Industrial Development Bank of India Ltd.

Members are:

Introduction to IDBI Bank:-

Names Roll NosVinita Adwani 01

Madhavi Pandey 41

Drishti Rai 45

Nikita Tharwani 60

Kshtija Waghmare

65

Industrial Development Bank of India

Type Public sector bank

Founded 1964

Headquarters India

Key people Yogesh Agarwal, Chairman

Industry Finance

Products Financial Services

Employees 8989

Website www.idbibank.com

The Industrial Development Bank of India Limited commonly known by its acronym IDBI. It is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorized IDBI as an "other public sector bank". It was established on July 1, 1964 by an Act of Parliament .The main aim behind setting up of IDBI was to provide credit and other facilities for the Indian industry, which was still in the initial stages of growth and development. The Industrial Development Bank of India (IDBI) was established under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. The total revenue of Bank is $500M 1B.

Institutions built by IDBI bank:-

Some of the institutions built by IDBI are the National Stock Exchange of India (NSE), the National Securities Depository Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), and IDBI BANK, which today is owned by the Indian Government, though for a brief period it was a private scheduled bank.

Infrastructure:-

It is currently the tenth largest development bank in the world in terms of reach with:- 1140 ATMs, 689 branches >Metro-206, Urban-273, Semi-Urban-138, Rural-72 and 458 centers.

The Branches of IDBI Bank are as follows:-

Andheri Dadar Lower Parel

Bandra Dahisar Malad

Belapur Fort Mulund (E)&(W)

Bhayandar Ghatkopar Nariman Point

Borivali Girgaon Sion

Chembur Goregaon Vashi

CMS Kalina Vile Parle etc.

Change of ownership:-

In 16 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 IDBI’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%).

Recommendation by Narasimam committee:-

Narasimam committee recommends that IDBI should give up its direct financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Later RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted to the develop financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking.

Diversification of IDBI Bank:-

In September 2003, IDBI acquired the entire shareholding of Tata Finance Limited in Tata Home Finance Ltd. Since then, the fully owned housing subsidiary was known as 'IDBI Home Finance Limited'.

Government of India had decided to transform IDBI into a commercial bank so as to have low-cost current, savings bank deposits, which would help overcome most of the limitations of the current business of development finance only to diversify its client base. This would have a positive impact on the Bank’s overall cost of funds and facilitate lending at more competitive rates to its clients. It would offer various retail products, continuing the existing relationship with retail investors . Further, the new IDBI hopes to own one stop super-shop and become most preferred brand for providing total financial and banking solutions to corporate and individuals, capitalizing the Indian industry and client requirements and large retail base.

Next year, on July 29, 2004, the Board of Directors of IDBI and IBDI Bank approved the merger of IDBI Bank with the Industrial Development Bank of India Ltd. The merger was completed in the financial year ending of 2005.IDBI Bank also acquired United Western Bank in 2006. IDBI would continue to provide its products and services even after converting into a banking company. In addition, they would provide

wholesale and retail banking products, designed to suit the specific needs cash flow requirements of corporate and individuals. IDBI would keep the strong corporate relationships built up over the years to offer customized and total financial solutions for all corporate business needs, term loans and working capital finance, strategic advisory, etc.

Subsidiaries of IDBI Bank:-

IDBI Bank has the following subsidiaries:

IDBI Capital Market Services Limited IDBI Home Finance Limited IDBI Intech Limited IDBI Gilts Limited

Role and Functions of IDBI:-

Role:

From the time of existence, IDBI has been very good 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.

It has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects.

It has done good, 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.

It’s activities confines of long-term lending to industry , balanced industrial growth through development of backward areas, modernization of specific industries,

employment generation, entrepreneurship development .

Support services for creating a vibrant domestic capital market.

Functions:

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, modernization and diversification purposes.

During financial sector IDBI evolved an array of fund and fee-based services with a view for providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients.

It 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.

Products and Services offered by Bank:-

Personal Banking :- Deposits

o Savings Account (basically for salaried persons)

o Current Account (for businessmen)o Fixed Deposits (for everyone)o Suvidha Tax Saving Fixed Deposito Pension Accountso Sabka Accounto Super Shakti Account for Womeno Jubilee Plus Account

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 EasyFill o Bill Payment o Card to Card Money Transfer o Online Payments o PayMate

Investments Advisory

o Smart Financial Planning o Mutual Fund

o Insurance Fixed Income Securities

Cards

o Gold Debit Card o International Debit cum ATM Card o Gift Card o World Currency Card o Cash Card 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

Preferred Banking NRI Services Capital Market

o IPO o Demat

Corporate Banking   :-

Following products and services are offered by IDBI Bank for the corporates:

o Project Finance

o Infrastructure Finance

o Syndication, Underwriting & Advisory Services

o Carbon Credits Business o Working Capital o Cash Management Services o Trade Finance o Tax Payments o Derivatives o Technology Upgradation Fund Scheme

(TUFS) o Film Financing Scheme o Direct Discounting Bills o Rehabilitation Finance

SME Finance:-

Following SME Finance products are offered by the IDBI Bank:

Sulabh Vyapar Loan

Dealer Finance Funding under CGFMSE Direct Credit Scheme - SIDBI Preferred customer scheme - IDBI Bank / SIDBI Vendor financing (Pre - Sale) Vendor financing (Post - Sale) Lending Against the Security of Future Credit

Card Receivables Working Capital Financing - Software

Development Entities

Finance to Medical Practitioners Loan to SRWTO SME Hosiery Special Current Account

Other:- Agri-business Products

Difference from other Banks:-

IDBI bank is different from others because other banks deal in banking business but this bank first deals in financing the various industries for development in the country and then does the banking business. Even now this bank provides finance to various industries for the development. It also finances to film business. Before diversification of IDBI to bank it used to deal in financing business to various industries and firms.

Marketing Strategy:-

The bank has two ways of marketing namely:-

1. Through Branch2. Through Sales Department

1.Through Branch:-

In this method they talk directly to the existing customers about the various new schemes and other important information. According to the bank people this method is effective but the information does not go to large number of people. Because of this method the people are not aware of various schemes and important announcements about our bank so they cannot open account with us.

2.Through Sales Department:-

In this method the sales department employees take the whole responsibility of giving the common people the information about the new schemes and facilities. The employees take the help of pamphlets, advertisement in television ,etc., go door-to-door for distributing pamphlets, give advertisements on internet on various websites most visited by people, etc. This method has positive impact that

the people come to know about the various new schemes and facilities. This method is approved by the employees.

Services to employees working with IDBI Bank:-

The bank provides various service to the people working in each and every branch of IDBI bank. They provide their employees with various services and also motivate them towards work.

Services:- Salary/Increments For full attendance in every week they give

their employees bonus along with salary Provident Fund Pensions Good working conditions with health security

&other things Breaks for refreshment &canteen for

employees. Holiday packages Residential Help Trips Various Loans:- Educational, Housing, Personal,

etc. Different Employee Schemes, etc.

These are the various services provided by bank to help the employees to work honestly.

Motivation of Employees:- They motivate employees by various ways. They are:-

Employee of Week (every week)

Employee of Month (every month) Employee of Year (every year) Motivating Trips Bonuses & Increment in salary Seminars Training Various Activities, etc.

These are the various ways of motivating used by the bank management to inculcate working habit in the employees.

Recruitment Methods:-

There are two methods of recruiting employees they are as follows:-

i. Internal Methodii. External Method

i. Internal Method:- In this method the bank people give promotions to their existing employees and do

the transfer of the people from other branches. They also talk to their existing customers for some employees who require jobs.

ii. External Method: - In this method the recruiting department of the bank prepare and plan for pamphlets and advertisement in newspapers and distribute pamphlets to people in the public places. They also take help of banners and put them up in public places and wherever necessary.

The Present:-

Today, IDBI Bank is counted amongst the leading public sector banks of India, apart from claiming the distinction of being the 4th largest bank, in overall ratings. It is presently regarded as the tenth largest development bank in the world, mainly in terms of reach. This is because of its wide network of 1140 ATMs, 689 branches-->Metro-206, Urban-273, Semi-Urban-138, Rural-72 and 458 centers. Apart from being involved in banking services, IDBI has set up institutions like The National Stock Exchange of India (NSE), The

National Securities Depository Services Ltd. (NSDL) and the Stock Holding Corporation of India(SHCIL).

Vision

”To be trusted partner in progress by leveraging quality human capital and setting global standards

of excellence to build the most valued financial conglomerate .”