IDBI

Industrial Development Bank of India

THE COMPANY – ITS PRODUCT AND

SERVICE PORTFOLIO.
AN OVERVIEW
 HISTORY :
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
Overview of development banking in India
The concept of development banking rose only after 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.
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
government’s desire to maintain employment in the banking system and were often
drawn into troublesome loans in order to further the government’s 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.

Industrial Development Bank of India (IDBI)

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 IDBI’s 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 long-term 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 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, 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 IDBI’s
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.
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 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 TODAY :

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 Straight-Through-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 POLICIES :
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.

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
cross-disciplinary 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.
 THE BANK, ITS PRODUCTS AND SERVICES
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, short-term 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:
• Home / Project Finance Scheme:
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.

• 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 state-of-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.

• Direct Discounting of Bills:

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 discounting of bills, depending on monthly /
quarterly / half-yearly/ 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.
 • Rehabilitation Finance Department:
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
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 co-promoters 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.

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
Thank you.

*****