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CHAPTER IV

THEORETICAL DESCRIPTION OF INDUSTRIAL
DEVELOPMENT BANK OF INDIA (IDBI)

• Introduction & Brief History
• IDBI Bank is Board –Managed Organization
• Financial Highlights and key indicators of IDBI
• Role in Industrial Development
• Distribution Network
• Objective of IDBI
• Function of IDBI
• Subsidiaries & Joint Ventures of IDBI
• Product & Services
• Man Power
• Information and Technology System
• IDBI at a Glance During Financial Year 2005-2006 to 2009-10
• Services Rendered by IDBI
• Achievements & Awards

CHAPTER IV

THEORETICAL DESCRIPTION OF INDUSTRIAL
DEVELOPMENT BANK OF INDIA (IDBI)

4.1 Introduction & Brief History

The industrial development Bank of India Limited, popularly known as IDBI Bank is one
of the leading public sector banks in India. IDBI bank is the fourth largest Indian Bank. It
is World’s 10th largest development bank. IDBI Categorized as “other public sector bank”
by Reserve Bank of India.

The Industrial Development Bank of India was, established on July 1, 1964 under an Act
of Parliament as a wholly owned subsidiary of the Reserve Bank of India. Industrial
Development bank of India (IDBI), was constituted under Industrial Development bank
of India Act, 1964 as a Development Financial Institution and came into being as on July
01, 1964 by a notification dated June 22, 1964.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. It was regarded as a Public Financial Institution
in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to
serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.

In response to the felt need and on commercial prudence, it was decided to transform
IDBI into a Bank. For the purpose, Industrial Development bank (transfer of undertaking
and Repeal) Act, 2003 [Repeal Act] was passed repealing the Industrial Development
Bank of India Act, 1964. In terms of the provisions of the Repeal Act, a new company
under the name of Industrial Development Bank of India Limited (IDBI Ltd.), was
incorporated as a Govt. Company under the Companies Act, 1956 on September 27,
2004. Thereafter, the undertaking of IDBI was transferred to and vested in IDBI Limited-
with effect from the effective date of October 01, 2004. Chart of brief history and
remarkable events of IDBI- given in this chapter.

An Analytical Study of Development Financial Institutions in Capital Market of India
(With Special Reference to IDBI 2005-2010) Page 84

Brief History

1. Year 1964 A parliamentary act setup IDBI as a subsidiary of RBI.

IDBI has played a pioneering role, particularly in the pre-reform era(1964-91),in
catalyzing broad based industrial development in the country in keeping with its
Government-ordained 'development banking' charter. In pursuance of this
mandate, IDBI's activities transcended the confines of pure long-term lending to
industry and encompassed among others, balanced industrial growth through
development of backward areas, modernization 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.
2. Year 1976 Ownership of IDBI transferred to the GOI from RBI.
3. Year 1992 IDBI accessed domestic retail debt market for the first time, with
innovative Deep Discount Bonds, and registered path –breaking success. The
following year, it set up IDBI CAPITAL Market Services Limited, as it wholly-
owned subsidiary to offer a broad range of financial services, including Bond
Trading, Equity Broking, Client Asset Management and Depository Services
4. Year 1994 The RBI Act is amended to permit40% private Ownership IDBI set up
IDBI BANK LIMITED in association ship with SIDBI
5. Year 1995 Public issue of the bank was taken out and GOI stake was reduced.
6. Year 2003 IDBI took over Tata Home Finance Limited, renamed IDBI HOME
FINANCE LIMITED, this diversifying its business domain and entering the arena
of retail finance s
7. Year 2004IDBI moves from its DFI status into a commercial bank along with a
mandate or development financing under the name of RBI.
8. Year 2005 IDBI's 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 Bank's 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

An Analytical Study of Development Financial Institutions in Capital Market of India
(With Special Reference to IDBI 2005-2010) Page 85

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 corporate
and individuals, capitalizing on its intimate knowledge of the Indian industry and
client requirements and large retail base on the liability side.
9. Year 2005 Amalgamation of IDBI Bank Ltd. With IDBI LIMITED. Merger of
IDBI bank Ltd. with IDBI Ltd. towards achieving the faster inorganic growth of
the Bank, IDBI Bank Ltd., a wholly owned subsidiary of IDBI Ltd. was
amalgamated with IDBI Ltd. in terms of the provisions of Section 44A of the
Banking Regulation Act, 1949 providing for voluntary amalgamation of two
banking companies. The merger became effective from April 02, 2005.
10. Year 2006Acquired United Western Bank {which, at that time, had 230branches
Change of name of IDBI Ltd. to IDBI Bank Ltd. in order that the name of the
Bank truly reflects the functions it is carrying on, the name of the Bank was
changed to IDBI Bank Limited and the new name became effective from May 07,
2008 upon issue of the Fresh Certificate of Incorporation by Registrar of
Companies, Maharashtra. The Bank has been accordingly functioning in its
present name of IDBI Bank Limited. Branches spread over 47 districts, in 9 states.
11. Year 2010opens the first Overseas Branch at DIFC, Dubai.

4.2 IDBI Bank is Board Managed Organization

Board functions through itself as well as various Board Committees constituted to
provide focused governance in important functional areas of the Bank. During FY 2010
the Board had total eight Apex committees. The major Shareholding as at end-March
2010, were as per the following details:-

1) Government of India had 38, 17, 78,000 number of shares, 52.67% to total shares.
2) Institutions (Banks, FIIs, SFCs, FIs, Mutual Funds and OCBs) had 18.21 % to
total shares.
3) Public had 14.65% to total shares.

An Analytical Study of Development Financial Institutions in Capital Market of India
(With Special Reference to IDBI 2005-2010) Page 86

6%.24% against RBI stipulated norms of 6%.572crore and have declined by 20% when compared to previous FY.2290.9Crore. Interest Income was Rs. Total Deposits were Rs1.41 % to total shares and remaining shares were with others.6crore and with the other income of Rs.Book value per share stood at Rs113and a Dividend of 30 % recommended on fully paid up equity capital .15272.Total CRAR 11.recording a growth of 33.31% against RBI stipulated norms of 9%. 5) Bodies corporate had 4.667crore with a growth of 49. EPS stood at RS. PBT was Rs1044.2.24% to total shares.4) Insurance companies had 8.202crore.1crore. 4. 33. 2% and Total Advances were Rupees 1. 38.3 Financial Highlights and key indicators of IDBI Total Assets as at March 2010 of IDBI were Rs. This is a serious matter and needs IDBI Bank’s immediate remedial action. 67.2. Total assets have highlighted for the financial year 2005-06 to 2009-10 in below Graph. Core CRAR 6.over the previous year.7crore and PAT was Rs1031. Total Gross income wasRs17563. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 87 .14.5crore.

To highlight year wise positions for year 2005-10. Graphs on Total Assets & Capital Adequacy Ratio are given below :- An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 88 .

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 89 .

2010 to Top 20 industry was Rs.4 Role in Industrial Development IDBI have been playing a significant role in dynamic industrial development of country. Total investment generated – 4000 billion (approx. Critical role played by IDBI in encouraging industrial development reflected in its flows of assistance over the years. The Industrial Development Bank of India (IDBI) has had a pioneering role in fulfilling its mission of promoting industrial growth in tune with national plans and priorities. added a qualitative dimension to the process of industrial development in the country.27crore was non fund base.206990crore in which Rs. It has played an apex role in helping create the industrial & infrastructural base in the country.)(over USD 80billions.137246.73crore well Fund base & Rs.69743. Its support was instrumental in establishing a well-developed. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 90 . the bank besides meeting the increasing and diverse financial requirements of industries. Since inception. IDBI was established in 1964 to meet the rapid pace of industrialization with wider functions and much larger resources. Total credit exposure as on March 31. diversified and efficient industrial structure in the country.4.

Krishnama Chari on April 30.70 16 Roads bridges 3215.04 10 Oil & Gas 3557.00 9622. T.86 6022.74 69743.46 .07 6713.01 Total 137246.52 2896.00 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 91 .00 8454.24 1047.97 6633.73 6085.29 5693.84 4960.T.46 2 Power 20468.21 11 HFCs 6833.91 13 Sugar 3993. We are envisaging the new Industrial Development Bank as a Central co-coordinating agency.42 8987. While introducing the bill he said.43 9154.69 417. Total credit exposure as on March 31 2010 to Top 20 industry was Rs.20 5395.96 20 Chemicals 3238.72 5168. No.75 .69 9 Food &Beverages 6042. 2) Power Industry.72 15695. directly or indirectly.18 5586.39 8 NBFC 8037.75 12 Engineering 1753. Among the Top 20 industries. the first 5 are as follows 1) Retail Industry.50 18 Trading 2876.60 5 Telecom 6850.73crore well Fund base & Rs.69743.27 206990.22 8644.94 1545.28 8077. 1964. “whereas a long term view is necessary and a certain amount of risk has to be taken.29 14 Real estate 4884. Industry Fund based Non fund based Total exposure 1 Retail 29642.96 4 Construction 4556.206990crore in which Rs.56 3 Iron &Steel 12022.Obligations and traditions.30 3367. the existing institutions tend.58 1915.43 2028.01 2321.75 2034. by reason of their Statutory.137246. will all problems or questions relating to the long and medium term financing of industry and be in position .90 17 Fertilizers 2028.89 11138.94 5394. 4) Construction Industry.34 29112.1 – Credit Exposer of Top 20 Industry as on 31st March 2010 S. to be conservative and cannot in any way to be very helpful. 6833. in promoting future industrial growth”.29 809.27crore was non fund base. 5) Telecom Services Industry.94 7 Electrical 2353. if necessary to adopt and force a system of priorities. which ultimately will be concerned.71 7525. The industry wise exposure of top 20 Industry showing total credit exposure has been given in the table below.89 5536.28 7413.93 3855.13 6 Textiles 8077. Top 20 Industry Wise Credit Exposure (March 2010) Table 4.58 15 Petroleum product 2690.42 19 Electronics 4121. 3) Iron and Steel Industry.The bill of IDBI passed in the Parliament by the finance Minister Mr. 29642.42 14376.49 2517.23 18107.

the Stock Holding Corporation of India. All the above mentioned endeavors aimed faster Industrialization and Industry growth. the National Securities Depository Ltd.. It has evolved an appropriate mechanism for this purpose. SIBI Small Industries Bank of India. It developed financial institutions such as Export-Import Bank of India. promoting and developing industries. it coordinates the working of the financial institutions engaged in industrialization of country. the National Stock Exchange of India.. IDBI also undertakes/supports wide-ranging promotional activities including entrepreneurship development programs for new entrepreneurs. the Credit Analysis and Research Ltd.'' Various assistance to be provided by the IDBI for the growth of industry are as follows: An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 92 .IDBI is the principal financial organization for co-coordinating the working of institutions engaged in financing. the IDBI Trusteeship Services Ltd and the Clearing Corporation of India. As an apex organization for development of industry. instead these covered a host of services undertaken in pursuit of broader development goals aligned to the Central Government's varied socio-economic objectives in the realm of industry. the Securities and Exchange Board of India (SEBI). It also played a role in developing many capital market related agencies. It assists in the development of other financial institutions for the rapid growth of industry. up gradation of technology and program for economic up liftmen of the underprivileged IDBI has been an institution builder too. North-Eastern Development Finance Corporation and Asset Reconstruction Company (India) Ltd. IDBI Provides direct credit to many Industries. IDBI vested with the responsibility of coordinating the working of institutions engaged in financing. assisting the development of such institutions and providing credit and other facilities for the development of industry. "IDBI's activities were not confined merely to long-term project lending to industry. provision of consultancy services for small and medium enterprises. promoting or developing industry.

gifts. (b) subscribing to their shares and bonds. (c) rediscounting of bills. such as. (4) Promotional Activities: Besides providing financial assistance.economic surveys.. techno. The Fund is used to provide assistance to those industries which are not able to obtain funds in the normal course mainly because of heavy investment involved or low expected rate of returns. Assistance from the Fund requires the prior approval by the government. Cooperative banks. The financial resources of the Fund mainly come from contributions made by the government in the form of loans. regional rural banks. and (b) subscribing to. the IDBI also undertakes various promotional activities such as marketing and investment research. donations.(1) Direct Financial Assistance: The IDBI provides direct financial assistance to the industrial concerns in the form of (a) granting loans and advances. State Finance Corporations. (3) Development Assistance: The creation of the Development Assistance Fund is the special feature of the IDBI. and from other sources. State Industrial Development Corporations. bonds or debentures. It provides technical and administrative advice for promotion. commercial banks. purchasing or underwriting the issues of stocks. etc. Thus on the basis of the above mentioned information and the explanations we can summaries the following points on its role in the Industrial development role and can convincingly say:- An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 93 . The Assistance to these institutions include: (a) refinancing of loans given by the institutions. expansion and better management of the industrial concerns. (2) Indirect Financial Assistance: The IDBI provides indirect financial assistance to the small and medium industrial concerns through other financial institution.

IDBI provides financial assistance to all kinds of industrial units which comes under the provisions of the IDBI Act. planning of consultancy services for both the small-scale enterprises and the medium sized industrial units.” Purpose of establishment of IDBI was driving ahead Industry. and developing various industrial units. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. the specialized Banking institution of our country are poised to play a vital and dynamic role in the process of industrial development of our country. IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. It manages various financial institutions working under IDBI bank. Industrial Development Bank of India acts as a catalyst in various industrial development programs. IDBI has served various industrial sectors in India and has grown leaps and bounds in its size and operating units.“IDBI. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 94 . With over three decades of service to the Indian industry. IDBI coordinates between various financial institutions who are highly involved in provide financial assistance. IDBI works for the advancement of technology and other welfare schemes to ensure economic development. IDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs. promoting. IDBI has grown substantially in terms of size of operations and portfolio.

21 Agri-processing center. initiated the process of setting a branch offices at Singapore & representative at Shanghai. 634 off-site). An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 95 . 1201 ATMs (567on site. Presence in 613 Locations.5 Distribution Network For the business growth & delight of internal and external costumers IDBI have created a vast and effective distribution network which includes 708 branches after opening 199 new branches during FY-2010 (Metro 210. 30 million. Urban 281. mining. Network of 66 Retail Asset center. It provides funding to the industrial units that are involved in manufacture or processing of goods. which cost less than Rs. and it provides funding to those projects. 24 Central Clearing Units. Provides financial assistance to various industrial units in terms of developments. IDBI also have global expansion plans & have opened a branch in Dubai. or even developing the projects. 6 Regional Processing Units. 6 Currency Chest across the Country Internet Banking. which will exceed Rs. It also provides finance to various projects. 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/SIDC/Commercial Banks etc. diversifications. Semi-urban 144. expansion of any project. transport generation and distribution of power both in private and public sectors. 4 Regional & 1 Central Training Colleges . 31 City SME Centers.Corporate Customers 3000 + & Retail Customer base 5 Million . 4. It also offers refinancing options including term loans to the suitable financial institutions. Rural 73).

5-Branches of IDBI During FY-2010 800 600 BRANCHS IN no: 400 200 0 SEMI- TOTAL METRO URBAN RURAL URBAN BRANCHES OF IDBI DURING 708 210 281 144 73 FY-2010 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 96 . Chart 4.

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 97 . • Co-ordination. promote or develop industry and assist in the development of Industries. development and growth of key industries. promotion. which are re-payable within 25year. To grants loans and advances to scheduled bank of state co-operative banks by way of re financing of loans granted by such institutions which are re-payable in 15 years. • Function to grant loans & advances to IFCI. • To finance. SFC’s or any other financial institutions by the way of referencing of loans granted by such institutions.4. regulation & supervision of the working of other financial institutions • Planning. • Devising & in forcing a system of industrial growth that conforms to national priorities.6 Objective of IDBI • To establish and carry on business of banking in all forms within India and outside India.

scheduled bank state co-corporative banks by way of re-financing of loans granted by such institutions to industrial concerns for exports. etc. SFC’s. marketing and administrative aid to promote management or expansion of any industry. other institutions. bonds & debentures of financial institutions • To grant line of credit or loans & advances to other financial institutions such as IFCI.7 Function of IDBI IDBI vested with the responsibility of coordinating the working of institutions engaged in financing. • To provide technical. 4. SFC’s. promoting & developing industries to fill the gap in industrial structure in India. legal.• To grant loans & advances to IFCI. It has evolved an appropriate mechanism for this purpose. • Role of specialized financial institutions to guarantee loans raised by industrial concerns • To provide consultancy & merchant banking services in or outside India. • To grant loan to any industrial concerns • To guarantee deferred payments due from any industrial concern.shares.gradation of technology and program for economic upliftment of the underprivileged An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 98 . • Planning. IDBI also undertakes/supports wide-ranging promotional activities including- • Entrepreneurship development programs for new entrepreneurs • Provision of consultancy services for small and medium enterprises • Up. promoting and developing industries. • To underwrite or to subscribe to shares or debentures of industrial concerns to subscribe to or purchase stock .

diversifications. • IDBI coordinates between various financial • Institutions who are highly involved in provide financial assistance.Major Functions are: • Industrial Development Bank of India provides financial assistance for the establishment of new projects as well as for expansion. or even developing the projects. • IDBI has served various industrial sectors in India for about three years and has grown leaps and bounds in its size and operating units. and developing various industrial units. • IDBI provides financial assistance to all kinds of industrial units which come under the provisions of the IDBI Act. diversification. and developing various industrial units. promoting. • It manages various financial institutions working under IDBI bank • IDBI provides financial assistance to various industrial units in terms of developments. promoting. transport generation and distribution of power in both private and public sectors. • IDBI works for the advancement of technology and other welfare schemes to ensure economic development. modernization and technology up gradation of existing industrial enterprises. • It also offers refinancing options including term loans to the suitable financial institutions • It provides funding to the industrial units that are involved in manufacture or processing of goods. expansion of any project. mining. • Industrial Development Bank of India acts as a catalyst in various industrial development programs. which will exceed ` 30 million An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 99 . planning of consultancy services for both the small-scale enterprises and the medium sized industrial units. • IDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs. • IDBI coordinates between various financial institutions who are highly involved in provide financial assistance. • It also provides finance to various projects.

• Up gradation of technology is given importance and the technology is well used. 2. and it also provides funding to those projects which cost less than ` 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/SIDC/Commercial Banks etc. • Programmers for economic upliftment of the underprivileged people are taken as the main aspect and all the necessary steps to achieve its aim were successfully implemented. And 6. IDBI Home Finance Limited ¾ IDBI Home finance Limited (IDBI Home finance) commenced its business with The acquisition of Tata Home finance Limited in September 2003. 4. 3. procedure. which can be seen in this bank Consultancy services for small and medium enterprises are provided. 5. IDBI MF TURSTEE Company Ltd. promoting and developing industries was seen as major aspect of the bank and it was vested with all the duties stated above. IDBI Capital Market Services Ltd. • Suitable plan. 4. IDBI Intech Ltd. IDBI Gilts Limited.8 Subsidiaries & Joint Ventures of IDBI It has six wholly-owned subsidiaries: 1. 1. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 100 . • The responsibility of co-coordinating the working of institutions engaged in financing. IDBI Asset Management Ltd. mechanism was adopted to achieve the targets. • Undertakes promotional activities • Entrepreneurship development programmers. IDBI Home finance Ltd.

¾ The company. 2010. Value Added Products. has subscribed to the equity capital of the Company to the extent of Rs. has initiated series of measures to expand its retail reach.Consultancy ¾ Services and Business Process Outsourcing ¾ For adhering to the excellent quality standards. ¾ IDBI Gilts focuses on bond trading. ¾ IDBI Intech has been empanelled by CERT-IN as Information Security Auditing An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 101 .3537crore. as a wholly owned subsidiary of IDBI Bank to undertake the IT related activities of the Bank. ¾ The company was incorporated in December 2006and obtained Certificate for ¾ Commencement of Business in February 2007. since its inception. National Contact Centre . 3. ¾ IDBI Intech performs all IT related functions for the IDBI Bank. Information Security Practice. 2.200crore. underwriting in auctions of primary issuance of government dated securities and treasury bills. IDBI Home finance’s outstanding loan portfolio increased by 15% from Rs.3089crore to Rs. strengthen its brand image. ¾ IDBI Bank Ltd. ¾ During the year. IDBI Intech Limited ¾ IDBI Intech Limited (IDBI Intech) was incorporated in March 2000. improve its asset quality and excel its business growth. IDBI Intech has obtained ISO 9001 certification for its operations and has facilitated IDBI Bank in maintaining the ISO 27001certificate for the State-of-the-Art Data Centre.180crore as on March 31. IDBI Gilts Limited (Deals in Primary Dealership business) ¾ IDBI Gilts Limited (IDBI Gilts) was set up as a wholly owned subsidiary of ¾ IDBI Bank to undertake Primary Dealer [PD] business with an authorized capital of Rs. ¾ Learning& Development Services. ¾ The major business activities of the Company are Information Technology ¾ Enabled Services.

4. ¾ The Company has entered into an arrangement for providing end-to-end IT services to IDBI Home finance Limited and IDBI Asset Management Limited on similar model. ¾ These products marketed to existing as well as new customers. started as a broking and distribution company in 1993. consultancy services. These services are provided to various public and private sector undertakings and their provident. Organisation. which is part of PMO’s e-Trade Initiative. Pension and Retirement Benefit Funds. pension. ¾ IDBI Intech has added two overseas banks. The Company is a SEBI registered Portfolio Manager and manage its Client’s assets under both discretionary and non-discretionary mandates. one foreign bank. The Company’s client base includes leading pension and provident funds in the country ¾ IDBI Capital Market Services Limited (IDBI Capital). ¾ IDBI Intech has increased its customer base into overseas and domestic market and has secured orders for rendering IT. retirement benefit and surplus funds. IDBI Capital Market Services Limited IDBI Capital Market Services Ltd. a wholly owned subsidiary of IDBI. ¾ Indian Banks’ Association with the consent of all the banks and the Director General of Foreign Trade (DGFT) has given the mandate to develop a portal.(ICMS) is a leading Fund Manager in the country for Provident. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 102 . ¾ IDBI Intech has developed value added products covering various areas of banking. ¾ IDBI Intech has received a mandate for a prestigious project of national importance called e-BRC (Electronic Bank Realization Certificate) project. four nationalized banks ¾ Two co-operative banks and two private sector banks to its client list during FY 2009-10.

33.¾ Its businesses include Merchant Banking.idbipaisabuilder. The Company has proposed a dividend of 10% for the year ended March 31. ¾ IDBI Capital maintains its position among the top five distributors of the country as per CAMS statistics as of February 2010. an offline broking vertical has ¾ been put in place and product has been launched at eight of the existing branches of the company. The gross revenue of Investment Banking Group grew by155% in FY 2009-10. The Group also secured company’s first GOI disinvestment mandate. ¾ In order to meet the growing needs of retail client.19Crore.9409crore ¾ The online broking platform www.11. In the last quarter of FY 2009-10. ¾ Profit After Tax (PAT) of the Company has doubled from Rs.16Crore in the previous year to Rs.30Crore.22.in registered a growth of 63% in revenue on a YoY basis. 2010 as against 3% last year. The Institutional Distribution Group grew by 155%in gross revenue over the previous year. Corporate Advisory Services. IDBI Asset Management Limited-Manages Assets. Distribution of Financial Products. 5. registering a growth of 88% over the previous year. ¾ IDBI Capital continues to remain a major player in the PF/Pension Fund Management with assets under management of over Rs. ¾ The Investment Banking and Institutional Distribution Groups have been the largest contributors to growth in top line. Stock Broking. published by Asia Money polls 2009. ¾ IDBI Asset Management Limited incorporated in January 2010 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 103 . Debt Arranging & Underwriting. IDBI Capital featured in the list of best local brokers in the country. Portfolio Management of Pension/PF Funds and Research Services. This segment has widened its network by opening 9 branches during the year and now there are 42 branches functioning pan India offering a wide range of investment products to meet retail customer’s investment needs. ¾ The Company has recorded its highest ever Service Income during FY 2009-10 amounting toRs.

6. Corporate Banking. Personal banking (Total 44 Product and Services) Which Can be sub divided as per the following:- • DEPOSITS (8 products and services) 1. Personal Banking has 44 products & services.20 lakh and authorized capital of Rs.50 lakh. there are different types of products and services including Personal Banking.¾ The paid up capital of the company is Rs. 4. Fixed Deposit 4. Corporate Banking have 13 products & services and SME Finance has 12 products & services.9 Product & Services IDBI Bank offers a wide array of products and services to its customers. ¾ It has one joint venture company that is IDBI Fortis Life Insurance Company Ltd. Savings Account 2. SME Finance and Agri Business etc. Current Account 3.50crore. Suvidha Tax Saving Fixed Deposit 5. For different customer groups and needs. 2010 and authorized capital is Rs. Sabka Account 7. Jubilee Plus Account An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 104 . Super Shakti Account for Women 8.12.50crore as on March 31. ¾ The company has received due approval from SEBI for starting mutual fund operations. Pension Accounts 6. MF Trustee Company Limited-Looks after Mutual Fund business ¾ IDBI MF Trustee Company Limited was incorporated in January 2010 with paid up Capital of Rs. ¾ The company. after obtaining necessary approval from regulator launched ¾ ‘IDBI Nifty Index Fund’ as its maiden scheme.

• Loans o Home Loans o Loans Against Property o Education Loans o Personal Loan o Loan Against Securities o Reverse Mortgage Loan o Auto Loan • Payments o Tax Payments o Stamp Duty payments o Easy Fill o Bill Payment o Card to Card Money Transfer o Online Payments o Pay Mate • Investments Advisory o Smart Financial Planning o Mutual Fund o Insurance o Fixed Income Securities • Cards o Gold Debit Card o International Debit cum ATM Card o Gift Card o World Currency Card o Cash Card An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 105 .

Underwriting & Advisory Services • Carbon Credits Business • Working Capital • Cash Management Services • Trade Finance An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 106 .o KIDS Debit Card o Foundation Day Cash Back Scheme 2009 o Platinum Card • Institutional Banking o Institutional Savings Account o Corporate Payroll Account • 24 Hours Banking o Phone Banking o SMS Banking o Account Alerts o Internet Banking • Other products o Lockers o India Post o Preferred Banking o NRI Services o Capital Market o IPO o Demat Following products and services are offered by IDBI Bank for the corporate: • Project Finance • Infrastructure Finance • Syndication.

Sale) • Vendor financing (Post .Software Development Entities • Finance to Medical Practitioners • Loan to SRWTO • SME Hosiery Special Current Account An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 107 .SIDBI • Preferred customer scheme .IDBI Bank / SIDBI • Vendor financing (Pre .Sale) • Lending Against the Security of Future Credit Card Receivables • Working Capital Financing .• Tax Payments • Derivatives • Technology Up gradation Fund Scheme (TUFS) • Film Financing Scheme • Direct Discounting Bills • Rehabilitation Finance SME Finance Following SME Finance products are offered by the IDBI Bank: • SulabhVyapar Loan • Dealer Finance • Funding under CGFMSE • Direct Credit Scheme .

sub staff 10% and executives 8% as mentioned in the pie- chart here below . law. banking and economics. management. computer technology. engineering.10 Man Power IDBI Bank Ltd. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 108 .4. clerical 12%. employee base includes professionals from the fields of accountancy. It includes officers 70%.

Its robust Technology platform is well maintained. Bank has upgraded core banking hardware with latest server with view to support the current & future business growth and to minimize the business disruption & provide flaw less costumer services in area like : • Core Banking. • Internet Banking • Cash Management Services etc.11 Information and Technology System IDBI is one of the leading banks in the country in operating its IT operations for the satisfaction and delight to its customers. Advisory services & Call Center Services of IDBI are managed professionally by its wholly owned subsidiary IDBI Intech Limited. • ATM’S. IDBI has implemented several technological up gradation implementations through its IT platform in the areas of:- • RTGS and NEFT.4. • Risk Management An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 109 . Infosys Pinnacle Software is used. IT Infrastructure & Management.

Implementations in Wealth Management Services. Rajasthan and Gujarat).WMS include Portfolio Tracking and Financial Planning Modules based on risk profiling and goals. capturing each element of risk associated with various types of assets. these services occupy prominent place towards customer and Inter-bank transactions. VAT. net worth and wealth statements. Such facility enabled the customers to make online payments of various taxes and levies viz. in a timely and simplified manner.CST. In order to provide enhanced security to card holders and also to provide an additional mode of e-payment to customers. has enabled IDBI to effect payments of duties and levies through various branches and Internet Banking for its customers. Implementations in Risk Management .An Integrated Risk Management Solution. Implementations in Online Channel. flexible authorization matrix.IDBI has integrated the Bank’s Internet Banking channel with on line portals of various State Governments (Maharashtra. IDBI has implemented a Payment Hub and Liquidity Manager in order to have a single payment gateway and also to optimize liquidity management through features like forecasting. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 110 . scheduling. IDBI has implemented ‘Verified by VISA for VISA cardholders and Master Secure Code for MasterCard cardholders”. Direct interface with the systems of a leading Port Trust. The solution is in line with guidelines prescribed by RBI adhering to norms and conditions prescribed under Basel II framework. asset allocation. Sales Tax..• Wealth Management Services • On line portals for State Governments • Efficiency enhancement at branches through IT • IT driven MIS tools to improve performance • Won Special Jury Award for Technological Initiatives RTGS and NEFT services are the need of present banking industry. This has led to faster processing of e-transactions and has improved the turnaround time.

In order to ensure uninterrupted services to the customers IDBI carries out planned Disaster Recovery (DR) exercises at regular intervals. to corporate customers. Implementations as Prescribed by SEBI. Risk Manager for Asset Liability Management. Internet.IDBI are one of the first banks. as prescribed by SEBI. In the field of Cash Management. etc. state of the art technology driven services. planning for budgeting and forecasting has led to creation of an integrated management accounting decision support system.. have been introduced. the Core Banking and other critical applications including alternate channels like ATM. Performance Analyzer. branches and business verticals. to automate totally the Application Supported by Blocked Amount (ASBA) .. the Bank has decided to expand the reach of ASBA to other investor categories including High Net worth Individuals and Corporate investors. innovative products viz. The Bank has upgraded the Core Banking System and IT infrastructure to enhance processing efficiency . Now business/revenue/expense planning. leading to enhancement in service delivery. liquidity risk. Host to Host connectivity.With a view to measure the performance of the Bank and measure earning and economic value impact on account of interest rate . IDBI Bank is the first bank in India having such robust and integrated system.Efficiency Enhancement Implementations at Branches through IT. Implementations of IT Driven MIS Tools to Improve Performance. Mobile and Phone Banking successfully operated from the disaster recovery site. forecast analysis across products. budgets and managing risk and performance review can be prepared across products.exchange rate. As a part of DR drill. Virtual Account. Given the inherent benefits of ASBA to the investors. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 111 . branches and business verticals. to provide. Implementation of Oracle Transfer Pricing.Many process enhancements has been made at branches by introducing technology driven utilities to improve the efficiency of the employees. enabling IDBI. IDBI has put in place IT enabled processes including budgeting and planning. issuers and the market per se.

72. Award 2009 given to IDBI-for launching innovative product 4.9crore. thus enabling a growth of 30.47.1 %. ¾ Outstanding borrowing brought down by 5% to Rs.9%.01 % during 2005-o6. 530 . In addition. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 112 . customers can contact the National contact center any time for any queries and clarifications. ¾ Advances reached the level of Rs.12 IDBI at a Glance during Financial Year 2005-2006 to 2009-10 Financial highlights 2005-06 ¾ There was an increase of Rs. Security measures minimize and curb risks. 901crore representing a growth of 16.88.2crore. ¾ Aggregate deposits surged by Rs.8 crore a growth of 8.Implementations of Security Measures – IDBI has introduced many security features in the Internet Banking used by customers to make the electronic funds transfer secure.564.26000. IDBI won “Special Jury Award” for its Technological Incentive-The IBA Banking Technology.2% to Rs. 73. through various modes of communication channels like e- mails. SMS and brochures which are sent along with the statement of accounts on periodic basis utilizing its robust IT platform.52. in order to achieve this IDBI educate its customers about online frauds.

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 113 .

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 114 .

3crore.354 crore. 00.8 crore as on March 31.5%.000 crore and reached the new height of Rs. 2. clinching a healthy growth of 66. Aggregate deposits stood at Rs. 62.4%during 2006-07 to reach a level of Rs. 470.1.7% at the end of the fiscal 2007 3. 05.1. 43.839. 03. Total assets of Bank surpassed the level of Rs. Total business (advances plus deposits) increased by 34. 4. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 115 . 2007 which is showing a growth rate of 18.1.8crore.824. Total advances stood at Rs.Financial Highlights 2006-07 1.

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 116 .

Financial Highlights 2007-08 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 117 .

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 118 .

Financial Highlights 2008-09 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 119 .

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 120 .

Financial Highlights 2009-10 An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 121 .

An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 122 .

Retail Finance-IDBI provides several customer friendly services through its network of 708 branches and expanding its services. Exhibitions in13 Cities+ Tied up with Chevrolet.13 Services Rendered by IDBI Corporate Finance. SME forum. Infrastructure Finance.Modified products and structure as per the diversified customer needs and included improved services+ Established 12 specialized Branches + Improved and facilitated short–term trade credit services to its customers of Rs 8. telecom. airports seaports railways and logistics as well as Special Economic zones. SME Business guide +Major awareness campaign+ Home loan. Maruti and provided services at Auto Mall + online trading services and many more services.For the economic growth of the Nation expanded services in road projects and taken initiatives in funding urban transit system+ several services per needs of customers in the areas of power. Tata. IDBI Provide services by conducting awareness building initiatives in the important clusters of Pune and Ludhiana. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 123 . Added 301ATMs to reach 1201ATMs and planned to reach 1600 by next year.Opened 13 Retail Asset Centers during FY 2110and now having 66RAcs to serve retail customers. Services in insurance sector improved–made arrangement with Bajaj Allianz and so on. IDBI is working closely with World Research International Institute for encouraging energy saving projects and services . Toyota Kirloskar.500 crore + Upgraded Cash Management Services+ several advisory services and services through internet for central and state government. Services improved by organizing nationwide campaign to design and further improve services to better customer satisfaction level. Participated in many fairs and to further improve services tied up with Bharat Earth Movers Limited.4. IDBI tied up with 34 Asset Management Companies. Agriculture and Microfinance-240 branches+ 16 clusters +170farmers clubs+1069Self Help Groups + 14 Agri processing centers help groups+ SabkaBachat +Field visits to farmers and vast services for serving farmers. Services to MSME-Established62 City Centers+ SME small business school.

bank provides awareness programs for the employees and communicates on various information security and precaution services through E-mails and mobile. Information and Technology Services-Providing uninterrupted services to customers. For training purpose. Services in HR Training and Development-In order to provide excellent services to customers. Services through Cross Border Branches. An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 124 . Core banking and internet banking services etc.for raising foreign currency needs and widening its clients base. staff training is imparted on regular basis. 32 officers were nominated for 165 external training programs within the country. mobile banking. Serve with state of art technology and staying ahead in technology services.Services in the area of Clean Development Mechanism/Carbon Credits under Kyoto Protocol.Besides internal control mechanism services to control various risks. a branch opened in Dubai and appropriate management unit and office is under advance stage of implementation in Singapore and China. Services in Risk Management. .Services through Financial Inclusion in Rural area-Started flag ship services “Sabka” and “Mobile Cash Van”+ Appointing Business Correspondents and Business Facilitators in rural areas for rendering services. IDBI has 4 regional training colleges at Mumbai. Chennai. Services for Environmental Protection Schemes . Bank trained 11082 employees through total 621 programs. It also has JN IDBI College at Hyderabad. Cash Management Services.with twin objectives. 23 officers were nominated for 13 international training programs/seminars/conferences abroad. ATMs Services.Services provided as Financial Agent Services to India Chiller Energy Efficiency Projects-This service will help 370 small sub–projects. of which443 were in-house training programs. Kolkata and Delhi. Providing Advisory Services-Completed 9 assignments and more than 12 are in progress Ozone Depleting Substances Services.

Several Services through Joint Ventures Subsidiaries and M0Us.14 Achievements & Awards There have been many Achievement and Awards of IDBI some of which are as follows. awarded to those who work in accordance with ISO standards. Bank is providing funds for repair and maintenance for school building. Sponsoring event for the visually and hearing impaired . An Analytical Study of Development Financial Institutions in Capital Market of India (With Special Reference to IDBI 2005-2010) Page 125 .ISO9001:2008 certificate of registration in July 2009.Bank is rendering services as corporate social responsibilities for the benefits of society. Cooking Equipment for under privileged schoolchildren sponsored. several services in the capital market and stock exchanges.Purchases machine for diagnostic center 4. and Exhibitions Seminars & Awareness Programs are rendered on regular basis for the benefits of internal and external customers.Tie ups and arrangements with service providers are rendered by IDBI in order to grow well its business and serve its customers in and outside India. Services to Society. ISO 9001:2008 is an international quality management standard. Radio.Services through TV.Several services to respond RTI Act. Print. Implementations of Several other IDBI Services. with non-profit motives. Best IT security practice Award of NASSCOM . several services for progressive use in hindi.