IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform.

The Bank offers personalized banking and

financial solutions to its clients in the retail and corporate banking arena through its large network of Branches and ATMs, spread across length and
breadth of India. We have also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of the Globe, for
encashing emerging global opportunities. Our experience of financial markets will help us to effectively cope with challenges and capitalize on the
emerging opportunities by participating effectively in our countrys growth process. IDBI Bank is the youngest, new generation, public sector universal
bank that rides on a cutting edge core banking Information Technology platform. The Bank had an aggregate balance sheet size of Rs. 3,22,769 crore and
total business of Rs 4,23,423 crore as on March 31, 2013. IDBI Bank's operations during the financial year ended March 31, 2013 resulted in a net profit
of Rs. 1882 crore.
Our vision for the Bank is TO BE THE MOST PREFERRED AND TRUSTED BANK ENHANCING VALUE FOR ALL STAKEHOLDERS.
Mission
Delighting customers with our excellent service and comprehensive suite of best-in-class financial solutions;
Touching more people's lives with our expanding retail footprint while maintaining our excellence on corporate and infrastructure financing;
Continuing to act in an ethical, transparent and responsible manner, becoming the role model for corporate governance;
Deploying world class technology, systems and processes to improve business efficiency and exceed customers expectations;
Encouraging a positive, dynamic and performance-driven work culture to nurture employees grow them and build a passionate and committed
work force;
Expanding our global presence;
Relentlessly striving to become a greener bank.
Bank's Profile
IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-building role, first as the apex
Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service commercial Bank
(October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that
contributed towards balanced geographical spread of industries, development of identified backward areas, emergence of a new spirit of enterprise and
evolution of a deep and vibrant capital market. On October 1, 2004, the erstwhile IDBI Bank converted into a Banking company (as Industrial
Development Bank of India Limited) to undertake the entire gamut of Banking activities while continuing to play its secular DFI role. Post the mergers
of the erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the
erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy, new generation Bank with majority Government shareholding
today touches the lives of millions of Indians through an array of corporate, retail, SME and Agri products and services.
Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly competent and dedicated workforce and a state-of-
the-art information technology platform, to structure and deliver personalized and innovative Banking services and customized financial solutions to its
clients across various delivery channels.
As on March 31, 2013 IDBI Bank has a balance sheet of Rs. 3,22,769 crore and business size (deposits plus advances) of Rs 4,23,423 crore. As an
Universal Bank, IDBI Bank, besides its core banking and project finance domain, has an established presence in associated financial sector businesses
like Capital Market, Investment Banking and Mutual Fund Business. Going forward, IDBI Bank is strongly committed to work towards emerging as the
'Bank of choice' and 'the most valued financial conglomerate', besides generating wealth and value to all its stakeholders.
Information on the Constitution of IDBI Bank
I ndustrial Development Bank of I ndia
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 vide GoI notification dated June 22, 1964. 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.
I ndustrial Development Bank of I ndia Limited
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 Ltd. with
effect from the effective date of October 01, 2004. In terms of the provisions of the Repeal Act, IDBI Ltd. has been functioning as a Bank in addition to
its earlier role of a Financial Institution.
Merger of I DBI 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.
Merger of United Western bank with I DBI Ltd.
The United Western bank Ltd. (UWB), a Satara based private sector bank was placed under moratorium by RBI. Upon IDBI Ltd. showing interest to
take over the said bank towards its further inorganic growth, RBI and Govt. of India amalgamated UWB with IDBI Ltd. in terms of the provisions of
Section 45 of the Banking Regulation Act, 1949. The merger came into effect on October 03, 2006.
Change of name of I DBI Ltd. to I DBI 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.

About IDBI Federal Life Insurance
IDBI Federal Life Insurance Co Ltd. is a joint-venture of IDBI Bank, India's premier development and commercial bank, Federal Bank, one of India's
leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal
Bank and Ageas own 26% equity each. Having started in March 2008, in just five months of inception, IDBI Federal became one of the fastest growing
new insurance companies by garnering Rs.100 Cr in premiums. Through a continuous process of innovation in product and service delivery IDBI
Federal aims to deliver world-class wealth management, protection and retirement solutions that provide value and convenience to the Indian customer.
The company offers its services through a vast nationwide network 2,308 partner bank branches of IDBI Bank and Federal Bank in addition to a sizeable
network of advisors and partners. As on 31st December 2013, the company has issued nearly 5.5 lakh policies with a sum assured of over Rs. 32,110.48
crores.
About the sponsors of IDBI Federal Life Insurance Co Ltd
IDBI Bank Ltd. continues to be, since its inception, India's premier industrial development bank. It came into being as on July 01, 1964 to support
India's industrial backbone. Today, it is amongst India's foremost commercial banks, with a wide range of innovative products and services, serving retail
and corporate customers in all corners of the country from 1201 branches and 2156 ATMs. The Bank offers its customers an extensive range of
diversified services including project finance, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory
services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its
development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in India's financial sector - National
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Analysis and Research Ltd).
Federal Bank is one of India's leading private sector banks, with a dominant presence in the state of Kerala. It has a strong network of over 1,142
branches and 1,312 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal
Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and
ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill
payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative
technological solutions to its customers and the Bank has won several awards and recommendations.
Ageas is an international insurance group with a heritage spanning more than 180 years. Ranked among the top 20 insurance companies in Europe,
Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market.
These are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia and served through a combination of wholly owned
subsidiaries and partnerships with strong financial institutions and key distributors around the world. Ageas operates successful partnerships in Belgium,
UK, Luxembourg, Italy, Portugal, Turkey, China, Malaysia, India and Thailand and has subsidiaries in France, Hong Kong and UK. Ageas is the market
leader in Belgium for individual life and employee benefits, as well as a leading non-life player through AG Insurance. In the UK, Ageas has a strong
presence as the fourth largest player in private car insurance and the over 50's market. Ageas employs more than 13,000 people and has annual inflows of
more than EUR 21 billion.
Vision and Values
Maintaining integrity through our values
Our Vision
To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.
Our Mission
To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior
service delivery while striving to interact with our customers in the most convenient and cost effective manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.
Our Values
Transparency: Crystal Clear communication to our partners and stakeholders
Value to Customers: A product and service offering in which customers perceive value
Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims
Customer-friendly: Advice and support in working with customers and partners
Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the community at large
Products:
1. Childsurance Savings Protection Insurance Plan (UIN: 135N032V01)
2. The IDBI Federal Group Microsurance Plan (UIN:135N004V02)
3. Incomesurance Guaranteed Money Back Insurance Plan (UIN No. 135N031V01)
4. IDBI Federal Lifesurance Savings Insurance Plan (UIN:135N029V01)
5. IDBI Federal Loansurance Group Insurance Plan(UIN: 135N028V01)
6. IDBI Federal Termsurance Group Insurance Plan UIN:(135N027V01)
7. IDBI Federal Wealthsurance Suvidha Growth Insurance Plan (UIN: 135L033V01)
Indian Banking Sector: Brief Introduction
Indias banking sector is currently valued at Rs 81 trillion (US$ 1.31 trillion). It has the potential to become the fifth largest banking industry in the world
by 2020 and the third largest by 2025, according to an industry report. The face of Indian banking has changed over the years. Banks are now reaching
out to the masses with technology to facilitate greater ease of communication, and transactions are carried out through the Internet and mobile devices.
With the Parliament passing the Banking Laws (Amendment) Bill in 2012, the landscape of the sector will likely change. The bill allows the Reserve
Bank of India (RBI) to make final guidelines on issuing new bank licenses. This could lead to a greater number of banks in the country; the style of
operation could also evolve with the integration of modern technology into the industry.
Online Banking
IDBI Bank Ltd has started an online Public Provident Fund (PPF) subscription facility for its customers. The bank had already received approval from
the government to operationalise PPF transactions through the Internet. The facility would help accomplish the governments initiative of electronic
transactions in banking services, and also provide a strong platform to mobilise funds through the Small Saving Schemes. PPF account holders of the
bank will have the benefit of accessing their PPF account online, view account details, print statements, and make subscription to PPF by way of online
transfer of funds.
Simple steps such as memorising personal identification number (PIN), bringing down credit limits on cards, using virtual cards for internet transactions
and deactivating transactional services linked to a mobile number can limit bank frauds, according to experts. Changing the password regularly can also
save an account from fraud attacks.
Online money transfers and money credited directly to an account are the second preferred mode of inward remittances in India, rising to 22 per cent in
fiscal 2013 from 14 per cent in 2009, according to an RBI report. "While electronic wires/SWIFT continue to be the dominant mode of transferring
remittances by overseas Indians, in the recent period, there has been a significant increase in the share of remittances transmitted through direct transfer
to bank accounts and through online mode," the report stated.
Key Statistics
The revenue of Indian banks increased four-fold from US$ 11.8 billion to US$ 46.9 billion in the period 20012010. In that phase, the profit after tax
rose about nine-fold from US$ 1.4 billion to US$ 12 billion.
Banking Index with the Sensex (Bankex) that tracks the performance of primary banking sector stocks grew at a compounded annual growth rate
(CAGR) of nearly 20 per cent over the period 20032012.
Total number of onsite and offsite ATMs of Indian Banks reached 100042 in July 2012.
Recent Developments
The central banks of Japan and India have agreed to a proposal that expands the maximum amount of the Bilateral Swap Arrangement (BSA) between
the two countries to US $50 billion. The agreement is for a three-year period (201215); the previous size of the BSA was US $15 million. The new
agreement will enable the two countries to swap their local currencies against the US dollar for an amount up to US$50 billion.
Public sector banks will soon offer customers insurance products from different companies as against products from one company. The finance ministry
has asked public sector banks to become insurance brokers instead of corporate agents. This move was one of the steps stated by finance minister Mr P
Chidambaram in early 2013, as a way to increase insurance penetration.
Citi has promoted Mr Anand Selvakesari as the head of consumer banking for the Association of Southeast Asian Nations (ASEAN) region. Mr
Selvakesari will continue his present role as Citis consumer banking business head in India a post he has occupied since July 2013 as well as look
after the consumer banking operations in Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
Indian Overseas Bank (IOB) has received approval from the RBI to open a second branch in Bangkok, according to the banks chairman and managing
director Mr M Narendra. The bank will likely open the second branch before March 31, 2014. Also, the bank is looking to expand its presence. "Our
focus is on opening more rural branches and taking banking to villages. We have covered 3,000 villages under the financial inclusion scheme, said Mr
Narendra.
In an effort to expand its revenue streams, Bank of India (BOI) plans to enter the merchant banking space through BOI Shareholding Ltd. BOI is looking
to buy Bombay Stock Exchanges (BSE) entire shareholding in their joint venture BOI Shareholding Ltd (BOISL). Another reason for BOIs inclination
to foray into merchant baking is to offer a greater range of financial services to its customers.
Government Initiatives
The Cabinet Committee on Economic Affairs (CCEA) has given the go-ahead to a proposal to increase foreign holding in Axis Bank to 62 per cent from
the current 49 per cent. The move could lead to overseas investment of nearly Rs 7,250 crore (US$ 1.17 billion) into the country. The approval is subject
to foreign institutional investors (FII) holding being capped at 49 per cent.
To counter the liquidity pressure faced by micro and small enterprises, the RBI will provide refinance aggregating up to Rs 5,000 crore (US$ 813.16
million) to the Small Industries Development Bank of India (SIDBI). SIDBI can use the funds for direct and onward lending to banks. Also, in an effort
to encourage more lending to medium enterprises, the RBI will include incremental credit given to these units by scheduled commercial banks (which do
not include regional rural banks) under the domain of priority sector lending.
HDFC Bank Ltd has started its rural financial literacy initiative in the village of Palakkad in Kerala, with the support of the RBI. The private bank will
conduct financial literacy camps in 39 rural and semi-urban branches across the South Indian state. These camps will allow adults and school children
from 234 Panchayat wards in 26 villages to gain theoretical knowledge on financial products and services. This initiative endorses the RBI's recent
circular which recommends that banks, through their branch networks, should put in more efforts in rural areas to spread financial literacy.
Road Ahead
India is one of the top 10 economies in the world, where the banking sector has tremendous potential to grow. The last decade saw customers embracing
ATM, internet and mobile banking. The number of ATMs has doubled over the past few years, with more than 100,000 in the country at present (70 per
cent in urban areas). They are estimated to further double by 2016, with over 50 per cent expected to be set up in small towns. Also, the scope for mobile
and internet banking is big. At the start of 2013, only 2 per cent of banking payments went through the electronic system in the country. Today, mobility
and customer convenience are viewed as the primary factors of growth and banks are continuously exploring new technology, with terms such as mobile
solutions and cloud computing being used with greater regularity.
Exchange Rate Used: INR 1 = 0.01625 as on January 14, 2014





NEWS
IDBI Federal breaks-even in Five years; posts maiden profit of Rs 9.24 crore
Mumbai, June 04, 2013: IDBI Federal Life Insurance has achieved break even in 2012-13, its fifth year of operations. The company has reported a
maiden profit of Rs 9.24 crore in 2012-13, thus making it one of the fastest to break-even in the Life Insurance industry. In an industry challenged by
falling margins, shrinking new business volumes, high cost ratios and low profitability, this is a significant achievement.
IDBI Federal started its operations in March 2008 and is amongst the most successful start-ups in the Indian Life Insurance market. A pioneer in product
innovation, IDBI Federals approach is very innovative and reflects a fresh way of looking at and thinking about life insurance. The Companys
innovative products with trademarked names such as WealthsuranceTM, IncomesuranceTM, RetiresuranceTM, etc have been well-received by its
customers and have been an important contributing factor to its success.
IDBI Federals New Business Premium (APE) grew by 23% in 2012-13, which compares with the negative growth of -15% posted by the industry. The
company also witnessed a 44% increase in the number of new business policies sold as compared to the previous year. IDBI Federal has also been
driving profitability through the right product mix. The product mix has continuously been shifted to long-term, traditional products. Share of traditional
products in the new business premium increased to 83% as compared to 67% in the previous year. Share of regular premium products increased to 78%
as compared to 69% in the previous year.
Mr. G V Nageswara Rao, Managing Director & CEO, IDBI Federal Life Insurance, said, I am extremely happy to announce that IDBI Federal has
recorded its maiden profit of Rs 9.24 crore in 2012-13. Achieving break-even in the fifth year is a significant landmark. We have pursued profitable
growth as our company strategy. Our new business premium growth of 23% compares with negative growth of
15% reported by the industry. Our growth rate is one of the highest in the industry, with a large number of companies posting negative growth. What is
even more satisfying is the fact that this achievement comes at a time when the entire Life Insurance industry is facing many challenges and growth is
hard to come by.
IDBI Federal has a healthy solvency ratio at 491% as against the regulatory requirement of 150%. Mr. Rao said, I am delighted to say that IDBI Federal
enjoys a comfortable solvency ratio to take care of its next phase of growth. As we have reached the profit-making state, we will not require any further
capital infusion. Our AUM has moved up by 24% from Rs. 2,208 crores to Rs 2,732 crores during the current year. IDBI Federal has paid-up share
capital of Rs 800 crore.
The company recorded a 13th month persistency rate of 76% which is among the top 5 in the industry. In terms of 25th, 37th and 49th month persistency
rates, IDBI Federal is among the top 3. IDBI Federals strong persistency record is testimony to the quality of its sales and the confidence the customers
have shown in the companys products and its investment performance. For the calendar year 2012, IDBI Federals Equity Fund raked No 1 in its
investment performance among the 72 ulip funds in the industry against which it is benchmarked internally. IDBI Federals customer complaints, as
reported by IRDA, is among the lowest in the industry.
A strong focus on cost discipline ensured a drop in IDBI Federals cost ratio from 26% in 2011-12 to 24% in 2012-13, which is among the lowest
expense ratios in the industry.
IDBI Federal Life Insurances performance has been a result of its better than industry business growth, better persistency experience, more profitable
product-mix, robust investment performance as well as lower cost ratio. In a fast-changing industry landscape, IDBI Federal was quick to realize the
challenges and act on them. Todays announcement validates its success in meeting these challenges.
A customer centric approach is at the heart of IDBI Federal. We have introduced various measures to ensure that the policyholders interests are upheld
at all times. We recognize the role of long term planning through life insurance and thus focus our efforts in selling regular premium long term products.
Pre-Issuance calling to confirm all sales ensures that the customer is being sold the right product as per his needs. All this has resulted in value creation
for the customer and is reflected in our high persistency rates. In fact, as a result, our customer complaints are also much lower than the industry
average, Mr. Rao said.
Mr. Rao added, This performance is testimony to our constant focus towards innovation, offering tailor-made financial solutions that create value for
our customers and help them to realize their dreams and aspirations. We entered as the 18th player in the industry and differentiation was the key to our
success. Our approach of product branding is unique in the industry and has helped us achieve a strong mindshare among target audiences.
Glossary:
















Global Economic Scenario
Global activity strengthened during the second half of 2013, as anticipated in the October 2013 World Economic Outlook (WEO). Activity is expected to
improve further in 201415, largely on account of recovery in the advanced economies. Global growth is now projected to be slightly higher in 2014, at
around 3.7%, rising to 3.9% in 2015, a broadly unchanged outlook from the October 2013. Turning to projections, growth in the United States is
expected to be 2.8% in 2014, up from 1.9% in 2013.In sum, global growth is projected to increase from 3% in 2013 to 3.7% in 2014 and 3.9 % in 2015.
The default fiasco over a trust product offered by China Credit Trust Co. (CCTC) at the end of last month has raised deep concerns among investors with
respect to Chinas broader financial stability. Even though the CCTC episode was not the first Chinese trust product to face potential default, it was the
first that grabbed the attention of the global mainstream media, which in turn helped trigger a mini panic in world financial markets.
China's shadow banking system is out of control and under mounting stress as borrowers struggle to roll over short-term debts, Fitch Ratings has warned.
It also said that wealth products worth $2 trillion of lending are in reality a "hidden second balance sheet" for banks, allowing them to circumvent loan
curbs and dodge efforts by regulators to halt the excesses.
The China credit journal said total credit in China's financial system may be as high as 221% of GDP, jumping almost eightfold over the last decade, and
warned that companies will have to fork out $1 trillion in interest payments alone this year. That is more than twice the amount that the U.S. government
will pay in interest in 2014 .Overall credit has jumped from $9 trillion to $23 trillion since the Lehman crisis. Fitch says that the Chinese have replicated
the entire US commercial banking system in five years.
The ratio of credit to GDP has jumped by 75% points to 200% of GDP, compared to roughly 40 points in the US over five years leading up to the
subprime bubble, or in Japan before the Nikkei bubble burst in 1990.
Ukraines hryvnia sinks to five-year low .A devaluation of Ukraines currency is gathering pace as political crisis and market pressures force the central
bank to abandon a four-year peg to the dollar. The recent wave of turbulence in emerging markets is caused by expectations the U.S. Federal Reserve
will continue to reduce spending for its stimulus program, cutting the amount of investment dollars flowing into emerging markets. The impact of
Argentina's currency devaluation during last week was an unlikely trigger for a new selloff in emerging market assets. The move was especially
surprising because it followed assurances by President Cristina Fernandez Kirchner that the government wouldn't devalue the peso. The Turkish lira has
fallen to a record amid rising social tensions and currencies including the South African rand and the Russian ruble have also tumbled recently.
Global Equity Markets
Its worse in developing countries, as the MSCI Emerging Markets Index drops to a five-month low and losses in equity benchmarks from India, Russia,
Brazil and Mexico exceed 4% for 2014. A custom Bloomberg index of the 20 most-traded emerging-market currencies has fallen about 2% this year.
Momentum in the U.S. stock market is slowing as the bull market enters its sixth year and after the S&P 500 surged 30% in 2013.Developed nations are
falling with emerging counterparts this year, including a 13 percent loss in Japans Topix Index and a 4.4% decline in Germanys DAX Index. The MSCI
Emerging Markets Index lost 8.5%. The S&P 500s 5.8% retreat from Jan. 15 to Feb. 3 is the biggest drop since June. The MSCI All-Country World
Index dropped to the lowest level in almost four months on Feb 3rd.
Losses among commodities have been less than equities, with the S&P GSCI measure of 24 raw materials down 1.4% this year. Gold rallied 3.8% to
$1,251.92 an ounce since the start of January. Emerging markets have been hit this year by a perfect storm of rising interest rates in the U.S., fears of a
slowdown in China, political turmoil, and concerns that emerging market economies haven't reformed fast enough to make growth sustainable.
The sell-off has gathered pace since Argentina gave up trying to defend the value of its currency last month. Central banks in India, Turkey and South
Africa were forced to jack up interest rates last week to try to halt the exodus. Together with Indonesia and Brazil, those three countries make up the so-
called Fragile Five.
Domestic Economic Insight
The Index of Industrial Production (IIP) declined 0.6% YoY in December, the third straight month of contraction. Manufacturing sector contracted,
mining registered mild expansion, while electricity was robust. Within manufacturing, weakness was concentrated in consumer goods especially durables
(contraction of 16% YoY), suggesting that a good kharif season has failed to lift sentiment in rural areas. Among other industries, steel and fertilisers
performed relatively better, while production of refinery products was hampered by temporary shutdown of few refineries.
Notably, pronounced weakness seen in IIP is inconsistent with some of the lead indicators such as PMI manufacturing, production of intermediate goods,
both of which have seen modest improvement in recent months. Going ahead, sluggish trend in manufacturing is likely to continue especially as Q4FY14
is likely to see sharp slowdown in government expenditure, which will further inhibit demand in the economy.
The inflation based on the Wholesale Price Index fell sharply to 6.16% in December 13 against 7.52% for the month of November 13. Core inflation
continued to be low during the month on strong base effect. The inflation rate for Primary Articles, Fuel and Manufactured Products is at 10.78%,
10.98% and 2.64% respectively in December 13. The inflation rate for food articles was high at 13.68%. The Consumer Price Inflation (All India) stood
at 9.87% with urban inflation at 9.11% and rural inflation at 10.49%. The Consumer Price Inflation was at 11.2% for Agricultural Laborers in December
13. The Consumer Price Inflation for Industrial Workers for December 13 was placed at 9.1%. The gap between the inflation measured by WPI and the
various CPI indices is on account of different composition and varying weights of the various index components and base effect impact.
Domestic Debt Markets:
The Rupee depreciated against the US Dollar in January 14 in the backdrop of fears over emerging market economies. The Rupee closed against the US
Dollar at Rs 62.65 from the level of Rs 61.80 at the beginning of the month. The Rupee traded in a range of Rs 61.50 and 62.50 against the US Dollar
during the month. In the global markets, the Euro weakened against the US Dollar during the month and closed at 1.34 against the US Dollar against 1.37
in December 2013. Japanese Yen gained marginally despite the backdrop of massive Quantitative Easing and closed at 102.04 against the US Dollar.
The foreign exchange reserves of RBI stood at US$ 292 billion as on 24 January 14. Exports during April - December 13 were at $ 230 billion
registering a growth of 5.9% (YoY). However, imports were lower by 6.5% (YoY) during April - December 13 and stood at $ 340 billion. Indias trade
deficit stood at $ 110 billion in April - December 13 against $ 146 billion during April November 12.
The money market tightened in January 14 amidst continued liquidity deficit in the backdrop of build up of Government balances with RBI. The term
repos window was enhanced by RBI to provide some respite to the market. Almost Rs 70,000 cr of liquidity was infused through this window. The
overnight rates were generally at or above the upper end of the LAF corridor during the month. Reserve Bank of India infused liquidity through the
overnight LAF repo window, term repos and Marginal Standing Facility. The call money rate was in the range of 7.75% - 9.00% during the month while
the CBLO rates were generally in the range of 7.50% - 8.50%. The net liquidity infusion under LAF Repo and Term Repos stood at Rs 31,000 cr and Rs
69,000 cr respectively on 31 January 14 and borrowing under Marginal Standing Facility was at Rs 8,800 cr.
The sovereign yield curve was largely stable during the month. There was 25bps rate hike by RBI during the month to contain inflationary expectations.
The release of Urjit Patel Committee which suggested CPI inflation as the nominal anchor for the Monetary Policy adversely affected the market
sentiment. The yield on 10 year Government Securities closed at 8.81% as per FIMMDA yield curve, 3bps lower than December 13 closing of 8.84%.
The credit spreads on corporate bonds were stable during the month in the backdrop of lower issuance of bonds. 10 Year AAA rated bonds (PSU) were
trading at a spread of 63bps over the yields on Government Securities of similar maturity as per FIMMDA valuation, 3bps higher than 60bps spread at
the previous months close. Similarly, the 5 Year AAA rated bonds (PSU) spreads were lower by 1 bps at 69bps over the yields on Government
Securities of similar maturity.
Perspective on Debt Markets
The borrowing program in February 14 is placed at Rs 10,000 cr with a single scheduled auction. We expect the borrowing program during the month to
go through smoothly without any devolvement. Liquidity situation is expected to ease in February 14 on account of the spending by Government coupled
with likely roll-over of term repo facility by RBI. Money market rates are expected to remain firm around the LAF Repo Rate. We expect the overall
liquidity to remain in deficit mode. WPI inflation for January 14 is expected to remain firm in the 5.5% - 6.0% range on account of base effect and easing
in food prices. However, inflation concerns continue on the CPI front which will remain elevated close to double digit level. We expect RBI to hold
interest rates at the current level in the near term. Overall, we expect the 10 year Government Securities yield in the range of 8.30% - 8.80% in February.
Perspective on Equity Markets
Our lives are changing at an unprecedented pace. Transformational shifts in our economic, environmental, geopolitical, societal and technological
systems offer unparalleled opportunities, but the interconnections among them also imply enhanced systemic risks. Stakeholders from across business,
government and civil society face an evolving imperative in understanding and managing emerging global risks which, by definition, respect no national
boundaries. While we expect broad global economic synchronization overall, the expansion will be uneven.
Herd mentality is one of the strongest and most powerful human instincts. Humans take great comfort from walking the same path as others have walked
before them, and nowhere is this more evident than in the field of investments. Most investors are simply incapable of disregarding the consensus when
making investment decisions, if for no other reason than because being out there on your own is associated with considerable career risk. Normally,
experience gives people an edge compared to those without it for face this unprecedented pace and to take contrarian bets and we as a team have them in
adequate. In an environment with the potential for highly divergent returns, we believe our ongoing commitment to specialized fundamental research will
serve us well.
MUMBAI, August 23, 2010: IDBI Fortis Life Insurance Co Ltd, in association with Federal Bank, has changed its name to IDBI Federal Life Insurance
Co Ltd, in association with Ageas. The company has completed all legal formalities for change of name and has already obtained the approval of the
Registrar of Companies and Insurance Regulatory and Development Authority (IRDA).
IDBI Fortis is a joint venture of IDBI Bank, Federal Bank and Fortis Insurance International with shareholding of 48%, 26% and 26% respectively.
There will be no change in the shareholding pattern of the company.
The name change follows Fortis's decision to globally change its name to Ageas in April 2010. At the same time, as IDBI Bank and Federal Bank are
joint venture shareholders and bank assurance partners of the company, it was felt that including both their names in the insurance company name would
establish a better brand connect with the over ten million customers of both banks. The shareholders thus unanimously decided to change the name of the
joint venture company to IDBI Federal Life Insurance Company Ltd. To emphasise the parentage of Ageas (formerly Fortis) and the global insurance
expertise they bring to the business, the company's logo will incorporate the line "in association with Ageas". The logo unit of the company remains the
same with only exchange of places between Federal and Ageas.
All partners remain fully committed to building a vibrant life insurance company that will offer innovative insurance solutions to Indian consumers and
focus on high-quality customer service.
Announcing the rechristening, Mr R M Malla, Chairman & Managing Director of IDBI Bank, said "IDBI Fortis has rapidly grown in reach and size over
the last 2 years, introducing innovative products catering to diverse customer needs. As we tread onto a journey of increased productivity and growth,
this change will help IDBI Federal tap into markets that are known to be Federal Bank strongholds."
Mr. P C John, Executive Director of Federal Bank, said "At Federal Bank, we welcome this change as it allows us to project our deep commitment to the
life insurance business and provide a full product range to all our customers. The innovative range of products by IDBI Federal will help us cater to a
wide array of protection and investment needs of our customers."
Mr. Dennis Ziengs, CEO Asia of Ageas , said "The change in name will allow IDBI Federal to strengthen their awareness and presence in the country.
We feel that it is more beneficial to capitalize on the strong brand names of our partners IDBI Bank and Federal Bank. This approach is also in line with
the brand strategy we use for our other international joint ventures."
Having started in March 2008, within just five months of inception the company became one of the fastest growing new insurance companies to garner
Rs 100 Cr in premium collected. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank
in addition to a sizeable network of agents and partners. As on June 30th, 2010, the company has issued over 2 lakh policies with a sum assured of over
Rs 9,160 Cr.


Profit & Loss - IDBI Bank Ltd. Rs (in Crores)
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09
12Months 12Months 12Months 12Months 12Months
INCOME:
Sales Turnover 25064.30 25300.43 20039.87 17063.60 12668.35
Excise Duty .00 .00 .00 .00 .00
NET SALES 25064.30 25300.43 20039.87 17063.60 12668.35
Other Income 0 0 0 0 0
TOTAL INCOME 28283.81 25402.05 20310.14 17317.07 12782.08
EXPENDITURE:
Manufacturing Expenses .00 .00 .00 .00 .00
Material Consumed .00 .00 .00 .00 .00
Personal Expenses 1538.50 1160.44 1026.50 756.99 569.24
Selling Expenses .00 26.22 46.34 45.84 48.38
Administrative Expenses 1471.75 2265.10 2309.97 1173.96 811.35
Expenses Capitalised .00 .00 .00 .00 .00
Provisions Made 2057.66 8.33 140.42 865.21 22.33
TOTAL EXPENDITURE 5067.90 3460.10 3523.23 2841.99 1451.30
Operating Profit 2362.87 3023.59 2385.14 2081.60 933.66
EBITDA 5582.37 3125.20 2655.41 15340.29 11353.11
Depreciation 124.12 116.06 127.04 90.98 52.70
Other Write-offs .00 .00 .00 .00 .00
EBIT 5458.25 3009.14 2528.37 15249.30 11300.40
Interest 19691.19 18825.08 14271.93 13005.22 10305.72
EBT 3400.59 3000.81 2387.95 1378.88 972.36
Taxes 1518.51 1104.93 734.94 346.31 127.10
Profit and Loss for the Year 1882.08 1895.88 1653.01 1032.57 845.26
Non Recurring Items .00 -1.54 -2.69 -1.43 13.28
Other Non Cash Adjustments .00 137.25 .00 .00 .00
Other Adjustments .00 .02 .00 .00 .00
REPORTED PAT 1882.08 2031.61 1650.32 1031.13 858.54
KEY ITEMS
Preference Dividend .00 .00 .00 .00 .00
Equity Dividend 394.72 328.35 289.32 217.46 181.20
Equity Dividend (%) 29.61 25.68 29.38 30.00 25.00
Shares in Issue (Lakhs) 13327.48 12783.82 9845.68 7248.62 7247.81
EPS - Annualised (Rs) 14.12 15.89 16.76 14.23 11.85
Rs (in Crores)


Director Report
The Board of Directors of your Bank takes pleasure in presenting its Report on the business and operations of your Bank for the financial year ended
March 31, 2012.During the financial year 2011-12, the performance of your Bank hasshown considerable growth on different fronts driven by strategic
policy initiatives; expansion in branch network, focus on improved customer service delivery, superior product characteristics, which has resulted in
improvement in key profitability indicators. Your Bank was able to widen its customer base both by expanding its outreach, as also by providing a range
of innovative products and services. As on March 31, 2012 aggregate deposits and advances of your Bank touched Rs. 2,10,493 crore and Rs. 1,81,158
crore reflecting a growth of 16.63% and 15.32%. The Performance highlights of your Bank for the period under review are presented in Table 1.
Table 1: Financial Highlights
Particulars (Rs. in Crore)
As at year-end 2010-11 2011-12
Capital 984.6 1,278.4
Reserves & Surplus 13,582.0 18,148.7
Deposits 1,80,485.8 2,10,492.6
Borrowings 51,569.6 53,477.6
Other Liabilities & Provisions 6,754.8 7,439.9
Total Liabilities 2,53,376.8 2,90,837.2
Cash & Balances with RBI 19,559.0 15,090.2
Balances with Banks and 1,207.0 2,967.4
Money at Call & Short Notice
Investments 68,269.2 83,175.4
Advances 1,57,098.1 1,81,158.4
Fixed & Other Assets 7,243.5 8,445.8
Total Assets 2,53,376.8 2,90,837.2

For the period 2010-11 2011-12
Total Income 20,684.5 25,488.7
Total Expenses (other than 16,526.6 21,432.5
provisions)
Provisions (other than tax) 1,876.9 1,426.5
Profit Before Tax 2,281.0 2,629.7
Provision for Tax* 630.7 598.1
Profit After Tax 1,650.3 2,031.6
* Net of Current Income Tax and Deferred Income Tax
Profit and Appropriations
During the financial year April 2011 - March 2012, gross income of your Bank increased to Rs. 25,488.7 crore with contribution of interest income at Rs.
23,369.9 crore and other income at Rs. 2,118.8 crore. Interest expenses of Rs. 18,825.1 crore and operational expenses of Rs. 2,607.5 crore, led to total
expenditure, excluding provisions and contingencies, of Rs. 21,432.5 crore during FY 2011-12. Total provisions during the year were at Rs. 2,024.6
crore, which includes Rs. 591.9 crore towards provision for bad & doubtful debts and investments, Rs. 263.7 crore towards restructured assets, Rs. 231.9
crore towards incremental prudential provisions for standard assets, and Rs. 598.1crore towards tax. The Profit before Tax (PBT) of your Bank during
the FY 2011-12 stood at Rs. 2,629.7 crore. After making a provision of Rs. 598.1 crore towards taxation, Profit after Tax (PAT) amounted to Rs. 2,031.6
crore The appropriation of PAT as approved by the Board of Directors is given in Table 2.
Table 2 : Appropriation of profits
Particulars (Rs. in Crore)
As at year-end 2010-11 2011-12
Net Profit for the year 1,650.3 2,031.6
Profit brought forward 479.1 615.0
Profit available for 2,129.4 2,646.6
Appropriations
Appropriations 2010-11 2011-12
Transferred to Statutory 413.0 507.9
Reserve
Transferred to Capital Reserve 1.5 17.0
Transferred to General 600.0 750.0
Reserve
Transferred to Special Reserve 100.0 250.0
created and maintained u/s
36(1)(viii) of IT Act, 1961
Dividend
- Equity Shares* 344.6 388.7
- Tax on Dividend** 55.3 60.3
Balance of Profit carried to 615.0 672.6
Balance Sheet
*Dividend on equity shares includes interim dividend of Rs. 2/- per share paid during 2011-12.
**Tax on dividend includes tax on interim dividend paid during 2011-12.
For each share with face value of Rs. 10, Earning Per Share (EPS) during the year stood at Rs. 20.6 and Book Value Per Share stood at Rs. 137.24 as at
end-March 2012. The Directors have pleasure in recommending dividend at 35% (including 20% paid on interim basis) on the fully paid-up equity share
capital for the financial year 2011-12.
Capital Adequacy
Your Bank is Basel-II compliant and the Capital to Risk weighted Assets Ratio (CRAR) is computed in adherence to norms prescribed by RBI in this
regard. Credit Risk is computed using the Standardised Approach, Market Risk is measured by using Duration Standardised Approach and Operational
Risk measure is Basic Indicator Approach. During FY 2011-12, the equity shareholding of Government of India has increased to 70.52% as at end-
March 2012 through infusion of fresh equity capital to the extent of Rs. 810 crore and conversion of Tier I Bonds of Rs. 2,130.5 crore into equity.
Against the stipulated RBI norm of 9% for total CRAR and 6% for core CRAR, your Bank''s total CRAR worked out to 14.58 % with Tier-I CRAR of
8.38 % as at end-March 2012.
Business Strategy
Your Bank''s strategy during the year under review focused on aggressive growth in Retail lending and repositioning of delivery channels to realize
higher CASA deposits. At the same time, your Bank sought to maintain its leadership position in the corporate banking and investment banking space, so
as to meet the requirements of the corporate sector. Specific focus was laid on cross selling of your Bank''s entire product and service offerings across the
entire range of customers, so as to build sustainable and stable relationships. Your Bank''s strategy during the year resulted in improvement in various
profitability parameters and consolidated its business position across various benchmarks, so as to bring them more in line with the prevailing industry
standards.
Key Business Initiatives
Your Bank continued to target a progressively larger retail business portfolio to facilitate a more balanced business mix, in keeping with its intended
positioning as a full- service new generation commercial bank. Further, in order to build a strong foundation for sustainable growth on long term basis, as
also ensure compliance with regulatory norms, your Bank took initiatives to build up its priority sector lending portfolio. Your Bank has been a pioneer
in the field of Corporate Finance for the last nearly five decades. Your Bank has maintained its focus on corporate banking and laid Specific emphasis on
cross-selling of your Bank''s diverse range of products and services. Your Bank increased substantially its presence in government business and enabled
higher direct and indirect tax collections.
Your Bank offers a bouquet of Liability, Asset, Capital Market and Third Party products aimed at meeting the customized needs of customers in the
Retail Banking segment. Your Bank introduced a number of products in the pre-paid cards arena during the year under review. Your Bank has initiated a
project on facilitating usage of ATM network to Co-operative Banks and RRBs on National Financial Switch (NFS) network in association with National
Payments Corporation of India (NPCI). This would enable Co-operative Banks and RRBs to issue ATM cards to their account holders and get connected
to the NFS network to have access to more than 84,000 ATMs across India.
Your Bank entered into MOUs with several reputed educational institutions across India for granting educational loans to eligible students during the
year. Your Bank is also offering additional concessions to girl students from SC/ST and Minority communities.
Your Bank had launched its Internet Banking services way back in October 2001. Since then, the ambit of this channel has progressively broadened to
include several value-added services. Keeping in view the need to secure online shopping/e-commerce based transactions initiated through the internet
banking channel from phishing related frauds, an Online Shopping Password (OSP) security feature has been introduced by the Bank from December
2011. Your Bank also introduced an online password-generation facility for the Retail Net Banking customer, to instantly create their own login and
transaction password and also set their access profile.
As part of a Financial Inclusion project in four Talukas of Gujarat, your Bank has, inter alia, launched a specially designed Co-branded Photo ATM Card
on ''Rupay'' Platform. The Card can be used for ATM transactions at your own as well as other Bank ATMs that are members of National Payment
Corporation of India (NPCI).
Your Bank has constantly endeavored to cater to the diverse needs of its MSE clients and has continuously been developing customized MSE products.
During FY 2011-12, your Bank introduced a new product, viz., "Line of Credit to Vendors of Corporates" that augments the liquidity position of MSE
vendors. Considering the growing importance of credit rating for MSE clients, which enhances the confidence in MSEs while dealing with financial
institutions, banks and corporates for their financial needs and business opportunities, your Bank signed an MoU with Credit Analysis and Research Ltd.
(CARE) for credit rating of the MSE customers at preferential rate.

Your Bank has put in place a state-of-the-art Technology Platform which is supporting the Government''s dual objective of improvement of tax collection
efficiency and e-governance. Your Bank had gone live in January 2012 in providing online duty payment services in respect of Customs Duty for all the
103 Electronic Data Interchange (EDI) locations across the country. With this development, taxpayers are now in a position to route all of their Central
Taxes and Duties payments through IDBI Bank, making your Bank an important Agent in its pursuit of partnering the Government of India in enabling
online tax payments and enhancing the tax contribution to the Exchequer.
Your Bank became the first ever Bank in the country to launch an internet based portal dedicated to retail investors in Government Securities. The portal,
named "IDBI Samriddhi G-Sec" has been received favourably by the investor class. This trend setting initiative by your Bank offers retail investors the
opportunity to benefit from the safety, liquidity and risk free returns that Government Securities offer.
Your Bank became the first entity from India as also other emerging markets to access foreign currency funds in the Dim Sum Market. In November
2011, your Bank raised Renminbi (RMB) 650 million 4.5% fixed rate Dim Sum Bonds for 3 year maturity. This issue provides testimony to the faith
reposed by global fixed income investors in your Bank.
Organizational Structure
Your Bank has continued its thrust on improving organizational structure, which places customer relationship and service at the centre of all banking
initiatives. Accordingly, your Bank is currently organized on the lines of "customer focused vertical" model, capable of delivering improved services.
The model has achieved significant success in enhancing customer relationship management, improving credit delivery and bringing sharper focus to
business lines which are sustainable and remunerative.
With the addition of 157 branches during FY 2011-12, including Specialized Corporate Branches, the total number of domestic branches went up to 972
as on March 31, 2012 in addition to one overseas branch at DIFC, Dubai. Of the domestic branch network, 264 are located in metropolitan centres, 377
in urban centres, 236 in semi-urban centres and 95 in rural centres.
Board of Directors
Your Bank''s Board of Directors is broad based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, the Companies
Act, 1956, the Articles of Association of the Bank and satisfies the requirements of good corporate governance as envisaged in the Listing Agreement
with the Stock Exchanges. The Board functions directly as well as through various Board Committees constituted to provide focussed governance in
important functional areas of the Bank.
As on March 31, 2012, the Board of Directors of your Bank comprised of six Directors with two Executive Directors (including the Chairman &
Managing Director and the Deputy Managing Director), one Non Executive Director and three Independent Directors. No Director on the Board of your
Bank is in any way related to any other Director on the Board of the Bank.
Apex Committees
The Board has in all eight committees, viz., Executive Committee, Audit Committee, Shareholders''/Investors'' Grievance Committee, Frauds Monitoring
Committee, Risk Management Committee, Customer Service Committee, Information Technology Committee and Remuneration Committee, to oversee
various functional aspects of the Bank''s business and operations.
Corporate Governance
Your Bank is committed to adopting the best practices in the area of corporate governance. Your Bank believes that proper corporate governance is not
just a requirement for regulatory compliance, but also a facilitator for enhancement of stakeholders'' value. The details of corporate governance practices
followed in your Bank are given in this Annual Report as a separate section under the Management Discussion and Analysis.
Statement under Section 217(2A) of the Companies Act, 1956
There were no personnel in the services of the Bank for the whole year, who were in receipt of remuneration of over Rs. 60 lakh per annum. Further,
there were no personnel, who were in the service of the Bank for part of the year, received remuneration in excess of Rs. 5 lakh per month for the period
they were in the service of the Bank. The provisions of Section 217(1) (e) of the Act relating to conservation of energy and technology absorption do not
apply to your Bank.
Directors'' Responsibility Statement
The Board of Directors hereby declares and confirms that:
a. in the preparation of accounts, the applicable accounting standards had been followed along with proper explanation relating to material departure;

b. the Directors had adopted such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of affairs of your Bank at the end of accounting year and of the profit or loss of your Bank for that year;
c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the regulatory provisions,
for safeguarding the assets of your Bank and for preventing and detecting fraud and other irregularities;
d. the Directors had prepared the accounts on a going concern basis.
Acknowledgements
The Board of Directors of your Bank expresses its sincere thanks to the Government of India, Reserve Bank of India (RBI), Securities and Exchange
Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA) and all other Statutory/ Regulatory Authorities for their valuable co-
operation and guidance. The Board also acknowledges the co-operation and support rendered by various State Governments and other banking/financial
institutions. The Board thanks various multilateral institutions and international banks/ institutions for their periodic support. The Board takes this
opportunity to thank all its shareholders and customers for extending their support during the year and looks forward to their continued association in the
years ahead. During the financial year, the Bank has received various recognitions and accolades for its excellence in banking domain. The Board indeed
is thankful to all such organizations/agencies for their appreciation of the Bank''s efforts. The Board appreciates the sincere and devoted services
displayed by its entire staff and highly values their commitment in improving your Bank''s performance.