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					                                                                                      1




                          INDIAN INSTITUTE OF BANKING & FINANCE

________________________________________________________________________
                             Report of the Council

Dear Members,
Your Council has pleasure in presenting the seventy-seventh Annual
Report of the Indian Institute of Banking & Finance, with Audited Statement
of Accounts for the year ended March 31, 2004.

1. Retrospect
The Institute had over the last few years built up a revamped structure appropriate with
the changing banking and finance scenario in the country. A few major initiatives to be
cited are:

             The services of the Institute have been diversified and broad based
             It had added strategic business activities to its stock viz. Information
              Service, Research & Innovation, Banking Quotient etc
             It had extended its services to the Finance segments beyond banking
             It had taken advantage of the technological advancement and offered
              qualitatively better service to the customers
             It had widened its network of partners

Having built a sound business base, the task ahead was to consolidate these gains and
convert the advantages into business opportunities. Accordingly, the year 2003-04 was
mainly used as a year of consolidation and refinement. The most important activities
taken during the year were:

                    The membership of the Institute was thrown open to all the
                    institutions including technology solution providers, BPO companies
                    etc. who assisted the banks and financial Institutions in serving
                    their customers.
                    Special steps were taken to bring more financial Institutions
                    especially co-operative banks into the fold of the Institute's
                    membership.
                    More individuals were encouraged to renew their membership
                    With a view to encouraging members to take up our professional
                    qualifications, JAIIB examination was transformed into fully
                    objective style so that members would be assured of transparent
                    valuation of answers on one hand and sharp up-gradation of
                    competence on the other hand.
                    JAIIB examination was also conducted on-line in a few cities on
                    experimental basis so that the members could know the result of
                                                                                                                               2


                              their performance on the spot and could start preparing for next
                              examination if needed.
                              The Institute for the first time introduced a professional qualification
                              to those who aspired to join the financial services in future viz.
                              Diploma in Banking & Finance (DBF)
                              Being a customer oriented organisation, your institute re-examined
                              the fees for Bancassurance examination and reduced it to Rs 250
                              from Rs 400
                              The Institute has completed the task of developing courseware for
                              the much-awaited PGDFA (Post Graduate Diploma in Financial
                              Advising) examination. The first examination is scheduled for July
                              2004.
                              On the Continuing Professional Development front, we have added
                              a few more topics for testing the Quotients, developed a few more
                              competence standards and organised a number of seminars,
                              lectures etc
                              The most important accomplishment of the year is the launch of a
                              first of its kind interactive information portal accompanied by a daily
                              financial newsletter - Fin@Quest.
                              As a precursor to the developments in future, we have constituted
                              an expert group to further revamp the examinations system and
                              have revamped the organisational set up to achieve more
                              purposeful results


2. Membership
Strength of any organisation basically depends on the primary stakeholders namely
owners/shareholders/members. In the case of the institute, being a non-profit service organisation
with out share capital contribution it is the members who are primary stakeholders. There has
been a declining interest on the part of these stakeholders till a few years back. Because of the
concerted steps initiated by the Institute, the slide down has been halted and it is looking up as
may be seen from the figures and graphs shown below:

                            94-95    95-96     96-97       97-98     98-99    99-00     00-01     01-02       02-03    03-04
Institutional members         791       670          698      648       647      660       686          729      751      798
Individual Members          236685   238202    217088      214946    176410 188484 205011         234644      246242   253843
New Members                 12152     12253      8450        8036      4615     5367      5519      6755        6855     6207




                                       New Members

            15000
   number




            10000
             5000
               0
                    94-95    95-96   96-97   97-98   98-99   99-00   00-01    01-02    02-03    03-04
                                                           year
                                                                                     3




                                  Individual Members

            300000
   Number



            200000
            100000
                   0
                       94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

                                                     Year




                                Institutional members

            1000
   Number




            500

              0
                   94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

                                                Year



In continuation of the efforts to widen our Institutional base, the Governing
Council decided to extend membership to subsidiaries of the Institutional
members, institutions operating in the Financial services sector and institutions
engaged in providing solutions to banking and finance sector. Thus, the
employees working with these institutions are also eligible for individual
membership under the amended rules. Consequently the number of institutional
members has increased from 751 to 798 and the number of individual members
has increased from 246242 to 253843..

  Class of                 New members enrolled in          Active members as at
  members                  2002-03       2003-04            2002-03       2003-04
  Fellows                  9             10                 186           195
  Associates               30            0                  347           345
  Ordinary                 6855          6207               246242        253843
  Institutions             22            63                 751           798




                       Canopy of Institutional members
                                                                                                 4



                              Category                     No.
           Reserve Bank of India                             1
           SBI & Associates                                  8
           Public Sector Banks                              19
           Private Sector Banks                             29
           Foreign Banks                                    17
           Scheduled Co-operative Banks and                700
           Gramin Banks
           Financial Institutions at Central Level          7
           Subsidiary Institutions of member                7
           Institutions
           Financial Institutions at State Level            4
           Others                                           6


3. Products & Services
Apart from having a fairly distributed ownership, an organisation should have a variety of products
and services to meet the needs of its stakeholders especially members. The Institute has been
endeavouring to widen the range of services for many years. The present position in this regard is
as under:

 Activities      Year - 1994                     Year - 2004
 Examinations Associate                       Associate-JAIIB & CAIIB
                     International            International Banking
                     banking
                     Financial services       Treasury Management
                     Bank management          Banking Technology
                     -----                    Capital Markets
                     Hindi                    Hindi
                     Development              Financial advising
                     Banking
                     Rural Banking            Rural Banking
                      -----                   Information System Audit
                     UTI                      UTI
                      -----                   Mutual Funds
                      -----                   MBA (Banking & finance)
 Tutorials            Tutorials               Tutorials
                        ----                  Online Learning
                        ---                   CD based Learning
                        ---                   Accredited Training Institutions
 Study Materials     Cyclostyled Notes        Comprehensive Books
                     ------                   Model answers
                     -------                  Information Portal
 Library             Library                  Library
 Publications        Journal                  Journal
                      ------                  IIB VISION
                      -------                 Fin@quest
                      ------                  Foreign Books
 CPD                 Seminars                 Seminars
                     ------                   Banking standards
                                                                                                     5


                       -------                      Finance quotient
                       -------                      Electronic query centre
                       -------                      Computer Simulation Backed Training
                       ------                       Workshops
 Research              --------                     Macro Research
                       --------                     Micro Research


4. Testing & Certifying Activities
During the year under review, the Institute conducted, in addition to the Associate Examination,
the Certificate Examination in Banking Oriented Paper in Hindi and Certificate Examination for the
employees of Unit Trust of India and the following niche area examinations:

1.   Diploma in Treasury, Investment and Risk Management
2.   Diploma in Banking Technology
3.   Diploma in Advanced Rural Banking
4.   Diploma in International Banking and Finance
5.   Diploma in Capital Markets and Merchant Banking
6.   Associate Diploma in Banking
7.   Diploma in Mutual Fund Management
8.   Diploma in Banking & Finance

Initiatives during the year

A new examination styled as DBF was launched during the year as an entry level examination for
those who aspire to join banking and financial sector. The eligibility criteria for this examination
was fixed as graduate in any discipline. Membership of the Institute is not a mandatory condition.
In all 1366 candidates enrolled for this examination during the year of which 862 appeared and 29
passed. For the first time the JAIIB and DBF examinations were conducted online in a few
selected cities. Further the questions for these examinations were fully of objective type The
Institute has offered a new subject "Co-operative banking" in lieu of subject "Special & Preferred
Sector Finance" under JAIIB examination for Co-operative Bank Employees with effect from Jan-
Feb 2004 examination

Traditional Examinations

Over the years number of candidates appearing for the traditional Associate Examination has
been declining. The Institute had taken a number of steps to encourage more and more members
to take up the examination and improve their competence. As a result of the efforts the number
started increasing since 2000.

                 Average Number of Candidates appeared in each Associate
                                     Examinations

              141744
     150000            129905     126758   116666
                                                    101415           90881           92398
     100000                                                  72879           78634           74897

     50000
          0
              94-95    95-96      96-97    97-98    98-99    99-00   00-01   01-02   02-03   03-04
                                                                                                                                 6



                                        Numbers of Candidates of Part I/JAIIB Examination

                                100000




                   candidates
                   Number of
                                 50000

                                        0
                                              94-95    95-96   96-97   97-98    98-99   99-00   00-01   01-02    02-03   03-04
                                                                                      Year




                                              Number of Candidates in PART II/CAIIB

                 80000
    Candidates
    Number of




                 60000
                 40000
                 20000
                     0
                                94-95       95-96     96-97    97-98   98-99      99-00      00-01   01-02      02-03    03-04
                                                                               Year




During the year, the Institute could maintain the trend in admission of new
members as may be seen from the following:

             Examination                       June 2003                Jan/Feb 2004
               JAIIB                           5380(5016)                5037(6641)
               CAIIB                           4110(2561)                2527(3319)
                Total                          9490(7577)                7564(9960)

It could be seen from the above table that number of candidates enrolled afresh
had not decreased during the first examination of the year. Even during the
second examination, it had decreased only marginally.

Cumulative Enrolment for the Examination:
        Examination                             June 2003                Jan/Feb 2004
            JAIIB                              51517(53810)              43084(59503)
            CAIIB                              31037(34471)              24158(37011)
             Total                             82554(88281)              67242(96514)


However the cumulative number of candidates enrolling for the Associate
examination has decreased substantially mainly because the candidates who
had completed all eight attempts and could not pass had dropped out of the
examination stream. Number of candidates who completed JAIIB and CAIIB
Examinations during the year were as under:
                                                                                7


      Examination         Medium         June 2003      Jan/Feb 2004
      JAIIB               English          910(1599)         894(1623)
                          Hindi             527(712)         211(869)
      CAIIB               English          1032(890)         829(1021)
                          Hindi             609(562)         482(649)

Number of candidates who completed all eight attempts and dropped out was
28438.

Percentage of candidates appeared vis-à-vis enrolled
The number of candidates who appeared in one or other subjects as a
percentage to the total number of candidates enrolled for the Associate
Examination held in June and Jan/Feb 2004 is given below:

      Examination               June 2003        Jan/Feb,2004
          JAIIB             35.42 (37.08)       60.52(36.47)
          CAIIB             41.33(4019)         48.86(38.54)

The number of candidates who enrolled and appeared through English and Hindi
medium for the examinations held in June and Jan/Feb 2004 were as follows:
                                June 2003
              Medium             Enrolled        Appeared        %
              English             61006           20338     33.34%
              Hindi               21548           10776     50.01%



                           Jan/Feb 2004
                Medium            Enrolled       Appeared          %
                English             49869         27009         54.16%
                 Hindi              17373         11674         67.20%




The details of candidates who scored distinction in the Institute's examinations:
are furnished in the table below:
                                                                                                                  8



                                                                                          No of candidates
            Name of the subjects
                                                                                June 2003          Jan/Feb 2004
 JAIIB
 -   Indian Financial System & Com banking                                      -                  04
 -   Business Communication & Customer Relations                                02                 45
 -   Special & preferred Sector Finance                                         -                  -
 -    Basic accountancy                                                         155                55
 -   Introduction to Computer                                                   05                 250
 -   Co-operative Banking                                                       -                  -
 CAIIB
 -   Laws & Practice relating to banking                                        -                  -
 -   Management Accounting & Financial Management                               05                 -
 -   Indian Economic Environment                                                -                  01
 -   Business Management                                                        -                  01
 -   Introduction to Foreign Trade Foreign Exchange & risk Mgt                  -                  14

 Optional subjects
 -   Investment & Merchant Banking                                              05                 26
 -   Electronic Banking & IT in banks                                           -                  01
 -   Organisational Development and HRD                                         01                 -
 -   Marketing of Banking Services                                              -                  01
 Diplomas
 Diploma in Treasury, Investment & Risk Mgt.
 -      Risk Management                                                         03                 06
 Diploma in International Banking & Finance
 -    International Banking& Legal Aspects                                      -                  01



5. Other Traditional Examinations
Examinations                             Enrolled              Appeared        Passed
i) Certificate Examination in            86                    46              37
Banking Oriented Paper in Hindi
ii) Certificate Examination for the      53                    20              01
 Employees of Unit Trust of India



6. Diploma Examinations
Though the Institute had devised new examinations considering the needs of the
present day bankers, the number of candidates enrolled for these examinations
was abysmally low.
                                            July 2003                     Jan2004
Diploma Examinations               Enroll     Appe      Pass   Enrolle   Appeared    Passed
                                   ed         ared      ed
                                                        d
    Banking Technology*           108        31        10     81        24          04
    Treasury, Investment          254        113       19     237       136         25
 & Risk Management
    Advanced Rural Banking        29         12        03     17        09          03
    International Banking         117        55        06     112       50          15
& Finance
    Capital Markets               22         7         03     27        09          06
                                                                                                             9


 & Merchant Banking                   9        1        01     8        -           -
    Associate Diploma in Banking     9        4        nil    8        3           -
     Mutual Fund Management
* Subject to completion of Project Work

All the above examinations were conducted twice during the year as against
once a year in earlier years. From the current year onward, the Institute has
decided to permit non-members to appear for all the above examinations, except
Associate examination.

Examination Reforms

The data furnished in the earlier paragraphs underscored the need for reviewing
the examination system and finding out the reasons for low percentage of
pass/enrolment. . Further the Institute had reviewed and revised the examination
system in 1998. As considerable number of years has since elapsed and a
number of changes have occurred in the Financial Sector, it became imperative
to again take up a review of the whole system. We therefore have constituted an
Expert group to review the Examination system and suggest remedial measures.
The terms of reference of the expert Group is as under:

1. to review and revise the objectives, design, content and coverage of different
   examinations of the Institute
2. to identify new areas of specialisation required for the bankers and to design
   syllabi for examinations on such areas and
3. to make any other recommendations to improve examination and educational
   support system and facilities provided by the Institute

   The Expert Group is headed by Prof. Y K Bhushan-as Chairman and includes
Shri H N Sinor, Chief Executive &Secretary, IBA, Prof. V.Raghunathan,
President, ING Vysya Bank LTD Shri Shrikant S Rege, CEO, American Express
Bank and Shri C R Muralidharan, Chief General Manager-in -charge, DBOD, RBI
as members. The Expert Group has submitted a few interim recommendations
and the Council have accepted them. It is expected that the new revamped
system will be in place by the year 2005.




                           Interim recommendations of the Expert Group

        1.   The JAIIB and CAIIB examinations be restructured with three papers each by removing subjects
             that are of not direct relevance to the present day bankers. Accordingly, the following broad topics/
             areas were identified for building into three papers each.

            JAIIB                                                        CAIIB
        Principles of Banking                      Credit Management
                          10




7. Educational Services
                                                                                             11


Banking Standards Development

During the year, the Banking Standards Development Board was re-constituted
and Shri K. Cherian Verghese, CMD, Corporation Bank, was nominated as the
Chairman of the Board. The Board has developed competency standards in two
areas viz. ‘Know your customer’ and ‘Home Loans’. The courseware for the
standards will be hosted on the Information Portal of the Institute. The members
of the Institute will be able to acquire proficiency through on-line learning and/or
by self-study. Thereafter they may appear for an on-line test and acquire a
certification in the subject.

On-line courses

The Institute has been in the forefront in implementing e-learning initiatives for
the bankers and the Institute has in the past introduced on line tutorials for the
candidates appearing for JAIIB/CAIIB examinations as well as Diploma in
Banking Technology and Diploma in Treasury, Risk and Investment
Management. It had also developed and uploaded eight on-line short-duration
skill development courses ranging from basics of banking to derivatives
targeted at bankers who wish to acquire knowledge in a particular subject but do
not wish to undergo the drill of an examination.

Tutorials

As part of the educational support services to the candidates appearing for the
various JAIIB/CAIIB examinations, the Zonal Offices of the Institute conducted
tutorial classes at the metros. The data of students who have availed of the
services of the Institute is furnished below:

                                    Number of Students Enrolled
Zone        Examin      January/February 2004                    June 2003
            ation    Instructor-Led  On-line Tutorials Instructor-Led    On-line Tutorials
                     Tutorials                         Tutorials
            JAIIB    105             17                 107               10
South       CAIIB    114             15                 115               15
            JAIIB    215             11                 115               16
East
            CAIIB    97              38                 82                12
            JAIIB    225             13                 141               9
North       CAIIB    291             15                 165               4
            JAIIB    744             27                 254               58
West
            CAIIB    504             9                  203               60
            JAIIB    1289            68                 617               93
TOTAL
            CAIIB    1006            77                 565               91



ACCREDITATION OF INSTITUTIONS
                                                                               12


The Institute introduced a scheme of accreditation of training institutions for
providing educational support for the Diploma in Banking and Finance (DBF) in
2003 and 108 institutions were granted provisional accreditation during the
period of April 2003 to Dec 2003.

After due diligence study conducted for these institutions and based on the
review of performance of these Institutions during the year, the accreditation
have been renewed for 65 institutions for a further period of one year.

FINANCE QUOTIENT (FQ)

As mentioned in the last report of the Council, the Institute had evolved a new
concept called FQ and has hosted the self-scoring program on the portal. The
FQ test is freely accessible to all those who wish to test their knowledge on the
banking and finance related subjects. The FQ is similar to IQ/EQ and helps one
in for testing the knowledge, skill, and competence in the field of banking and
finance. At present the FQ is available in the following areas: General Banking
(Level I), Foreign Exchange (Level I) and Foreign Exchange (Level 2), Financial
Services (Level 1). In the current year, the Institute has added FQ on ‘credit ‘

Publications

The Institute has during the year brought out books on the following subjects for
the benefit of finance professionals in general and for candidates appearing for
the Institutes examinations, in particular.


               Subject
                  Co op Banking
                  Introduction to Bank Financial Management
                  Credit Risk
                  Interest Rate Risk
                  Profitability
                  Banks Capital & Stock Valuation
                  Liquidity Management
                  Derivatives
                  Marketing and Management of Financial Services
                  Introduction to financial planning
                  Financial Planning & Wealth Creation




GUIDELINES ANSWER for CAIIB Examinations
                                                                               13


As a part of the efforts to provide educational support services to the students
appearing for the Associate Examinations, the Institute continued to bring out
guidelines for answering questions of Associate Examinations of July 2003.

8. Continuing Professional Development Efforts
ADVANCED MANAGEMENT PROGRAM

The Institute has taken steps in collaboration with the IIM, Kozhikode and XLRI
Jamshedpur to conduct the Advanced Management Program for DGMs/GMs.
These are designed with a view to grooming senior executives in the rank of
DGMs/GMs as future captains of the industry. The following programs have been
slated for the year: 1) XLRI, Jamshedpur 22-6-2004 -27-6-2004 at IGDIR,
Mumbai 2) IIM Kozhikode 16-8-04 to 28-8-04 at IIM KOZHIKODE

NATIONAL SEMINAR ON RISK MANAGEMENT IN BANKS

A Seminar on ‘Risk Management in Banks’ was organized by the Institute jointly
with IBA and CRISIL at Hotel Taj West End, Bangalore on 3 rd December 2003 to
sensitize the bankers about the latest techniques in risk management including
design and implementation of risk management system.

NATIONAL SEMINAR ON BANCASSURANCE

The Institute organized a seminar in association with Watson Wyatt Worldwide
on 20th February 2004 at Hotel President, Mumbai on ‘Business Value in
Bancassurance’ with special focus on Learning from international markets. The
Seminar was inaugurated by Shri T K Banerjee, Member, IRDA and featured a
panel of eminent speakers drawn from international industry practitioners and top
consultants from Indonesia, Singapore, Australia and Hong Kong and India. The
seminar provided an opportunity to the participants to learn from international
experience and enabled them to understand the current developments and
market update on bancassurance.

National Conference on HRD in Banks and Financial Institutions

The National Conference on HRD was organised by the Institute on 12th & 13 th
March 2004 at Hotel Taj Malabar, Cochin on the theme -" HRD THE CUTTING
EDGE IN THE TECHNOLOGY DRIVEN ERA". The main objective of the
conference was to review and identify the challenges faced by the banks and
financial institutions in the new millennium in a technology driven environment
and the possible role IIBF and HRD wings of banks can play in bridging the
identified gaps. The delegates for the conference included senior executives of
the HRD departments of private sector, public sector and foreign banks as well
as the principals and Faculty Members of Staff Training Colleges. and other
financial institutions.
                                                                                    14




Dr. Dharni P Sinha -Chairman, Association of Management & Development in
South Asia delivered the keynote address and Shri P K Menon, MD, Kochi
Refineries LTD delivered the valedictory address.

BANK CEO FORUM in collaboration with WORLD BANK,

The Institute in collaboration with the World Bank organized a two-day program
at Hotel Taj Exotica, Goa on 10th & 11th June 2003. for the CMDs and EDs of
Public sector banks and CEOs of private sector banks with the objective of
sharing lessons of experience between selected Global bank CEOs and the
CEOs of domestic banks in India to assist the senior management of banks in
their decision making concerning major strategic issues by bringing to them
relevant global experience as inputs to their thinking.

Bank Financial Management program

The Institute has earlier entered into a MOU with the Institute of Canadian
Bankers for Licensing of the simulation model called BankMod™ software, which
is used to improve the decision making abilities of Bankers in the area of Bank
Financial Management. The participants after theoretical preparation take part in
the simulation exercise and learn to take financial decisions concerning banking
operations. They would be able to appreciate better the impact of their decisions
on the bank balance sheet. The simulation exercise presupposes certain amount
of basic conceptual knowledge and practical insights in Bank Financials.

During the year Institute has conducted three programs in Mumbai, New Delhi,
and Trissur respectively.

Seminars and Lectures in the different Zones

In addition to the above national events, several seminars and lectures were
organized during the year in different zones.

As part of its continuing professional development efforts, the Institute organized
seminars on topics of contemporary relevance across the country for the benefit
of members as detailed below;

Place        Theme
Panaji       Securitization Act
Coimbatore   Expanding Horizons of Banking
Baroda       - Economics of Gold
             -   Development of Debt market
             -   Introduction of Derivatives
Kolkata      New Vistas in Banking
Jaipur       Emerging era of competition opportunities, challenges and Strategies

Jodhpur      Emerging era of competition opportunities, challenges and Strategies
Lucknow      New Challenges in banking
Rajlot       Redefining Customer Services in the New Era of Banking
Bhopal       Accounting Standards & US Gap
                                                                                     15


Delhi        Corporate Governance & Corporate Social responsibility
Lucknow      Emerging era of competition, opportunities, challenges and strategies
Dehradun     Emerging era of competition, opportunities, challenges and strategies
Chandigarh   Emerging era of competition, opportunities, challenges and strategies
Rohtak       Emerging era of competition, opportunities, challenges and strategies
Anantapur    -World trade Organization - its impact on Indian Agriculture
             - Human resources Management in Banks - New challenges
Bangalore    Marketing Challenges in the Immerging competitive scenario
Coimbatore   Expanding Horizons of Banking & Finance
Chennai      Emerging Issues in banking
Kottayam     Profitability & Float Funds
Trichur      -     Bancassurance
             -     Securitization Act - Issues before the Banks
Tiruvalla    -Emerging Trends in Indian banking
             -Micro-Credit


9. Research Activities
Macro projects

The Institute had commissioned three macro research projects during the last
year on the subject "WTO and its implication on Indian Industry", "WTO and its
implications on Financial Services", "WTO and its implication on Agriculture".
These research projects have already been completed. The areas for research
identified by the Institute for the current year are as follows:

                     BASEL II
                     Micro-Credit
                     Emerging structure of Indian Banking.

The Institute have assigned the task of research to selected scholars.

Micro Research on Tap

The Institute has evolved a scheme for promoting innovation and creativity. It
invited papers on the following topics from the individual members of the
Institute:

             -   Mobile Banking
             -   Money Laundering
             -   Security Issues related to E Banking
             -   Innovative Marketing Practices in Banking
             -   Frauds in banks

However, members were informed that they could submit paper on any other
relevant topic also. The Institute would reward the deserving original papers with
a citation letter or/and cash prize ranging from Rs 2500/- - Rs 5000/- depending
on the merits of the papers submitted.

Diamond Jubilee Overseas Banking Research Fellowship
                                                                                   16


The Institute has started in the 60th year of its foundation, awarding a research
fellowship to the bankers having inclination towards research activities. This
award is given every year. Mr Indranil Chakroborty, Assistant General Manager,
Reserve Bank of India, was selected for the award of the Fellowship for the year
2003, which enabled him to visit USA and UK to study the topic "Clearing and
Settlement of Over the Counter Derivatives: A Study of the Current State of the
Art". So far, sixteen bankers have been awarded this fellowship.

10. Information Services
Information Portal and E-news letter

The Institute's Information Portal www.iibf.org.in was launched on 5th December
2003 by Smt. K.J.Udeshi, Deputy Governor, Reserve Bank of India.

On the same occasion, the Institute's e-newsletter Fin@Quest was also launched.
The access to the Portal and most of its interactive features are free of cost,
whereas the Fin@Quest is available on subscription to the individuals and
institutions. The objectives of the E newsletter are to provide information related
to banking sector on a daily basis and the information is classified into –News,
Research Article/Study Article, Performance of banks, Product/ Services,
Information on regulations, Interviews, Book review, Crime Directory, Spotlight
on current issues, Global best practices. This service is offered in Internet as well
as Intranet versions.

The response by way of subscriptions for the e-newsletter is very encouraging.
The e-newsletter will reach all the subscribers through e-mail everyday at 7.00
p.m. The e-news letter contains all the important development in the banking and
financial sector at the national and international levels. The news are customised
and edited before being sent to subscribers.

    Journal
.
The Institute publishes the "Bank Quest" a quarterly Journal edited in-house and
supplied free of cost to all our members. At present circulation is 2.5 lac copies
per quarter. The Institute has planned further to enhance the quality of the
Journal.




IIB Vision
The Institute continued to publish the bimonthly priced news digest. The number
of subscriptions stood 2785 at the end of the year.
                                                                                  17



11. Future perspectives

Post Graduate Diploma in Financial Advising (PGDFA)

As mentioned in the last year's report, the Institute have launched a Diploma in
Financial advising with the objective of developing a cadre of professionally
qualified and competent Financial Advisors in the country. The first examination
will be in July 2004. The Institute has written to RBI, SEBI, IRDA for recognition
of the course as one of the mandatory qualifications for the profession of
Financial Advising.

Diploma in Information System (CeISB)

The Institute has been exploring various alternatives to launch a program on
Information System on the pattern of CISA of ISACA, Chicago and ISA of ICAI,
India. The course contemplates to equip the bank officials with necessary
knowledge, skills, to handle the increasing computerisation of banking activities.
The Institute constituted a committee to design an appropriate examination, with
the following members: Shri S Santhanakrishnan - Chairman, IT Committee,
ICAI, Shri K R Ganapathy- CGM (Retr.), RBI, Shri Deepak Ghaisas, CEO, Iflex
Solutions Ltd, Shri Monoj Goel, Member, Central Council, ICAI, Shri V K Khanna,
General Manager Telecommunications & IT, Union Bank of India. The design
has been approved by the committee and the preparation of the course material
is under progress. The course would be launched in the month of July 2004.

Human Resource Audit and Certificate of Learning Organization [CLO] to
member institutions:

The financial sector is undergoing rapid transformation and the banks and
financial institutions have to invest not only in technology and profitable business
ventures but also in the flow of know how that will sustain their organization. In
short, organizations have to be good at knowledge generation, appropriation and
exploitation and have to be learning organizations. The Institute proposes to
evolve a scheme of Human Resources Audit of banks and issue Certificate of
Learning organization to banks meeting the criteria laid down by the Institute.
Training

The Institute proposes to design and deliver appropriate high quality training
programs exclusively for the urban co op banks, BPO companies. It is our plan
to conduct at least 70 training programs during the year 2005

E-learning courses

The Institute has been exploring the possibilities to develop a suite of e-course-
ware covering the entire gamut of banking and financial services .to empower the
                                                                                             18


bankers with the knowledge and skill-sets required in the current scenario. This
courseware will be offered to banks at a price, which is a fraction of the market
rates. These e-courses can be delivered by the banks to their staff through their
own Intranet and can be adapted to bank specific needs of the target audience
through changes in content, design and delivery platform. The Institute is in the
process of consultation with member banks.

12. International Relations
Collaboration with National Centre for the Training of Bank Personnel,
Ukaraine

The Institute has received a proposal of collaboration from National Center for
the Training of Bank Personnel, Ukaraine for organising training for their
Bankers. The Institute is in talk with them for organising seminars/ training
programs of short duration and to host a "Round table meet" of top management
personnel of Indian and Ukraininan banks.

Collaboration with Sri Lanka

The Commercial Bank of Ceylon Ltd. (Sri-Lanka) had approached the
Institute for offering Institute’s products and services to their employees as
also to other banks employees in Sri Lanka. The MOU will be signed during
the current year.

13. Organizational Aspects

Need Analysis Report of ICRA

As reported in the last year’s report, the Institute had conducted a Need Analysis study with an
objective to get an authentic feed back from all the present and potential client group/s and
decide appropriate strategies to meet the aspirations/requirements of each target group/finance
industry. The work was entrusted to M/s ICRA Advisory Services.




               Recommendations of ICRA Advisory Services
  1. Business Model

  The Consultants have drawn up a Business model consisting of four compartments as
  mentioned hereunder:
  a. Certification Programs for existing customer groups
  b. Training including CPD
  c. Certification programs for New Customer Groups
  d. Higher Level Programs
                                                                                                19



  2. Improving the existing Certification programs

  -   Incorporate International issues of relevance to the financial sector (e.g. Basel norms
      etc.),
  -   Shifting from theory based study to case based learning, Conduct Annual Review of
      courses.
  -   Pursue coaching of candidates through the mechanisms like (I) Franchising of Training
      Institutes ( ii)Use of Video Conferencing

  3. Development of New Products for Existing Customer Groups ( Banks)

  a) Explore the gap in the training facilities available for co-operative banks and small
  private sector banks b) Design and develop induction/training programs specifically for the
  co-operative banks in areas such as Recovery Management, Direct Lending program,
  Investments and Funds Management (covering regulatory issues) and Bank Marketing
  c)Design/Training/ Certification programs on Corporate Governance for senior executives.

  4. New Courses/programs for new customer segments

  Introduce courses/programs for the new customer segments a) For Insurance - Certificate
  on underwriting, Certificate on claims management, Risk Management b) For Mutual
  Funds - Selling of MF products, Funds Management, Risk Management and regulatory
  compliance c) For NGOs/Selp help groups - Agriculture Banking d) Direct Selling Agents
  (DSA)- Marketing financial products (retail portfolio) e) Treasury and risk management,
  Derivative products and securitization, NPA Management/Asset Reconstruction

  4. Focus on Marketing

  Take concerted efforts to create an awareness of Institutes' activities among its target
  clients, get constant feedback from the market about the IIB courses, intensively use of
  print media for coverage of IIB events through advertisements in business
  dailies/magazines and interaction with media people.



Institute has already initiated steps for implementing some of the Consultants’
recommendations:

a) New courses have been launched the in areas of Insurance, Mutual Funds
and Banking

                  b) A specific course on Bank Financial Management with an in-
                     built simulation/training program has also been launched
                     recently
                  c) Negotiations are on for providing our services to the
                     neighbouring countries such as Sri-Lanka and Middle east
                  d) Research projects have been initiated in the areas of banking
                     and finance.

                 e) The Institute has become a member of the European Case
               Clearing House and North American Case Research Association
                                                                                        20


               for cases. The Institute proposes to build up Indian cases utilizing in
               house resources or by outsourcing. Proposals for collaboration with
               renowned training organization dealing in derivatives, options are
               under examination.

14. Staff ,Systems & Procedures
The Institute has been taking a number of steps to improve the efficiency of
service rendered to members. During the last few years the systems and
procedures have been thoroughly revamped. A detailed operations manual has
been developed in-house. An accounting procedures manual has been prepared
with the help of a consultant. A system of internal audit has been introduced.
Annual budgeting system with appropriate monitoring system has been evolved.
With a view to providing prompt and quality service most of the activities have
been automated. An Interactive Voice Response System has been initiated. As a
corollary of the efforts, the Institute has been aiming at a lien and purposeful
manpower in the organisation. In this regard development of human resources
attempted through a system of training, and continuing professional development
programs has been attempted. We have also introduced a scheme of voluntary
separation scheme. Details are given in the following paragraphs.

Training

The Institute continued its efforts to update the competence of its staff through
training programs. In-house training programs were conducted for officers as well
as other staff in the areas of behaviour, namely attitudinal change,
communication skills, and Quality management. The Institute also deputed a few
officers for various other programs conducted by various management
institutions.

Voluntary Separation scheme
Over the years, there has been a substantial reduction in volume of work owing
to less number of members registering for examinations, business process re-
engineering, and improved technological applications. The skill sets required by
the staff in the changed business environment are also different from what they
possessed. It was therefore decided to give an opportunity to the staff to retire
voluntarily, if they so wish, accepting a special package offered by the Institute
and re-train the remaining staff and re-deploy them suitably. This was the third
attempt to right size the strength. Under the current year's Voluntary retirement
scheme, 55 employees retired as per the details furnished below

 Officers        Clerks     Sub-staff
 17             32          6

After the Voluntary retirement, the staff-strength in the Institute stood as follows:
                                                                                            21


  Cadre                 Present Strength

  Officers              52
  Clerks                26
  Sub-staff             26



15. Governing Council
Composition of the Governing Council

During the year, Governing Council was re-constituted with the nominees of Reserve Bank of
India, Public Sector Banks, Private Sector Banks, Co-operative Banks and Foreign Banks. Except
the Chief Executive Officer of the Institute, all the members of the Governing Council are non-
executive members.

Frequency of Governing Council Meeting

The Governing Council met four times during the year 2003-04. The number of
meetings of the various committees of the Council during the year 2003-04 is as
follows:

Name of Committee                                   No of Meetings_____
Executive Committee                                                                2
Committee on Education and Training                                                3
Committee on Examination                                                           1


Information supplied to the Governing Council

Information under the following heads were presented to the Council:

          Review reports on:
                   - Income & Expenditure of the Institute
                  - Academic Activities
                  - Office Automation
                  - General Administration.
                  - Membership Awareness Campaign
                  - Defaulter members
                  - Collaboration of Institute with Foreign Institutes
                  - Strategies for promoting Research activities.

Governing Council Members with materially significant related party
transactions, pecuniary or business relationship with the Institute:

There have been no materially significant related party transactions, pecuniary
transactions or relationships between Institute and its Council Members that may
have potential conflict with the interests of the Institute at large.
                                                                                                  22


Remuneration of Council Members: sitting fees, salary, perquisites and
commissions:

None of the non-executive Council members had taken any remuneration in the
form of sitting fees, salary, perquisites etc from the Institute.

Resignation of members from the Council:

The following members resigned from the membership of the council since the last Annual
General Meeting:
                    Shri P P Vora, Chairman & Managing Director, IDBI
                    Dr B Vasanthan, Chairman & Managing Director, Andhra Bank
                    Shri P N Venkatachalam, Managing Director, State Bank of India

The Council places on record its appreciation of the contributions made by them during their
tenure.

Election of Council Members

Following members were elected in the Casual Vacancies caused by resignation
of the members from the Governing Council in terms of Article 55 of the Articles
of Association of the Institute but is eligible for re-appointment:

                   -   Shri R V Shastri, Chairman & Managing Director, Canara
                       Bank was elected in vacancy caused by resignation of Dr B
                       Vasanthan.
                   -   Shri A G Kalmankar, Managing Director, State Bank of
                       Hyderabad, was elected in the casual vacancy caused by the
                       resignation of Shri N K Puri

16. Finance and Accounts including Responsibility Statements
The Auditor’s report and Accounts of the Institute are annexed to this Report. We confirm that in
the preparation of the annual accounts, the applicable accounting standards had been followed
and appropriate explanations relating to material departures are provided. The Council had
selected such accounting policies and applied them consistently and made judgements and
estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs
of the Institute at the end of financial year and of Income and expenditure of the Institute for that
period. The Council further states that it had taken proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for
safeguarding the assets of the company and for preventing and detecting fraud and other
irregularities. The Council confirms that the accounts have been prepared on a going concern
basis.
The Institute over the years has built up a sound financial edifice as detailed below:


Assets

The value of assets has been growing year after year as may be seen from the
table and graphs furnished below:
                                                                                                                   23




                                       Total assets (Rs in lacs)
    10000
      8000                                                                                           7438
                                                                                                            7915
                                                                                            7069
                                                                                  6374
      6000                                                                5803
                                                                5074
      4000                                            3492
                                         2920
                               2294
      2000            2134

            0
                94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
                                            year


Individual category of assets has also grown


                                 Fixed Assets (Rs in lacs)

      600                                                       483       441    426      426
                         346                                                                       386
      400       304              317         299      283
      200
           0
                94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
                                                             year



                                     Invetsments (Rs in Lacs)
                                      Interest Income (Rs in Lacs)
                                                                    4755
      5000                                                    3891
      4000
           1000                                   3286 3441
                                     2631 2746
      3000 500                 1804
      2000 1092 1142 1467
              0
      1000
         0       94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
                                             Year
            94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04




Business Income

Not only assets have grown but also income from its activities after excluding the
subscriptions received from members has increased.
                             Income of the Institute (Rs in Lacs)
Particulars        94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04
Examination fee        104     189     261      235      247        158   275    379     412 350
Interest               218     261     314      366      468        581   625    667     627 687
Education               20     17       45      67       157        77    127    125     103 62
                                                                                                                                             24


Misc.                       1       21        2           6     11      11           12           7      8 35
Total Income              343       488     622      674       883     827         1039    1178       1150 1134



                                           Education Income (Rs in Lacs)

  200
  150
  100
   50
    0
              94-95      95-96      96-97         97-98       98-99       99-00           00-01       01-02       02-03      03-04
                                                                     Year



                                            Total Income (Rs In Lacs)

  1500
  1000
   500
     0
               94-95      95-96       96-97         97-98       98-99          99-00         00-01        01-02       02-03       03-04
                                                                        Year




                                            Examination fee collection (Rs In Lacs)

        600
        400
        200
         0
                 94-95      95-96         96-97      97-98        98-99            99-00      00-01        01-02          02-03      03-04
                                                                            Year




The Institute has been utilising the income to provide more value-added services
year after year.

Auditors
The Auditors M/s A F Ferguson & Co. retire and offer themselves for re-
appointment.
                                                                              25



Appreciation and Acknowledgements
The Council is grateful to the Institutional Members for their continued support
and advice. The Council would also like to take this opportunity to express
sincere thanks to its valued members, for their continued co-operation and
patronage. The Council also takes this opportunity to thank all employees for
rendering impeccable service to every constituent of the Institute.



                                        On behalf of the Governing Council


Mumbai                                              Dalbir Singh
31st May 2004                                         President
                                                                                                        26




        INDIAN INSTITUTE OF BANKING & FINANCE
``      Registered Office: 2nd Floor,”The Arcade”, WTC, Cuffe Parade, Mumbai -5


                   Notice of the Annual General Meeting
                                            h
 NOTICE IS HEREBY GIVEN that the 77 Annual General Meeting of Indian Institute of Banking
                                      th
 & Finance will be held at "VISTA", 30 Floor, Centre I, World Trade Centre, Cuffe Parade,
                        th
 Mumbai - 400 005 on 27 August 2004 at 4.00 PM to transact the following business:

 1. To receive and adopt the Income and Expenditure Account for the financial year ended on
    March 31, 2004 the Balance Sheet as at that date and Report of the Governing Council and
    the Auditors.

 2. To elect a member as the member of the Council in place Shri V Leeladhar, who retires by
    rotation under Article 48 of the Article of Association of the Institute and being eligible, offers
    himself for re-appointment

 3. To elect a member as the member of the Council in place Shri R V Shastri, who retires by
    rotation under Article 48 of the Article of Association of the Institute and being eligible, offers
    himself for re-appointment

 4. To elect a member as the member of the Council in place Shri S S Kohli, who retires by
    rotation under Article 48 of the Article of Association of the Institute and being eligible, offers
    himself for re-appointment

 5. To elect a member as the member of the Council in place Dr Dalbir Singh, who retires by
    rotation under Article 48 of the Article of Association of the Institute and being eligible, offers
    himself for re-appointment

6.   To consider and, if thought fit, to pass with or without modification, the following resolution:

"RESOLVED that Smt Usha Thorat, Shri N S Gujral and Shri Romesh Sobti members of
Governing Council liable to retire by rotation are not re-appointed as Member of the Governing
Council of the Institute, as they have not offered themselves for re-election.

RESOLVED FURTHER that the vacancies on the Governing Council of the Institute so created
be not filled."

 7. To consider and, if thought fit, to pass with or without modification, the following resolution:

"RESOLVED THAT pursuant to section 224 and other applicable provisions, if any, of the
Companies Act, 1956, A F Ferguson & Co, Chartered Accountants, Mumbai, be and are hereby
appointed as Auditors of the Institute to hold office from the conclusion of the this meeting till the
conclusion of the next Annual General Meeting, and that their remuneration be and hereby fixed
at Rs 200,000 apart from service tax and out-of-pocket and actual travelling expenses incurred by
them for the purpose of audit."

SPECIAL BUSINESS
                                                                                               th
 8. To appoint Dr Dalbir Singh as the President of the Institute from the conclusion of 77
    Annual General Meeting to the conclusion of next Annual General Meeting.
                                                                               27



Notes

a) Members who are Fellows or Associates are entitled to attend and vote at the
   General Meeting. Certificated Associates, Ordinary members and Institutional
   members are entitled to attend all General Meetings but are not entitled to
   vote thereat.

b) A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT
   A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE
   PROXY NEED NOT BE A MEMBER OF THE INSTITUTE.

c) The explanatory statement pursuant to Section 173 of the Companies Act,
   1956, relating to the Special Business to be transacted at the meeting is
   annexed hereto.



                                        By Order of the Governing Council



Mumbai                                                    ( R H Sarma)
Dated:                                               Chief Executive Officer


Registered office:
“The Arcade”, Tower 4, 2nd Floor,
World Trade Centre
Cuffe Parade, Mumbai – 400 005

Explanatory Statement pursuant to section 173(2) of the Companies Act, 1956

RESOLUTION AT ITEM No. 8

The Council has decided to propose the name of Dr Dalbir Singh as the
President of the Institute under Article 69 of the Articles of Association and he
has kindly consented to be elected as the President of the Institute from the
conclusion of this Annual General meeting to the conclusion of next Annual
General Meeting.

      The Council commends passing of the Special resolution set out at Item
No. 8 of the Notice convening the meeting.

       Dr Dalbir Singh may be deemed to be concerned or interested in the
resolution mentioned at item no 8.
                                  ***
28
                                                                                       29




List of Governing Council Members
        (Order should be maintained)
Dr Dalbir Singh, Chairman & Managing Director, Central Bank of India
S S Kohli, Chairman & Managing Director, Punjab National Bank
H V Sheshadri, Managing Director & CEO, Development Credit Bank Ltd.
S K Banerji, Managing Director, Saraswat Coop Bank Ltd.
Y K Bhushan, Senior Advisor, ICFAI Business School
K Cherian Varghese, Chairman & Managing Director, Corporation Bank
V K Chopra, Chairman & Managing Director, Small Industries Development Bank of India
N S Gujral, Chairman & Managing Director, Punjab & Sind Bank
S C Gupta, Chairman & Managing Director, Indian Overseas Bank
Shyamala Gopinath, Executive Director, Reserve Bank of India
A G Kalmankar, Dy Managing Director , State Bank of India
Uday Kotak, Vice Chairman & Managing Director, Kotak Mahindra Bank Ltd.
Y H Malegam, Partner, S B Billimoria & Co
A K Purwar, Chairman, State Bank of India
R H Sarma, CEO, Indian Institute of Banking & Finance
R V Shastri, Chairman & Managing Director, Canara Bank
P S Shenoy, Chairman & Managing Director, Bank of Borada
V P Shetty, Chairman & Managing Director, UCO Bank
Romesh Sobti, Country Representative - India, ABN AMRO Bank N.V
H N Sinor, Chief Executive Officer Executive, Indian Bank's Association
UshaThorat, Executive Director, Reserve Bank of India
List of Executive Committee
H V Sheshadri            - Chairman
Y K Bhushan
Y H Malegam
H N Sinor
P S Shenoy
Usha Thorat
S K Banerji
List of Examination Committee
Y K Bhushan - Chairman
P S Shenoy
D P Sarda
M S Sahoo
D M Nachane
S K Banerji
R H Sarma
A R Barve
List of Education Committee
Y H Malegam      - Chairman
N S Gujral
N Venugopal
S Gopinath
S C Gupta
Gunit Chadha
S A Farooqi
Dr Pritam Singh
R H Sarma
P Balachandran


Company Secretary S K Dutta
30
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