Presented by-:

Kundan Kumar jha Kamal kumar Mishra Murari Singh Manish Ranjan Mridul Tiwari
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Industrial Development Bank of India (IDBI)

Genesis
1964 - Established as a wholly owned subsidiary of the Reserve Bank

of India (RBI) Established as a DFI with the following functions: Plays the role of coordinator at all India level. Providing financial assistance for the establishment of new projects as well as for expansion, diversification, modernisation and technology upgradation of existing industrial enterprises. undertakes wide-ranging promotional activities including entrepreneurship development programmes for new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of technology and programmes for economic upliftment of the underprivileged.

 Assistance to backward areas by setting up of voluntary agencies,

support to Science and Technology Entrepreneurs Parks, Energy Conservation, Common Quality Testing Centres for small industries, SIDBI etc.. TCOs offer diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their implementation and review. IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. Pioneered capital market development By setting up National Stock Exchange an electronic Stock Exchange, NSDL a Securities Depository, CARE a Rating Agency, SHCIL a Depository, etc.

 Products and services Project finance, equipment finance, asset credit, equipment lease

etc. Professional advice and services for issue management, project evaluation, corporate restructuring, share valuation etc. Set up subsidiaries: IDBI Bank IDBI Capital Market Services Ltd. IDBI Investment Management Company Ltd.

1976 - 100% ownership transferred to Government of India (GoI) 1995 - Domestic IPO reduced GoI stake to 52.3%. 2003 Acquired Tata Finance Ltd. and entered into retail finance

sector. 2004 converted into a banking company

Subsidiaries
The following are the subsidiaries of IDBI. 1) Small Industries Development Bank of India(SIDBI) 2) IDBI Bank Ltd. 3) IDBI Capital Market Services Ltd. 4) IDBI Investment Management Company

SIDBI

SIDBI is an Independent Financial Institution Its aimed to aid the growth and development of micro, small, and mediumscale enterprises.

Recently it has opened seven branches christened as Micro Finance branches, aims especially at dispensing loan up to Rs. 5.00 lakh.
SIDBI has also floated several other entities for related activities: (a) Credit Guarantee Fund Trust for Micro and small Enterprises. (b) SIDBI venture capital ltd. Is a venture capital co. focussed on SME.

IDBI Bank Ltd.

A parliamentary act sets up IDBI Bank as a subsidiary of RBI on

1964. At 1976 ownership of IDBI is transferred to the government from RBI. Amalgamation of IDBI Bank Ltd. With IDBI Ltd. On 2005. Its opens the first Overseas Branch at DIFC, Dubai. IDBI Bank aims to double its customer base in a year. Best bank of the year in the 3rd dalal street investment journal (DSLJ) awards. The most admired Debt Financier in Infrastructure Sector by KPMG and Infrastructure today. Asian Banker Technology Implementation Award 2011 foe best data and analysis project.

IDBI Capital Market Service Ltd.

IDBI capital offers a full suite of products and services to corporate, institutional and individual clients : Investment Banking Capital Market Products Private Equity Corporate Advisory Services Mergers & Acquisitions Project Appraisals & Debt Syndication Stock Broking Institutional & Retail Distribution of Financial Products Debt Placement & Underwriting Fund Management Research Group

IDBI Investment Management Company

The key strength of IDBI capital market services in the areas of Debt Fund Management are: Fund Management experience of 10 years Expertise in both Debt & Equity Market IDBI capital is the only Portfolio Manager in the country to achieve ISO 9001:2000 standard for quality management systems in fund management operations, with certification from TUV NORD an accredited German standards firm Substantial returns over benchmark IDBI Capital is a SEBI registered Portfolio Manager Minimum idle days Fund management skill covers portfolio analysis that includes ALM, Asset Allocation, Risk Analysis, Maturity Analysis Transparency of operations Strict adherence to compliance procedures Highly Rated Debt Research

Network & delivery channels (Current Scenario)

504 branches, 496 counters 871 ATMs Presence in 316 important commercial centres in India Presence in 100 cities

Internet banking
Retail customer base: 5 million + Corporate customers: 3000 +

Achievements
Awards Won during the year

IT Team of the Year(2007) Award of IBA5 Best IT Security Practices Award of NASSCOM Best CTO Award of Cyber Media Won two special awards, for Best Payments Initiative and Outstanding Achiever of the Year" (2007)

Key Projects

Airline ticketing through ATMs Setup of Data Center and Disaster Recovery Center Internet Banking Enabled Multi-Functional KIOSK Kolkata and Haldia Port Trust Internet Banking Payment and MIS Modules Online Payment of Central Excise & Service Tax

New Business Initiatives

IDBI completed the reorganization of its business into separate

verticals focused on SME, Agri-business, Personal Banking, Mid Corporate, Large Corporate and Infrastructure. IDBI Fortis Life Insurance IDBI Gilts Bank will also open branches in Singapore, Dubai and Shanghai, with either the Dubai or Singapore branch opening likely by the end of March Steps initiated for mortgage guarantee business Took another initiative in reaching out to the smaller clients by introducing facility of Online application for educational loan. Bank introduced a new product for encashment/sale of Foreign Currency by NRI Clients and encashment of Travelers Cheques by Banks existing NRI customers.

Business Strategy
Optimize mix of corporate and retail banking Increase product offering by leveraging corporate relationships Rationalize and reorient human resources through on-going training Improve technology infrastructure Enhance & implement enterprise-wide risk management systems Focus on fee based income to boost profitability Strengthen brand equity Enhance market share

Pursue organic growth opportunities Leverage core competency in project financing while creating additional business opportunities in retail & commercial banking Inorganic growth domestically through bank acquisitions/ mergers Entry into Insurance, Asset Management

Business

operated as separate Retail Banking and Corporate Financing SBU(strategic business units)s A common Treasury, Risk Management, Audit, IT and other support operations Integrated and Rationalized branch network

THE WORKING OF IDBI

INPUTS

PROCESS

OUTPUT

INPUTS

Every financial institute requires

inputs. The main input for a bank is money in any form. For different banks, the sources of funds are different.

For IDBI, the main sources of income or inputs are : 1. FIXED DEPOSITS.
2. CURRENT DEPOSITS. 3. SAVINGS DEPOSITS.

Apart from these, the other sources are:

1. 2. 3. Interests on loans and borrowings. Charges on services rendered. Overdrafts.

THE TANGIBLE INPUTS

The other inputs which are required in a financial institute are : 1. Manpower. 2. Office and appliances. 3. Machines and technology.

PROCESS
The intermediate processes of a financial institute includes:
1. Check clearance. 2. Allocation of funds. 3. Confirmation of accounts. 4. Advertising. 5. Negotiating instruments, etc.

OUTPUTS
The outputs of a financial institution are as follows : 1. Loans. 2. Financial services. 3. Security of savings. 4. Instruments of negotiation, etc.

OUTPUT CLASSIFICATION
Charges on negotiable instrument s 13%

Savings charges 13%

Interests. 17% Loans 57%

OUR FINDINGS
The main source of money. It pays an interest of 3.5% towards savings

deposits. The main profits of the bank are from these two accounts or deposits.

 The profit margin is less on Fixed

Deposits. But fixed deposits act as a long term asset for the bank. The Annual turnover = Rs. 70,000 Crores.

LIMITATIONS
Low rate of interest. Low on marketing and advertising

strategies. Competition from Private banks.

 The ambience and technology are not

as developed.
Lack of efficient human resources.
Governed by rules and regulations.

Conclusions
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Indias healthy economic outlook - On the threshold of a high growth path Indian Banking Sector - Offering High Growth Opportunities IDBI Limited - A new, revitalized and vibrant organization with strong business prospects

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Unique Opportunity to participate in IDBIs new growth story

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Thank You

Please visit IDBI website www.idbi.com

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