•Commenced on 1 July 1964.

•Established as a wholly-owned
subsidiary of Reserve Bank of India

•Main aim was to provide credit and

other facilities for the Indian
industry

•In February 1976, the ownership of

IDBI was transferred to Government
of India.

•29 July 2004, IDBI and IDBI Bank

Merged.
•IDBI Bank is counted
amongst the leading public
sector banks of India
•4th largest bank in India
in overall ratings
•The tenth largest development bank
in the world, mainly in terms of reach
•Analysis of the consolidated 5 yrs financial
report of IDBI bank

Considering,
• Deposits,
• Investments,
• Advances,
• NPAT and three important ratios namely
• Net Interest Margin
• Earning per share
• The NPA to advance ratio

• Policies & business environment affected

the bank.
05-06
•Low Inflation Rate 4.4%
•Various products- product committee

06-07
•Expansion on retail front
•Acquired United Western Bank Ltd
•Payment facility of direct and indirect taxes
•Sabka saving account

07-08
•To reduce dependence on borrowings-mobility of deposits
•New products- 3 in 1 account
•Tie up with Motilal Oswal
08-09
•Global meltdown-uncertainty, unemployment
•Project “Lakshya”- increase current a/c and fee-based income
•i-cashweb next generation cash management system
•Payment of taxes, e-stamping
•Special account services- senior citizen, pensioners, children
•Mobile and internet based services to attract customers.

09-10
•Dubai branch
•New branches in india
•Latest innovation- “ZERO CHARGES”
 SIGNIFICANT FACTORS
Advances are a major part of the balance-sheet with
contribution of 50%-60% to Total Assets. The advances
are the loans & finances provided. Advances also indicate
interest-based income.
Year 2005-06 – MOU was signed with SIDBI; Every sector
showed growth.
Year 2006-07 – Acquisition of United Western Bank Ltd;
MOU was signed with LIC for financing of long
gestation projects & infrastructure
projects; Agri-based loans were launched.
 Year 2007-08 – Working capital assistance to cater to the business

requirements of entrepreneurs; Innovative products; Separate vertical catering

to agriculture business was created.
 Year 2008-09 – Recession & deep volatility in liquidity caused higher

oscillations in interest rates; IDBI Sulabh Vyapar Loan; Liquidity level was
normalized & interest rates brought down & The CRR & SLR were
adjusted by RBI; secured loans & education loan; MOUs with leading
automobile companies; IDBI successfully implemented MSME package.
 Year 2009-10 – Declined monsoon led to falling share of primary sector;

Domination of secondary and tertiary sector reflected progressive stage of

economy ; Agricultural finances doubled; corporate finance into 3 broad
verticals viz. Infrastructure finance; Large corporate and; Mid-corporate groups;
automobile financing businesses; Tie-up with Chevrolet Sales India ltd, Toyota
Kirloskar Motor Pvt. Ltd., Tata Motors Ltd. and Maruti Suzuki Ltd.
 SIGNIFICANT FACTORS
Investments refer to the investment of the bank fund in the equity
market, in Government securities, bonds etc; Allocation of funds for
income which is non-interest based & non-fee-based; Investments earn
the bank a major part of its income; IDBI, in the past 5 yrs has shown
steady growth with the last 2 years showing accelerated growth.
 Year 2005-06 – Sectoral growth – Opportunity for investment;

Infrastructure sector open to private investment; Government

Securities & bonds did not form a major part of the investments.
 Year 2006-07 – Similar to previous year but the year also saw stringent

liquidity norms by the RBI; Infrastructure was still a major

investment area with also SMEs getting added to the list.
 Year 2007-08 – Strategies to improve top line and bottom line income by taking

advantage of buoyant capital market; Infrastructure – Top of the

list with agri-business also joining the wagon.
 Year 2008-09 – Sub-prime crisis bring the international markets crashing down;

Indian domestic market did crash but with a milder intensity & was
able to recover in a relatively faster pace; IDBI extended maximum of its
investments into Government securities, bonds & Government
projects - Fixed- interest-earning; Focused on becoming larger player
in investment banking; Investment in infrastructure was on priority
based.
 Year 2009-10 – Investments have accelerated due to the increasing investments

in Government securities & bonds ; Infrastructure & securities have been core
areas of investment.

Investments have shown a considerable increasing growth in the post-

recession years & income generation has been taken up by investments in
the crisis period.
NPAT-Net Profit After Tax

•Major sources of income are interests, incomes from

investments, fees and non fund activities.

•Dependence on borrowings reduced by effective

mobilization of deposits.

•Investment in infrastructure, SME, Agribusiness.

•Providing services to importers and exporters.

EPS (Earning Per Share)
NPA to Advances (%)
Net Interest Margin
Share Price Movement

Current Market price is Rupees 135.60

 CSR
•Services for clean development mechanism.

•Funding for ozone depleting substances phasing out

scheme.

•Funding for India Chiller Energy Efficiency Project to

reduce global warming.

•Providing advisory services and upfront finances for carbon

credit/carbon credit receivables.
•Exposure into different areas at different levels.

•Strategic approach and steps for catching right opportunities in

business.

•Government as care taker assures investor of low risks.

•Opportunities in untapped retail finance business were realized.

•Innovative products targeting larger client base.

•SMEs, agribusiness, services to importers and exporters expanded
operations vertically.

•IDBI can expand its resources and thus further expansion.

•Beneficial products with convenience due to advent of technology.

•Opportunities for Tie ups and Mergers and Acquisitions.

•Horticulture and Green power projects help move ahead

with edge over competition.

•Entry into insurance sector to tap this growing market.

•Profitability through business operations in opportunity

sectors and appropriate strategies of allocating funds.
•Vidyashree Mishra (96)
•Vikrant More(97)
•Vinith Poojary(98)
•Vivek Sahasrabudhe(99)
•Yuvraj Bhatnagar(100)
 A “Question” That Sometimes
Drives Me Hazy; Am I Or Are The
Others Crazy?
- Albert Einstein
Ask Questions . . .
Make us Crazy ! ! !
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