Names

Roll Nos

Vinita Adwani

01

Madhavi Pandey

41

Drishti Rai
Nikita Tharwani
Kshtija Waghmare

45
60
65

Industrial Development Bank of India Ltd.

Members are:

Introduction to IDBI Bank:Industrial Development Bank of India

Type

Public sector bank

Founded

1964

Headquarters

India

Key people

Yogesh Agarwal,
Chairman

Industry

Finance

Products

Financial Services

Employees

8989

Website

www.idbibank.com

The Industrial Development Bank of India

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

Institutions built by IDBI bank:Some of the institutions built by IDBI are the
National Stock Exchange of India (NSE), the
National Securities Depository Services Ltd (NSDL),

the Stock Holding Corporation of India (SHCIL), and

IDBI BANK, which today is owned by the Indian
Government, though for a brief period it was a
private scheduled bank.

Infrastructure:It is currently the tenth largest development bank

in the world in terms of reach with:- 1140 ATMs,
689 branches >Metro-206, Urban-273, SemiUrban-138, Rural-72 and 458 centers.

The Branches of IDBI Bank are as follows:-

Andheri

Dadar

Lower Parel

Bandra

Dahisar

Malad

Belapur

Fort

Mulund (E)&(W)

Bhayandar

Ghatkopar

Nariman Point

Borivali

Girgaon

Sion

Chembur

Goregaon

Vashi

CMS

Kalina

Vile Parle etc.

Change of ownership:In 16 February 1976, the ownership of IDBI was

transferred to the Government of India and it was
made the principal

financial institution for coordinating the activities of

institutions engaged in financing, promoting and
developing industry in the country. Although
Government shareholding in the Bank came down
below 100% following IDBIs public issue in July

1995, the former continues to be the major

shareholder (current shareholding: 52.3%).

Recommendation by Narasimam committee:Narasimam committee recommends that IDBI

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

Diversification of IDBI Bank:In September 2003, IDBI acquired the entire

shareholding of Tata Finance Limited in Tata Home
Finance Ltd. Since then, the fully owned housing
subsidiary was known as 'IDBI Home Finance
Limited'.

Government of India had decided to transform

IDBI into a commercial bank so as to have low-cost
current, savings bank deposits, which would help
overcome most of the limitations of the current
business of development finance only to diversify
its client base. This would have a positive impact
on the Banks overall cost of funds and facilitate
lending at more competitive rates to its clients. It
would offer various retail products, continuing the
existing relationship with retail investors . Further,
the new IDBI hopes to own one stop super-shop
and become most preferred brand for providing
total financial and banking solutions to corporate
and individuals, capitalizing the Indian industry
and client requirements and large retail base.
Next year, on July 29, 2004, the Board of
Directors of IDBI and IBDI Bank approved the
merger of IDBI Bank with the Industrial
Development Bank of India Ltd. The merger was
completed in the financial year ending of 2005.IDBI
Bank also acquired United Western Bank in 2006.
IDBI would continue to provide its products and
services even after converting into a banking
company. In addition, they would provide wholesale
and retail banking products, designed to suit the

specific needs cash flow requirements of corporate

and individuals. IDBI would keep the strong
corporate relationships built up over the years to
offer customized and total financial solutions for all
corporate business needs, term loans and working
capital finance, strategic advisory, etc.

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

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

Role and Functions of IDBI:Role:

From the time of existence, IDBI has been very
good not only in establishing a well-developed,
diversified and efficient industrial and
institutional structure but also adding a

qualitative dimension to the process of

industrial development in the country.
It has played a pioneering role in fulfilling its
mission of promoting industrial growth through
financing of medium and long-term projects.
It has done good, particularly in the pre-reform
era (1964-91),in catalyzing broad based
industrial development in the country in
keeping with its Government-ordained
development banking charter.
Its activities confines of long-term lending to
industry , balanced industrial growth through
development of backward areas, modernization
of specific industries,

employment generation, entrepreneurship

development .
Support services for creating a vibrant
domestic capital market.

Functions:
IDBI has enlarged its basket of products and
services, covering almost the entire spectrum

of industrial activities, including manufacturing

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

Products and Services offered by Bank:Personal Banking: Deposits

o Savings Account (basically for salaried
persons)
o Current Account (for businessmen)

o Fixed Deposits (for everyone)

o Suvidha Tax Saving Fixed Deposit
o Pension Accounts
o Sabka Account
o Super Shakti Account for Women
o Jubilee Plus Account
Loans
o Home Loans
o Loans Against Property
o Education Loans
o Personal Loan
o Loan Against Securities
o Reverse Mortgage Loan
o Auto Loan
Payments
o
o
o
o
o
o
o

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

Investments Advisory
o Smart Financial Planning
o Mutual Fund
o Insurance Fixed Income Securities

 Cards
o
o
o
o
o
o
o
o

Gold Debit Card

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

Institutional Banking
o Institutional Savings Account
o Corporate Payroll Account
24 Hours Banking
o
o
o
o

Phone Banking
SMS Banking
Account Alerts
Internet Banking

Other products
o Lockers
o India Post
Preferred Banking
NRI Services
Capital Market

o IPO
o Demat

Corporate Banking :-

Following products and services are offered by IDBI

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

SME Finance:Following SME Finance products are offered by the

IDBI Bank:

 Sulabh Vyapar Loan

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

Other:-

Agri-business Products

Difference from other Banks:IDBI bank is different from others because other
banks deal in banking business but this bank first

deals in financing the various industries for

development in the country and then does the
banking business. Even now this bank provides
finance to various industries for the development.
It also finances to film business. Before
diversification of IDBI to bank it used to deal in
financing business to various industries and firms.

Marketing Strategy:The bank has two ways of marketing namely:1.

2.

Through Branch
Through Sales Department

1.Through Branch:In this method they talk directly to the existing

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

In this method the sales department

employees take the
whole
responsibility of giving the common people the
information about the new schemes and
facilities. The employees take the help of
pamphlets, advertisement in television ,etc., go
door-to-door for distributing pamphlets, give
advertisements on internet on various websites
most visited by people, etc. This method has
positive impact that
the people come to know about the various new
schemes and facilities. This method is approved
by the employees.

Services to employees working with IDBI Bank:The bank provides various service to the people
working in each and every branch of IDBI bank.
They provide their employees with various services
and also motivate them towards work.
Services: Salary/Increments
For full attendance in every week they give
their employees bonus along with salary
Provident Fund
Pensions

 Good working conditions with health security

&other things
Breaks for refreshment &canteen for
employees.
Holiday packages
Residential Help
Trips
Various Loans:- Educational, Housing, Personal,
etc.
Different Employee Schemes, etc.
These are the various services provided by bank
to help the employees to work honestly.

Motivation of Employees:-

They motivate employees by various ways.

They are: Employee of Week (every week)

Employee of Month (every month)

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

These are the various ways of motivating used

by the bank management to inculcate working
habit in the employees.

Recruitment Methods:There are two methods of recruiting employees

they are as follows:i.
ii.

Internal Method
External Method
i.

Internal Method:- In this method the bank

people give promotions to their existing
employees and do

the transfer of the people from other

branches. They also talk to their existing
customers for some employees who require
jobs.
ii. External Method:- In this method the
recruiting department of the bank prepare
and plan for pamphlets and advertisement in
newspapers and

distribute pamphlets to people in the public

places. They also take help of banners and
put them up in public places and wherever
necessary.

The Present:Today, IDBI Bank is counted amongst the leading

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

Vision

To be trusted partner in progress by leveraging

quality human capital and setting global standards of
excellence to build the most valued financial
conglomerate .