Executive Summary

IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core Banking IT platform. The Bank offers personalized banking and financial solutions to its clients in the retail and corporate banking arena through its large network of Branches and ATMs, spread across length and breadth of India. We have also set up an overseas branch at Dubai and have plans to open representative offices in various other parts of the Globe, for enchasing emerging global opportunities. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs and plans to roll out another 300 branches during FY 2010-11. The Bank's total business, during Fy 2009-10, reached Rs. 3.06 Lakh Crore (up by 41.7 %), Balance sheet reached Rs. 2.34 Lakh Crore (up by 35.5 %) while it earned a net profit of Rs. 1031 Crore (up by 20 %).

Our vision for the Bank is for it to be the trusted partner in progress, by leveraging quality human capital and setting global standards of excellence, to build the most valued financial conglomerate. Our experience of financial markets helps us to effectively cope with challenges and capitalize on the emerging opportunities by participating effectively in our countrys growth process.

Introduction Profile of the Bank

IDBI Bank Ltd. is today one of India's largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-building role, first as the apex Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of industry and thereafter as a full-service commercial Bank (October 1, 2004 onwards). As a DFI, the erstwhile IDBI stretched its canvas beyond mere project financing to cover an array of services that contributed towards balanced geographical spread of industries, development of identified backward areas, emergence of a new spirit of enterprise and evolution of a deep and vibrant capital market. On October 1, 2004, the erstwhile IDBI converted into a Banking company (as Industrial Development Bank of India Limited) to undertake the entire gamut of Banking activities while continuing to play its secular DFI role. Post the mergers of the erstwhile IDBI Bank with its parent company (IDBI Ltd.) on April 2, 2005 (appointed date: October 1, 2004) and the subsequent merger of the erstwhile United Western Bank Ltd. with IDBI Bank on October 3, 2006, the tech-savvy, new generation Bank with majority Government shareholding today touches the lives of millions of Indians through an array of corporate, retail, SME and Agri products and services. Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly competent and dedicated workforce and a state-of-the-art information technology platform, to structure and deliver personalised and innovative Banking services and customised financial solutions to its clients across various delivery channels. As on March 31, 2010, IDBI Bank has a balance sheet of Rs.2.34 lakh crore and business size (deposits plus advances) of Rs.3.06 lakh crore. As an Universal Bank, IDBI Bank, besides its core Banking and project finance domain, has an established presence in associated financial sector businesses like Capital Market and Investment Banking, Home Finance, Primary Dealership area and more recently, the Life Insurance Business. As a step towards taking the organization on a accelerated growth path, the Bank has reorganized its businesses around nine verticals out of which six customer verticals, each focusing on distinct customer segments and three business verticals. Going forward, IDBI Bank is strongly committed to work towards emerging as the 'Bank of choice' and 'the most valued financial conglomerate', besides generating wealth and value to all its stakeholders.
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Company History
The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBIs 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 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 (196491),in catalyzing broad based industrial development in the country in keeping with its Government-ordained development banking charter. In pursuance of this mandate, IDBIs activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernization 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 recommendation was rejected by the government. Later RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted the development financial institution to diversify its activity. It recommended to harmonies 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 IDBIs 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 2 July 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 1 October 2004, the Appointed Date notified by the Central Government. IDBI has firmed up
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the infrastructure, technology platform and reorientation of its human capital to achieve a smooth transition. 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 29 July 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 31 March 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 corporate and individuals. In particular, IDBI would leverage the strong corporate relationships built up over the years to offer customized 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. IDBIs 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 Banks overall cost of funds and facilitate lending at more competitive rates to its clients. The new entity would
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offer various retail products, leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-shop and most preferred brand for providing total financial and banking solutions to corporate and individuals, capitalizing 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.

Vision and Mission of the Company

The vision for the Bank is for it to be the trusted partner in progress, by leveraging quality human capital and setting global standards of excellence, to build the most valued financial conglomerate. Our experience of financial markets helps us to effectively cope with challenges and capitalize on the emerging opportunities by participating effectively in our countrys growth process.

Organizational Structure
The particulars of organization, functions and duties:
IDBI Bank Limited (formerly known as Industrial Development Bank of India Limited) is a company incorporated under the Companies Act, 1956 (1 of 1956), having its Registered Office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400005. In terms of The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003), hereinafter referred to as IDBI Repeal Act, read with Notification No. S.O (E)(F. No.8/(2)/2004-IF-1) dated September 29, 2004, issued by the Central Government in exercise of the powers conferred under sub-section (1) of section 3 of IDBI Repeal Act, the undertaking of the Industrial Development Bank of India, which was established as a statutory corporation [hereinafter referred to as the Development Bank] under the Industrial Development Bank of India Act, 1964 (18 of 1964), was transferred and vested in the Industrial Development Bank of India Limited. The Development Bank was mainly established by the Central Government for the promotion and development of industries and the said object is being continued by IDBI Bank Limited. In terms of sub-section (2) of section 3 of the IDBI Repeal Act, Industrial Development Bank of India Limited (presently IDBI Bank Ltd.) is a deemed banking company (within the meaning of clause (c) of section 5 of the Banking Regulation Act, 1949) to conduct banking business as well as the business of the Development Bank. Further, all contracts, deeds, guarantees, power of attorneys, other instruments and working arrangements (immediately prior to the appointed day i. e. October 1, 2004, as notified pursuant to the Repeal Act), affecting the Development Bank shall continue to be in full force and effect against or in favour of the Industrial Development Bank of India Limited (presently known as IDBI Bank Ltd.), and enforceable as fully and effectually as if instead of the Development Bank, IDBI Bank Ltd. had been named therein or had been a party thereto. Industrial Development Bank of India Limited received the Certificate for Commencement of Business from the Registrar of Companies, Maharashtra, Mumbai on September 28, 2004. The Government of India, Ministry of Finance (Department of Economic Affairs, Banking Division) issued Notification dated September 29, 2004. The Reserve Bank of India on September 30, 2004 notified the Industrial Development Bank of India Limited as a Scheduled Bank and the banking business commenced from October 01, 2004. The erstwhile IDBI Bank Ltd. [a subsidiary of the then Industrial Development Bank of India] was merged with the Industrial Development Bank of India Limited (presently known as IDBI Bank Ltd.) with effect from April 02, 2005 in terms of clause 2.12 of the Scheme of Amalgamation sanctioned by the Reserve Bank of India vide order dated April 01, 2005 issued
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under sub-section (4) of section 44 A of the Banking Regulation Act, 1949. Subsequently, erstwhile The United Western Bank Limited was amalgamated with Industrial Development Bank of India Limited in terms of The United Western Bank Limited (Amalgamation with Industrial Development Bank of India Limited) Scheme, 2006 sanctioned by Central Government on an application of Reserve Bank of India, w.e.f. October 3, 2006 under Subsection (1) of section 45 of Banking Regulation Act, 1949 (10 of 1949). The Reserve Bank of India classified Industrial Development Bank of India Limited as "Other Public Sector Bank" vide Notification No. DBOD.BP.1630/21.04.152/2004-05 dated April 15, 2005. The Ministry of Finance, Department of Financial Services, Government of India also notified on December 31, 2007 categorizing the Industrial Development Bank of India Limited under a New Sub-Group "Other Public Sector Banks". The Government of India vide letter no. 7/95/2005-BOA dated December 31, 2007, decided that the Industrial Development Bank of India Limited shall be treated on par with Nationalised Banks/ State Bank of India by the Government Departments / Public Sector Undertakings / other entities for all purposes including deposits / bonds / investments / guarantees etc. and Government business. On May 7, 2008, the Industrial Development Bank of India Limited was renamed as IDBI Bank Limited pursuant to the fresh Certificate of Incorporation issued by the Registrar of Companies, Maharashtra, Mumbai, in terms of section 21 of the Companies Act, 1956. The Reserve Bank of India, Mumbai, vide Notification No. DBOD.BP.BC.No.2101002/2007-08 dated May 16, 2008 (published in the Gazette of India (Part III Section 4), dated June 14, 2008), stated that the name Industrial Development Bank of India Limited be substituted by IDBI Bank Limited in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934) with effect from May 7, 2008. Main Objects: The main objects of IDBI Bank Limited, inter alia, are as under:

To establish and carry on business of banking in all forms within India and outside India, To finance, promote or develop industry and assist in the development of Industries.

The organization structure in IDBI Bank Limited consists of various business verticals, viz. Infrastructure Corporate Group (ICG), Sourcing, Syndication and Advisory Department (SSAD), Large Corporate Group (LCG), Mid-Corporate Group (MCG), Personal Banking Group (PBG), Small & Medium Enterprise Group (SMEG), Agri-Business Group (ABG), International Banking Division (IBD), Transaction Banking Group (TBG) and Treasury.

Financial Performance and Ownership Structure

Q1FY2008 Financial Performance Net Interest Income declined by around 35% to Rs 629mn on the back of 35% rise in the Interest Expenses. Non Interest Income grew by around 40% to Rs 4bn driven by sale of Investments to the tune of Rs 2.6bn (NSE stake sale - Rs 2bn and Others (Rs 0.6bn). Operating Expenses grew by 8.3% on the back of 36% rise in Staff Cost. Aggregate Provisions more than doubled to Rs 1bn, lead by 194% rise in Other Provisions and 53% increase in Tax Provision. Net Profit grew by mere 2% to Rs 1.5bn. The Banks Total Business grew by 30% driven by Deposits growth of 61% to Rs 468bn and Advances growth of 14% to Rs 598bn.

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11

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Market capitalization
IDBI BANK LTD SHAREHOLDING PATTERN AS ON 31.03.2010 LOT NO: 8104

(PHYSICAL & ELECTRONIC) CATEGORY TOTAL SHAREHOLDERS GOVERNMENT OF INDIA EMPLOYEES 1 1030 % TO NUMBERS 0.00 0.25 TOTAL SHARES 381778000 1475577 % OF SHARE HOLDING 52.67 0.20

PUBLIC

397860

95.74

106219554

14.65

HUF BODIES CORPORATE INSTITUTIONS A) BANKS B) FORIEGN INST. INVESTOR'S C) STATE FINANCE CORPORATIONS

4990 3260

1.20 0.78

2764319 31999844

0.38 4.41

65 113 1

0.02 0.03 0.00

2627455 48902527 35680

0.36 6.75 0.00

D) FI'S E) MUTUAL FUNDS F) OCB'S SOCIETIES TRUSTS INSURANCE COMPANIES

15 57 1 8 66 6

0.0036 0.01 0.0002 0.0019 0.0159 0.0014

67031091 13365707 320 28960 371553 61878579

9.25 1.84 0.00 0.00 0.05 8.54

NRI'S DIRECTORS & RELATIVES NSDL (TRANSIT) GRAND TOTAL

7785 2 293 415553

1.8734 0.000 0.0705 100

5483564 321 898870 724861921

0.76 0.00004 0.11 100

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Number of Employees and Turnover

State-run lender IDBI Bank's employees have been ranked at top among workers of public sector banks when it comes to bringing business for the bank during 2009-10. According to the Reserve Bank data on profile of banks, each employee of IDBI Bank generated a business of Rs. 24.17 crore in the last fiscal against the industry average of Rs. 8.73 crore. However, the bank's employee wages accounted for 5.10 per cent of the bank total expenses, while the industry average was 14.83 per cent last fiscal. Surprisingly, average business generated by employees of the country's largest bank SBI is the second lowest. As per the data, average business brought by each employee of SBI stood at Rs. 6.36 crore in the last fiscal. The only state-run bank whose business per employee is below SBI is its associate State Bank of Bikaner and Jaipur. The business generated by each employee of SBBJ was Rs. 6.27 crore in 2009-10. Among the banks whose employee generated good business in the last fiscal include Bank of India, Corporation Bank and Oriental Bank of Commerce. While Bank of India's each employee generated business of Rs. 10.11 crore, Corporation Bank's generated Rs. 12.69 crore. The business generated by each employee of Oriental Bank of Commerce stood at Rs. 13.31 crore. In comparison, Punjab National Bank's business generated by each employee was Rs. 8.07 crore, while Canara Bank's was Rs. 9.82 crore.

Similarly, each employee of Bank of Baroda generated a revenue of Rs. 9.81 crore each. However, SBI and its associates banks have fared badly in the ranking. Each employee of State Bank of Hyderabad generated business of Rs. 7.55 crore, State Bank of Mysore's Rs. 6.72 crore, State Bank of Indore's Rs. 7.63 crore and State Bank of Travancore's is at Rs. 6.96 crore. Among the private sector lenders, the business per employee of ICICI Bank stood at Rs. 10.29 crore, while Axis Bank's each employee generated business of Rs. 11.11 crore. In contrast, the individual business contribution by HDFC Bank employees was Rs. 5.90 crore in 2009-10. Among the foreign lenders, each employee of Citi generated business worth Rs. 19.79 crore, while HSBC's per employee contribution was Rs. 11.35 crore business in 2009-10.

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Executive Profile
IDBI Bank is a Board-managed organization. The responsibility for the day-to-day management of operations of the Bank is vested with the Chairman & Managing Director and Deputy Managing Director, who draw upon the support and expertise of a cross-disciplinary Top Management Team. IDBI Bank Ltd.'s employee base includes professionals from the fields of accountancy, management, engineering, law, computer technology, banking and economics. Board of Directors (position as on November 9, 2010)

Mr. R. M. Malla (Chairman & Managing Director)

Mr. B. P. Singh (Deputy Managing Director)

Mr. Rakesh Singh

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Mr. R P Singh

Mr. Analjit Singh

Ms. Lila FirozPoonawalla

Mr. K. Narasimha Murthy

Mr. HiralalZutshi

Mr. SubhashTuli

Dr. B.S. Bisht

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Business Operation and plant Location

IDBI Bank offers collections through select locations of its own network. With a view to facilitating superior reach, the Bank also relies on its tie-up with identified correspondent banks. With technology support and networked branches, advantage CMS are a plenty eg. quick visibility of funds, pooling of funds into one single account as well as collection of funds in customized accounts' structure, customised MIS reports, etc. The customer can efficiently deploy the pooled funds in order to maximize returns. CMS products support the customers in the objective of effectively controlling the receivables and payable as well. IDBI Banks Collection Products are tailor-made to suit customer requirements

Local collections at over 325 IDBI locations and over 200 partner bank locations. Partner bank network of over 4000 locations for fast outstation collections Client level MIS customization ERP compliant

Benefits to Customers:

Confirmed arrangements Outsourced logistics Enhanced clearing network Pooling / Single Payout Account Customized Reporting

Our collections products can be categorized based on type of collection (local or outstation) and drawn on location (IDBI location or Partner bank location). Local Cheque Collection: 1. 2. 3. 4. Express: Local collections on IDBI Locations Rapid Reach: Local collections on Partner Bank locations IDBITRF: Cheques drawn on IDBI Bank across all Branches Speed: Outstation cheques drawn on Bank branches participating in RBIs Speed Clearing.

Outstation Cheque Collection: 1. Swift: Outstation collections on the IDBI network 2. Max Reach: Outstation collections on Corr. Bank Locations 3. Remote: Outstation collections in locations beyond IDBI and Partner Bank centers

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Collections Products Online Access 1. 2. 3. 4. 5. Deposit slip-wise query with instrument drill down Instrument-wise query Reports scheduling Reports on demand Delivery status of scheduled reports

Branches / ATMs Network

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Joint Ventures and Alliances

Acquisition of United Western Bank
In 2006, IDBI Bank acquired United Western Bank in a rescue. Annasaheb Chirmule, who worked for the cause of Swadeshi movement, founded SataraSwadeshi Commercial Bank in 1907, and some three decades later founded United Western Bank. The bank was incorporated in 1936, and commenced operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with SataraSwadeshi Commercial Bank.At the time of the merger with IDBI, United Western had some 230 branches spread over 47 districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.

Merger of IDBI bank Ltd. with IDBI Ltd.

Towards achieving the faster inorganic growth of the Bank, IDBI Bank Ltd., a wholly owned subsidiary of IDBI Ltd. was amalgamated with IDBI Ltd. in terms of the provisions of Section 44A of the Banking Regulation Act, 1949 providing for voluntary amalgamation of two banking companies. The merger became effective from April 02, 2005.

Merger of United Western bank with IDBI Ltd.

The United Western bank Ltd. (UWB), a Satara based private sector bank was placed under moratorium by RBI. Upon IDBI Ltd. showing interest to take over the said bank towards its further inorganic growth, RBI and Govt. of India amalgamated UWB with IDBI Ltd. in terms of the provisions of Section 45 of the Banking Regulation Act, 1949. The merger came into effect on October 03, 2006.

Change of name of IDBI Ltd. to IDBI Bank Ltd.

In order that the name of the Bank truly reflects the functions it is carrying on, the name of the Bank was changed to IDBI Bank Limited and the new name became effective from May 07, 2008 upon issue of the Fresh Certificate of Incorporation by Registrar of Companies, Maharashtra. The Bank has been accordingly functioning in its present name of IDBI Bank Limited.

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IDBI Capital Market Services a wholly owned subsidiary, offers a full suite of financial products. Its business includes stock broking, distribution of financial products, Portfolio management of Pension / PF funds & Research services, etc. Invest online - Equities, MF & IPOs

IDBI Gilts Ltd. a wholly owned subsidiary, commenced its operations as Primary Dealer. The company presently focuses on Bond trading, underwriting in auctions of G-sec and T-bills.

IDBI Intech Ltd. a wholly owned subsidiary, deals in the Information Technology Services, Information Security Practice, Knowledge Management Services, national contact center and outbound contact center.

IDBI Home Finance a wholly owned subsidiary, deals in the Home finance arena. It was acquired in September 2003 from Tata HomeFinance Ltd

IDBI Asset Management IDBI Asset Management Limited (AMC), the Asset Management Company of IDBI Mutual Fund is a wholly-owned subsidiary of IDBI Bank Ltd. Its mission is to promote financial inclusion, by assisting the common man in making informed investment choices, through mutual funds. The trustee company for IDBI Mutual Fund is IDBI MF Trustee Company.

IDBI Federal Life Insurance Company Ltd. a joint venture with Federal Bank and Fortis Insurance International. It primarily deals in Life insurance space

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Business Status
Core Business a core focus IDBI has registered decent growth in its core business operations i.e., its business volumes with a thrust on its Deposits portfolio. During the period FY2005-07, aggregate business of the bank grew at a CAGR of 32.2% with deposits growing at a CAGR of 69.4%. In the same period, the banks credit portfolio grew at a CAGR of 17.3% thereby beefing up its revenue stream from its core business activity. With an up tick in the Indian credit cycle driven by a burgeoning economy, we expect the bank to leverage its existence corporate relationship to expand its business volumes. Further, with a wider geographic coverage post the acquisition if UWB, the bank is better placed to garner market share from non industrial portfolio also. Going forward, we expect the banks advances to grow at a CAGR of 21% to Rs 914bn between FY2007-09E and deposits would grow at 36.6% to Rs 809bn.

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PEST Analysis
POLITICAL FACTORS Government and RBI policies affect the banking sector. Sometimes looking into the political advantage of a particular party, the Government declares some measures to their benefits like waiver of short-term agricultural loans, to attract the farmers votes. By doing so the profits of the bank get affected. Various banks in the cooperative sector are open and run by the politicians. They exploit these banks for their benefits. Sometimes the government appoints various chairmen of the banks. Various policies are framed by the RBI looking at the present situation of the country for better control over the banks. FOCUS ON REGULATIONS OF GOVERNMENT Indian Banking is least affected as compare to other developed economy which is attributed to Reserve Bank of India for its robust policy framework, stricter prudential regulations with respect to capital and liquidity. This gives India an advantage in terms of credibility over other countries. Government affects the performance of banking sector most by legislature and framing policy .government through its budget affects the banking activities securitization act has given more power to banking sector against defaulting borrowers.

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ECONOMIC FACTORS
Banking is as old as authentic history and the modern commercial banking are traceable to ancient times. In India, banking has existed in one form or the other from time to time. The present era in banking may be taken to have commenced with establishment of bank of Bengal in 1809 under the government charter and with government participation in share capital. Allahabad bank was started in the year 1865 and Punjab national bank in 1895, and thus, others followed. Every year RBI declares its 6 monthly policy and accordingly the various measures and rates are implemented which has an impact on the banking sector. Also the Union budget affects the banking sector to boost the economy by giving certain concessions or facilities. If in the Budget savings are encouraged, then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking channels GROWING ECONOMY / GDP Indian economy has registered a growth of more that 9 per cent for last three year and is expected to maintain robust growth rate as compare to other developed and developing countries. Banking Industry is directly related to the growth of the economy. The contributions of various sectors in the Indian GDP for 2007-2008 are as follows: Agriculture:17% Industry:29% ServiceSector:54% It is great news that today the service sector is contributing more than half of theIndian GDP. It takes India one step closer to the developed economies of theworld. Earlier it was agriculture which mainly contributed to the Indian GDP. The Indian government is still looking up to improve the GDP of the country andso several steps have been taken to boost the economy. Policies of FDI, SEZsand NRI investment have been framed to give a push to the economy and hencethe GDP.

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SOCIO CULTUREAL FACTORS

Socio culture factors also affect the business. They show in which people behave in country. Socio-cultural factors like taboos, customs, traditions, tastes, preferences, buying and consumption habit of people, their language, beliefs and values affect the business. Banking industry is also operates under this social environment and it is also affect by this factor. These factor are changing continuously peoples life style, their behavior, consumption pattern etc. is changing and also creating opportunities and threat for banking industry. There are some socio-culture factors that affect banking in India have been analyzed below. SHIFT TOWARDS NUCLEAR FAMILY Attitude of people of India is changing. Now, younger generation wants to remain separate from their parents after they get married. Joint families are breaking up. There are many reasons behind that. But banking sector is positively affected by this trend. A family need home consumer durables like freeze, washing machine, television, bike, car, etc..so, they demand for these products and borrow from banks. Recently there is boost in housing finance and vehicle loans. As they do not have money they go for installments. So, banks satisfy nuclear families wants.

CHANGE IN LIFE STYLE Life style of India is changing rapidly. They are demanding high class products. They have become more advanced. People want everything car, mobile, etc..what their fore father had dreamed for. Now teenagers also have mobile and vehicle. Even middle class people also want to have well furnished home, television, mobile, vehicle and this has opened opportunities for banking sector to tap this change. Everything is available so it has become easy to purchase anything if you do not have lump sum.

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POPULATION Increase in population is one of the important factor, which affect the private sector banks. Banks would open their branches after looking into the population demographics of the area. Percentage of deposit in any branches of banks depends upon the population demographic of that area. The population of India is about 102.90 is expected to reach about 119.70 cores in 2011. About 70% of population is below 35years of age. They are in the prime earning stage and this increase the earning of the banks. Total Deposits mobilized by the Private Sector Banks increased from Rs, 2,52,335 crore as on 31st March 2004 to Rs. 3,12,645 crore as on 31st March 2005. Deposits showed a subdued growth during 2004-05.Income distributions also affects the operations and overall business of private sector banks.

TECHNOLOGICAL FACTORS
TECHNOLOGY IN BANKS Technology plays a very important role in banks internal control mechanisms as well as services offered by them. It has in fact given new dimensions to the banks as well as services that they cater to and the banks are enthusiastically adopting new technological innovations for devising new products and services. ATM The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed anytime, anywhere banking facilities. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. Credit card facility has encouraged an era of cashless society. Today MasterCard and Visa card are the two most popular cards used world over. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. Some of the banks have also started home banking through telecommunication facilities and computer technology by using terminals installed at customers home and they can make the

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balance inquiry, get the statement of accounts, give instructions for fund transfers, etc. Through ECS we can receive the dividends and interest directly to our account avoiding the delay or chance of losing the post.

IT SERVICES & MOBILE BANKING Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile. The messages are then recognized by the bank to provide you with the required information. All these technological changes have forced the bankers to adopt customer-based approach instead of product-based approach Technology advancement has changed the face of traditional banking systems.

Technology advancement has offer 24X7 banking even giving faster and secured service. CORE BANKING SOLUTIONS It is the buzzword today and every bank is trying to adopt it is the centralize banking platform through which a bank can control its entire operation the adoption of core banking solution will help bank to roll out new product and services.

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Industry Overview and Analysis (Porters Five Forces Model and Competitor Analysis)

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1. Threat of New Entrants. The average person can't come along and start up a bank, but there are services, such as internet bill payment, on which entrepreneurs can capitalize. Banks are fearful of being squeezed out of the payments business, because it is a good source of fee-based revenue. Another trend that poses a threat is companies offering other financial services. What would it take for an insurance company to start offering mortgage and loan services? Not much. Also, when analyzing a regional bank, remember that the possibility of a mega bank entering into the market poses a real threat. 2. Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does. If a talented individual is working in a smaller regional bank, there is the chance that person will be enticed away by bigger banks, investment firms, etc. 3. Power of Buyers. The individual doesn't pose much of a threat to the banking industry, but one major factor affecting the power of buyers is relatively high switching costs. If a person has a mortgage, car loan, credit card, checking account and mutual funds with one particular bank, it can be extremely tough for that person to switch to another bank. In an attempt to lure in customers, banks try to lower the price of switching, but many people would still rather stick with their current bank. On the other hand, large corporate clients have banks wrapped around their little fingers. Financial institutions - by offering better exchange rates, more services, and exposure to foreign capital markets - work extremely hard to get high-margin corporate clients. 4. Availability of Substitutes. As you can probably imagine, there are plenty of substitutes in the banking industry. Banks offer a suite of services over and above taking deposits and lending money, but whether it is insurance, mutual funds or fixed income securities, chances are there is a non-banking financial services company that can offer similar services. On the lending side of the business, banks are seeing competition rise from unconventional companies. Sony (NYSE: SNE), General Motors (NYSE:GM) and Microsoft (Nasdaq:MSFT) all offer preferred financing to customers who buy big ticket items. If car companies are offering 0% financing, why would anyone want to get a car loan from the bank and pay 5-10% interest? 5. Competitive Rivalry. The banking industry is highly competitive. The financial services industry has been around for hundreds of years, and just about everyone who needs banking services already has them. Because of this, banks must attempt to lure clients away from competitor banks. They do this by offering lower financing, preferred rates and investment services. The banking sector is in a race to see who can offer both the best and fastest services, but this also causes banks to experience a lower ROA. They then have an incentive to take on high-risk projects. In the long run, we're likely to see more consolidation in the banking industry. Larger banks would prefer to take over or merge with another bank rather than spend the money to market and advertise to people.

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Peer Comparison

Company

Market Cap (Rs. in Cr.)

P/E (TTM) (x)

P/BV (TTM) (x)

EV/EBIDTA (x)

ROE (%)

ROCE (%)

D/E (x)

St Bk of India Punjab Natl.Bank Bank of Baroda Canara Bank Bank of India Union Bank (I) IDBI Bank Indian Bank Allahabad Bank Oriental Bank Corporation Bank IOB Andhra Bank Central Bank Syndicate Bank

177,257.46 33,997.22 33,079.55 24,559.00 23,404.20 16,850.80 13,222.24 9,446.34 9,333.80 8,408.12 8,235.61 7,352.08 7,277.43 6,383.39 6,036.58

17.53 7.88 8.72 6.77 9.66 8.11 9.10 5.61 6.71 5.66 5.97 8.97 6.09 4.95 6.51

2.69 2.09 2.19 1.96 1.83 1.91 1.17 1.42 1.59 1.15 1.43 1.16 1.65 1.46 1.16

15.16 14.53 15.92 14.09 16.23 14.73 14.79 12.67 14.39 13.12 14.37 14.07 13.58 14.01 14.11

14.8 26.6 21.9 26.8 14.2 26.2 13.2 25.0 22.2 16.5 21.9 11.5 26.0 25.6 16.6

0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

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SWOT Analysis
STRENGTH Indian banks have compared favorably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 percent growth in the market index for the same period. Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. Bank lending has been a significant driver of GDP growth and employment. Extensive reach: the vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake)after merger of New Bank of India in Punjab National Bank in 1993, 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and6.5% respectively. Foreign banks will have the opportunity to own up to 74 per cent of Indian private sector banks and 20 per cent of government owned banks. WEAKNESS PSBs need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk management and the overall organizational performance ethic & strengthen human capital. Old private sector banks also have the need to fundamentally strengthen skill levels. The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. Structural weaknesses such as a fragmented
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industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labor laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless industry utilities and service bureaus. Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raining equity capital. Impediments in sectoral reforms: Opposition from Left and resultant cautious approach from the North Block in terms of approving merger of PSU banks may hamper their growth prospects in the medium term. OPPORTUNITY The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations. \banks will no longer enjoy windfall treasury gains that the decade-long secular decline in interest rates provided. This will expose the weaker banks. With increased interest in India, competition from foreign banks will only intensify. Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity Foreign banks committed to making a play in India will need to adopt alternative approaches to win the for the

and build a value-creating customer franchise in advance of regulations potentially opening up post 2009. At the same time, they should stay in the game for potential acquisition opportunities as and when they appear in the near term. Maintaining a fundamentally long-term value-creation mindset. reach in rural India for the private sector and foreign banks. With the growth in the Indian economy expected to be strong for quite some time especially

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in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. the Reserve Bank of India (RBI) has approved a proposal from the government to amend the Banking Regulation Act to permit banks to trade in commodities and commodity derivatives. Liberalization of ECB norms: The government also liberalized the ECB norms to permit financial sector entities engaged in infrastructure funding to raise ECBs. This enabled banks and financial institutions, which were earlier not permitted to raise such funds, explore this route for raising cheaper funds in the overseas markets. Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital. If the new instruments find takers, it would help PSU banks, left with little headroom for raising equity. Significantly, FII and NRI investment limits in these securities have been fixed at 49%, compared to 20% foreign equity holding allowed in PSU banks. THREATS Threat of stability of the system: failure of some weak banks has often threatened the stability of the system. Rise in inflation figures which would lead to increase in interest rates. Increase in the number of foreign players would pose a threat to the PSB as well as the private players.

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Marketing Strategies
Power Plus Account
We bring to you a product that reflects and matches your financial needs and requirements at every step. Power Plus account allows you to access a complete suite of product and services and enjoy world class banking experience, complimenting your professional and personal goals. This account helps you take complete charge of your banking by providing multiple channel and products and a wide range of benefits to help your time and money. Features

25% discount on locker rates. Higher ATM Cash withdrawal and Point-of-sale limit on International debit cum ATM card.

Free Demat AMC for first year. Free Personalized PAP Cheque Book. Free Demand Draft and Pay order

Preferred Banking Preferred banking program is designed to offer services to a select group of discerning and deserving individual like you. Preferred banking special features help you to save your time, and help you build wealth through efficient deployment of assets. Your Lifestyle reflects your personality. Every element of the preferred banking attempts to complement your status and style. Preferred banking investment advisory, offers you a one stop solution with all products range from fixed deposits to Govt.of India Bonds and Mutual funds to Unit Linked Insurance Plans.

Power Plus Account Preferred Account Royale Account

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Royale Account
The IDBI Bank Royale Account has been designed to make banking services more convenient for esteemed customers. This new service guarantees you as our privileged customer elaborate and personalized service of the highest order. For all the banking requirements a dedicated relationship manager would be attached to the account.

With the Royale Account comes the Platinum Debit Card that provides enhanced daily cash withdrawal limit. This lifetime free debit card provides you privileges, which span lifestyle pursuits like shopping, dining and travel.

Features of IDBI Royale Account:

Zero balance Power Plus account for the one family member Free Locker (5x6x19) or 50% discount in other locker rentals. Higher limit of cash withdrawal from any bank ATM. (with Platinum/Gold debit card). Higher Limit for Point of sale. Discount on Demat transaction charges Doorstep banking. Free Personalized PAP Cheque Book. Free Demand Draft and Pay order

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SAVING ACCOUNT
Regular Savings Account

At IDBI Bank, we believe that different people have different needs. Thus, we offer various different types of Savings Account to cater to our diverse customer base. Be it individuals, kids, women, corporate, senior citizens, we have an account tailor-made for each one of them. The various types of Savings Account offered By IDBI Bank are as follows:

Super Savings Account

SuperShakti (Womens') Account Jubilee Plus (Senior Citizens) Account Power Kidz Account Sabka Account -No Frill account Pension Savings Account (Central Government Employees)

At IDBI Bank, it is our constant endeavor to provide you products and services that will enhance your banking experience. From time to time we identify your needs and produce quality products that will simplify banking for you. Our extensive branch and ATM network, technology initiatives, and correspondent banking arrangement with banks across the globe have leveraged us to provide superior services.

Deposits Corporate Payroll Account At IDBI Bank, we understand your needs as an employer. In this fast paced world with ambitious targets and mounting pressures, you want to provide your employees nothing but the best in terms of banking convenience. Our Salary account product with no minimum balance requirement, instant account opening, and reimbursement account is just the right solution for you. The types of Salary Accounts that we offer are as follows:

Imperial Salary Account Crown Salary Account

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Star Salary Account Prime Salary Account Pride Salary Accounts Retirement Plus Pension Account

CURRENT ACCOUNT
Deposits Core Current Account No two businesses are the same, which is why at IDBI Bank; we offer different types of Current Accounts to choose from, to our customers. The types of Current Accounts that we offer are as follows: Our Core Current Account is a straightforward and easy to use Current Account designed to make even the smallest of business experience hassle free. The Core Current Account comes loaded with a number of features, which include:

Free PAP (payable at par) chequebook Free PAP utilization Free Electronic Funds Transfer Free Pay Orders and Demand Drafts Free Demand Drafts on non-branch locations Free home / non-home branch cash deposit Free any branch cash withdrawal Free Internet/ mobile/ Phone Banking and ATM service

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Corporate Social Responsibility Activities

General Code of Conduct and Ethics (COCE) for IDBI Bank Ltd, Directors, Officers and Employees

Preamble:
IDBI Bank Ltd. is committed to creating long term economic value for all its stakeholders, including shareholders, depositors, customers, employees and the society as a whole. IDBI Bank Ltd. is committed to maintaining high standards of ethical and professional conduct in all its corporate activities. This Code of Conduct and Ethics outlines the overall standards that shall guide the actions of IDBI Bank Ltd. and its Directors, officers and employees. 1. National Interest: IDBI Bank Ltd. shall continue to be committed in all its actions to benefit the economic development of the nation and shall not engage in any activity that would adversely affect such objective. 2. Financial Reporting and Records: IDBI Bank Ltd. shall continue to prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country. Internal accounting and audit procedures shall fairly and accurately reflect all of IDBI Bank Ltd. business transactions and disposition of assets. 3. Corporate Disclosure Practices: IDBI Bank Ltd. shall continue to abide by the corporate disclosure practices as specified by the appropriate external regulatory authorities. 4. Competition: IDBI Bank Ltd. shall market its products and services on its own merits. 5. Equal-Rights: IDBI Bank Ltd shall continue to provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability etc. Applicable laws, rules, and guidelines of Government of India / any other Competent Authority in this regard shall also be observed for this purpose. Employees of IDBI Bank Ltd. shall be treated with dignity and in accordance with the IDBI Bank Ltd. policy to maintain a work environment free of sexual harassment, whether physical, verbal or psychological. Employee policies and practices shall be administered on a non-discriminatory basis in all matters relating to recruitment, training, compensation, benefits, promotion, transfers and all others terms and conditions of employment.

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6. Prohibited Business: IDBI Bank Ltd. shall not enter into any kind of business with any company / organisation / entity, of which any of its director of is a proprietor, partner, director, a manager, employee or guarantor or in which one or more directors of IDBI Bank Ltd. together hold substantial interest. Substantial interest, in relation to any company / organisation / entity, means any beneficial interest held by one or more of the directors of IDBI Bank Ltd. or by any relative of such director, whether singly or taken together, in the shares of the company / organisation / entity, the aggregate amount paid up on which either exceeds five lakh of rupees or 5% of its paid-up share capital, whichever is lesser. 7. Quality of Products and Services: IDBI Bank Ltd. shall continue to be committed to creating new industry standards of excellence in customer service. IDBI Bank Ltd. shall provide innovative and superior quality customer service consistent with the requirements of the customers for their satisfaction. 8. Corporate Opportunity: A Director / Officer / Employee must not deprive IDBI Bank Ltd. of an opportunity that belongs to IDBI Bank Ltd., for his/ her own/other's advantage, if he / she is in a position of diverting the corporate opportunity for own benefit or to others to the detriment of IDBI Bank Ltd. A Director / Officer / Employee must not compete with IDBI Bank Ltd. in respect of any business transaction. 9. Health, Safety and Environment: IDBI Bank Ltd. shall strive to provide a safe and healthy working environment at its work places and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the territories it operates in. 10. Corporate Social Responsibility: IDBI Bank Ltd. shall continue to be committed to be a good corporate citizen not only in compliance with all relevant regulating laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self reliant. 11. Public Representation of the Company & the Group: IDBI Bank Ltd. honours the information requirements of the public and its stakeholders. All its external communication will be only by officials / directors authorised for the purpose. The information for the public constituents and stakeholders, duly approved by the Compliance Officer or other authorised official, as the case may be, shall be disseminated through any of the following media:

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- The accredited newspaper publications; - Web casting on the official web site; - Press handouts and press releases; - Audio and audio-visuals prepared for the specific purpose. 12. Use of IDBI Bank Ltd. Name Logo/ Trademarks: A Director / Officer / Employee shall not use the name of IDBI Bank Ltd., its logo or trademark for personal benefit or for the benefit of persons / entities not forming part of the IDBI Group. 13. Shareholders: IDBI Bank Ltd. is committed to enhance shareholder value and shall comply with all regulations and laws that govern shareholders' rights. The Board of Directors' of IDBI Bank Ltd. shall duly and fairly inform its shareholders about all relevant aspects of the organization business and disclose such information in accordance with the respective regulations and agreements. Every employee shall also be responsible for implementation of and compliance with this code. 14. Ethical Standards: A Director / Officer / Employee of IDBI Bank Ltd. shall conduct all the dealings on behalf of IDBI Bank Ltd. with professionalism, honesty, integrity and high moral and ethical standards. Every Director / Officer / Employee of IDBI Bank Ltd. shall be responsible for the implementation of and compliance with the Code in his / her professional environment, be fair and take action not to discriminate, honour confidentiality and strive to achieve more specific professional responsibilities. 15. Insider Trading: Insider Trading involves the improper use of non - public price sensitive information when dealing in securities. Specified employees are prohibited from engaging in insider trading as detailed in the Code of Conduct for Prevention of Insider Trading. 16. Conduct of Staff: To uphold the image and dignity of the institution, it is desirable that every director / officer / employee of IDBI Bank Ltd. should demonstrate a high degree of conduct and integrity, as under: a. a sense of fair play, impartiality and promptness in disposing of cases and show courtesy and consideration in public dealings; b. keeping in mind the objective of IDBI Bank Ltd., to contribute his / her mite through integrity, dedication and competence; c. restrain from participating or assisting in any activity, which is detrimental to the interest of IDBI Bank Ltd. or is in competition to the interest of IDBI Bank Ltd.; d. not use or influence by virtue of the position held in the bank for obtaining favours ofany kind for himself / herself or any members of family or friends or equivalent person with any constituent / borrower / client / customer;
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e. be cost conscious and plug all wastes and leakages, to remain competitive; f. not to be negligent or show lack of devotion to duty any time and g. not to show any favouritism or commit any irregularity in inviting tenders an awarding contracts or cultivate too much friendship with the Bank's contractors / suppliers. 17. Regulatory Compliance: A Director / officer / employee shall, in his business conduct, comply with all applicable laws and regulations. 18. Securities Transactions and Confidential Information: A Director / officer / employee of IDBI Bank Ltd. and their family members shall not derive any benefit or assist others to derive any benefit from the access to and possession of information about IDBI Bank Ltd. which is not in the public domain and thus constitutes insider information. The Director / officer / employee of IDBI Bank Ltd. shall maintain confidentiality of all price sensitive information. Unpublished price sensitive information would be disclosed only to those within the company who need the information to discharge their duty. 19. Gifts and Donations: The Director / officer / employee of IDBI Bank Ltd. shall not solicit or accept any gifts /donations of more than modest value from a constituent of IDBI Bank Ltd. or from any subordinate employee or from existing / potential clients or third parties having business dealings with IDBI Bank Ltd. 20. Gender Friendly Workplace: As a good corporate citizen, IDBI Bank Ltd. is committed to a gender friendly workplace. IDBI Bank Ltd. demands, demonstrates and promotes professional behaviour and respectful treatment of all employees. 21. Prohibition against participation in politics and standing for election: No employee shall take an active part in politics or in any political demonstration, or stand for election as member of a Municipal Council, district Board or any other Local Body or any Legislative Body. 22. Protection of Bank's assets: The assets of IDBI Bank Ltd. shall not be misused but employed for conducting the business for which they are duly authorised. 23. Ethics and Compliance Committee: The Ethics and Compliance Committee comprising few independent directors of the Board, an Executive Director, Chief Vigilance Officer of IDBI Bank Ltd. and the Compliance Officer and any other officer so nominated, will oversee the compliance of the Code of Conduct and Ethics.

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New Marketing Opportunities

Agi Business Group

IDBI Bank's total agriculture advance was Rs.1387 Cr for year ended March 2007. It has gone up by Rs.6924 Cr (around 500%) to Rs.8311 Cr as on March 31, 2009.

India is a nation of villages. Agriculture and allied activities have been the main source of livelihood of our rural populace since times immemorial. The sector provides source of employment and livelihood to over 60% of the population. Its linkages with industry are growing with increasing stress on food and agri processing industry on account of changing demand patterns for processed food by consumers. With this background Corporate India has started finding new opportunities in Agriculture.

Priority Sector constitutes Agriculture and allied activities. The emergence of modern economic system has institutionalized agriculture sector on business models. Agribusiness is a broad term that encompasses a number of businesses in agriculture including food production, farming, agrochemicals, farm machinery, warehousing, wholesale and distribution, and processing, marketing and sale of food products.

IDBI Bank constantly emphasizes on lending to Agricultural sector. Bank has several Agri products viz. Loan against crop receivables, Warehouse receipt, Contract farming etc. to uplift the socioeconomic status of rural population

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