Introduction to idbi bank

Industrial Development Bank of India Ltd.

Members are:

Names Roll Nos
Vinita Adwani 01
Madhavi Pandey 41
Drishti Rai 45
Nikita Tharwani 60
Kshtija Waghmare 65

Introduction to IDBI Bank:-

Industrial Development Bank of India

Type Public sector bank

Founded 1964

Headquarters India

Key people Yogesh Agarwal, Chairman

Industry Finance

Products Financial Services

Employees 8989

Website www.idbibank.com

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

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

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

The Branches of IDBI Bank are as follows:-

Andheri Dadar Lower Parel

Bandra Dahisar Malad

Belapur Fort Mulund (E)&(W)

Bhayandar Ghatkopar Nariman Point

Borivali Girgaon Sion

Chembur Goregaon Vashi

CMS Kalina Vile Parle etc.

Change of ownership:-
In 16 February 1976, the ownership of IDBI was transferred to
the Government of India and it was made the principal

financial institution for coordinating the activities of
institutions engaged in financing, promoting and developing
industry in the country. Although Government shareholding
in the Bank came down below 100% following IDBI’s public
issue in July 1995, the former continues to be the major
shareholder (current shareholding: 52.3%).

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

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

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

Next year, on July 29, 2004, the Board of Directors of IDBI
and IBDI Bank approved the merger of IDBI Bank with the
Industrial Development Bank of India Ltd. The merger was
completed in the financial year ending of 2005.IDBI Bank also
acquired United Western Bank in 2006. IDBI would continue
to provide its products and services even after converting
into a banking company. In addition, they would provide
wholesale and retail banking products, designed to suit the
specific needs cash flow requirements of corporate and
individuals. IDBI would keep the strong corporate
relationships built up over the years to offer customized and
total financial solutions for all corporate business needs,
term loans and working capital finance, strategic advisory,
etc.

Subsidiaries of IDBI Bank:-
IDBI Bank has the following subsidiaries:

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

Role and Functions of IDBI:-
Role:
 From the time of existence, IDBI has been very good not
only in establishing a well-developed, diversified and
efficient industrial and institutional structure but also
adding a qualitative dimension to the process of
industrial development in the country.
 It has played a pioneering role in fulfilling its mission of
promoting industrial growth through financing of
medium and long-term projects.
 It has done good, particularly in the pre-reform era
(1964-91),in catalyzing broad based industrial
development in the country in keeping with its
Government-ordained ‘development banking’ charter.
 It’s activities confines of long-term lending to industry ,
balanced industrial growth through development of
backward areas, modernization of specific industries,

employment generation, entrepreneurship
development .

 Support services for creating a vibrant domestic capital
market.

Functions:
 IDBI has enlarged its basket of products and services,
covering almost the entire spectrum of industrial
activities, including manufacturing and services.
 IDBI provides financial assistance, both in rupee and
foreign currencies, for green-field projects as also for
expansion, modernization and diversification purposes.
 During financial sector IDBI evolved an array of fund and
fee-based services with a view for providing an
integrated solution to meet the entire demand of
financial and corporate advisory requirements of its
clients.
 It also provides indirect financial assistance by way of
refinancing of loans, extended by State-level financial
institutions and banks and by way of rediscounting of
bills of exchange arising out of sale of indigenous
machinery on deferred payment terms.

Products and Services offered by Bank:-

Personal Banking:-
Deposits

o Savings Account (basically for salaried persons)
o Current Account (for businessmen)
o Fixed Deposits (for everyone)
o Suvidha Tax Saving Fixed Deposit
o Pension Accounts
o Sabka Account
o Super Shakti Account for Women
o Jubilee Plus Account
Loans
o Home Loans
o Loans Against Property
o Education Loans
o Personal Loan
o Loan Against Securities
o Reverse Mortgage Loan
o Auto Loan

Payments

o Tax Payments
o Stamp Duty payments
o EasyFill
o Bill Payment
o Card to Card Money Transfer
o Online Payments
o PayMate

Investments Advisory

o Smart Financial Planning
o Mutual Fund

o Insurance Fixed Income Securities
Cards

o Gold Debit Card
o International Debit cum ATM Card
o Gift Card
o World Currency Card
o Cash Card
o KIDS Debit Card
o Foundation Day Cash Back Scheme 2009
o Platinum Card

Institutional Banking

o Institutional Savings Account
o Corporate Payroll Account
24 Hours Banking

o Phone Banking
o SMS Banking
o Account Alerts
o Internet Banking
Other products

o Lockers
o India Post

Preferred Banking
NRI Services
Capital Market

o IPO
o Demat

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

o Project Finance
o Infrastructure Finance
o Syndication, Underwriting & Advisory Services
o Carbon Credits Business
o Working Capital
o Cash Management Services
o Trade Finance
o Tax Payments
o Derivatives
o Technology Upgradation Fund Scheme (TUFS)
o Film Financing Scheme
o Direct Discounting Bills
o Rehabilitation Finance

SME Finance:-
Following SME Finance products are offered by the IDBI
Bank:

Sulabh Vyapar Loan

Dealer Finance
Funding under CGFMSE
Direct Credit Scheme - SIDBI
Preferred customer scheme - IDBI Bank / SIDBI
Vendor financing (Pre - Sale)
Vendor financing (Post - Sale)
Lending Against the Security of Future Credit Card
Receivables
Working Capital Financing - Software Development
Entities
Finance to Medical Practitioners
Loan to SRWTO
SME Hosiery Special Current Account

Other:-
Agri-business Products

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

Marketing Strategy:-
The bank has two ways of marketing namely:-
1. Through Branch
2. Through Sales Department

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

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

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

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

 Services:-
 Salary/Increments
 For full attendance in every week they give their
employees bonus along with salary
 Provident Fund
 Pensions
 Good working conditions with health security &other
things
 Breaks for refreshment &canteen for employees.
 Holiday packages
 Residential Help
 Trips
 Various Loans:- Educational, Housing, Personal, etc.
 Different Employee Schemes, etc.

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

Motivation of Employees:-
They motivate employees by various ways. They are:-
 Employee of Week (every week)

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

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

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

i. Internal Method
ii. External Method

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

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

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

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

Vision
”To be trusted partner in progress by leveraging
quality human capital and setting global standards of
excellence to build the most valued financial
conglomerate .”

Introduction to idbi bank

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Introduction to idbi bank