDBI's Phone Banking service enables you to access authentic, instantaneous information on your account balances and transactions. The service is available totally free of cost round the clock, 365 days a year. To view the different services that are available through our Phone Banking facility, click here. A telephone and your 4-digit TIN (telephone identification number) is all that you need to access your account.

SMS Banking:

Business is on the move and so are the people who conduct it. For you to enjoy banking convenience while on the move, IDBI is here with its SMS Banking facility. Our SMS banking initiatives permit

you to access your Bank account and carry out various banking transactions and inquires.

NON-WAP Enabled Mobile Phones:

If you have a non-WAP enabled mobile phone, you can use the SMS facility and conduct the following operations using the messaging services of your service provider. Balance enquiry. Last three transactions. Cheques payment status. Cheques book. Statement request. Demat - free balance holding. Demat - last two transactions. Bill payment.

WAP Enabled Mobile Phones

If you are WAP enabled mobile phone user, you can do interactive banking with us. If you need to draw cash while you travel, your mobile will indicate to you the nearest IDBI branch and its phone number. Transactions using WAP are WAP-WTLS compliant (meaning you have the comfort of transacting at the highest level of security standard available internationally).

Account Alert:

IDBI's new Account Alert service gives you all this and more. With Account Alert, your bank account transaction information will be delivered to you automatically, wherever you are. No more visiting the bank branch or ATM to check routine things like

account balances, cheques clearance, verification of ATM transactions, bill payment verifications, etc. Account Alerts allows you to monitor filely any type of activity on your accounts, and be notified by e-mail or cell phone SMS as and when they are executed.

Gold card

The card can be used to transact at IDBI ATMs and 13,000 VISA/Plus ATMs in India and for making purchases at 1.2 lac Visa locations. It is having International validity. The Gold Debit Card can also be used abroad to make purchases at 13 million merchant locations and withdraw local currency at 8.5 lac Visa/Plus ATMs. It also helps for Petrol surcharge waiver*: Currently, there is a surcharge of 2.5% at all petrol pump transactions. This petrol surcharge will be waived off for transactions carried out on the Gold Debit Card. It also provides Insurance cover*: You can withdraw cash upto Rs. 75,000 and make purchases worth Rs. 75,000 in a day. IDBI has tied up with various merchant establishments. You can avail of attractive discounts at these merchant establishments by making purchases through the Gold Debit Card. The details will be sent across to you from time to time.

Debit cum credit card

This card enables you to access your IDBI account from anywhere in the world, anytime of the day or night. It not only lets you withdraw money from any of our ATMs (Automated Teller Machines) and our associated bank's ATMs, but also empowers

you to shop, dine and travel without the worry of carrying cash with you all the time.

Gift card

The IDBI GiftCard allows your loved one to purchases goods and services at over 1.8 lac merchant establishments in India that accept Visa cards. No heartaches of being bound to specific stores with gift vouchers. The GiftCard can be used more than once giving you the flexibility to shop at will from different stores and at different times.

World currency card

The World Currency Card is a prepaid multi currency card that provides you the convenience of making purchases and withdrawing cash while travelling almost anywhere abroad. The Card does away with the inconvenience of carrying travellers cheques, is much safer than carrying foreign currency and is more economical than credit cards.

SAFE DEPOSIT:

The Safe Deposit Locker facility offers invaluable safety for you valuables. We also have on offer a variety of sizes to fit your requirements. The deposit lockers can be operated at your convenience during our extended banking hours. We provide the maximum safety to your valuables that are placed in our Safe Deposit Lockers. For opening a locker all you have to do is: Open a savings bank account with Rs 5,000. Pay a one time administrative charge (non refundable) including legal fees/stamp paper charges.

 Pay only one year's rent in advance upfront. No additional fixed deposit required.

Services that are provided in Corporate Sector are:

Project finance involves providing credit and other facilities to a borrower with a credit rating normally of 'A' or 'BBB' (provided adequate mitigants are in place), for setting up new projects, expansion, diversification and modernisation of existing industrial units. While considering the project for assistance, IDBI evaluates technical feasibility, commercial and economic viability and financial soundness of the project. The interest rate and other fees for credit and other facilities would be based on creditworthiness of borrower, rating, risk perception, tenure of loan / facilities and other relevant factors. The repayment of the loans and facilities is normally fixed on case to case basis depending on projected cash flow of the borrower.

Home / Project Finance Scheme:

Technology Upgradation Fund Scheme:

The Government of India introduced the Technology Upgradation Fund Scheme (TUFS) for Textile and Jute Industries, which is valid upto March 31, 2007. The Scheme is intended to facilitate induction of state-of-the-art or near stateof-the-art technology in Textiles Industry. Existing units with or without expansion and new units are eligible under TUFS.

IDBI is a Nodal Agency for textile industry (Non-SSI Sector). Normally the project would be evaluated as per project finance norms. The rate of interest is normal applicable rates prevailing at the time of sanction / execution of loan documents. However, Government of India (GoI), Ministry of Textiles (MoT), gives interest reimbursement of 5% p.a. to eligible projects sanctioned assistance under TUFS. As regards FC Loan, GoI, MoT provides a cover for actual adverse exchange fluctuations not exceeding 5% from the base rate (the base rate being the weighted average rate covering all disbursements of the loan) or cost of forward cover premium limited to 5% p.a. on the base rate of exchange, as an option, to be exercised only once in each Financial Year.

Corporate Loan:

Under the Corporate Loan Scheme, IDBI provides rupee and/or foreign currency loans to corporates with minimum 5 years of operations, continuous profits for the last 2 years with credit rating normally 'A' or 'BBB' (provided adequate mitigants are in place) and satisfactory track & credit record with lenders for normal capital expenditure, working capital margin, shortfall in working capital and general corporate purposes, including expenses on Voluntary Retirement Scheme and business acquisition where no tangible asset creation is envisaged. The interest rate would be based on creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. The repayment period for the loans would normally not exceed 5 1/2 years.

Treasury Product Facility (TPF):

Under the Treasury Product Facility, IDBI provides rupee and/or foreign currency loans to well performing corporates with credit rating of minimum 'AA minus', 5 years of operations and satisfactory track & credit record, for providing finance for general corporate purposes with fund requirement of short term nature. Assistance under the scheme would be minimum Rs.10 cr. The interest rate would be based on creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. The repayment period would not exceed 18 months.

Film Financing:

IDBI provides finance for production of feature films as defined under the Cinematograph (Certification) Rules, 1983. Advertisement films, short films, documentaries etc. are not eligible for financing. A corporate entity, promoted by reputed producers, backed by established directors & other technicians and possessing satisfactory track record are eligible to avail assistance under the scheme. In case the entity is recently corporatised, track record of the main promoter(s) is considered. Assistance would be not less than Rs.2 crores and not exceeding 50% of the estimated cost of the film. Interest rate would be cap rate in the prevailing interest rate band.

For financially sound machinery / equipment manufacturer, who wish to promote sales, IDBI provides deferred credit facility for sale / purchase of indigenous machinery / equipment under its easy to operate direct discounting scheme. Assistance would be 100% of the total value (including insurance, taxes & freight). Interest rate / discount rate would be as prevalent at the time of

Direct Discounting of Bills:

discounting of bills, depending on monthly / quarterly / halfyearly/ yearly payments and according to temporal profile of bills.

Scheme for Lending to Real Estate Sector:

IDBI provides finance in the form of project funding and securitization of lease rentals, to a borrower (promoter group in case of SPV), with continuous profit for the last 3 years, internal rating of 'A' and above, for productive construction activity in real estate. Assistance would be in the form of term loans and total term loans including IDBI loan should not exceed 30% of the project cost. For projects exclusively for lease out, the ceiling on total loans will be 60% of project cost. Interest rate would be based on creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. The assistance would be short to medium term in nature not exceeding 5 years. As regards securitization of lease rentals, the strength of the lessee and lesser would be assessed on the basis of financials, reputations, track record and cash flows. The exposure would be on the basis of present value of lease rentals of maximum 7 years excluding expenses (like TDS, maintenance, property tax and adjustment of advance payment) or 60% of the property value less advanced payment received from the lessor, whichever is lower.

IDBI has in its portfolio certain potentially viable, weak and sick companies, which can be revived by way of merger/takeover. Rehabilitation Finance Department (RFD), a specialized department, created to achieve the said objective, is on the lookout for resourceful parties interested in takeover/merger or joining in as co-promoter. Industry-wise classification of such companies is given ahead. Industries, where

Rehabilitation Finance Department:

companies are presently available, are given. In addition, IDBI has in its portfolio, other companies which can be revived by undertaking various measures such as strengthening of management, Upgradation of technology, infusion of fresh funds, etc. IDBI would like to interact with potential investors / clients who may be interested in takeover, merger or joining as copromoters etc. in order to achieve the said objectives.

Forex Services / Treasury:

General corporate purposes with fund requirement of short term nature. The eligibility criteria are: Past Performance. Well performing corporate with minimum 5 years of operations and satisfactory track & credit record with lenders. Credit Rating: Minimum 'AA-' (read as 'double A minus') Net Worth: Not less than Rs.25 crores (only equity and free reserves to be included). Long Term Debt to Equity Ratio: Maximum 1.25:1 Current Ratio: Minimum 1.1:1 Terms of assistance. Nature of Assistance.

Rupee and Foreign Currency Loan:

Extent of Assistance: Minimum Rs.10 crore Interest Rate on Rupee Loan: Fixed or floating rate, as per creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. Interest rate to be reset for longer maturity loans. Interest Rate on Foreign Currency Loan: Normally floating rate based on LIBOR plus a fixed spread

according to creditworthiness of borrower, rating, risk perception, tenure of loan and other relevant factors. Repayment period: Maximum upto 18 months with call / put option where considered necessary. Security for the assistance: Demand Promissory Note. Power of Attorney in favour of IDBI to create charge on assets / Undertaking to create charge on assets of the company in the event of default. Any other acceptable security.

Commercial Paper:

IDBI subscribes to bonds, debentures and other debt instruments. The applicable coupon rate or purchase price would vary based on the issuer, rating assigned and tenure of the instrument. The issuer or holder of the instrument or the arranger to the issue may place the instrument with IDBI. 1. Bonds: IDBI subscribes to bonds issued mainly by banks or public sectors units. Bonds may be secured or unsecured. 2. Debentures: IDBI subscribes to tradable debentures of short to medium term maturity issued by corporates. The debentures should be rated by rating agencies accredited by SEBI/RBI.

INR Derivatives:
1. Interest Rates Swaps (DRS) IDBI contracts to exchange a fixed interest rate liability for a floating interest rate liability or vice versa, on behalf of its clients. The principal amount is not exchanged, with only the differences in cash flows being settled. Capital adequacy norms as

per RBI guidelines are being followed. Benchmark rates from NSE MIBOR, Reuters MIBOR, T-Bills rates are normally used. 2. Rupee-Dollar Interest Rate and Currency Swap IDBI enters into agreements involving exchange of liability in US Dollars for a liability in Indian rupees or vice-versa, and may also include exchange of fixed rate liability for floating rate liability or vice-versa. Swaps are used for hedging currency and/or interest rate risk, or for liability management. 3. Forward Rate Agreements (FRA's) IDBI offers FRA's, which are contracts to exchange interest payments for a specified period starting from a pre-specified start date in the future. These instruments are used to manage interest rate risk. 4. Forward Contracts IDBI enters into agreements to exchange a predetermined amount of one currency for another at a specific rate of exchange on a specified future date. These instruments are generally used to hedge against exchange rate fluctuations.

Overnight Index Swaps:

An Overnight Index Swap (OIS) is a fixed/floating interest rate swap with the floating rate tied to a daily overnight rate reference. The term of the swap generally ranges from one week to one year.

Recent developments:
To meet emerging challenger and to keep up with reforms in financial sector, IDBI has taken steps to reshape its role from a development finance institution to a commercial institution. With Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Central Government notified October 1, 2004 as the 'Appointed Date' and RBI issued the requisite notification on September 30, 2004 incorporating IDBI Ltd. as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, the erstwhile Development Financial Institution of the country, formally entered the portals of banking business as IDBIL from October 1, 2004, over and above the business currently being transacted. As of July,2006 the employees association of the IFCI have sought its merger with the Bank.

Phishing
The Phishing email may also direct you to a spoofed website or pop-up window, which looks exactly like the real site. Phishing is an increasingly common type of scam in which personal data such as credit card numbers and online banking passwords are stolen for fraudulent use.

The fraudster sends "spoofed" emails that appear to come from a legitimate website that you have online dealings with such as a bank, Credit Card Company or an ISP - any site which requires users to have a personal identity or account. The email may ask you to reply with your account details in order to "update security" or for some other reason. Sites login page, but has been set up for the sole purpose of stealing personal information. Unsuspecting people are then often fooled into handing over credit card numbers, passwords or other personal details. If you are using Internet banking or any other online account, you should be aware of these attacks and how to protect against them. The following points may help you protect yourself: 1. Never respond to emails that request personal information. At IDBI, we would never ask for your personal details through an email. Nor would we ask for your password through any means, online or offline. If any of our bank personnel asks you for your password, do not disclose it and report him or her immediately to us. 2. Keep your password top secret and change them often. Changing passwords often helps in protecting your account even if inadvertently you may have disclosed it to someone. 3. Never use cyber cafes to access your online accounts at cyber cafes may be infested with viruses and Trojans that can capture and transmit your personal data to fraudsters. The easiest way to grab information is key logging software. Beware of typing passwords on unknown PCs.

4. Keep your computer secure Some Phishing emails or other spam may contain software that can record information on your internet activities (spyware) or open a 'backdoor' to allow hackers access to your computer (Trojans). Installing anti-virus software and keeping it up to date will help detect and disable malicious software, while using anti-spam software will stop Phishing emails from reaching you. It is also important, particularly for users with a broadband connection, to install a firewall. This will help keep the information on your computer secure while blocking communication from unwanted sources. Make sure you keep up to date and download the latest security patches for your browser. If you don't have any patches installed, visit your browser's website, for example users of Internet Explorer should go to the Microsoft website.

5. Check the website you are visiting is secure Before submitting your bank details or other sensitive information there are a couple of checks you can do to help ensure the site uses encryption to protect your personal data: If the address bar is visible, the URL should start with https:// (s for secured) rather that the usual http://. If the address bar is not visible as in our Internet Banking website, look for a lock icon on the browser's status bar. You can check the level of encryption, expressed in bits, by hovering over the icon with your cursor. Note that the fact that the website is using encryption doesn't necessarily mean that the website is legitimate. It only tells you that data is being sent in encrypted form.

6. Validate the SSL Certificate if you are in any doubt, click on the lock icon at the bottom of the secured page. This opens up a new window, displaying the SSL certificate information. Ensure that there is no Red Cross mark preceding the title Certificate Information. It should also be Issues to: www.idbibank.co.in. You can get more information by clicking on the other tabs in the certificate window.

Following the above steps would help you in protect yourself. However, please remember, fraudsters are always trying to stay a step ahead. To ensure that you remain protected at all times never let anyone know your PINS or passwords, do not write them down do not use the same password for all your online accounts Avoid opening or replying to spam emails as this will give the sender confirmation they have reached a live address. Above all, use common sense when reading emails. If something seems implausible or too good to be true, then it probably is.

ACBI awards for IDBI & WR:

Industrial Development Bank of India Limited (IDBI) bagged three coveted awards at the 46th Annual Awards night, organized by the Association of Business Communicators of India

(ABCI) on January 12, 2007 in Mumbai. Shree Vayam, the House Journal of IDBI, was awarded the prizes in three individual categories: Edwin Fernandes for Features (English), Gulabchand Yadav for Features (Hindi), & Sushmita Vazirani for Features (Photo). His Excellency S. M. Krishna, Governor of Maharashtra, presided as Chief Guest & presented the Elite categories award to the prizewinners.

After

going through all these services provided by Idbi

Bank, we can conclude that IDBI is one of the fast going Universal Banks in India. We expect that the information provided by us was satisfactory.

Reference:
Idbi.com Google.com Indian Financial Systems Indian History of Banking DNA Newspaper

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