Chapter

A Project report on Banking for all
CHAPTER - 1
1. INTRODUCTION
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 co-ordinating the developmental
activities of different nations with different objectives among the world. The Narasimhan
committee had recommended to give up its direct financing functions and to perform only
the promotional and refinancing role. However it is the S.H.Khan committee, appointed
by RBI has reconted to transform the DFI (Development Finance Institution) into
universal banking institutions.
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. Specialized 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. To facilitate the growth of these institutions, a mechanism to
provide concessional finance to these institutions was also put in place by the Reserve
Bank.
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The first development bank In India incorporated immediately after independence

in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer
institutional credit to medium and large-scale enterprises. Then after in regular intervals
the government started new and different development financial institutions to attain the
different objectives and help to five-year plans.
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 alongside 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
16th February 1976, the ownership of IDBI was transferred to the Government of India
and it was made the principal financial institution for co-ordinating the activities of
institutions engaged in financing, promoting and developing industry in the country.
Although Government’s shareholding in the Bank came down below 100% following
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IDBI’s public issue in July 1995, the former continues to be the major shareholder
(current shareholding: 52.3%). 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,
modernization and diversification purposes. In the wake of financial sector reforms
unveiled by the government since 1992, IDBI evolved as 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.
1.2. An Introduction about market.

The essence of modern marketing concept is that every single element of
business should be geared up and oriented towards attaining buyers’ satisfaction and
value customers’ main sellers. Hence marketing should know surely who will buy, why
they buy and also who is competing with him. .
However marketing is much more than just isolated business function. It is

philosophy that guides the entire operation. In this modern market “consumer is the king"
hence the producer’s fate is decided by the action of the consumer i.e., by earthier buying
the product or rejecting it. So, more than 40% of our population is below poverty line. In
the modern market the main aim of the business is to have an handsome profit and the
next is to satisfy the consumer.
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1.3. A Marketing Management.

Marketing management is the process of planning and executing the conception
pricing and distribution of idea's good services and idea to create exchanges with the
target group that satisfy individual and organizational objectives. Marketing managers
cope with their task carrying out marketing research planning implementation and control
witin marketing planning marketers must make decision on target markets, market
position development, pricing distribution channel, physical distribution &
communication and promotion.
1.4. The marketing concept:

Market focus:
No company or management can operate in every market and satisfy every need
companies do best where they defines the boundaries of their market carefully.
Customer's orientation:
The customer orientation thinking required the company to carefully define
customer's needs from the customer's point of view, not from its own point of view. The
company's aim is not only to satisfy but also delight the customer.
Co-ordinated marketing:
It refers to two things first, the various marketing functions, Sales, forces,
advertising, marketing research etc. must be co-ordinate among themselves. Second
marketing must be well co- ordinate with the others department in the company.
1.5 Profitability:
The purpose of marketing is to help organization to achieve heir goal. In case
of private firm the major goal is the profit, but in case of government or public
organization it is surviving and attracting enough funds to perform their work. Actually
marketing people focus on identifying profit opportunities.
1.6 Hypothesis:
Hypothesis is assumption for the problem to be solved. If we under take

research work from certain point, this point constitutes hypothesis.
4
It presumes that the market share in Chikmagalur city is much encouraging and
enough to the targeted as per hypothesis.
l.7 Objectives :
1. To know the Customer of IDBI

2. To know the Customer awareness towards IDBI.
3. To observe the reaction of IDBI Services.
4. To know the consumer awareness towards different ways of Services.
5. To study the knowledge of Customer towards IDBI Services.
6. To know the effect of advertisement on different classes of people.
7. To collect the suggestions for improvement of IDBI Services.
8. To know the market share of IDBI in Chikmagalur city.
9. To collect the data about all the competitors of IDBI.
1.8 Methodology:
This marketing research included all those activates, which enable in to obtain
information needed to fulfill the objectives. The data are collected by primary data and
secondary data, which are, centered part of research activities
Primary data:
a. To know the consumers behavior towards the services

b. Marketing mix strategy
c. Interview with the customers.
The questionnaires were prepared to know the Customer Attitude toward

“Western Union” with different income group and different Qualified persons.
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Secondary data:
The sources of secondary data is also used to prepare this report
They are
(1) Internet.
(2) News paper and magazine
(3) Trade journals
(4) Encyclopedia
(5) Companies annual report
(6) Textbooks
1.9 Scope of study: -

As we know that IDBI is having a significant market share in banking sector, this
study attempts to give much more Information to give much more information to acquire
potential market and come out with some new innovations.
The scope of study is restricted to the study of "A Market research on IDBI”
a) The IDBI is targeted to all classes of people .
b). It brings out the detail regarding history.
c). It helps to define the probable market for services.
d) It is helpful in identifying marketing opportunities problems.
1.10. Limitations of the study:
1. Analysis of questionnaire on the basis of annual income could not analysis on each.
2. Uncontrollable variables like cultural back ground have not been considered.
3. The study is limited to Chikmagalur city only.
4 The sample size is limited due to time and cost factor
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CHAPTER - 2
2. History of Banking
Earliest banks
The first banks were probably the religious temples of the ancient world, and
were probably established sometime during the third millennium B.C. Banks probably
predated the invention of money. Deposits initially consisted of grain and later other
goods including cattle, agricultural implements, and eventually precious metals such as
gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest
places to store gold as they were constantly attended and well built. As sacred places,
temples presented an extra deterrent to would-be thieves. There are extant records of
loans from the 18th century BC in Babylon that were made by temple priests/monks to
merchants. By the time of Hammurabi's Code, banking was well enough developed to
justify the promulgation of laws governing banking operations.
Ancient Greece holds further evidence of banking. Greek temples, as well as

private and civic entities, conducted financial transactions such as loans, deposits,
currency exchange, and validation of coinage. There is evidence too of credit, whereby in
return for a payment from a client, a moneylender in one Greek port would write a credit
note for the client who could "cash" the note in another city, saving the client the danger
of carting coinage with him on his journey. Pythius, who operated as a merchant banker
throughout Asia Minor at the beginning of the 5 thcentury B.C., is the first individual
banker of whom we have records. Many of the early bankers in Greek city-states were
“metics” or foreign residents. Around 371 B.C., Pasion, a slave, became the wealthiest
and most famous Greek banker, gaining his freedom and Athenian citizenship in the
process.
The fourth century B.C. saw increased use of credit-based banking in the
Mediterranean world. In Egypt, from early times, grain had been used as a form of money
in addition to precious metals, and state granaries functioned as banks. When Egypt fell
under the rule of a Greek dynasty, the Ptolemies (330-323 B.C.), the numerous scattered
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government granaries were transformed into a network of grain banks, centralized in
Alexandria where the main accounts from all the state granary banks were recorded.
This banking network functioned as a trade credit system in which payments

were effected by transfer from one account to another without money passing.
In the late third century B.C., the barren Aegean island of Delos, known for its
magnificent harbor and famous temple of Apollo, became a prominent banking center. As
in Egypt, cash transactions were replaced by real credit receipts and payments were made
based on simple instructions with accounts kept for each client. With the defeat of its
main rivals, Carthage and Corinth, by the Romans, the importance of Delos increased.
Consequently it was natural that the bank of Delos should become the model most closely
imitated by the banks of Rome.
Ancient Rome perfected the administrative aspect of banking and saw greater
regulation of financial institutions and financial practices. Charging interest on loans and
paying interest on deposits became more highly developed and competitive. The
development of Roman banks was limited, however, by the Roman preference for cash
transactions. During the reign of the Roman emperor Gallienus (260-268 CE), there was a
temporary breakdown of the Roman banking system after the banks rejected the flakes of
copper produced by his mints. With the ascent of Christianity, banking became subject to
additional restrictions, as the charging of interest was seen as immoral. After the fall of
Rome, banking was abandoned in western Europe and did not revive until the time of the
crusades.
Western banking history
Modern Western economic and financial history is usually traced back to the
coffee houses of London. The London Royal Exchange was established in 1565. At that
time moneychangers were already called bankers, though the term "bank" usually referred
to their offices, and did not carry the meaning it does today. There was also a hierarchical
order among professionals; at the top were the bankers who did business with heads of
state, next were the city exchanges, and at the bottom were the pawn shops or
"Lombard"'s. Some European cities today have a Lombard street where the pawn shop
was located.
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After the siege of Antwerp trade moved to Amsterdam. In 1609 the

Amsterdamsche Wisselbank (Amsterdam Exchange Bank) was founded which made
Amsterdam the financial centre of the world until the Industrial Revolution.
Banking offices were usually located near centers of trade, and in the late 17th
century, the largest centers for commerce were the ports of Amsterdam, London, and
Hamburg. Individuals could participate in the lucrative East India trade by purchasing
bills of credit from these banks, but the price they received for commodities was
dependent on the ships returning (which often didn't happen on time) and on the cargo
they carried (which often wasn't according to plan). The commodities market was very
volatile for this reason, and also because of the many wars that led to cargo seizures and
loss of ships.
Capitalism
Around the time of Adam Smith (1776) there was a massive growth in the
banking industry. Within the new system of ownership and investment, the State's
intervention in economic affairs was reduced and barriers to competition were removed at
all times.
Global banking
In the 1970s, a number of smaller crashes tied to the policies put in place
following the depression, resulted in deregulation and privatization of government-owned
enterprises in the 1980s, indicating that governments of industrial countries around the
world found private-sector solutions to problems of economic growth and development
preferable to state-operated, semi-socialist programs. This spurred a trend that was
already prevalent in the business sector, large companies becoming global and dealing
with customers, suppliers, manufacturing, and information centres all over the world.
Global banking and capital market services proliferated during the 1980s and
1990s as a result of a great increase in demand from companies, governments, and
financial institutions, but also because financial market conditions were buoyant and, on
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the whole, bullish. Interest rates in the United States declined from about 15% for two-
year U.S. Treasury notes to about 5% during the 20-year period, and financial assets grew
then at a rate approximately twice the rate of the world economy. Such growth rate
would have been lower, in the last twenty years, were it not for the profound effects of the
internationalization of financial markets especially U.S. Foreign investments, particularly
from Japan, who not only provided the funds to corporations in the U.S., but also helped
finance the federal government; thus, transforming the U.S. stock market by far into the
largest in the world.
Nevertheless, in recent years, the dominance of U.S. financial markets has

been disappearing and there has been an increasing interest in foreign stocks. The
extraordinary growth of foreign financial markets results from both large increases in the
pool of savings in foreign countries, such as Japan, and, especially, the deregulation of
foreign financial markets, which has enabled them to expand their activities. Thus,
American corporations and banks have started seeking investment opportunities abroad,
prompting the development in the U.S. of mutual funds specializing in trading in foreign
stock markets.
Such growing internationalization and opportunity in financial services has

entirely changed the competitive landscape, as now many banks have demonstrated a
preference for the “universal banking” model so prevalent in Europe. Universal banks are
free to engage in all forms of financial services, make investments in client companies,
and function as much as possible as a “one-stop” supplier of both retail and wholesale
financial services.
Many such possible alignments could be accomplished only by large

acquisitions, and there were many of them. By the end of 2000, a year in which a record
level of financial services transactions with a market value of $10.5 trillion occurred, the
top ten banks commanded a market share of more than 80% and the top five, 55%. Of the
top ten banks ranked by market share, seven were large universal-type banks (three
American and four European), and the remaining three were large U.S. investment banks
who between them accounted for a 33% market share.
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This growth and opportunity also led to an unexpected outcome: entrance into
the market of other financial intermediaries: nonbanks. Large corporate players were
beginning to find their way into the financial service community, offering competition to
established banks.
The main services offered included insurances, pension, mutual, money market
and hedge funds, loans and credits and securities. Indeed, by the end of 2001 the market
capitalisation of the world’s 15 largest financial services providers included four
nonbanks.
In recent years, the process of financial innovation has advanced enormously

increasing the importance and profitability of nonbank finance. Such profitability priorly
restricted to the nonbanking industry, has prompted the Office of the Comptroller of the
Currency (OCC) to encourage banks to explore other financial instruments, diversifying
banks' business as well as improving banking economic health. Hence, as the distinct
financial instruments are being explored and adopted by both the banking and nonbanking
industries, the distinction between different financial institutions is gradually vanishing.
Major events in banking history
 Florentine banking — The Medicis and Pittis among others.

 Knights Templar- earliest Euro wide /Mideast banking 1100-1300.
 Banknotes — Introduction of paper money.
 1602 - First joint-stock company, the Dutch East India Company founded.
 1720 - The South Sea Bubble and John Law's Mississippi Scheme, which caused a
European financial crisis and forced many bankers out of business.
 1781 - The Bank of North America was found by the Continental Congress.
 1800 - Rothschild family founds Euro wide banking.
 1930-33 In the wake of the Wall Street Crash of 1929, 9,000 banks close, wiping
out a third of the money supply in the United States.[4]
 2008 - Washington Mutual collapses. It was the largest bank failure in history.
Oldest private banks
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 Monte dei Paschi di Siena 1472 - present, the oldest surviving bank in the world.
Founded in 1472 by the Magistrate of the city state of Siena, Italy.
 C. Hoare & Co founded 1672
 Barclays, which was founded by John Freame and Thomas Gould in 1690[5] and
renamed to Barclays by Freame's son-in-law, James Barclay, in 1736
 Rothschild family 1700 - present

 Hope & Co., founded in 1762
Oldest national banks
 Bank of Sweden — The rise of the national banks, began operations in 1668
 Bank of England — The evolution of modern central banking policies, established
in 1694
 Bank of America — The invention of centralized check and payment processing
technology
 Swiss banking
 United States Banking
 The Pennsylvania Land Bank, founded in 1723 and receiving the support of
Benjamin Franklin who wrote "Modest Enquiry into the Nature and Necessity of a
Paper Currency" in 1729[1].
 Imperial Bank of Persia (Iran) — History of banking in the Middle-East
Bank
A banker or bank is a financial institution whose primary activity is to act as a
payment agent for customers and to borrow and lend money. It is an institution for
receiving, keeping, and lending money.[1]
The first modern bank was founded in Italy in Genoa in 1406, its name was
Banco di San Giorgio (Bank of St. George).
Many other financial activities were added over time. For example banks are
important players in financial markets and offer financial services such as investment
funds. In some countries such as Germany, banks are the primary owners of industrial
corporations while in other countries such as the United States banks are prohibited from
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owning non-financial companies. In Japan, banks are usually the nexus of cross share
holding entity known as zaibatsu. In France "Bancassurance" is highly present, as most
banks offer insurance services (and now real estate services) to their clients.
History
Banks have influenced economies and politics for centuries. Historically, the
primary purpose of a bank was to provide loans to trading companies. Banks provided
funds to allow businesses to purchase inventory, and collected those funds back with
interest when the goods were sold. For centuries, the banking industry only dealt with
businesses, not consumers. Banking services have expanded to include services directed
at individuals, and risk in these much smaller transactions are pooled.
Origin of the word
The name bank derives from the Italian word banco "desk/bench", used
during the Renaissance by Florentines bankers, who used to make their transactions
above a desk covered by a green tablecloth. [2] However, there are traces of banking
activity even in ancient times. In fact, the word traces its origins back to the Ancient
Roman Empire, where moneylenders would set up their stalls in the middle of enclosed
courtyards called macella on a long bench called a bancu, from which the words banco
and bank are derived. As a moneychanger, the merchant at the bancu did not so much
invest money as merely convert the foreign currency into the only legal tender in Rome—
that of the Imperial Mint.
Traditional banking activities
Banks act as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts. Banks also enable customer payments via other
payment methods such as telegraphic transfer, EFTPOS, and ATM.
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Banks borrow money by accepting funds deposited on current account,
accepting term deposits and by issuing debt securities such as banknotes and bonds.
Banks lend money by making advances to customers on current account, by making
installment loans, and by investing in marketable debt securities and other forms of
money lending.
Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account.
Banks borrow most funds from households and non-financial businesses,

and lend most funds to households and non-financial businesses, but non-bank lenders
provide a significant and in many cases adequate substitute for bank loans, and money
market funds, cash management trusts and other non-bank financial institutions in many
cases provide an adequate substitute to banks for lending savings to.
Definition
Cathay Bank in Boston's Chinatown
The definition of a bank varies from country to country.
Under English common law, a banker is defined as a person who carries on the business
of banking, which is specified as:[4]
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 conducting current accounts for his customers
 paying cheques drawn on him, and
 collecting cheques for his customers.
In most English common law jurisdictions there is a Bills of Exchange

Act that codifies the law in relation to negotiable instruments, including cheques, and this
Act contains a statutory definition of the term banker: banker includes a body of persons,
whether incorporated or not, who carry on the business of banking' (Section 2,
Interpretation). Although this definition seems circular, it is actually functional, because it
ensures that the legal basis for bank transactions such as cheques do not depend on how
the bank is organised or regulated.
The business of banking is in many English common law countries not defined
by statute but by common law, the definition above. In other English common law
jurisdictions there are statutory definitions of the business of banking or banking business.
When looking at these definitions it is important to keep in mind that they are defining the
business of banking for the purposes of the legislation, and not necessarily in general. In
particular, most of the definitions are from legislation that has the purposes of entry
regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition closely mirrors the common law one.
Examples of statutory definitions:
 "banking business" means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the
making of advances to customers, and includes such other business as the
Authority may prescribe for the purposes of this Act; "banking business" means
the business of either or both of the following:
1. receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with a
period of call or notice of less than that period;
2. Paying or collecting cheques drawn by or paid in by customers
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Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale),
direct credit, direct debit and internet banking, the cheque has lost its primacy in most
banking systems as a payment instrument. This has lead legal theorists to suggest that the
cheque based definition should be broadened to include financial institutions that conduct
current accounts for customers and enable customers to pay and be paid by third parties,
even if they do not pay and collect cheques.
Accounting for bank accounts
Suburban branch bank
Bank statements are accounting records produced by banks under the various
accounting standards of the world. Under GAAP and IFRES there are two kinds of
accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit
Accounts are Assets and Expenses. This means you credit credit accounts to increase their
balances and you debit debit accounts to increase their balances. [7]
This also means you debit your savings account every time you deposit
money into it (and the account is normally in deficit) and you credit your credit card
account every time you spend money from it (and the account is normally in credit).
However, if you read your bank statement, it will say the opposite- that you
have credited your account when you deposit money, and you debit when you withdraw
it. If you have cash in your account you have a positive or credit balance and if you are
overdrawn it will say you have a negative or a deficit balance.
The reason for this is because the bank, and not you, has produced the bank
statement. Your savings might be your assets, but it is the bank's liability, so your savings
account is a liability account which is a credit account and should have a positive credit
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balance. Your loans are your liabilities but the bank's assets so they are debit accounts
which should have a negative balance.
Below where bank transactions, balances, credits and debits are discussed,
they are done so from the viewpoint of the account holder which is traditionally what
most people are used to seeing.
Wider commercial role
However the commercial role of banks is wider than banking, and includes:
 Issue of banknotes (promissory notes issued by a banker and payable to bearer on

demand)
 processing of payments by way of telegraphic transfer, EFTPOS, internet banking
or other means
 issuing bank drafts and bank cheques
 accepting money on term deposit
 lending money by way of overdraft, installment loan or otherwise
 providing documentary and standby letters of credit (trade finance), guarantees,
performance bonds, securities underwriting commitments and other forms of off
balance sheet exposures
 safekeeping of documents and other items in safe deposit boxes
 currency exchange
 sale, distribution or brokerage, with or without advice, of insurance, unit trusts and
similar financial products as a 'financial supermarket'
Economic functions
The economic functions of banks include:
1. issue of money, in the form of banknotes and current accounts subject to cheque
or payment at the customer's order. These claims on banks can act as money
because they are negotiable and/or repayable on demand, and hence valued at par
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and effectively transferable by mere delivery in the case of banknotes, or by
drawing a cheque, delivering it to the payee to bank or cash.
2. netting and settlement of payments -- banks act both as collection agent and
paying agents for customers, and participate in inter-bank clearing and settlement
systems to collect, present, be presented with, and pay payment instruments. This
enables banks to economise on reserves held for settlement of payments, since
inward and outward payments offset each other. It also enables payment flows
3. between geographical areas to offset, reducing the cost of settling payments

between geographical areas.
4. credit intermediation -- banks borrow and lend back-to-back on their own account
as middle men
5. credit quality improvement -- banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers. The
improvement comes from diversification of the bank's assets and the bank's own
capital which provides a buffer to absorb losses without defaulting on its own
obligations. However, since banknotes and deposits are generally unsecured, if the
bank gets into difficulty and pledges assets as security to try to get the funding it
needs to continue to operate, this puts the note holders and depositors in an
economically subordinated position.
6. maturity transformation -- banks borrow more on demand debt and short term
debt, but provide more long term loans. In other words; banks borrow short and
lend long. Bank can do this because they can aggregate issues (e.g. accepting
deposits and issuing banknotes) and redemptions (e.g. withdrawals and
redemptions of banknotes), maintain reserves of cash, invest in marketable
securities that can be readily converted to cash if needed, and raise replacement
funding as needed from various sources (e.g. wholesale cash markets and
securities markets) because they have a high and more well known credit quality
than most other borrowers.
Law of banking
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Banking law is based on a contractual analysis of the relationship between the bank
and the customer. The definition of bank is given above, and the definition of customer is
any person for whom the bank agrees to conduct an account.
The law implies rights and obligations into this relationship as follows:
1. The bank account balance is the financial position between the bank and the
customer, when the account is in credit, the bank owes the balance to the
customer, when the account is overdrawn, the customer owes the balance to the
bank.
2. The bank engages to pay the customer's cheques up to the amount standing to the
credit of the customer's account, plus any agreed overdraft limit.
3. The bank may not pay from the customer's account without a mandate from the
customer, e.g. a cheque drawn by the customer.
4. The bank engages to promptly collect the cheques deposited to the customer's
account as the customer's agent, and to credit the proceeds to the customer's
account.
5. The bank has a right to combine the customer's accounts, since each account is
just an aspect of the same credit relationship.
6. The bank has a lien on cheques deposited to the customer's account, to the extent
that the customer is indebted to the bank.
7. The bank must not disclose the details of the transactions going through the
customer's account unless the customer consents, there is a public duty to disclose,
the bank's interests require it, or under compulsion of law.
8. The bank must not close a customer's account without reasonable notice to the
customer, because cheques are outstanding in the ordinary course of business for
several days.
These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force in the jurisdiction may also
modify the above terms and/or create new rights, obligations or limitations relevant to the
bank-customer relationship.
Entry regulation
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Banking regulation
Currently in most jurisdictions commercial banks are regulated by government

entities and require a special bank licence to operate.
Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order, however money lending, by itself, is generally not included in the
definition.
Unlike most other regulated industries, the regulator is typically also a participant
in the market, i.e. government owned bank (a central bank). Central banks also typically
have a monopoly on the business of issuing banknotes. However, in some countries this is
not the case, e.g. inthe UK the Financial Services Authority licences banks and some
commercial banks, such as the Bank of Scotland, issue their own banknotes in
competition with the Bank of England, the UK government's central bank.
Some types of entity may be partly or wholly exempt from bank licence
requirements and are regulated by separate regulators, e.g. building societies and credit
unions.
The requirements for the issue of a bank licence vary between jurisdictions but
typically include:
1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or
senior officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.
Banking channels
Banks offer many different channels to access their banking and other services:
 A branch, banking centre or financial centre is a retail location where a bank or

financial institution offers a wide array of face-to-face service to its customers.
20
. ATM is a computerised telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space without the
need for a human clerk or bank teller. Most banks now have more ATMs than branches,
and ATMs are providing a wider range of services to a wider range of users. For example
in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's
account by feeding in the notes and entering the account number to be credited. Also,
most ATMs enable card holders from other banks to get their account balance and
withdraw cash, even if the card is issued by a foreign bank.
 Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing
other matter, are delivered to destinations around the world. This can be used to
deposit cheques and to send orders to the bank to pay money to third parties.
Banks also normally use mail to deliver periodic account statements to customers.
 Telephone banking is a service provided by a financial institution which allows its
customers to perform transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
 Online banking is a term used for performing transactions, payments etc. over the
Internet through a bank, credit union or building society's secure website.
Types of banks
Banks' activities can be divided into retail banking, dealing directly with
individuals and small businesses; business banking, providing services to mid-market
business; corporate banking, directed at large business entities; private banking, providing
wealth management services to high net worth individuals and families; and investment
banking, relating to activities on the financial markets. Most banks are profit-making,
private enterprises. However, some are owned by government, or are non-profits.
Central banks are normally government owned banks, often charged with quasi-
regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash
interest rate. They generally provide liquidity to the banking system and act as the lender
of last resort in event of a crisis.
21
Types of retail banks
1 National Bank of the Republic, Salt Lake City 1908

2 National Copper Bank, Salt Lake City 1911
 Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that
banks only engage in banking activities, whereas investment banks were limited to
capital market activities. Since the two no longer have to be under separate
ownership, some use the term "commercial bank" to refer to a bank or a division
of a bank that mostly deals with deposits and loans from corporations or large
businesses.
 Community Banks: locally operated financial institutions that empower
employees to make local decisions to serve their customers and the partners
 Community development banks: regulated banks that provide financial services
and credit to under-served markets or populations.
 Postal savings banks: savings banks associated with national postal systems.
 Private banks: manage the assets of high net worth individuals.
 Offshore banks: banks located in jurisdictions with low taxation and regulation.
Many offshore banks are essentially private banks.
 Savings bank: in Europe, savings banks take their roots in the 19th or sometimes
even 18th century. Their original objective was to provide easily accessible
savings products to all strata of the population. In some countries, savings banks
were created on public initiative, while in others socially committed individuals
created foundations to put in place the necessary infrastructure. Nowadays,
European savings banks have kept their focus on retail banking: payments,
savings products,
 credits and insurances for individuals or small and medium-sized enterprises.
Apart from this retail focus, they also differ from commercial banks by their
22
broadly decentralised distribution network, providing local and regional outreach
and by their socially responsible approach to business and society.
 Building societies and Landesbanks: conduct retail banking.
 Ethical banks: banks that prioritize the transparency of all operations and make
only what they consider to be socially-responsible investments.
 Islamic banks: Banks that transact according to Islamic principles.
Types of investment banks
 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade
for their own accounts, make markets, and advise corporations on capital markets
activities such as mergers and acquisitions.
 Merchant banks were traditionally banks which engaged in trade finance. The
modern definition, however, refers to banks which provide capital to firms in the
form of shares rather than loans. Unlike venture capital firms, they tend not to
invest in new companies.
Both combined
 Universal banks, more commonly known as financial services companies, engage

in several of these activities. For example, First Bank (a very large bank) is
involved in commercial and retail lending, and its subsidiaries in tax-havens offer
offshore banking services to customers in other countries. Other large financial
institutions are similarly diversified and engage in multiple activities. In Europe
and Asia, big banks are very diversified groups that, among other services, also
distribute insurance, hence the term bancassurance is the term used to describe the
sale of insurance products in a bank. The word is a combination of "banque or
bank" and "assurance" signifying that both banking and insurance are provided by
the same corporate entity.
Other types of banks
23
Islamic banking
 Islamic banks adhere to the concepts of Islamic law. Islamic banking revolves
around several well established concepts which are based on Islamic canons.
Since the concept of interest is forbidden in Islam, all banking activities must
avoid interest. Instead of interest, the bank earns profit (mark-up) and fees on
financing facilities that it extends to the customers.
Banks in the economy
Size of global banking industry
Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a
record $74.2 trillion. This follows a 5.4% increase in the previous year. EU banks held the
largest share, 53%, up from 43% a decade earlier. The growth in Europe’s share was
mostly at the expense of Japanese banks whose share more than halved during this period
from 21% to 10%. The share of US banks remained relatively stable at around 14%. Most
of the remainder was from other Asian and European countries. .[8]
The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the
world. The large number of banks in the US is an indicator of its geography and
regulatory structure, resulting in a large number of small to medium sized institutions in
its banking system. Japan had 129 banks and 12,000 branches. In 2004, Germany, France,
and Italy had more than 30,000 branches each—more than double the 15,000 branches in
the UK.[9]
Bank crisis
Banks are susceptible to many forms of risk which have triggered occasional
systemic crises. Risks include liquidity risk (the risk that many depositors will request
withdrawals beyond available funds), credit risk (the risk that those who owe money to
the bank will not repay), and interest rate risk (the risk that the bank will become
24
unprofitable if rising interest rates force it to pay relatively more on its deposits than it
receives on its loans), among others.
Banking crises have developed many times throughout history when one or more
risks materialize for a banking sector as a whole. Prominent examples include the U.S.
[10]
Savings and Loan crisis in 1980s and early 1990s the Japanese banking crisis during
the 1990s, the bank run that occurred during the Great Depression, and the recent
liquidation by the central Bank of Nigeria, where about 25 banks were liquidated.
Numerous banks have suffered as a result of the Subprime mortgage crisis, which
has occurred on a global scale, affecting investmnent banks such as Lehman Brothers in
the USA and retail banks such as Northern Rock in the UK. In January 2009, several
major UK banks such as Lloyds TSB and Barclays Bank, suffered severe falls in their
London stock exchange share prices as a result of a drop in investor confidence of the true
asset values of those banks.
Challenges within the banking industry
The banking industry is a highly regulated industry with detailed and focused
regulators. All banks with FDIC-insured deposits have the FDIC as a regulator; however,
for examinations,[clarification needed]
the Federal Reserve is the primary federal regulator for
Fed-member state banks; the Office of the Comptroller of the Currency (“OCC”) is the
primary federal regulator for national banks; and the Office of Thrift Supervision, or
OTS, is the primary federal regulator for thrifts. State non-member banks are examined
by the state agencies as well as the FDIC. National banks have one primary regulator—
the OCC.
Each regulatory agency has their own set of rules and regulations to which banks and
thrifts must adhere.
The Federal Financial Institutions Examination Council (FFIEC) was established in

1979 as a formal interagency body empowered to prescribe uniform principles, standards,
and report forms for the federal examination of financial institutions. Although the FFIEC
25
has resulted in a greater degree of regulatory consistency between the agencies, the rules
and regulations are constantly changing.
In addition to changing regulations, changes in the industry have led to

consolidations within the Federal Reserve, FDIC, OTS and OCC. Offices have been
closed, supervisory regions have been merged, staff levels have been reduced and budgets
have been cut. The remaining regulators face an increased burden with increased
workload and more banks per regulator. While banks struggle to keep up with the changes
in the regulatory environment, regulators struggle to manage their workload and
effectively regulate their banks.
The impact of these changes is that banks are receiving less hands-on
assessment by the regulators, less time spent with each institution, and the potential for
more problems slipping through the cracks, potentially resulting in an overall increase in
bank failures across the United States. The changing economic environment has a
significant impact on banks and thrifts as they struggle to effectively manage their interest
rate spread in the face of low rates on loans, rate competition for deposits and the general
market changes, industry trends and economic fluctuations. It has been a challenge for
banks to effectively set their growth strategies with the recent economic market. A rising
interest rate environment may seem to help financial institutions, but the effect of the
changes on consumers and businesses is not predictable and the challenge remains for
banks to grow and effectively manage the spread to generate a return to their
shareholders.
The management of the banks’ asset portfolios also remains a challenge in today’s
economic environment. Loans are a bank’s primary asset category and when loan quality
becomes suspect, the foundation of a bank is shaken to the core. While always an issue
for banks, declining asset quality has become a big problem for financial institutions.
There are several reasons for this, one of which is the lax attitude some banks have
adopted because of the years of “good times.” The potential for this is exacerbated by the
reduction in the regulatory oversight of banks and in some cases depth of management.
Problems are more likely to go undetected, resulting in a significant impact on the bank
when they are recognized. In addition, banks, like any business, struggle to cut costs and
have consequently eliminated certain expenses, such as adequate employee training
programs.
26
Banks also face a host of other challenges such as aging ownership groups. Across
the country, many banks’ management teams and board of directors are aging. Banks also
face ongoing pressure by shareholders, both public and private, to achieve earnings and
growth projections. Regulators place added pressure on banks to manage the various
categories of risk. Banking is also an extremely competitive industry. Competing in the
financial services industry has become tougher with the entrance of such players as
insurance agencies, credit unions, check cashing services, credit card companies, etc.
As a reaction, banks have developed their activities in financial instruments,
through financial market operations such as brokerage and trading and become big
players in such activities.
Profitability
A bank generates a profit from the differential between the level of interest it pays
for deposits and other sources of funds, and the level of interest it charges in its lending
activities. This difference is referred to as the spread between the cost of funds and the
loan interest rate. Historically, profitability from lending activities has been cyclical and
dependent on the needs and strengths of loan customers. In recent history, investors have
demanded a more stable revenue stream and banks have therefore placed more emphasis
on transaction fees, primarily loan fees but also including service charges on an array of
deposit activities and ancillary services (international banking, foreign exchange,
insurance, investments, wire transfers, etc.). Lending activities, however, still provide the
bulk of a commercial bank's income.
In the past 10 years American banks have taken many measures to ensure
that they remain profitable while responding to increasingly changing market conditions.
First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance functions
allows traditional banks to respond to increasing consumer demands for "one-stop
shopping" by enabling cross-selling of products (which, the banks hope, will also increase
profitability). Second, they have expanded the use of risk-based pricing from business
lending to consumer lending, which means charging higher interest rates to those
27
customers that are considered to be a higher credit risk and thus increased chance of
default on loans.
This helps to offset the losses from bad loans, lowers the price of loans to those
who have better credit histories, and offers credit products to high risk customers who
would otherwise been denied credit. Third, they have sought to increase the methods of
payment processing available to the general public and business clients. These products
include debit cards, pre-paid cards, smart cards, and credit cards.
They make it easier for consumers to conveniently make transactions and

smooth their consumption over time (in some countries with under-developed financial
systems, it is still common to deal strictly in cash, including carrying suitcases filled with
cash to purchase a home). However, with convenience of easy credit, there is also
increased risk that consumers will mismanage their financial resources and accumulate
excessive debt. Banks make money from card products through interest payments and
fees charged to consumers and transaction fees to companies that accept the cards
28
CHAPTER - 3
IDBI Profile
Industrial Development Bank of India Ltd.
Type Public sector bank

Founded 1964
Headquarters
Key people Yogesh Agarwal — Chairman;
Industry Finance
Products Financial Services
Employees 8989
Website www.idbibank.com
Recent developments
To meet emerging challenges 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 the 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
29
country, formally entered the portals of banking business as IDBIL from October 1, 2004,
over and above the business currently being transacted.
The Private banking arm, idbi bank was merged into IDBI. The IDBI BANK
was one of the fastest growing companies in India. The Banking arm was technologically
driven, customer focussed entity. IDBI got the platform of its private banking arm to
reform itself into a competitive entity.
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 Narashimam committee
had recommended to give up its direct financing functions and to perform only the
promotional and refinancing role. However it is the S.H.Khan committee appointed by
RBI has reconted to transform the DFI (development finance institution) into universal
bankings institutions.
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
30
of industry and agriculture. To facilitate the growth of these institutions, a mechanism to
provide concessional finance to these institutions was also put in place by the Reserve
Bank.
The first development bank In India incorporated immediately after independence in

1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer
institutional credit to medium and large-scale. Then after in regular intervals the
government started new and different development financial institutions to attain the
different objectives and helpful to five-year plans.
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 alongside 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 16th February 1976, the ownership of IDBI was transferred to the Government
31
of India and it was made the principal financial institution for coordinating the activities
of institutions engaged in financing, promoting and developing industry in the country.
Although Government shareholding in the Bank came down below 100% following
IDBI’s public issue in July 1995, the former continues to be the major shareholder
(current shareholding: 52.3%). 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.
Narasimam committee recommends that IDBI should give up its direct financing
functions and concentrate only in promotional and refinancing role. But this
32
recommendation was rejected by the government. Latter RBI constituted a committee
under the chairmanship of S.H.Khan to examine the concept of development financing in
the changed global challenges. This committee is the first to recommend the concept of
universal banking. The committee wanted to the development financial institution to
diversify its activity. It recommended to harmonise the role of development financing and
banking activities by getting away from the conventional distinction between commercial
banking and developmental banking.
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.
33
IDBI Bank, with which the parent IDBI was merged, was a vibrant new
generation Bank. The Pvt Bank was the fastest growing banking company in India. The
bank was pioneer in adapting to policy of first mover in tier 2 cities. The Bank also had
the least NPA and the highest productivity per employee in the banking industry.
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.
The immediate fall out of the merger of IDBI and idbi bank was the exit of
employees of idbi bank. The cultures in the two organizations have taken its toll. The
IDBI BANK now is in a growing fold. With its retail banking arm expanding further after
the merger of United western Bank.
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
34
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 upholds the highest standards of corporate governance in its

operations. The responsibility for maintaining these high standards of governance lies
with its Board of Directors. Two Committees of the Board viz. the Executive Committee
and the Audit Committee are adequately empowered to monitor implementation of good
corporate governance practices and making necessary disclosures within the framework
of legal provisions and banking conventions.
Industrial Investment Bank of India Ltd.
The industrial investment bank of India is one of oldest banks in India. The
Industrial Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of
sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India in
1985 under the IRBI Act, 1984. With a view to converting the institution into a full-
fledged development financial institution, IRBI was incorporated under the Companies
Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a
wide range of products and services, including term loan assistance for project finance,
short duration non-project asset-backed financing, working capital/ other short-term loans
to companies, equity subscription, asset credit, equipment finance as also investments in
capital market and money market instruments.
In view of certain structural and financial problems adversely impacting its

long-term viability, IIBI submitted a financial restructuring proposal to the Government
of India on July 25, 2003. IIBI has since received certain directives from the Government
of India, which, inter alias, include restricting fresh lending to existing clients approved
cases rated corporates, restrictions on fresh borrowings, an action plan to reduce the
overhead expenditure, disposal of fixed assets and a time-bound plan for asset
recovery/reconstruction. The Government of India has also given its approval for the
merger of IIBI with IDBI and the latter has already started the due diligence process.
35
CHAPTER - 4
IDBI Services
Personal Banking
Deposit
SuperSavings Account
An assortment of benefits, earnings and convenience
Experience Complete Banking Convenience
The SuperSavings Account is a complete financial package that provides
easy access to money and complete banking convenience too. It offers a whole range of
options for optimal management of money. Which means, with SuperSavings Account not
only save money but also make it grow.
So apart from the basic benefits of a savings account, we offer options for
faster transfer of funds, options to pay bills or tax online and options to grow money at
attractive interest rates in the savings account. All these features are offered for a
minimum balance of Rs 5,000.
The SuperSavings Account is a complete financial package that provides easy

access to money and complete banking convenience too. It offers a whole range of
36
options for optimal management of money. Which means, with SuperSavings Account not
only save money but also make it grow.
Instant Banking
International Debit Card
Family Account
Quick Money Transfer
Easy Payments
Bank on the Move
Profit from your Account
Value Added Services
Travel and Gift Solutions
Instant Banking and Debit Cards
If you want your account to be activated the moment you

fill in and handover your account opening form to the bank, with SuperSavings Account,
you can do just that.
Your account number, chequebook and International Debit-cum-ATM Card will
be given on-the-spot.
You can also receive your passwords for Internet Banking and Phone Banking.
ternatiInonal Debit Card
Freedom to shop, withdraw cash in India and abroad
International Debit-cum-ATM Card
The International Debit-cum-ATM Card gives the freedom to:

Withdraw cash globally or from any of IDBI ATMs. We can withdraw up to Rs
25,000 everyday at any of the IDBI ATMs in India,lets you shop at over 13 million
merchant establishments, dine and travel worldwide, without the worry of carrying cash.
And, since purchases will be debited from the account instantly, we don’t have
to worry about paying bills at the end of the month.
37
International Gold Debit Card*
In addition to the features of a normal Debit Card, the Gold Debit Card is
loaded with additional benefits such as:
Earn loyalty points on your card usage. The points earned will be converted
into cash and credited to the account.
Withdraw a higher amount of Rs 75,000 per day from VISA ATMs.
A comprehensive insurance cover that insures against personal accident, lost card
liability, purchase protection and lost baggage.
Fabulous discounts and special offers at various shopping and food outlets on
using the Gold Card.
Zero surcharge for filling fuel at petrol pumps.
SuperSavings Family Account
All the benefits of your SuperSavings Account, without maintaining the

minimum balance
Quick Money Transfer
Multi-City chequebook, CardToCard Money Transfer & Electronic Money

Transfer
Multi-City Cheques
SuperSavings Account provides you with a Payable at Par chequebook which

helps to:
Issue local cheques in over 92 cities in India. These cheques are cleared as
fast as local cheques.
No hassles of making Demand Drafts and paying high commission charges.
38
CardToCard Money Transfer
Transfer money through the ATM/Internet or IDBI branch to any VISA Debit
or Credit cardholder in India. All you need is an IDBI SuperSavings Account and to know
the receiver’s VISA Debit/Credit Card number.
This is one of the fastest remittance products with the funds being transferred
anywhere in India, within 36 hours.
Electronic Money Transfer
Transfer money online from your account to any other bank account.
Your SuperSavings Account gives the power to transfer funds from your account
to any other bank account.
You can transfer funds in over 50 banks present in over 145 cities.
You can transfer funds from the comfort of your home or office, through
Internet Banking or Phone Banking at select locations.
You save on the high Demand Draft commission charges and courier charges
Along with the above facilities, IDBI also offers following value added
services :-
The fast and hassle-free way to make payments
a)Utility Bill Payment
b)EasyFill prepaid mobile refill
c)Online Tax PaymentOnline
d)railway ticket booking
e)Bank on the Move
f)ATM Services
g)Phone Banking
h)SMS Banking
i)Internet Banking
j)Mobile recharge.
k)Any Branch Banking
l)AccountAlerts
39
Sweep-in Savings Account
This option offers the flexibility of a Savings Account combined with the
safety and higher rate of interest of a Fixed Deposit. All customers need to do is open a
fixed deposit with Rs 50,000 and get a free zero balance savings account. The fixed
deposit will be linked to the savings account and can be easily withdrawn from your
deposit in units of Rs 1,000. Just issue a cheque and withdraw across the counter or, use
the International Debit cum ATM card and transfer money from fixed deposit account to
your savings account. All, while you earn higher interest in your outstanding amount in
your fixed deposit.
Suvidha Fixed Deposits
IDBI offers the highest interest returns on Suvidha Fixed Deposits. Customers
can choose from monthly/quarterly income plans, quarterly compounding scheme or
recurring investment plans.
Overdraft against Fixed Deposit in SuperSavings Account
Certain emergencies require us to draw out funds from our investments,

which may affect our financial planning. To avoid such situations, IDBI offers overdraft
against FDs in SuperSavings Account. With this,we can avail of an overdraft up to 80%
of our FD.
So we need not break our Fixed Deposit to tide over urgent cash requirements.
We pay lower interest rates on the overdraft and keep our investments intact too.
Demat Account
IDBI offers depository services for shareholding and related transactions at

very competitive rates. Customers can also avail of loans against the shares held in their
40
Demat Account at the lowest interest rates. All this with the assured confidentiality of
transactions.
Investment products
IDBI offers a host of diverse investment products to suit individual needs.

Choose from a range of Mutual Funds, Insurance and Bonds.
Suvidha Fixed Deposits
IDBI offers the highest interest returns on Suvidha Fixed Deposits. Customers
can choose from monthly/quarterly income plans, quarterly compounding scheme or
recurring investment plans.
Recurring Deposits
There are times when it is not possible for us to assign large funds for
investments. As a bank that understands these constraints, IDBI offers the recurring fixed
deposits. Customers can earn higher rate of interest even by investing small amounts (as
low as Rs 500) regularly, which will be debited from SuperSavings Account every month.
r investments, which may affect your in your SuperSavings Account. With this,
you can avail of an overdraft up to 80% of your FD.
So you need not break your Fixed Deposit to tide over urgent cash requirements.
You pay lower interest rates on the overdraft and keep your investments intact too.
Value Added Services
Additional IDBI products and services for a better banking experience

As a bank that is committed to meet all customers’ financial needs, IDBI
offers them a range of financial products and services.
Lockers
41
At IDBI, customers can hire lockers at our branch premises for safe custody of
your valuables. These lockers are offered at very competitive rates.
Loans
Our home loans and personal loans are affordable and designed to meet an
individual’s needs. Customers can also avail a loan against investment in securities.
Tax-related Services
Pay Income Tax and other Direct Taxes through IDBI. Customers can even pay
Excise Tax and Service Tax at select branches. In fact now, the tax payment facility is also
available online. The bank also provides document franking service – the easy way to pay
Stamp Duty.
Travel and Gift Solutions
IDBI not only meets customers’ routine financial needs but also offers a host
of travel and gift-related services that give complete freedom while customers are on the
move.
Forex
IDBI gives a range of forex services , the customers need while they are
travelling abroad. They can get all the major currencies through our branches. We also
offer Travellers Cheques – a convenient and safe way to carry money abroad. And all this
is offered at attractive rates to make their travel more cost-effective and more enjoyable.
WorldCurrency Card
The IDBI WorldCurrency Card is a prepaid card that is accepted everywhere

across the world, wherever VISA Debit Cards are accepted. This Card is cheaper than
credit cards and more convenient than Travellers Cheques. Furthermore, this Card can be
used to make purchases and withdraw cash in local currency all over the world. It is
available in US Dollars, Euros, Sterling Pounds, Canadian Dollars, Australian Dollars and
Singapore Dollars, and is valid for a period of two years. Customers can buy this Card
42
from any of the IDBI branches and is available to IDBI customers as well as non-
customers.
Home Loans
Key to hassle free home loans
IDBI Bank helps you realise your long cherished dream of owning your
home through hassle free and customer friendly home loans.
Advantages of IDBI Ultra Flexible Home Loans
Maximum Funding
Flexibility of choosing between Floating or Fixed interest rate
Attractive rate of interest
EMI on daily reducing balance
Personalised doorstep service
Simple documentation
Legal and technical assistance
Balance transfer facility
Reassessment and adjustment of applicant's loan eligibility in case of change of
income and residence status
Loan Against Property

Loans against property (Residential & Commercial) product. Loans could be
used for:
 Education
 Business
 Marriage
 Purchase or improvement of property
43
 Medical treatment or any other personal need.
Maximum amount possible is Rs 500,00,000 subject to repayment capacity and
value of property. Check the FAQs for more details.
The IDBI Advantage

Tenor up to 15 years
Attractive Rate of Interest
Maximum Funding
Interest rate on daily reducing balance
Fixed and floating interest rate options
Simple documentations
Personalised doorstep services
Free legal and technical assistance
Education Loans
Education loans from IDBI Bank aim at providing financial support to

deserving/ meritorious students for pursuing higher education in India and abroad. With
an array of courses to choose from and easy repayment options, IDBI Bank makes sure
that students get complete financial backing.
Personal Loan
Take a Personal Loan from IDBI and go ahead and have all the things you've
been dreaming of without even worrying how to repay it.
Personal Loans from IDBI comes with an insurance cover. This means when times
are tough, customers w'll have an insurance cover to take care of the EMI's.
In case of death or disability due to an accident, the principle outstandings will be

paid by the insurance company.
In case of loss of job, the insurance company will pay the EMIs for up to 3 months
Also can transfer customers’ existing loan to IDBI and save up to Rs 50,000 .
44
IDBI offers Loan Against Securities, which provides liquidity to Securities

without having to sell them.
Loan Against Securities is provided in the form of an overdraft facility

Against your Securities. It helps to meet the exigencies in life, giving easy and flexible
access to short-term funds without the need to sell the Securities.
A pledge is created in favour of the Bank and the Drawing Power (DP) is
calculated based on the applicable margins set by the Bank. Facility will be renewed after
every 12 months depending on the performance of the account.
Holiday Travel Loan

Purpose
Tailor-made loans to meet all travel expenses such as cost of ticket, hotel stay, visa,
taxes, insurance or any sundry / incidental cost pertaining to travel to be undertaken by
self / spouse / children / family members of applicant within India or abroad. Submit all
documents pertaining to travel to avail the loan.
IDBI BANKCONSUMER DURABLE LOAN
Purpose
Loan scheme to finance purchase of consumer durables such as
Television, Electronic Audio System, ACs, Lap Top/ PCs including accessories, Multi
Media Kits, Generators, Hand Video Camera and furniture articles to an individual
salaried or businessmen for the use of their residential / business premises.
45
Electronic Bill Payment

The Electronic Bill Payment facility from IDBI cuts out the hassles to go
through each month for paying biils.
This bill payment service gives the flexibility of viewing and paying bills
online. All you need to do enter your billing details in our Internet Banking, and then,
start paying your utility bills, insurance premiums, etc, month on month, absolutely
hassle-free.
Transfer Funds
Customers can use Internet Banking, ATMs or our branches for transferring
money across the country. The only information the customers need to know is the 16-
digit card number of the transferee.
IDBI Bank PayMate Service
Presenting a simple, convenient and secure way to make payments
Shopping was never so simple. With the sole aim of making payments for
shopping online or over the counter, even more convenient, IDBI has introduced a
revolutionary Mobile Phone based payment service in association with PayMate. With
this service, mobile phone can now be used as a payment medium, similar to a credit or a
debit card. The facility provides bank’s customers an easy, secure and simple payment
service platform anytime, anywhere.
Smart Financial Planing
Mutual Funds
46
Mutual Fund is a trust that pools savings of number of investors having
common financial goals for investing in a particular manner by professional managers. It
makes it possible for investors to assume risks in the expectation of higher returns.
Why should One invest In Mutual Fund through IDBI Bank ?
We meet your need:
We believe every individual has specific needs and priorities. Your needs could vary
from buying a house, providing for your child’s education, getting your child married, and
so on. All your needs are very important for us. We can help in fulfilling your dreams by
assisting you to select the schemes, which would be in consonance with your needs.
Demat Account
Electronic Securities Banking
Why Demat Account with IDBI Bank?

Lowest fees
Statement by emails
Demat access through Internet, cell and phone
Portfolio valuation on the account statements
Online execution of transactions at branches
Special rates for stock market intermediaries and sub brokers
Transactions update from back-office four times a day
Benefits of a Demat Account
Demat Accounts for NRIs
If you are a Non-Resident Indian (NRI) who has invested in shares, bonds,
debentures of Indian companies or would like to do so now, open a Demat Account with
us either under NRI Repatriable or NRI Non-Repatriable category. Through our Internet
47
Banking, you can view your Demat Account balances and print statement of transactions
and holdings from anywhere in the world. Click the links below for more details.
Special Conditions for NRIs
Type of shares and RBI approval requirement
No.
Type of acquisition
Repatriable
Non - Repatriable
1 Primary Market (public issue allotments) incl. Bonus, Rights on them
Issuer company takes approval from Exchange Control Dept. of RBI.Investors
require no separate approval.
Issuer company takes approval from Exchange Control Dept. of RBI.Investors

require no separate approval.
2 Secondary market before becoming NRI including Bonus, Rights on them.

Not applicable
No RBI approval is required for holding and selling these shares. Investors to
inform the companies to change his status to NRI. In Demat, it is automatic as and when
Demat request is confirmed by Registrars under NRI account.
3 Secondary market after becoming NRI including Bonus, Rights on them.
RBI approval is required for both, purchase and sale.

RBI approval is required for both, purchase and sale.
Additional Document Requirement
A copy of RBI approval
A duly attested copy of POA (Power of Attorney), if any
If account is opened by a POA holder, the signature verification of POA holder
and a covering letter from the NRI for assigning POA to done along with signature
attestation and an undertaking that as and when POA is revoked, it will be informed to the
48
Bank in advance
A duly attested copy of POA or POA registration number given by the company
must be given along with each DRF submitted by such NRI
Overseas address is mandatory in the account opening form
NRO Account can be opened simultaneously for the purpose of debiting the
charges. A debit authorization should be submitted
No. Type of acquisition Repatriable Non - Repatriable

1 Primary Market Issuer company takes Issuer company takes approval from
(public issue approval from Exchange Exchange Control Dept. of
allotments) incl. Control Dept. of RBI.Investors require no separate
Bonus, Rights on RBI.Investors require no approval.
them separate approval.
2 Secondary market Not applicable No RBI approval is required for
before becoming NRI holding and selling these shares.
including Bonus, Investors to inform the companies to
Rights on them. change his status to NRI. In Demat, it
is automatic as and when Demat
request is confirmed by Registrars
under NRI account.
3 Secondary market RBI approval is required RBI approval is required for both,
after becoming NRI for both, purchase and purchase and sale.
including Bonus, sale.
Rights on them.

Additional Document Requirement
A copy of RBI approval
49
A duly attested copy of POA (Power of Attorney), if any
If account is opened by a POA holder, the signature verification of POA holder and a
covering letter from the NRI for assigning POA to done along with signature attestation
and an undertaking that as and when POA is revoked, it will be informed to the Bank in
advance
A duly attested copy of POA or POA registration number given by the company must be
given along with each DRF submitted by such NRI
Overseas address is mandatory in the account opening form
NRO Account can be opened simultaneously for the purpose of debiting the charges. A
debit authorization should be submitted
Demat Account
Electronic Securities Banking
Welcome to world-class banking at IDBI.

Paper securities are passe. Enter the world of dematerialised shares, bonds and other
securities. Convert your securities to dematerialised form with IDBI Demat Account. It's
as simple as opening a Savings Account.
Why Demat with IDBI
Lowest fees
Statement by emails
Demat access through Internet, cell and phone
Portfolio valuation on the account statements
Online execution of transactions at branches
Special rates for stock market intermediaries and sub brokers
Transactions update from back-office four times a day
Benefits of a Demat Account

With IDBI’s Demat Account you can enjoy host of benefits.
Demat Accounts for NRIs
If you are a Non-Resident Indian (NRI) who has invested in shares, bonds,
debentures of Indian companies or would like to do so now, open a Demat Account with
us either under NRI Repatriable or NRI Non-Repatriable category. Through our Internet
50
Banking, you can view your Demat Account balances and print statement of transactions
and holdings from anywhere in the world. Click the links below for more details.
Demat Account Services IDBI Other Bank DPs

Portfolio value on Account Statement Yes No
Demat Services over phone In 48 locations No
Statement on e-mail Yes No
Online Execution of instructions Yes No
Service at all the branches Yes No
View of statement on the net Yes No
Insurance
Family Care
A complete health cover for your entire family
IDBI has always brought the best of banking products and services. Now, it’s
bringing yet another unique product ‘FamilyCare’ in association with Bajaj Allianz
General Insurance, one of the leading private general insurance companies.
The FamilyCare Policy is a complete health insurance plan that covers one, and his
spouse and two dependant children up to the age of 25 years. It enables customers to
access the best medical treatment in case of a sudden illness, accidents or an emergency
surgery, without any hassles.
The FamilyCare policy covers the hospitalisation expenses as a result of any illness
and accident*. Unlike any other regular policy, wherein a family has to take individual
policies for each member, this unique family floater policy gives the flexibility of taking
one policy that covers the entire family under a single sum insured.
Wealthsurance
51
WealthsuranceTM is a first of its kind combination of comprehensive
investment choices, protected by powerful insurance options, all presented with a
reasonable charge structure, making it a one stop solution to a customer’s wealth building
plans. WealthsuranceTM offers investment choices such as Guaranteed Return Fund,
Equity Funds, Debt Funds etc. ensuring that the customer would find all his investment
requirements satisfied with this one powerful product. The powerful insurance benefits of
WealthsuranceTM ensure that a customer’s wealth plan is not affected by unforeseen
events that may strike them.
The guiding philosophy behind this product is that wealth will grow better with
a protective cover. So, while one’s wealth stays invested, the insurance benefits ensure
that life’s uncertainties such as death, terminal illness, 17 major diseases, sickness
requiring hospitalisation or serious accidental injuries, do not disturb its growth.
Wealthsurance is thus designed to also give living benefits to ensure one’s well-being in
their lifetime. Customers can opt for a ready plan or build their own plan by choosing
their own sum assured, investment plan, affordable premium, policy term and the type of
insurance cover.
Cards
Gold Debit Card
IDBI Bank Gold Debit-cum-ATM Card
At IDBI Bank present yet another revolutionary card product ~ The Gold Debit-cum-
ATM Card. Not only can one withdraw cash and make purchases through the card, but
also avail of a host of services and facilities that make your banking simple and
enjoyable.
Features
52
ATM and Merchant Establishment usage:- The card can be used to transact at
IDBI Bank ATMs. Visa cardholder can also withdraw cash at over 20,000 Visa/ Plus
ATMs in India & over a million Visa/Plus ATMs worldwide and MasterCard holder can
withdraw cash at over 18,000 MasterCard ATMs in India & over a million MasterCard
ATMs worldwide. The VISA debit card can also be used to make purchases at over
3.24 lakh merchant establishment in India and 14 million merchant establishments
worldwide. The MasterCard Debit Card can be used at 2.5 lakh merchant establishments
in India and 26 million merchant establishments worldwide.
International validity:- The Gold Debit-cum-ATM Card can also be used abroad
to make purchases at merchant locations and withdraw local currency at 10 lakh Visa/Plus
ATMs and over 10 lakh MasterCard ATMs.
Benefits
As an IDBI Bank Gold Debit-cum-ATM Card holder, one can avail of the
following benefits:
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-cum-ATM Card. Surcharge will be waived only for transactions with a
value between Rs.400/- and Rs.2000/-
Insurance cover*: In addition to insurance cover for lost/stolen cards, one can avail of
the following insurance covers:
Personal accident cover - Rs. 5 Lakh
Loss of checked baggage- Rs. 50,000/-
Purchase protection- Rs. 20,000/- for 90 days
Fire and burglary for household contents- Rs. 50,000/-
Daily Limits*: One can withdraw cash upto Rs. 75,000/- and make purchases worth Rs.
75,000/- in a day.
53
Loyalty Redemptions*: Customers will gain one loyalty point for every Rs. 100/-
spent on the Gold Debit-cum-ATM Card. Each point can be redeemed for a cash credit of
Re. 1 to your savings account.
Discounts at Merchant Establishments*: IDBI Bank in association with VISA and

MasterCard has tied up with various merchant establishments. one 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.
Just walk in, to your nearest IDBI Bank branch and apply for the Gold Debit -cum-ATM
Card now !
International Debit-cum-ATM Card

Anywhere, anytime banking
The IDBI Bank International Debit-cum-ATM Card enables holders to access

their IDBI Bank account from anywhere in the world, anytime of the day or night. It not
only lets one withdraw money from any of our ATMs (Automated Teller Machines) and
our associated bank’s ATMs, but also empowers one to shop, dine and travel without the
worry of carrying cash with you all the time.
World Currency Card
Carrying convenience while travelling abroad
54
The IDBI Bank World Currency Card is a prepaid multi currency card that provides
customers 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 more safer than carrying foreign currency and
is more economical than credit cards.
Powerful Features
Packed with features and special privileges, the Card offers great deals on
air tickets,
holiday packages,
also offers a comprehensive insurance package to take care of all travel needs.
The IDBI Bank World Currency Card allows customers to make purchases and withdraw
cash in the local currency all over the world.
IDBI BANK Cash Card
A perfect solution for Salary Disbursements & Reimbursements to Employees.
IDBI bank brings for the Corporates an easy solution for their employees for salary
Disbursement & other Reimbursements – The IDBI BANK CASH CARD. The corporate
Opting for IDBI bank cash card can give this card to their employees for getting their
Salary Disbursed and the employees are not required to open an account with the bank for
this.
55
The IDBI bank Cash Card allows the corporate employees to use this card to make
purchases at merchant establishment in India and it can also be used to withdraw cash
from IDBI Bank ATMs & all shared network ATMs in India.
Features.
Visa Flag Card – Can be used to make purchases at over 3.24 lacs merchant
establishment in India. It can also be used withdraw cash from over 822 IDBI Bank ATMs
and over 20000 Visa / Plus ATMs in India.
Can be used more than once. The card can be used to make repeated purchases /
withdrawals till the specified value on the card has been spent.
This card is available to IDBI & non IDBI Corporates.
This card can be loaded for any amount up to Rs.25000/- per card per month as per the
instructions from the corporate.
This card is valid for a period of 2 years from the date of issue.
Benefit to the Corporate.

- Hassle free alternative for
Reimbursement to employees.
Salary Disbursement.
Incentive payment to employees / staff.
- No Account required. Need not be a customer of the bank.
- Convenient alternative to demand drafts, cheque or cash disbursement to employees /
staff.
- No reconciliation problems.
- Reloadable – which means they, can disburse more cash to the same employees / staff as
& when required with the maximum limit of Rs.25000/- per month.
24 Hours Banking
Phone Banking
Carry your account with you
56
IDBI endeavours 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 customers to access authentic, instantaneous

information on their account balances and transactions. The service is available totally
free of cost round the clock, 365 days a year.
SMS Banking
Do more on the move
Business is on the move and so are the people who conduct it. For them to enjoy
banking convenience while on the move, IDBI is here with its SMS Banking facility. It’s
SMS banking initiatives permit customers to access their Bank account and carry out
various banking transcations and inquires. No need of visiting the bank time and again!
NON-WAP Enabled Mobile Phones

If customers have a non-WAP enabled mobile phone, they can use the SMS facility
and conduct the following operations using the messaging services of their service
provider.
Balance enquiry
Last three transaction
Cheque payment status
Cheque book
Statement request
Demat - free balance holding
Demat - last two transactions
Bill payment
WAP Enabled Mobile Phones
If customers are WAP enabled mobile phone user, they 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
57
are WAP-WTLS compliant (meaning customers have the comfort of transacting at the
highest level of security standard available internationally).
AccountAlerts
IDBI's new AccountAlert service gives customers all thebank account transaction
information automatically, wherever they are. No more visiting the bank branch or ATM
to check routine things like account balances, cheque clearance, verification of ATM
transactions, bill payment verifications, etc. AccountAlerts allows customers to monitor
filely any type of activity on their accounts, and be notified by e-mail or cell phone SMS
as and when they are executed.
Institutional Savings Account

As an institution that's working towards the betterment of society, people need a
bank that not only understands their banking needs, but also what they do and how they
do it. At IDBI, we're committed to providing them with the finest banking experience,
through unique features and solutions that are tailored with an emphasis for institutions
like some.
The Institutional Savings Account isn't just a product, it's an endeavour to

address customers’ very unique needs. It's a complete banking and financial advisory
service to the following types of organisations:
Payable at Par Chequebooks

All customers’ outstation cheques will be cleared as fast as local cheques. This will
greatly benefit customers’ associate organisations that they would be sending money to.
They can use these at Par Cheques as Demand Drafts at all our branch locations.
Any Branch Banking
Access accounts from any IDBI branch across the country and transfer funds freely
between accounts. Customers can also deposit outstation cheques at local branches.
Document Pick-up and Delivery*
58
IDBI’s representative will deliver and pick up documents from our drop box placed in
customers’ premises, so that they can enjoy the best of doorstep banking. IDBI w'll also
arrange to pick up and deliver cash from customers’ doorstep.
Salary Account for your Staff

While opening a Salary Account with IDBI, customers can disburse salaries without
issuing numerous cheques.
Single Window Solution

Customers needn't run from one desk to another. IDBI w'll have a dedicated
Relationship Manager to look after all banking needs.
Additional benefits of banking with IDBI
No minimum balance requirement
The Zero Balance Account allows you to spend the entire amount in the account without
charging you anything. This ensures that every rupee available is to put to effective use.
Demand Drafts/Pay Orders
IDBI w'll issue Demand Drafts/Pay Orders payable at any of our locations. These will be
free of cost, without any limit on the value.
Sweep-in Facility for customers’Fixed Deposit

In case of a shortfall in customer’s savings account, while clearing their cheques, IDBI
will withdraw funds from your FD. The balance in your FD will continue to earn interest
at the booked rate.
Loans against Fixed Deposits

Customers can get a loan against their IDBI Bank Fixed Deposit.
Internet Banking
Customers can access their account as well as get detailed account information online.
Absolutely free.
Corporate Payroll Account
Bring ease to salary disbursement
Welcome to world-class banking at IDBI.
59
IDBI has the right solution to payroll management problems - IDBI's Corporate
Payroll Account- This hassle-free salary account offers all the benefits of a Savings
Account combined with a host of additional features to give organisations complete
banking convenience.
Benefits of Corporate Payroll Account
To Employers: Complete freedom from cash disbursement and account
reconciliations. IDBI takes care of salaries, payroll account and provides with world-
class service and loads of benefits
To Employees;. Through the Corporate Payroll Account, salaries are credited to
employee's accounts electronically any where in India. Apart from this direct credit
facility, employees will be eligible for all the benefits and facilities that come along with
savings accounts.
CHAPTER - 5
5. Financial Report
Profit loss account

(Rs crore)
Sep ' 04 Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income:
Operating income 8,143.35 9,159.74 6,994.23 6,398.80 3,152.89
Expenses
Personnel expenses 181.74 384.61 282.90 318.51 157.55
Selling expenses 10.37 25.25 11.01 16.95 16.19
Adminstrative expenses 110.86 599.00 597.99 554.26 162.05
Cost of sales 302.96 1,008.86 891.90 889.72 335.79
Operating profit 730.59 786.47 414.84 508.26 349.23
Other recurring income 79.14 138.48 211.15 217.29 118.74
60
Adjusted PBDIT 809.73 924.94 625.99 725.55 467.98
Financial expenses 7,109.80 7,364.41 5,687.49 5,000.82 2,467.87
Depreciation 242.36 83.50 122.00 143.55 84.01
Other write offs 112.04 - - - 108.26
Adjusted PBT 455.34 841.44 504.00 582.00 275.70
Tax charges -3.52 93.25 52.31 27.46 -18.78
Adjusted PAT 458.86 728.64 451.69 554.54 294.48
Non recurring items - 0.81 178.62 6.35 12.77
Other non cash adjustments 6.15 - - -0.11 -
Reported net profit 465.00 729.46 630.31 560.78 307.26
Earnigs before appropriation 940.97 2,044.36 1,661.02 1,348.23 1,186.17
Equity dividend 97.92 144.95 108.65 108.57 54.13
Dividend tax 12.80 22.27 18.47 15.23 7.59
Retained earnings 830.25 1,877.14 1,533.90 1,224.43 1,124.45
Cash flow (Rs crore)
Profit before tax 461.48 822.71 682.62 588.35 288.48
Net cashflow-operating activity 1,902.44 2,144.64 200.63 -105.24 2,507.65
Net cash used in investing activity -13,169.12 -112.14 -153.07 -58.68 11.01
Netcash used in fin. activity 11,973.89 -184.82 1,194.60 -126.46 179.21
Net inc/dec in cash and equivlnt 707.21 1,847.68 1,548.31 -290.38 2,697.87
Cash and equivalnt begin of year 1,377.32 6,911.09 5,362.78 5,653.16 2,955.29
Cash and equivalnt end of year 2,084.53 8,758.77 6,911.09 5,362.78 5,653.16
Competition
Last Price Market Cap. Net Interest Net Profit Total Assets
(Rs. cr.) Income
SBI 1,133.45 71,960.50 48,950.31 6,729.12 721,526.32
Bank of India 240.60 12,635.72 12,355.22 2,009.40 178,830.00
PNB 391.00 12,328.33 14,265.02 2,048.76 199,020.36
Bank of Baroda 235.85 8,621.03 11,813.47 1,435.52 179,599.50
Canara Bank 187.15 7,673.15 14,200.73 1,565.01 180,528.69
61
Union Bank 142.50 7,197.93 9,447.30 1,387.03 124,073.26
Indian Bank 113.95 4,897.23 5,150.78 1,008.74 70,507.68
IDBI Bank 53.05 3,844.94 8,020.84 729.45 130,694.38
Syndicate Bank 64.10 3,345.82 7,906.31 848.06 107,132.28
IOB 58.65 3,195.25 7,968.25 1,202.34 101,859.73
Balance sheet (Rs crore)
Sources of funds
Owner's fund
Equity share capital 652.83 724.76 724.35 723.79 652.88
Share application money - - - - 68.89
Preference share capital - - - - -
Reserves & surplus 5,182.07 6,075.13 5,511.60 5,648.26 5,206.63
Unsecured loans 47,613.87 72,997.98 43,354.04 26,000.92 15,102.64
Total 53,448.76 79,797.88 49,589.99 32,372.98 21,031.04
Gros
897.66 3,894.76 3,856.40 2,306.30 2,456.28
s block
Less : revaluation reserve - 2,022.07 2,063.91 - -
Less : accumulated
- 1,173.59 1,089.08 1,503.79 1,573.93
depreciation
Net block 897.66 699.10 703.41 802.50 882.35
Capital work-in-progress 8.99 44.80 11.05 8.40 7.06
62
Investments 24,243.13 32,802.93 25,675.31 25,350.53 25,054.69
Net current assets
Current assets, loans &
36,324.98 4,154.02 6,003.73 4,301.50 4,349.41
advances
Less : current liabilities &
5,762.60 10,261.89 9,781.04 8,661.60 10,323.67
provisions
Total net current assets 30,562.38 -6,107.86 -3,777.31 -4,360.10 -5,974.26
Total 55,712.16 27,438.97 22,612.46 21,801.33 19,969.85
CHAPTER - 6
Board of Directors
Management & Organisation
IDBI Bank is a Board-managed organisation. 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, 2008, IDBI Bank had a combined
employee base of 8989, including professionals from the fields of accountancy,
management, engineering, law, computer technology, banking and economics.
Board of Directors
Mr. Yogesh Agarwal,

Chairman & Managing Director
Mr. O.V. Bundellu,

Deputy Managing Director
Mr. Jitender Balakrishnan,

Deputy Managing Director
63
Head Office
IDBI Tower,
WTC Complex,
Cuffe Parade,
Colaba,
Mumbai - 400005.
Tel: 91-22-22189111/ 66553355.
Fax: 91-22-22181294 /5179/8137
Swift:IBKLINBB
CHAPTER - 7
7. Analysis and Interpertaion
Table No.1. Classification of the Respondents on the basis
Sl.No Gender No.Of Respondents % of respondents

1 Male 38 [76%]
2 Female 12 [24%]
Total 50
64
The above pie-chart shows that among the respondents, 24% were females and 76% were
male.
Sl.No Age No.Of Respondents % of respondents

1 Below 15 years 2 [4%]
2 15 to 30 years 22 [44%]
3 30 to 40 years 10 [20%]
4 45 to 43 years 16 [32%]
Total 50
65
The above graph shows that among the respondents 4% were below 15 years, 44% were
15-30 years of age, 20% were 30-40 years, and 16% were above 40 years of age.
Table No.3. Classification of the Respondents on the basis of family size.
Family Size No. of Respondents % of respondents

1 3 6%
2 3 6%
3 16 32%
4 24 48%
5 2 4%
6 2 4%
7 - 0
8 - 0
Total-50 100%
66
Above table shows respondents and their percentage belonging to various family sizes.
Table No.4. Classification of the Respondents on the basis of annual income.
Sl.No Annual Income No of Respondents % of respondents

1 Below Rs 20,000 14 28%
2 Below Rs 40,000 12 24%
3 Below Rs 60,000 11 22%
4 Rs 60,000 & above 13 26%
Total 50 100
67
The above pie-chart shows that among the respondents 28% had the annual
income below 20,000 , 24% had below 40,000 , 22% had below 60,000 and 26% of them
had above 60,000 income per annum.
Sl.No Occupation No of Respondents % of respondents

1 House wife 8 16%
2 Student 7 14%
3 Self Employee 14 28%
4 Govt Employee 12 24%
5 Pvt Employee 5 10%
6 Others 4 8%
Total 50
68
The above chart shows that 16% of respondents were housewives, 14% were
students, 28% were self employees, 24% were government employees, 105 were private
employees and others accounted for a share of 8%.
Table No.6. Classification of the Respondents on the basis of education.
Sl.No Education No of Respondents % of respondents

1 Below SSLC 8 16%
2 SSLC to PUC 17 34%
3 PUC to Grdu 14 28%
4 Post Graduate 8 16%
5 Others 3 6%
Total 50 100%
69
The above pie chart shows 16 % respondents were below SSLC , 34% between
SSLC – PUC, 28% between PUC and Graduation, 16% were Post graduates and others
accounted for 6%.
Table No.7. Classification of the Respondents on the basis ofholding of an

account.
Sl.No Opinion No of Respondents % of respondents

1 Yes 42 84%
2 No 8 16%
Total 50
70
The above chart shows 84% were accountholders and 16% were non account holders.
Table No.8. Classification of the Respondents on the basis of nature of

account.
Sl.No Nature of Account No of Respondents % of respondents

1 SB A/C 30 71%
2 Current A/C 6 15%
3 Fixed deposit A/C 4 10%
4 Recurring A/C 2 4%
71
Total 42 100%
Above pie-chart shows that 71% held S B accounts, 15% held current accounts,
10% held D accounts and 4% respondents held R D accounts.
Table No.9. Classification of the Respondents on the basis of their interest

to open an account.
Sl.No Opinion No of Respondents % of respondents

1 Yes 6 75%
2 No 2 25%
Total 8 100%
72
The above chart shows 75% of respondents want to open an account and
other 25% don’t want to open any account.
Table No.10. Classification of the Respondents on the basis of banks in

which they want open an account.
Sl.No Bank Name No of Respondents % of respondents

1 IDBI Bank 2 33%
2 SBI 2 33%
73
3 Canara Bank 1 17%
4 ICICI Bank 1 17%
5 HDFC Bank - -
6 Others - -
Total 6 100%
The above chart shows IDBI and SBI have a share of 33% each and ICICI
and HDFC have a share of 17% each among the respondents to open new account.
Table No.11. Classification of the Respondents on the basis of purpose to

open the account.
Sl.No Purpose No of Respondents % of respondents

1 Loan 16 38%
2 Savings 12 29%
74
3 Current Transaction 7 12%
4 Insurance 7 17%
5 Others 2 4%
Total 42 100%
From the above chart purpose to account, out of 42 respondents, 38% of

the respondents are open account for loan, 29% of the respondents are open the account
for Savings,12% of the respoendents are open account for Current Transaction, 17% of
the respondents open the account for Insurance and other 4% of the respondents are open
the account for other reason.
Table No.12. Classification of the Respondents on the basis of loan.
Sl.No Loan No of Respondents % of respondents

1 Yes 29 69%
2 No 13 31%
Total 42 100%
75
From above the graph out of 42 respondents 69% of the respondens are having
loan, and 29% of the respondents are not having any loan .
Table No.13. Classification of the Respondents on the basis of loans taken

from various banks.
Sl.No Banks Name No of Respondents % of respondents

1 IDBI Bank 9 31%
2 SBI 4 14%
3 Canara Bank 13 45%
76
4 ICICI Bank 1 3%
5 HDFC Bank - -
6 Others 2 7%
Total 29 100%
As shown in above figure 31% respondents have loan in IDBI Bank, 14%
in SBI, 45% in Canara bank, 3% in ICICI, and 7% in other banks.
Table No.14. Classification of the Respondents on the basis of loan holders

in IDBI bank.
Sl.No Loan Holder No of Respondents % of respondents

1 Yes 9 31%
2 No 20 69%
77
Total 29 100%
Above figure shows among 29 respondents 31% have loan in IDBI

Bank and 69% don’t have any.
Table No.15. Classification of the Respondents on the basis of choosing

IDBI Bank for loan.
Sl.No Factor No of Respondents % of respondents

1 Services 3 33%
2 Rate of interest 6 67%
78
Total 9 100%
Among the above respondents 33% chosen IDBI Bank for services and other for rate of
interests
Table No.16. Classification of the Respondents on the basis of purpose of

loan taken.
Sl.No Purpose No of respondents % of respondents

1 Business Purposes 7 78%
2 Construct a House - -
79
3 Purchased a Vehicle 2 22%
4 Others - -
Total 9 100%
Above chart shows 78% respondents borrowed loan for business, 22% for vehicle loan.
Table No.17. Classification of the Respondents on the basis of amount of

loan.
Sl.No Loan Amount No of respondents % of respondents

1 Up to Rs 50,000 - -
2 Rs 50,000 - 1,50,000 3 33%
80
3 Rs 1,50,000 - 3,00,000 4 45%
4 Rs 3,00,000 & above 2 22%
Total 9 100%
Above chart shows that 33% borrowed loan from 50,000-1,50,000 and 45%
borrowed between 1,50,000-3,00,000 and 22% borrowed more than 3,00,000.
Table No.18. Classification of the Respondents on the basis of the security

given.
Sl.No Kind of Security % of respondents % of respondents

1 Persona security 6 67%
2 Collateral security 3 33%
Total 9 100%
81
The chart shows that 67% provided personal security and 33% provided collateral
security.
Table No.19. Classification of the Respondents on the basis of repayment

option of loan.
Sl.No Installments No of respondents % of respondents

1 Monthly installment 7 78%
2 Lump sum payment 2 22%
Total 9 100%
82
The chart shows 78% opted for monthly installments and 22% opted for lump-
sum payment.
Table No.20. Classification of the Respondents on the basis of satisfaction

with IDBI services.
Sl.No Service Opinion No of respondents % of respondents

1 Yes 8 88%
2 No 1 12%
Total 9 100%
83
The above chart shows that 88% respondents are satisfied with IDBI Bank
services and 12% are not satisfied.
Table No.21. Classification of the Respondents on the basis of loan holders

other than IDBI Bank.
Sl.No Loan Holder No.Of Respondents % of respondents

1 SBM 4 20%
2 Canara Bank 13 65%
3 ICICI bank 1 5%
4 Others 2 10%
84
Total 20 100%
Above table shows 20% have loan in SBM and 65% have loan in CANARA
Bank and 10% have loans in other banks.
Table No.22. Classification of the Respondents on the basis of preference for

that bank.
Sl.No Factor NO. Of Respondents % of respondents

1 Loan 2 10%
2 Services 13 65%
3 Ambience 4 20%
4 Others 1 5%
Total 20 100%
85
Above chart shows 10% preferred their bank for loans, 65% for service, 20% for
ambience and other reasons contributed 5%.
Table No.23. Classification of the Respondents on the basis of purpose of

loan.
Sl.No Purpose NO. Of Respondents % of respondents

1 Construct a house 5 25%
2 Purchase a Vehicle 3 15%
3 Personal Purpose 7 35%
4 Business Propose 4 20%
5 Others 1 5%
Total 20 100%
86
Above chart shows 25% bought the loan to construct house, 15% to
purchase vehicle, 35% for personal purpose and 20% for business, and 5% have
taken for other reasons.
Table No.24. Classification of the Respondents on the basis of security

given.
Sl.No Kind of Security NO. Of Respondents % of respondents

1 Personal Security 9 45%
2 Collateral Security 4 20%
3 Without Security - -
4 Others 7 35%
Total 20 100%
87
Above chart shows 45% have given personal security, 20% have given collateral security,
and 35% have given other seurities.
Table No.25. Classification of the Respondents on the basis of satisfaction.
Sl.No Opinion NO. Of Respondents % of respondents

1 Yes 17 85%
2 No 3 15%
Total 20 100%
88
Above chart says 85% respondents are satisfied with their bank’s service,
and 15% are not satisfied with their bank’s service.
Table No.26. Classification of the Respondents on the basis of interest in

loan facility.
Sl.No Opinion NO. Of Respondents % of respondents

1 Yes 9 69%
89
2 No 4 31%
Total 13 100
Above chart shows 69% of respondents are interested with loan facility and 31% are not
interested.
Table No.27. Classification of the Respondents on the basis of purpose for

loan.
Sl.No Purpose NO. Of Respondents % of respondents

1 Construct a house 4 44%
2 Personal Purpose 1 11%
90
3 Purchase a Vehicle 1 11%
4 Business Propose 3 34%
5 Others -
Total 9 100%
According to above chart, 44% want loans to construct houses, 11% for
personal purpose, 11%for vehicle buying and 34% for business purpose .
Table No.28. Classification of the Respondents on the basis of amount of

loan.
Sl.No Loan Amount NO. Of Respondents % of respondents

1 Up to Rs 50,000 2 22%
91
2 Rs 50,000 - 1,50,000 5 56%
3 Rs1,50,000 - 3,00,000 1 11%
4 Rs 3,00,000 & above 1 11%
Total 9 100%
Above chart shows 22% respondents wanted the loan upto 50,000, 56% between
50,000-1,50,000, 11% between1,50,000-3,00,000, and 11% wanted above 3,00,000 of
loan.
Table No.29. Classification of the Respondents on the basis of better

institution to borrow the loan.
Sl.No Finance Institute NO. Of Respondents % of respondents
92
1 Banks 36 72%
2 Privates Finance 10 20%
3 Money Lenders 3 6%
4 Others 1 2%
Total 50 100%
From the above chart, we can say that 72% feel that banks are better institutions to
borrow the loan whereas 20% feel that private finance is better and
CHAPTER - 8
8. Suggestion and Conclusion
SUGGESTIONS
93
Based on the market research conducted on “IDBI Services” with the customers
of various banks in and around Chikmaglur city, we could derive some of the following
significant suggestions ;-
As the market share of the IDBI bank is less in Chikmaglur, because of absence
of the branch in the city, there is an urgent need to open a branch here.
As a premier development bank, it should play a major role in assisting industrial
development in and around Chikmaglur.
Customers are awaiting for world class banking services as it disclosed it’s
decision to open a branch very shortly in the city.
Most of the customers suggest that it should look to provide convenient loan
facilities to them.
There are quiet a number of people who expect some significant assistance to the
coffee plantations in the district.
Many suggest that the bank should start it’s operations as soon as possible.
Suggestions reveal that it should look at rapidly expanding it’s branches inorder
to provide convincing services to it’s customers.
The bank is still lagging behind in reaching rural customers as there are few
branches in the rural areas.
It should look to provide various loans at lowest possible interest rates inorder to
acquire a good market share in the future.
Many suggest that simplification of issuance of loans and the documents’
requirements would serve mutual benefits.
Many feel that the need of the hour is to open the branch in the city as some of it’s
customers have their accounts in the neighbouring cities.
Another important thing would be that it should offer various services to all the
classes of the region to acquire a good share in the region.
CONCLUSION
94
As a premier industrial development bank in India, IDBI has an important role to
play both as an development and commercial bank in the Chikmaglur region. Eventhough
the major hurting factor for it’s market share is the absence of a branch in the city, it will
be nullified as it is going to open a new branch in the city very soon. It’s experience in all
kinds of banking and it’s value added services such as insurance and other latest services
can provide a good market share in the future .
However it would face some stiff competition in the commercial banking

section as some banks are offering excellent services especially in loans and deposit
services. It is evident from the research conducted in the region. However it has some
privileged customers in the region who are looking forward to bank with it.
Further the easing of loan procedures and securities for loan would help as
found in the research. Loans at low interest rates would please the customers. Special
loans to coffee planters and the coffee industry would be welcomed.
So people in this region are expecting some firm assistance from the bank
both as an development bank and as a commercial bank. It has very good opportunity to
provide some worldclass services in the region. Moreover it will have to look at the
industrial and overall development of the region.
BIBLIOGRAPHY
95
Books :
Principals of Marketing
– Philip Kotler
Marketing Management
– Philip Kotler
Web Sites:
www.idbi.com
www.businessinfoline.com
www.moneycontrol.com
Paper:
Economic Times
Business Line
96

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A Project report on Banking for all

The first development bank In India incorporated immediately after independence

 All-India Development Banks

Industrial Development Bank of India (IDBI)

1.2. An Introduction about market.

However marketing is much more than just isolated business function. It is

1.3. A Marketing Management.

1.4. The marketing concept:

Hypothesis is assumption for the problem to be solved. If we under take

1. To know the Customer of IDBI

a. To know the consumers behavior towards the services

The questionnaires were prepared to know the Customer Attitude toward

1.9 Scope of study: -

1.10. Limitations of the study:

Ancient Greece holds further evidence of banking. Greek temples, as well as

This banking network functioned as a trade credit system in which payments

Western banking history

After the siege of Antwerp trade moved to Amsterdam. In 1609 the

Nevertheless, in recent years, the dominance of U.S. financial markets has

Such growing internationalization and opportunity in financial services has

Many such possible alignments could be accomplished only by large

In recent years, the process of financial innovation has advanced enormously

Major events in banking history

 Florentine banking — The Medicis and Pittis among others.

Oldest private banks

 Rothschild family 1700 - present

Oldest national banks

Origin of the word

Traditional banking activities

Banks act as payment agents by conducting checking or current accounts for

Banks borrow most funds from households and non-financial businesses,

Cathay Bank in Boston's Chinatown

The definition of a bank varies from country to country.

In most English common law jurisdictions there is a Bills of Exchange

 "banking business" means the business of receiving money on current or deposit

2. Paying or collecting cheques drawn by or paid in by customers

Accounting for bank accounts

Suburban branch bank

Wider commercial role

 Issue of banknotes (promissory notes issued by a banker and payable to bearer on

The economic functions of banks include:

3. between geographical areas to offset, reducing the cost of settling payments

Currently in most jurisdictions commercial banks are regulated by government

 A branch, banking centre or financial centre is a retail location where a bank or

1 National Bank of the Republic, Salt Lake City 1908

Types of investment banks

 Universal banks, more commonly known as financial services companies, engage

Other types of banks

Banks in the economy

Size of global banking industry

Challenges within the banking industry

The Federal Financial Institutions Examination Council (FFIEC) was established in

In addition to changing regulations, changes in the industry have led to

They make it easier for consumers to conveniently make transactions and

Type Public sector bank

Overview of development banking in India

The first development bank In India incorporated immediately after independence in

 All-India Development Banks

Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on July 1,

In September 2003, IDBI diversified its business domain further by

IDBI’s transformation into a commercial bank would provide a gateway to

IDBI upholds the highest standards of corporate governance in its