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					IDBI was set up under an Act of Parliament as a wholly-owned
subsidiary of Reserve Bank of India in July 1964. In February
1976, the ownership of IDBI was transferred to Government of

In January 1992, IDBI accessed domestic retail debt market for
the first time with innovative Deep Discount Bonds and
registered path-breaking success. In December 1993, IDBI set
up IDBI Capital Market Services Ltd. as a wholly-owned
subsidiary to offer a broad range of financial services, including
Bond Trading, Equity Broking, Client Asset Management and
Depository Services. In September 1994, in response to RBI's
policy of opening up domestic banking sector to private
participation, IDBI in association with SIDBI set up IDBI Bank
                         IDBI Bank

O   verview of development banking in India

       The   concept of development banking rose only after
Second World War , Successive of the Great Depression in
1930s. The demand for reconstruction funds for the affected
nations compelled in setting up a worldwide institution for
reconstructions. As a result the IBRD was set up in 1945 as a
worldwide institution for development and reconstruction. This
concept has been widened all over the world and resulted in
setting up of large number of banks around the world which
coordinating the developmental activities of different nations
with different objectives among the world.
        The course of development of financial institutions and
markets during the post-Independence period was largely guided
by the process of planned development pursued in India with
emphasis on mobilisation of savings and channelising investment to
meet Plan priorities. At the time of Independence in 1947, India
had a fairly well-developed banking system. The adoption of bank
dominated financial development strategy was aimed at meeting
the sectoral credit needs, particularly of agriculture and
industry. Towards this end, the Reserve Bank concentrated on
regulating and developing mechanisms for institution building. The
commercial banking network was expanded to cater to the
requirements of general banking and for meeting the short-term
working capital requirements of industry and agriculture.
Specialised development financial institutions (DFIs) such as the
IDBI, NABARD, NHB and SIDBI, etc., with majority ownership
of the Reserve Bank were set up to meet the long-term financing
requirements of industry and agriculture. To facilitate the
growth of these institutions, a mechanism to provide concessional
finance to these institutions was also put in place by the Reserve
        The first development bank In India incorporated
immediately after independence in 1948 under the Industrial
Finance Corporation Act as a statutory corporation to pioneer
institutional credit to medium and large-scale. Then after in
regular intervals the government started new and different
development financial institutions to attain the different
objectives and helpful to five-year plans.
       The early history of Indian banking and finance was
marked by strong governmental regulation and control. The roots
of the national system were in the State Bank of India Act of
1955, which nationalized the former Imperial Bank of India and
its seven associate banks. In the early days, this national system
operated along side of a large private banking system. Banks were
limited in their operational flexibility by the government‟s desire
to maintain employment in the banking system and were often
drawn into troublesome loans in order to further the
government‟s social goals.
       The financial institutions in India were set up under the
strong control of both central and state Governments, and the
Government utilized these institutions for the achievements in
planning and development of the nation as a whole. The all India
financial institutions can be classified under four heads according
to their economic importance that are:
   All-India Development Banks,
   Specialized Financial Institutions,
   Investment Institutions,
   State-level institutions,
   Other institutions.
                 Industrial Development Bank
  of India (IDBI)
        The Industrial Development Bank of India (IDBI) was
established on July 1, 1964 under an Act of Parliament as a wholly
owned subsidiary of the Reserve Bank of India. In 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: 58.47%).
During the four decades of its existence, IDBI has been
instrumental not only in establishing a well-developed, diversified
and efficient industrial and institutional structure but also adding
a qualitative dimension to the process of industrial development in
the country. IDBI has played a pioneering role in fulfilling its
mission of promoting industrial growth through financing of
medium and long-term projects, in consonance with national plans
and priorities. Over the years, IDBI has enlarged its basket of
products and services, covering almost the entire spectrum of
industrial activities, including manufacturing and services. IDBI
provides financial assistance, both in rupee and foreign
currencies, for green-field projects as also for expansion,
modernisation and diversification purposes. In the wake of
financial sector reforms unveiled by the Government since 1992,
IDBI evolved an array of fund and fee-based services with a view
to providing an integrated solution to meet the entire demand of
financial and corporate advisory requirements of its clients. IDBI
also provides indirect financial assistance by way of refinancing
of loans extended by State-level financial institutions and banks
and by way of rediscounting of bills of exchange arising out of
sale of indigenous machinery on deferred payment terms.
        IDBI has played a pioneering role, particularly in the pre-
reform era (1964-91),in catalyzing broad based industrial
development in the country in keeping with its Government-
ordained „development banking‟ charter. In pursuance of this
mandate, IDBI‟s activities transcended the confines of pure long-
term lending to industry and encompassed, among others,
balanced industrial growth through development of backward
areas, modernisation of specific industries, employment
generation, entrepreneurship development along with support
services for creating a deep and vibrant domestic capital market,
including development of apposite institutional framework.
        In September 2003, IDBI diversified its business domain
further by acquiring the entire shareholding of Tata Finance
Limited in Tata Home finance Ltd., signaling IDBI‟s foray into the
retail finance sector. The fully-owned housing finance subsidiary
has since been renamed „IDBI Home finance Limited‟. In view of
the signal changes in the operating environment, following
initiation of reforms since the early nineties, Government of
India has decided to transform IDBI into a commercial bank
without eschewing its secular development finance obligations.
The migration to the new business model of commercial banking,
with its gateway to low-cost current, savings bank deposits, would
help overcome most of the limitations of the current business
model of development finance while simultaneously enabling it to
diversify its client/ asset base. Towards this end, the IDB
(Transfer of Undertaking and Repeal) Act 2003 was passed by
Parliament in December 2003. The Act provides for repeal of
IDBI Act, corporatisation of IDBI (with majority Government
holding; current share: 58.47%) and transformation into a
commercial bank. The provisions of the Act have come into force
from July 2, 2004 in terms of a Government Notification to this
effect. The Notification facilitated formation, incorporation and
registration of Industrial Development Bank of India Ltd. as a
company under the Companies Act, 1956 and a deemed Banking
Company under the Banking Regulation Act 1949 and helped in
obtaining requisite regulatory and statutory clearances, including
those from RBI. IDBI would commence banking business in
accordance with the provisions of the new Act in addition to the
business being transacted under IDBI Act, 1964 from October 1,
2004, the „Appointed Date‟ notified by the Central Government.
IDBI has firmed up the infrastructure, technology platform and
reorientation of its human capital to achieve a smooth transition.
On July 29, 2004, the Board of Directors of IDBI and IDBI Bank
accorded in principle approval to the merger of IDBI Bank with
the Industrial Development Bank of India Ltd. to be formed
incorporated under the Companies Act, 1956 pursuant to the IDB
(Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003),
subject to the approval of shareholders and other regulatory and
statutory approvals. A mutually gainful proposition with positive
implications for all stakeholders and clients, the merger process
is expected to be completed during the current financial year
ending March 31, 2005.
       IDBI would continue to provide the extant products and
services as part of its development finance role even after its
conversion into a banking company. In addition, the new entity
would also provide an array of wholesale and retail banking
products, designed to suit the specific needs cash flow
requirements of corporates and individuals. In particular, IDBI
would leverage the strong corporate relationships built up over
the years to offer customised and total financial solutions for all
corporate business needs, single-window appraisal for term loans
and working capital finance, strategic advisory and “Hand-holding”
support at the implementation phase of projects, among others.
       IDBI‟s transformation into a commercial bank would
provide a gateway to low-cost deposits like Current and Savings
Bank Deposits. This would have a positive impact on the Bank‟s
overall cost of funds and facilitate lending at more competitive
rates to its clients. The new entity would offer various retail
products, leveraging upon its existing relationship with retail
investors under its existing Suvidha Flexi-bond schemes. In the
emerging scenario, the new IDBI hopes to realize its mission of
positioning itself as a one stop super-shop and most preferred
brand for providing total financial and banking solutions to
corporates and individuals, capitalising on its intimate knowledge
of the Indian industry and client requirements and large retail
base on the liability side.
       IDBI upholds the highest standards of corporate
governance in its operations. The responsibility for maintaining
these high standards of governance lies with its Board of
Directors. Two Committees of the Board viz. the Executive
Committee and the Audit Committee are adequately empowered
to monitor implementation of good corporate governance
practices and making necessary disclosures within the framework
of legal provisions and banking conventions.
The Industrial Development Bank of India Limited commonly
known by its acronym IDBI is one of India's leading private
banks. It was established in 1964 by an Act of Parliament to
provide credit and other facilities for the development of the
fledgling Indian industry. It is currently the tenth largest
development bank in the world. Some of the institutions built by
IDBI are The National Stock Exchange of India (NSE), The
National Securities Depository Services Ltd. (NSDL) and the
Stock Holding Corporation of India (SHCIL). Today, IDBI Bank
has a network of 161 branches, 369 ATMs, and 8 Extension
Counters spread over 95 cities.

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

"One of the key differentiators that IDBI Bank found in Finacle
universal banking solution was its new generation technology and
its use of the web paradigm. With features like Straight-
Through-Processing, 24x7 banking, e-Xtensibility tool kit, Finacle
has indeed proved to be the right choice. With Finacle powering
our core banking operations, we have been able to bring down our
End of Day processing time by more than 80%."

Sanjay Sharma, Vice President & Head- Product Development
Group, IDBI Bank.
Bank’s Policy:
  1. Gifts & donations:

    The Director/ officer/ employee of IDBI Ltd. shall not
    solicit or accept any gifts/donations of more than modest
    value from a constituent of IDBI Ltd. or from any
    subordinate employee or from existing/ potential clients or
    third parties having business dealings with IDBI Ltd.

  2. Gender friendly workplace:

    As a good corporate citizen, IDBI Ltd. is committed to a
    gender    friendly  workplace.     IDBI  Ltd.   demands,
    demonstrates and promotes professional behaviour and
    respectful treatment of all employees.

  3. Prohibition against participation in politics and standing for
     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.

  4. Protection of Bank‟s Assets:

    The assets of IDBI Ltd. shall not be misused but employed
    for conducting the business for which they are duly
Management & Organization
IDBI 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 two Deputy Managing
Directors, who draw upon the support and expertise of a cross-
disciplinary Top Management Team. As on March 31, 2006, IDBI
had a combined employee base of 4548, including professionals
from the fields of accountancy, management, engineering, law,
computer technology, banking and economics.

IDBI 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 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 Ltd. and its Directors,
officers and employees.
  1. National Interest:

     IDBI 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

  2. Financial Reports & records:

     IDBI 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 Ltd. business transactions and
     disposition of assets.

  3. Corporate disclosures & practices:

     IDBI Ltd. shall continue to abide by the corporate
     disclosure practices as specified by the appropriate
     external regulatory authorities.

     IDBI 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 Ltd. shall
duly and fairly inform its shareholders about all relevant aspects
of the organisation business and disclose such information in
accordance with the respective regulations and agreements.
Every employee shall also be responsible.

Ethical Standards:
     A Director/ Officer/ Employee of IDBI Ltd. shall conduct
     all the dealings on behalf of IDBI Ltd. with professionalism,
     honesty, integrity and high moral and ethical standards.
     Every Director/ Officer/ Employee of IDBI 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.
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

Quality of Products & Services:
  1. IDBI Ltd. shall continue to be committed to creating new
     industry standards of excellence in customer service. IDBI
     Ltd. shall provide innovative and superior quality customer
     service consistent with the requirements of the customers
     for their satisfaction.

  2. Corporate Opportunity: A Director/ Officer/ Employee
     must not deprive IDBI Ltd. of an opportunity that belongs
     to IDBI 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 Ltd. A
     Director/ Officer/ Employee must not compete with IDBI
     Ltd. in respect of any business transaction.

  3. Health, Safety & Environment: IDBI 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.

  4. Corporate Social Responsibility: IDBI 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.

1. IDBI Ltd. shall market its products and services on its own

2. Equal-Rights: IDBI 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 Ltd. shall be treated with
dignity and in accordance with the IDBI 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.

 3. Prohibited business: IDBI Ltd. shall not enter into any kind of
business with any company / organisation / entity, of which any of
its directors of is a proprietor, partner, director, a manager,
employee or guarantor or in which one or more directors of IDBI
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
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.
Public Representation of the Company & the Group:

  1. IDBI Ltd. honours the information requirements of the
  public and its stakeholders. All its external communication will
  be only by officials/ directors authorized 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:

  -The Accreted newspaper publications,

  - Web casting on official web site,

  - Press handouts & press releases,

  - Audio and audio-visuals prepared for the specific purpose.

  2. Use IDBI Ltd. Logo & Trademark used:

     Director/ Officer/ Employee shall not use the name of IDBI
     Ltd., its logo or trademark for personal benefit or for the
     benefit of persons / entities not forming part of the IDBI

Conflict of Interest:
    The Directors/ officers/ employees of IDBI Ltd. shall always
conduct themselves in an honest and ethical manner and in the
best interest of the Bank. Towards this, the directors, officers
and employees of IDBI Ltd. shall endeavour to avoid situations
that may lead to an actual or potential conflict between person's
private interest and the interest of the Bank, including its
affiliates and employees.
Ethics & Compliance Committee:
        The Ethics and Compliance Committee comprising few
independent directors of the Board, an Executive Director, Chief
Vigilance Officer of IDBI Ltd. and the Compliance Officer and
any other officer so nominated, will oversee the compliance of
the Code of Conduct and Ethics.

IDBI have been providing many services to its customers. It
divides its services into two divisions:
1. Retail Banking Services.
2. Corporate Banking Services.

The following are the Retail Banking Services:
      The bank provides normal Savings Bank Accounts, Current
Accounts, Fixed Deposits, and Pension Accounts. But it also
provides special accounts like Suvidha plus Fixed Deposits
accounts & Sabka Accounts.

     The bank provides various loans like:
1. Home Loans.
2. Loans against home.
3. Education Loans.
4. Personal Loans.
5. Security Loans.
Easy Payments:
    Bank provides its customers with a facility of easy bill
payments. It provides facility of payment of tax, Stamp Duty,
Easy Fill, Online Transfer, etc.

Money Transfer:
       Sending money within India has never been this simple,
convenient, fast and safe! IDBI's Card to Card Money Transfer
facility; a first-of-its-kind money transfer service in India is the
absolute way to send money anywhere, anytime to any Visa Debit
or Credit cardholder in India. Bank's customers can now transfer
money from their Bank account or Visa card to any other Visa
debit or credit card across the country through this service.

   Funds can be transferred to any debit or credit card in
   Sender needs to know only the card number of the
   Can be accessed using ATM, Internet Banking or through
    the branch.
   Funds will be transferred within 2-3 working days.
   Cheaper, faster and more convenient than Demand Drafts,
    telegraphic transfers and Payable-At-Par cheques.
   No geographical limitation within India.
   Beneficiary location need not be known.
   Funds will be transferred within 2-3 working days.
   Payment of credit card bills.
Transfer Funds
We can use Internet Banking, ATMs or branches for transferring
money across the country. The only information we need to know
is the 16-digit card number of the transferee. To carry out a
transfer, simply log on to IDBI's Internet Banking at
www.idbibank.com, or visit the nearest IDBI ATM or branch and
transfer the required amount. The money is directly credited into
the recipient's card, no matter where he is. For any further
assistance, click here to call our phone banking numbers nearest
to your location.

     We believe that all investors share a common goal, regardless
of their objectives: superior and sustained returns with a tight
control over risk. Meeting your long-term investment goal is
dependent on a number of factors: your investment capital, your
expected rate of return, inflation, taxes and your investment
time horizon. To meet your requirements, we offer you
investment options based on your risk tolerance and return
expectations. Relationship Managers are equipped to advise you
on various investment avenues after thoroughly understanding
your investment profile. They then help you with your
investments and subsequently support you by tracking your
investments on a regular basis.

Mutual Funds:
Mutual funds offer a simple and effective way to diversify your
investment without the hassles of tracking individual stocks on a
daily basis. Click here for more details on the options we offer
GoI 8.0% Savings (Taxable) Bonds. 8% GoI Savings Bonds is a
good option for investors looking for high yielding risk free
Capital Gain bonds:
    Invest your long-term capital gains on sale of your asset in
the specified assets.

Insurance Services:
       IDBI brings to you Birla Sun Life Insurance, one of the
leading providers of life insurance products. To invest in an
insurance policy, just walk into any of our branches and meet our
Certified Insurance Officer. After studying your profile, short-
term and long-term needs and your plans for the future, he will
recommend a policy that's best for you.

NRI a/c:
     Being an NRI (non-resident Indian) and privy to special
benefits and privileges in India, its only but natural to expect
world class levels – be it banking or any other service. Welcome to
IDBI, where you are treated as special and your needs exclusive.
While we offer basic NRI banking products like Non Resident
Rupee Checking Account, Non Resident Rupee Term Deposits and
Foreign Currency Non Resident Deposit, we realise that your
requirements are manifold. Hence, we provide seasoned banking
professionals to handle your queries and offer value added
services. The value-added services we provide range from
answers to online tax and foreign exchange related queries and
needs with special emphasis on FEMA guidelines issued by The
Reserve Bank of India from time to time. Our International Debit
Card is designed to offer you the convenience of accessing your
funds with us from any ATM and also pay for your purchases
from any merchant establishments across the world. You can avail
of our advanced funds transfer facility to transfer funds from
your account to that of your family members' account held with
any IDBI branch across India. Our other services, such as
providing free nomination and mandate facility enables hassle
free banking operations to your family member authorised by you
to operate your account. We provide high-end solutions such as
high yielding foreign exchange products, wealth management and

Non-Resident External (NRE)
Repatriable account for your investment needs access your
account anytime, anywhere with Internet Banking, shop at more
than 8.3 million locations and withdraw funds in 140 countries

Non-Resident Ordinary (NRO)
       An account for your local income and expenses, access your
account at more than 250 ATM's across the country, pay your
bills in India from anywhere in the world.

      Retain your funds in foreign currency, no exchange risk;
earn attractive returns on your fund.

Foreign Exchange Services:

Spot Contracts:
       Spot contract is the simplest and most common foreign
exchange transaction very widely used by the corporates to cover
their receivables and payables. It is a commitment by the client
to buy or sell one currency against another at a fixed rate for
delivery two business days after the transaction.
Example: Say an Indian company wants to pay its overseas
supplier in US dollars 5 MM. Using a Spot Contract it purchases
dollars for immediate (2 business days). It has funds delivered to
the supplier's Bank Account overseas. The exchange rate is fixed
by the current market. The equivalent Indian Rupees is debited
to the company's account.

Forward Contracts:
         With Forward contracts, you can negotiate a rate today
to exchange foreign currency on a future date. Forward contract
is a contract to buy or sell currency on a future date at a
predetermined rate. The rate on the forward exchange contract
is based on the spot rate and the differential in interest rates
between the two markets involved. This type of transaction helps
you manage your foreign exchange risk because, by setting the
exchange rate in advance, you eliminate the uncertainty related
to fluctuations in the currency until the time you pay for it or
receive it.
Example: Say, an Indian company has an import payable USD 5
million in three months from a US exporter. The company must
protect itself from an adverse fluctuation in the exchange rate
        Through a forward contract, the company "locks-in" an
exchange rate today, and buys USD against INR for delivery 3
months in the future. With the forward contract the company
protects itself against downside risk, the possible depreciation of
INR in three months. There is no upside potential, however, if the
INR appreciates, the company is committed to the terms of the
     Forward cover decisions.
     Outright forward contracts.
     Forward to forward.
     Currency switching.
     De-link cross from INR.
     Cover USD/INR exposure.
     Cover cross exposure.
     Partial cover.
     Fixed date - FC deliverable at a fixed date.

Option forward:
     Deliverable during a specified period.
     Maximum one calendar month.
     Last date holiday and declared holiday.
     Deliverable preceding working day.

Forward Rate Agreements:
    A forward rate agreement is a financial contract between a
bank and the customer to exchange interest payments for a
"notional principal" amount on settlement date, for a specified
period from start date to maturity date. Accordingly, on the
settlement date, cash payments based on contract (fixed) and
the settlement rate, are made by the bank and the customer. The
settlement rate is the agreed benchmark or reference rate
prevailing on the settlement date. Forward rate agreement
provides means for hedging the interest rate risk arising on
account of lending or borrowing made at fixed or variable
interest rates.
Currency Swaps:
       A foreign exchange transaction in which a bank agrees to
exchange specified amount of one currency for another currency
at a fixed price, i.e., the bank and the customer agree to
exchange payment streams or cash flows both in terms of
principal and interest. Simply stated, currency swap is an
extended forward contract and normally for periods beyond one
year. An Indian company that has raised the borrowing in foreign
currency can exchange the same for the equivalent INR thereby
matching foreign currency liabilities. There will be series of
forward contracts for both principal and interest payments at
the agreed exchange rate over the period of the loan/borrowing.
The company will have to execute ISDA documentation with the

Phone Banking:

       At IDBI, we endeavour to raise the bar to meet the rising
requirements of our customers, by providing quality products and
services to suit varied banking needs. Our Phone Banking service
is yet another, technology and customer centric step in that
      IDBI's Phone Banking service enables you to access
authentic, instantaneous information on your account balances and
transactions. The service is available totally free of cost round
the clock, 365 days a year.
      To view the different services that are available through
our Phone Banking facility, click here. A telephone and your 4-
digit TIN (telephone identification number) is all that you need to
access your account.
SMS Banking:
Business is on the move and so are the people who conduct it. For
you to enjoy banking convenience while on the move, IDBI is here
with its SMS Banking facility. Our SMS banking initiatives permit
you to access your Bank account and carry out various banking
transactions and inquires.

NON-WAP Enabled Mobile Phones:
     If you have a non-WAP enabled mobile phone, you can use
the SMS facility and conduct the following operations using the
messaging services of your service provider.

     Balance enquiry.
     Last three transactions.
     Cheques payment status.
     Cheques book.
     Statement request.
     Demat - free balance holding.
     Demat - last two transactions.
     Bill payment.

WAP Enabled Mobile Phones
       If you are WAP enabled mobile phone user, you can do
interactive banking with us. If you need to draw cash while you
travel, your mobile will indicate to you the nearest IDBI branch
and its phone number. Transactions using WAP are WAP-WTLS
compliant (meaning you have the comfort of transacting at the
highest level of security standard available internationally).
Account Alert:
IDBI's new Account Alert service gives you all this and more.
With Account Alert, your bank account transaction information
will be delivered to you automatically, wherever you are. No more
visiting the bank branch or ATM to check routine things like
account balances, cheques clearance, verification of ATM
transactions, bill payment verifications, etc. Account Alerts
allows you to monitor filely any type of activity on your accounts,
and be notified by e-mail or cell phone SMS as and when they are

Gold card
       The card can be used to transact at IDBI ATMs and
13,000 VISA/Plus ATMs in India and for making purchases at 1.2
lac Visa locations. It is having International validity. The Gold
Debit Card can also be used abroad to make purchases at 13
million merchant locations and withdraw local currency at 8.5 lac
Visa/Plus ATMs. It also helps for Petrol surcharge waiver*:
Currently, there is a surcharge of 2.5% at all petrol pump
transactions. This petrol surcharge will be waived off for
transactions carried out on the Gold Debit Card. It also provides
Insurance cover*: You can withdraw cash upto Rs. 75,000 and
make purchases worth Rs. 75,000 in a day. IDBI has tied up with
various merchant establishments. You can avail of attractive
discounts at these merchant establishments by making purchases
through the Gold Debit Card. The details will be sent across to
you from time to time.
Debit cum credit card
        This card enables you to access your IDBI account from
anywhere in the world, anytime of the day or night. It not only
lets you withdraw money from any of our ATMs (Automated
Teller Machines) and our associated bank's ATMs, but also
empowers you to shop, dine and travel without the worry of
carrying cash with you all the time.

Gift card
     The IDBI GiftCard allows your loved one to purchases goods
and services at over 1.8 lac merchant establishments in India that
accept Visa cards. No heartaches of being bound to specific
stores with gift vouchers. The GiftCard can be used more than
once giving you the flexibility to shop at will from different
stores and at different times.

World currency card
     The World Currency Card is a prepaid multi currency card
that provides you the convenience of making purchases and
withdrawing cash while travelling almost anywhere abroad. The
Card does away with the inconvenience of carrying travellers
cheques, is much safer than carrying foreign currency and is more
economical than credit cards.

      The Safe Deposit Locker facility offers invaluable safety
for you valuables. We also have on offer a variety of sizes to fit
your requirements. The deposit lockers can be operated at your
convenience during our extended banking hours. We provide the
maximum safety to your valuables that are placed in our Safe
Deposit Lockers. For opening a locker all you have to do is:
   Open a savings bank account with Rs 5,000.
   Pay a one time administrative charge (non refundable)
     including legal fees/stamp paper charges.
   Pay only one year's rent in advance upfront. No additional
     fixed deposit required.

Services that are provided in Corporate Sector are:

Home / Project Finance Scheme:
         Project finance involves providing credit and other
facilities to a borrower with a credit rating normally of 'A' or
'BBB' (provided adequate mitigants are in place), for setting up
new projects, expansion, diversification and modernisation of
existing industrial units. While considering the project for
assistance, IDBI evaluates technical feasibility, commercial and
economic viability and financial soundness of the project. The
interest rate and other fees for credit and other facilities would
be based on creditworthiness of borrower, rating, risk
perception, tenure of loan / facilities and other relevant factors.
The repayment of the loans and facilities is normally fixed on
case to case basis depending on projected cash flow of the
Technology Upgradation Fund Scheme:
      The Government of India introduced the Technology
Upgradation Fund Scheme (TUFS) for Textile and Jute
Industries, which is valid upto March 31, 2007. The Scheme is
intended to facilitate induction of state-of-the-art or near
state-of-the-art technology in Textiles Industry. Existing units
with or without expansion and new units are eligible under TUFS.
IDBI is a Nodal Agency for textile industry (Non-SSI Sector).
Normally the project would be evaluated as per project finance
norms. The rate of interest is normal applicable rates prevailing
at the time of sanction / execution of loan documents. However,
Government of India (GoI), Ministry of Textiles (MoT), gives
interest reimbursement of 5% p.a. to eligible projects sanctioned
assistance under TUFS. As regards FC Loan, GoI, MoT provides a
cover for actual adverse exchange fluctuations not exceeding 5%
from the base rate (the base rate being the weighted average
rate covering all disbursements of the loan) or cost of forward
cover premium limited to 5% p.a. on the base rate of exchange, as
an option, to be exercised only once in each Financial Year.

Corporate Loan:
     Under the Corporate Loan Scheme, IDBI provides rupee
and/or foreign currency loans to corporates with minimum 5 years
of operations, continuous profits for the last 2 years with credit
rating normally 'A' or 'BBB' (provided adequate mitigants are in
place) and satisfactory track & credit record with lenders for
normal capital expenditure, working capital margin, shortfall in
working capital and general corporate purposes, including
expenses on Voluntary Retirement Scheme and business
acquisition where no tangible asset creation is envisaged. The
interest rate would be based on creditworthiness of borrower,
rating, risk perception, tenure of loan and other relevant factors.
The repayment period for the loans would normally not exceed 5
1/2 years.

Treasury Product Facility (TPF):
         Under the Treasury Product Facility, IDBI provides
rupee and/or foreign currency loans to well performing
corporates with credit rating of minimum 'AA minus', 5 years of
operations and satisfactory track & credit record, for providing
finance for general corporate purposes with fund requirement of
short term nature. Assistance under the scheme would be
minimum Rs.10 cr. The interest rate would be based on
creditworthiness of borrower, rating, risk perception, tenure of
loan and other relevant factors. The repayment period would not
exceed 18 months.

Film Financing:
          IDBI provides finance for production of feature films as
defined under the Cinematograph (Certification) Rules, 1983.
Advertisement films, short films, documentaries etc. are not
eligible for financing. A corporate entity, promoted by reputed
producers, backed by established directors & other technicians
and possessing satisfactory track record are eligible to avail
assistance under the scheme. In case the entity is recently
corporatised, track record of the main promoter(s) is considered.
Assistance would be not less than Rs.2 crores and not exceeding
50% of the estimated cost of the film. Interest rate would be
cap rate in the prevailing interest rate band.
Direct Discounting of Bills:
       For financially sound machinery / equipment manufacturer,
who wish to promote sales, IDBI provides deferred credit facility
for sale / purchase of indigenous machinery / equipment under its
easy to operate direct discounting scheme. Assistance would be
100% of the total value (including insurance, taxes & freight).
Interest rate / discount rate would be as prevalent at the time
of discounting of bills, depending on monthly / quarterly / half-
yearly/ yearly payments and according to temporal profile of bills.

Scheme for Lending to Real Estate Sector:
         IDBI provides finance in the form of project funding and
securitization of lease rentals, to a borrower (promoter group in
case of SPV), with continuous profit for the last 3 years, internal
rating of 'A' and above, for productive construction activity in
real estate. Assistance would be in the form of term loans and
total term loans including IDBI loan should not exceed 30% of
the project cost. For projects exclusively for lease out, the
ceiling on total loans will be 60% of project cost. Interest rate
would be based on creditworthiness of borrower, rating, risk
perception, tenure of loan and other relevant factors. The
assistance would be short to medium term in nature not
exceeding 5 years. As regards securitization of lease rentals, the
strength of the lessee and lesser would be assessed on the basis
of financials, reputations, track record and cash flows. The
exposure would be on the basis of present value of lease rentals
of maximum 7 years excluding expenses (like TDS, maintenance,
property tax and adjustment of advance payment) or 60% of the
property value less advanced payment received from the lessor,
whichever is lower.
Rehabilitation Finance Department:
         IDBI has in its portfolio certain potentially viable, weak
and sick companies, which can be revived by way of
merger/takeover. Rehabilitation Finance Department (RFD), a
specialized department, created to achieve the said objective, is
on the lookout for resourceful parties interested in
takeover/merger or joining in as co-promoter. Industry-wise
classification of such companies is given ahead. Industries, where
companies are presently available, are given. In addition, IDBI
has in its portfolio, other companies which can be revived by
undertaking various measures such as strengthening of
management, Upgradation of technology, infusion of fresh funds,
etc. IDBI would like to interact with potential investors / clients
who may be interested in takeover, merger or joining as co-
promoters etc. in order to achieve the said objectives.

Forex Services / Treasury:
General corporate purposes with fund requirement of short term
nature. The eligibility criteria are:
    Past Performance.
    Well performing corporate with minimum 5 years of
     operations and satisfactory track & credit record with
    Credit Rating: Minimum 'AA-' (read as 'double A minus')
    Net Worth: Not less than Rs.25 crores (only equity and free
     reserves to be included).
    Long Term Debt to Equity Ratio: Maximum 1.25:1
    Current Ratio: Minimum 1.1:1
    Terms of assistance.
    Nature of Assistance.
Rupee and Foreign Currency Loan:
Extent of Assistance: Minimum Rs.10 crore
Interest Rate on Rupee Loan: Fixed or floating rate, as per
creditworthiness of borrower, rating, risk perception, tenure of
loan and other relevant factors. Interest rate to be reset for
longer maturity loans. Interest Rate on Foreign Currency Loan:
Normally floating rate based on LIBOR plus a fixed spread
according to creditworthiness of borrower, rating, risk
perception, tenure of loan and other relevant factors.
Repayment period: Maximum upto 18 months with call / put option
where considered necessary.
Security for the assistance:
    Demand Promissory Note.
    Power of Attorney in favour of IDBI to create charge on
     assets / Undertaking to create charge on assets of the
     company in the event of default.
    Any other acceptable security.

Commercial Paper:
      IDBI subscribes to bonds, debentures and other debt
instruments. The applicable coupon rate or purchase price would
vary based on the issuer, rating assigned and tenure of the
instrument. The issuer or holder of the instrument or the
arranger to the issue may place the instrument with IDBI.

1. Bonds: IDBI subscribes to bonds issued mainly by banks or
public sectors units. Bonds may be secured or unsecured.

2. Debentures: IDBI subscribes to tradable debentures of short
to medium term maturity issued by corporates. The debentures
should be rated by rating agencies accredited by SEBI/RBI.
INR Derivatives:

1. Interest Rates Swaps (DRS)
IDBI contracts to exchange a fixed interest rate liability for a
floating interest rate liability or vice versa, on behalf of its
clients. The principal amount is not exchanged, with only the
differences in cash flows being settled. Capital adequacy norms
as per RBI guidelines are being followed. Benchmark rates from
NSE MIBOR, Reuters MIBOR, T-Bills rates are normally used.

2. Rupee-Dollar Interest Rate and Currency Swap
IDBI enters into agreements involving exchange of liability in US
Dollars for a liability in Indian rupees or vice-versa, and may also
include exchange of fixed rate liability for floating rate liability
or vice-versa. Swaps are used for hedging currency and/or
interest rate risk, or for liability management.

3. Forward Rate Agreements (FRA's)
IDBI offers FRA's, which are contracts to exchange interest
payments for a specified period starting from a pre-specified
start date in the future. These instruments are used to manage
interest rate risk.

4. Forward Contracts
IDBI enters into agreements to exchange a predetermined
amount of one currency for another at a specific rate of
exchange on a specified future date. These instruments are
generally used to hedge against exchange rate fluctuations.
Overnight Index Swaps:
      An Overnight Index Swap (OIS) is a fixed/floating
interest rate swap with the floating rate tied to a daily overnight
rate reference. The term of the swap generally ranges from one
week to one year.

Recent developments:
To meet emerging challenger and to keep up with reforms in
financial sector, IDBI has taken steps to reshape its role from a
development finance institution to a commercial institution. With
Industrial Development Bank (Transfer of Undertaking and
Repeal) Act, 2003, IDBI attained the status of a limited company
viz. "Industrial Development Bank of India Limited" (IDBIL).
Subsequently, the Central Government notified October 1, 2004
as the 'Appointed Date' and RBI issued the requisite notification
on September 30, 2004 incorporating IDBI Ltd. as a 'scheduled
bank' under the RBI Act, 1934. Consequently, IDBI, the erstwhile
Development Financial Institution of the country, formally
entered the portals of banking business as IDBIL from October
1, 2004, over and above the business currently being transacted.
As of July,2006 the employees association of the IFCI have
sought its merger with the Bank.
The Phishing email may also direct you to a spoofed website or
pop-up window, which looks exactly like the real site. Phishing is
an increasingly common type of scam in which personal data such
as credit card numbers and online banking passwords are stolen
for fraudulent use.
The fraudster sends "spoofed" emails that appear to come from a
legitimate website that you have online dealings with such as a
bank, Credit Card Company or an ISP - any site which requires
users to have a personal identity or account. The email may ask
you to reply with your account details in order to "update
security" or for some other reason.
Site‟s login page, but has been set up for the sole purpose of
stealing personal information. Unsuspecting people are then often
fooled into handing over credit card numbers, passwords or other
personal details.
If you are using Internet banking or any other online account, you
should be aware of these attacks and how to protect against
The following points may help you protect yourself:
1. Never respond to emails that request personal information. At
IDBI, we would never ask for your personal details through an
email. Nor would we ask for your password through any means,
online or offline. If any of our bank personnel asks you for your
password, do not disclose it and report him or her immediately to

2. Keep your password top secret and change them often.
Changing passwords often helps in protecting your account even if
inadvertently you may have disclosed it to someone.
3. Never use cyber cafes to access your online accounts at cyber
cafes may be infested with viruses and Trojans that can capture
and transmit your personal data to fraudsters. The easiest way to
grab information is key logging software. Beware of typing
passwords on unknown PCs.

4. Keep your computer secure Some Phishing emails or other spam
may contain software that can record information on your
internet activities (spyware) or open a 'backdoor' to allow
hackers access to your computer (Trojans). Installing anti-virus
software and keeping it up to date will help detect and disable
malicious software, while using anti-spam software will stop
Phishing emails from reaching you. It is also important,
particularly for users with a broadband connection, to install a
firewall. This will help keep the information on your computer
secure while blocking communication from unwanted sources.
Make sure you keep up to date and download the latest security
patches for your browser. If you don't have any patches
installed, visit your browser's website, for example users of
Internet Explorer should go to the Microsoft website.

5. Check the website you are visiting is secure Before submitting
your bank details or other sensitive information there are a
couple of checks you can do to help ensure the site uses
encryption to protect your personal data:
If the address bar is visible, the URL should start with „https://‟
(„s‟ for secured) rather that the usual „http://‟.
If the address bar is not visible as in our Internet Banking
website, look for a lock icon on the browser's status bar. You can
check the level of encryption, expressed in bits, by hovering over
the icon with your cursor. Note that the fact that the website is
using encryption doesn't necessarily mean that the website is
legitimate. It only tells you that data is being sent in encrypted

6. Validate the SSL Certificate if you are in any doubt, click on
the lock icon at the bottom of the secured page. This opens up a
new window, displaying the SSL certificate information. Ensure
that there is no Red Cross mark preceding the title „Certificate
Information‟. It should also be „Issues to: www.idbibank.co.in. You
can get more information by clicking on the other tabs in the
certificate window.

Following the above steps would help you in protect yourself.
However, please remember, fraudsters are always trying to stay a
step ahead. To ensure that you remain protected at all times
     never let anyone know your PINS or passwords, do not write
     them down
     do not use the same password for all your online accounts
     Avoid opening or replying to spam emails as this will give the
     sender confirmation they have reached a live address.
Above all, use common sense when reading emails. If something
seems implausible or too good to be true, then it probably is.
ACBI awards for IDBI & WR:

       Industrial Development Bank of India Limited (IDBI)
bagged three coveted awards at the 46th Annual Awards night,
organized by the Association of Business Communicators of India
(ABCI) on January 12, 2007 in Mumbai. “Shree Vayam”, the House
Journal of IDBI, was awarded the prizes in three individual
categories: Edwin Fernandes for Features (English), Gulabchand
Yadav for Features (Hindi), & Sushmita Vazirani for Features
(Photo). His Excellency S. M. Krishna, Governor of Maharashtra,
presided as Chief Guest & presented the Elite categories award
to the prizewinners.

      After   going through all these services provided by Idbi
Bank, we can conclude that IDBI is one of the fast going
Universal Banks in India. We expect that the information
provided by us was satisfactory.

       -   Idbi.com
       -   Google.com
       -   Indian Financial Systems
       -   Indian History of Banking
       -   DNA Newspaper


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