Index

Chapter no Particular Page no

1 Introduction 2 -3

2 Research and methodology 4-8

 Need of study
 Objective of study
 Scope of study
 Limitations of study
3 Significance of study 9-11

Data collection

4 Review of literature 12-13

5 Bank profile 14 -32

6 Data Analysis & Interpretation 33-46

7 Conclusion & Suggestion 47-49

8 Bibliography 50

1
CHAPTER 1
INTRODUCTION:

I have selected the project on IDBI Bank. In this project I have done details study in
banking sector in India and how Banking activities are handled by bank to provide
excellent service to their clients which leads to customers satisfaction.
As per my observation operation in banking field change a lot as compare to previous
banking activities for example now days each and every bank focusing on converting
their activities in digital form because which dependency of customers reducing and
customers can enjoy fast servicing as compare to previous baking activities.

In this project I have concentrated on products and services offered by IDBI Bank to
their final customers, study of financial performance of Bank. I have also concentrated
and study of profit and loss statement of IDBI Bank. After that I have done detail
searched on Balance sheet statement of IDBI Bank last but not the least, I have studied
on customer satisfaction level of bank.

To get more information about IDBI Bank I took a help from below sites and journal,
Newspapers, books, etc. The business of banking is as vintage as the civilization itself.
The mere reality that the Babylonians, in 200 BC, lent cash at better prices of interest
in opposition to gold and silver beneath the temple’s safe custody stands proof for
banking history. In ancient days, the main characteristic of banks was granting loans to
people or the state in times of disaster. Banking in India originated in the closing a long
time of the 18th century. The first banks were the General Bank of India, which started
in 1786 and the Bank of Hindustan. The oldest bank in existence in India is the State
Bank of India, a government owned bank that lines its foundation returned to June 1806
and that is the most important industrial financial institution in the country. The passing
of the Joint Stock Company act in 1850 significantly helped inside the status quo of
many business banks. Later in 1921, the Imperial Bank of India and in 1935 the Reserve
Bank of India had been also installed. After independence in 1947, the RBI was
nationalized allowing it with broader energy. The government of India nationalized 14
big industrial banks in1969 and six greater banks had been added to the listing in
1980.Today clients at the moment are turning into an increasing number of aware of
their rights and are demanding ever extra than earlier than. The latest developments

2
display that maximum of the banks are transferring from a “product –centric version”
to a “purchaser –centric version “considering consumer pride has grown to be one of
the predominant determinations of enterprise growth. In this context, prioritization of
performance and near monitoring of the purchaser pleasure is critical.
Finance is a vital and vital issue for financial improvement. Though finance
is in no way a substitute for actual resources, it has a critical function in the monetary
development of the country. The section of capital and money marketplace handling
lending and borrowing of funds, essentially for short-time period purposes, is
represented with the aid of commercial banking institutions. Commercial banks act as
economic intermediaries, i.e. Intermediaries of saving and funding. Savings
intermediates are a technique through which go with the flow of savings of the
community is allotted to finance investment in the economic system. The banking
machine which constitutes the middle of the monetary zone, performs a crucial position
in transmitting financial policy impulses to the entire monetary machine.

Banking is the kingpin of the chariot of economic development. The banking gadget
occupies an essential role in a kingdom’s economy. A banking organization is vital in
a cutting-edge society. It plays a pivotal function within the financial improvement of a
country and forms the center of the money marketplace in a developing country. The
significance of industrial banks within the manner of financial development has been
diagnosed by all. The function becomes extra critical in deliberate or growing
economies, like India. Banking industry is the blood vascular device of our economic
system. The overall performance of banks is absolutely related to the increase of the
economy, at the same time as the character and quantum of increase is, in flip, connected
to the provision of bank credit.

In India, although the money marketplace is still characterized by the

existence of both the organized and the unorganized segments, establishments in the
prepared money marketplace have grown notably and are gambling an increasingly
crucial role. Amongst the establishments within the organized quarter of the cash
market, commercial banks and commercial co-operative banks have been in life for the
past numerous a long time. The Regional Rural Banks got here into lifestyles because
the center of seventies. Thus, with the extra special geographical expansion of the

3
economic banks and the 2 putting in of the Regional Rural Banks all through the latest
beyond, the prepared quarter of cash marketplace has penetrated into the agricultural
areas as well. The structure of the Indian Banking System has passed through numerous
adjustments seeing that independence.

4
CHAPTER 2
RESEARCH METHODOLOGY

NEED OF STUDY

➢ The main reason and need to the study on IDBI Bank is to understand
functionally working culture of IDBI Bank.
➢ The project study helps us to identify improvement area which still needs to be
improving so customer can get more satisfaction, to provide the security to the savings
of customers, to control the supply of money and credit.
➢ To provide the security to the savings of customers. To control the stock of cash and
credit
➢ To energize open trust in the working of the money related framework, increment
investment funds quickly and productively.
➢ To stay away from focal point of money related powers in the hands of a couple of
people and Institutions.
➢ To set equivalent standards and conditions (for example pace of intrigue, time of loaning
and so on.) to a wide range of client

5
 Objective of the study:

• To study about Banking sector in India.

• To study about products and services offered by IDBI Bank.

• To study about financial performance of IDBI Bank.

• To study and compare Profit and Loss Statement of IDBI Bank.

• To study and compare Balance sheet Statement of IDBI Bank.

• To study customer’s satisfaction level of IDBI Bank.

• To study overall growth and performance of IDBI Bank.

6
 Scope of the Study:

In the present state of affairs major cost-effective and technical adjustments are present
process in commercial and financial revolution thru the brand-new information-
processing generation. Especially in finance area it has a full-size role for universal
development.
After identifying the situation (studies vicinity) and referring the applicable literatures,
it's been determined that in maximum of the literature, the facts technology has a huge
utility area. However, in finance area principal changes have been made. Due to those
drastic adjustments we've got chosen to do the examiner on city cooperative financial
institution gadget.
After completing grade by grade method for automation technique, now its miles
required to take the evaluate of the machine. People used statistics technological
equipment to manipulate and manner the facts. Atomization system use inside the
monetary area for transaction machine.This type of running methodology is used in the
financial Institute when you consider that long years.
The Urban Co-operative financial institution quarter is by and large associated with all
training of human beings like businessmen, enterprise, agriculture, labor, small
entrepreneurs, employees etc. It has been changing whole lifestyle and operating
technique. Therefore, it has a huge scope to take a look at the prevailing contemporary
transaction system in the economic region particularly in city cooperative bank device.
For that motive we are going to utilize software engineering model primarily based
strategies for theoretical assessment of atomization manner.

• The examiner offers evaluate of banking industry to investor even as making an

investment

• This study focuses the extent of patron pride derived from banking offerings of
IDBIBank in Mumbai City.

• The take a look at also includes in figuring out and analyzing the patron satisfaction
toward choice of a bank.

7
• The IDBIBank has a bright scope for mostly related to all classes of people like businessmen,
industry, agriculture, labour, small entrepreneurs, workers etc. It has been changing complete
culture and working methodology.

• In the current scenario of Indian financial and banking system is changing and turning into
more flexible and rigidity in nature.

• In the current scenario of Indian financial and banking system is changing and turning into
more flexible and rigidity in nature.

• To show the research methodology of these project, data analysis, conclusion and suggestion
of the bank

• Also tried to show the relevant data about the bank

• The project is done in time limit frame using all the online data which is connected to this
banking project.

8
 LIMITATION OF THE STUDY

• The information given from the bank was limited.

• The survey conducted was more of subjective kind and results will be completely based on
secondary data.
• The financial details of the bank are collected for current and previous year only.
• The data collected for the study depends on published financial statements of the companies
which may incorporate some drawbacks.
• This project extent is limited All over Mumbai.

9
 CHAPTER 3
SIGNIFICANCE OF STUDY
• The banking system is becoming more competitive in India. Every bank wants to be on the top
of what they are doing and thus optimize the share of this sector.
• To be active in every decision, information is the key to be on apex to predict future business
conditions. As a result, a portion dedicated to collect data to present a point of future prospects
and risks plays a substantial role in the organization.
• Portion of being competitive is expansion of branches and this is another significant role where
a Research & Development plays in providing the maximum possible combination of extensive
measures. Appropriate display and utilization of data is the important and the basis for
providing valuable decision that finally determines whether the bank will add or lose value.

• For the manager of the IDBI bank, data on a product and services predicted price provided by
the Research & Development will help in deciding whether to provide loans or open letter of
credit associated with this products or international business to reduce risk. The apex of the
managing and executing committee of the bank always needs to be up-to date with the
efficiency of the bank and new emerging.
• IDBI bank consists of personalized financial and investments products and services. The
customers of “IDBI bank” usually receive discounts or preferential pricing on financial
products.

10
 DATA COLLECTION

For the purpose of project data is very much required which works as a food for process which will
ultimately give output in the form of information. So before mentioning the source of data for the
project I would like to mention that what type of data I have collected for the purpose of project and
what it is exactly.

Primary Data: It is directly collected from the respondents. The info can be obtained from various
methods survey, observation and experimentation. But the secondary information is second hand data
collected from published or readily available sources. The researcher can g in-depth info relating to
the problem. The researcher can get detailed information through projective techniques. The researcher
can cross-question the respondents and obtain in depth information.

Primary data is reliable. The researcher can check the accuracy of the data. It is collected first hand.
Latest data is gathered from the respondents. The data collected from primary sources is more
accurate. The researcher can gather specific data relating to the problem. The primary data enhances
the quality of research work, as it is more accurate, reliable and specific to the research problem. The
primary methods allow flexibility in data collection

Secondary Data: It is collected from recorded and published/unpublished sources. The data is readily
available and hence easy to collect in the most economical way. It is called qualitative data. It can be
used for substantiating the primary data. It is a readymade information which is meant for general
purpose. The researcher must evaluate the secondary data with reference to its accuracy, relevancy and
reliability. It requires lesser time to accumalate the data as compared to primary as it is readily
available.

In this research secondary data has been used. Secondary information is an existing data type released
in books, newspaper, magazines, journals, online portals. There’s a lot of information accessible about
the research area.

In the examination of secondary information, best data cannot be undervalued as it gives future
researchers the background and context.

11
 CHAPTER 4

REVIEW OF LITERATURE

Malcom and Jeffrey Wurgler (2002) found that consequences for capital structure are steady.
Results propose that capital structure is the aggregate result of past endeavors to time the value
showcase.

• Zeitun (2007) explored the impact which capital structure has had on corporate execution
utilizing a board information test speaking to of 167 Jordanian organizations during 1989-2003.
Results indicated that an association's capital structure had an essentially negative effect on the
association's presentation measures, in both the bookkeeping and market's measures.

• Medhat Tarawneh (2006): Financial execution is a reliant variable and estimated by Return
on Assets (ROA) and the aim salary size. The free factors are the size of banks as estimated by
all out resources of banks, resources the executives estimated by resource use proportion
(Operating pay partitioned by all out resources) operational productivity estimated by the
working proficiency proportion (complete working costs isolated by net gain).

• Ross et al., (2007) inferred that the most analysts isolate the monetary proportions into four
gatherings for example benefit, dissolvability, liquidity and action proportions for point by point
investigation.

• Abe De Jong, et al (2008) examined the significance of firm-explicit and nation explicit
factors in the influence selection of firms the world over. Information recommended that firm-
explicit determinants of influence vary crosswise over nations, and that there is a roundabout
effect of nation explicit factors on the jobs of firm-explicit determinants of influence.

• Eugene F Brigham and Michael C Ehrhardt (2010) expressed that money related
proportions are intended to help in assessing budget summaries and utilized as an arranging and
control apparatus.

• Yusuf and Hakan, (2011) portrayed the momentary lenders of an organization like providers
of merchandise of credit and business banks giving transient advances are fundamentally keen on
realizing the organization's capacity to meet its present or transient commitment as and when
these become due.

12
• DimitiosLouzius (2012) In his investigation of Banking area in Greece found that for all
advance classes, NPLs in the Greek financial framework could be clarified for the most part by
macroeconomic factors (GDP, joblessness, loan costs, open obligation) and the executives
quality.

• Vasant Desai, (2013): The exhibition of a bank can be surveyed in there wide measurement
viz. business improvement, client care and housekeeping. The assets that a branch has are labor,
premises, arranging, framework system, authoritative structure and general organization. The
effectiveness of a branch would be estimated by the degree which it has adjusted between three
parameters.

• Nadia Zedek (2017) researched the controlling investors influences item enhancement
execution of 710 European business banks, it was discovered that when banks have no
controlling investor or have just family and state investors broadening yields diseconomies, while
the association of banking establishments, institutional financial specialists, mechanical
organizations or some other mix of these investor classifications, produce expansion economies:
they show higher benefit, lower income unpredictability and lower default hazard.

• Alpesh Gajera (2016): In his exploration article a money related execution assessment of
private and open segment banks found that there in centrality distinction in the budgetary
exhibition of these banks and private division banks are performed superior to anything open part
banks in regard of capital ampleness proportion and monetary execution.

• Muhammad Saifuddin Khan, et al (2017) in his examination paper inspects the connection
between financing liquidity and bank chance taking in the U.S. bank holding organizations from
1 986 to 2014, results indicated that bank size and capital cushions as a rule limit banks from
going for broke when they have lower financing liquidity chance.

13
 CHAPTER 5

BANK PROFILE

Industrial development Bank of India (IDBI)

The (IDBI) was set up in 1964 by parliament as completely claimed backup of hold bank of
India. In 1976, the bank's possession was moved to the administration of India. It was agreed the status
of head monetary establishment for planning the working of organizations at national and state levels
occupied with financing, advancing, and creating enterprises.

IDBI has given help to advancement related ventures and added to working up considerable limits in
every single significant industry in India. IDBI has legitimately or in a roundabout way helped all
organizations that are by and by figured as major corporate in the nation. It has assumed a prevailing
job in adjusted modern advancement.

IDBI set up the (SIDBI) as entirely possessed auxiliary to take into account explicit the requirements
of the little scale area. IDBI has designed the advancement of capital market through aiding in setting
up of the (SEBI), (NSE), (CARE), (SHCIL), (ISIL), (NSDL), and (CCIL).

In 1992, IDBI got to the household retail obligation showcase just because by giving creative bonds
known as the profound rebate bonds. These new bonds turned out to be exceptionally mainstream with
the Indian financial specialist.

In 1994, IDBI Act was changed to allow open possession up to 49%. In July 1995, it raised over Rs.
20 billion in its first (IPO) of value, in this way decreasing the administration stake to 72.14%. In June
2000, a piece of government shareholding was changed over to inclination capital. This capital was
reclaimed in March 2001, which prompted a decrease in government stake. The administration stake
right now is 51%. In august 2000, IDBI turned into the primary all India budgetary establishment to
acquire ISO 9002: 1994 confirmation for its treasury tasks. It additionally turned into the primary

14
association in the Indian money related segment to get ISO 9001:2000 confirmations for its forex
administrations.

Definition of a Bank:

Various Authors and Economists have given some basic and utilitarian definitions on Bank from
various points:

"Bank is a budgetary mediator foundation which bargains in credits and advances". - Cairn Cross

"Bank is a foundation which gathers inactive cash briefly from general society and loans to others
according to require". - R.P. Kent

"Bank gives administration to its customers and thus gets perquisites in various structures". - P.A.
Samuelson

"Bank is such a foundation which makes cash by cash as it were".

- W. Pawn

"Bank is such a monetary organization which gathers cash in current, reserve funds or fixed store
account; gathers checks as stores and pays cash from the depositors‟ account through checks". - Sir
John Pagette.

Indian Company Law 1936 characterizes Bank as "a financial organization which gets stores through
current record or some other structures and permits withdrawal through checks or promissory notes".

15
Oxford Dictionary characterizes a bank as "a foundation for authority of cash, which it pays out on
client's organization"

Current Scenario:

The business is at present in a progress stage. From one perspective, the PSBs, which are the backbone
of the Indian Banking framework, are shedding their fat as far as unnecessary labor, over the top Non-
Performing Assets (NPAs) and exorbitant legislative value, while then again the private part banks are
solidifying themselves through mergers and acquisitions.

PSBs, which at present record for over 78% of absolute financial industry resources are burdened with
NPAs (a staggering Rs. 830 billion of every 2000), falling incomes from customary sources, absence
of present day innovation and a gigantic workforce while the new private division banks are moving
forward and modifying the conventional financial plan of action by method for their sheer development
and administration. The PSBs are obviously as of now working out testing techniques even as 20% of
their huge representative quality has dwindled in the wake of the fruitful Voluntary Retirement
Schemes (VRS) plans.

The private players anyway can't coordinate the PSB's incredible reach, extraordinary size and access
to minimal effort stores. Consequently, one of the methods for them to battle the PSBs has experienced
the Merger and Acquisition (M&A) course. In the course of the most recent two years, the industry
has seen a few such examples. For example, HDFC Bank's merger with Times Bank ICICI Bank's
procurement of ITC Classic, Anagram Finance and Bank of Madurai. Centurion Bank, Indusind Bank,
Bank of Punjab, Vysya Bank are said to be vigilant. The UTI bank-Global Trust Bank merger anyway
opened a Pandora's case and achieved the acknowledgment that all was not well in the working of a
considerable lot of the private area banks.

Private part Banks have spearheaded web banking, telephone banking, anyplace banking, and versatile
banking, check cards, Automatic Teller Machines (ATMs) and joined different administrations and

16
incorporated them into the standard financial field, while the PSBs are as yet thinking about
disappointed workers in the repercussions of effective VRS plans. Likewise, following India's pledge
to the WTO understanding in regard of the administrations segment, outside banks, including both new
and the current ones, have been allowed to open up to 12 branches per year with impact from 1998-99
as against the previous stipulation of 8 branches.

Assignments of government weakening their value from 51% to 33% in November 2000 have
additionally opened up another open door for the takeover of even the PSBs. The FDI rules being more
excused in Q1FY02 may likewise make ready for outside banks taking the M& A course to obtain
wiling Indian accomplices.

In the mean time the financial and corporate segment log jam has prompted an expanding number of
banks concentrating on the retail portion. A considerable lot of them are likewise entering the new
vistas of Insurance. Keeps money with their sensational reach and a customary interface with the retail
speculator are the best set to go into the protection area. Banks in India have been permitted to give
charge based protection administrations without chance cooperation put resources into an insurance
agency for giving framework and administrations backing and set up of a different joint-adventure
insurance agency with chance interest.

17
Aggregate Performance of the Banking Industry:

Total stores of planned business banks expanded at a Compounded Annual Average Growth Rate
(CAGR) of 17.8% during 1969-99, while bank credit extended at a CAGR of 16.3% per annum. Banks'
interests in government and other affirmed protections recorded a CAGR of 18.8% per annum during
a similar period.

In FY01 the monetary lull brought about a Gross Domestic Product (GDP) development of just 6.0%
as against the earlier year's 6.4%. The WPI Index (a proportion of expansion) expanded by 7.1% as
against 3.3% in FY00. So also, cash supply (M3) developed by around 16.2% as against 14.6% per
year prior.

The development in total stores of the booked business banks at 15.4% in FY01 percent was lower
than that of 19.3% in the earlier year, while the development in credit by SCBs backed off to 15.6
percent in FY01 against 23% per year prior.

The modern lull additionally influenced the income of recorded banks. The net benefits of 20 recorded
banks dropped by 34.43% in the quarter finished March 2001. Net benefits developed by 40.75% in
the primary quarter of 2000-2001, yet dropped to 4.56% in the final quarter of 2000-2001.

On the Capital Adequacy Ratio (CAR) front while most banks figured out how to satisfy the standards,
it was an accomplishment accomplished with its a lot of troubles. The CAR, which at present is 9.0%,
is probably going to be climbed to 12.0% continuously 2004 dependent on the Basle Committee
suggestions. Any bank that desires to develop its benefits needs to likewise support its capital
simultaneously so its capital as a level of the hazard weighted resources is kept up at the stipulated
rate. While the IPO course was a much-liked one in the mid '90s, the present situation doesn't look
unreasonably alluring for bank majors.

18
Therefore, banks have been compelled to investigate different roads to support their capital base. While
some are charming outside accomplices to add to the capital others are utilizing the M&A course.
Many are likewise going in at right issues at costs extensively lower than the market costs to charm
the financial specialists.

19
Bank performance (Milestones):

1964:

Set up under an Act of Parliament as an entirely claimed backup of Reserve Bank of India.

1976:

Ownership moved to Government of India. Assigned Principal Financial Institution for co-
organizing the working of foundations at national and State levels occupied with financing,
advancing and creating industry.

1982:

International Finance Division of IDBI moved to Export-Import Bank of India, built up as a

completely claimed partnership of Government of India, under an Act of Parliament.

1990:

Set up Small Industries Development Bank of India (SIDBI) under SIDBI Act as an entirely claimed
backup to oblige explicit needs of little scale segment. Regarding a revision to SIDBI Act in
September 2000, IDBI stripped 51% of its shareholding in SIDBI for banks and different
establishments in the principal stage. IDBI has therefore stripped 79.13% of its stake in its recent
auxiliary to date.

1992:

Accessed household retail obligation showcase just because with inventive Deep Discount Bonds;
enlisted way breaking achievement.

1993:

Set up IDBI Capital Market Services Ltd. as an entirely possessed auxiliary to offer a wide scope of
budgetary administrations, including Bond Trading, Equity Broking, Client Asset Management and
Depository Services. IDBI Capital is as of now a main Primary Dealer in the nation.

1994:

20
Set up IDBI Bank Ltd. in relationship with SIDBI as a private division business bank auxiliary, a
spin-off of RBI's arrangement of opening up residential financial segment to private cooperation as a
component of generally speaking money related part changes.

1994:

IDBI Act altered to allow open proprietorship upto 49%.

1995:

Made Initial Public Offer of Equity and raised over Rs.2000 crore, in this manner decreasing
Government stake to 72.14%.

2000:

Entered into a JV concurrence with Principal Financial Group, USA for interest in value and the
board of IDBI Investment Management Company Ltd., recent a 100% auxiliary. IDBI stripped its
whole shareholding in its benefit the board adventure in March 2003 as a major aspect of in general
corporate system.

Set up IDBI Intech Ltd. as a completely possessed auxiliary to embrace IT-related exercises. A part
of Government shareholding changed over to inclination capital, since reclaimed in March 2001;
Government stake as of now 58.47%.

Became the primary All-India Financial Institution to get ISO 9002:1994 Certification for its
treasury activities. Additionally turned into the primary association in Indian money related division
to get ISO 9001:2000 Certification for its forex administrations.

2001:

Set up IDBI Trusteeship Services Ltd. to give innovation driven data and expert administrations to
supporters and backers of debentures.

2002:

21
Associated with select banks/foundations in setting up Asset Reconstruction Company (India)
Limited (ARCIL), which will be engaged with the Strategic administration of non-performing and
focused on resources of Financial Institutions and Banks.

2003:

IDBI procured the whole shareholding of Tata Finance Limited in Tata Home money Ltd, flagging
IDBI's invasion into the retail account part. The lodging money auxiliary has since been renamed
'IDBI Home fund Limited'.

On December 16, 2003, the Parliament affirmed The Industrial Development Bank (Transfer of
Undertaking and Repeal Bill) 2002 to revoke IDBI Act 1964. The President's consent for the
equivalent was acquired on December 30, 2003. The Repeal Act is planned for bringing IDBI under
the Companies Act for contributing it with the imperative operational adaptability to attempt
business banking business under the Banking Regulation Act 1949 notwithstanding the business
continued and executed by it under the IDBI Act, 1964.

2004:

The Industrial Development Bank (Transfer of Undertaking and Repeal) Act 2003 came into power
from July 2, 2004.

The Boards of IDBI and IDBI Bank Ltd. take on a fundamental level choice with respect to merger
of IDBI Bank Ltd. with proposedIDBI Ltd. in their separate gatherings on July 29, 2004.

The Trust Deed for (SASF) executed by its Trustees on September 24, 2004 and the primary
gathering of the Trustees was hung on September 27, 2004.

The new substance "Modern Development Bank of India" was consolidated on September 27, 2004
and Certificate of beginning of business was given by the Registrar of Companies on September 28,
2004.

Notification gave by Ministry of Finance indicating SASF as a money related foundation under
Section 2(h)(ii) of Recovery of Debts because of Banks and Financial Institutions Act, 1993.

Notification gave by Ministry of Finance on September 29, 2004 for issue of non-enthusiasm bearing
GOI IDBI Special Security, 2024, totaling Rs.9000 crore, of 20-year residency.

22
Notification for designated day as October 1, 2004, gave by Ministry of Finance on September 29,
2004.

2005:

The Board of Directors of IDBI Ltd., at its gathering hung on January 20, 2005, affirmed the Scheme
of Amalgamation, conceiving converging of IDBI Bank Ltd. with IDBI Ltd. In accordance with the
plan endorsed by the Boards of both the banks, IDBI Ltd. will give 100 value shares for 142 value
shares held by investors in IDBI Bank Ltd. EGM has been gathered on February 23, 2005 for
looking for investor endorsement for the plan.

2006:

IDBI signs MOU with Fortis.

IDBI packs "IT Team of the Year Award 2005".

IDBI sets up new branch in Andheri.

IDBI - Tripartite MOU with Federal Bank and Forties Insurance International.

IDBI packs Asia cash's "Best India Deal of the Year Award 2005.

IDBI Launches No Frills 'Sabka' Savings Bank Account.

2007:

Industrial Development Bank Of India Limited has educated that according to arrangements of
Article 134 to 138 of the Articles of Association of IDBI Ltd., read with Sections 255 and 256 of the
Companies Act, 1956, the investors have re-designated the accompanying two chiefs after retirement
by revolution on the Board of Directors of IDBI Ltd. in the third Annual General Meeting of IDBI
Ltd. hung on June 22, 2007.

(1) Shri Hira Lal Zutshi and

(2) Shri A. Sakthivel

IDBI Wins Three Awards at the ABCI.

23
IDBI signs MOU with IFC for co-activity in Clean Development Mechanism (CDM) Projects.

IDBI, Federal Bank and Fortis Sign Joint Venture Agreement To Establish A New Life Insurance
Company In India.

IDBI Launches new 600 days "A Suvidha Plus A"' FD Scheme.

2008:

Industrial Development Bank Of India Limited has submitted to a duplicate of the Resolution passed
by the Board by flow on March 12, 2008 in regard of progress of name of the Bank to "IDBI Bank
Limited" by passing a Special Resolution through Postal Ballot as far as Section 192A of the
Companies Act, 1956.

Company name has been changed from IDBI Ltd to IDBI Bank Ltd.

IDBI packs two Special IT Awards from IBA - IDBI ties up with Motilal Oswal Securities for web
based exchanging.

2009:

IDBI Bank has cut its benchmark prime-loaning rate (BPLR) by 25 premise focuses to 12.75 percent.
The decrease will become effective from July 1 and will apply to all credits connected to the BPLR,
including home advances, as per an official statement from the bank. The bank cut store rates by 25-
50 premise focuses prior this week.

IDBI Bank packs IBA's esteemed Banking Technology grant.

IDBI Bank Ltd and Tata Motors Limited (TML) sign MOU for Vehicle Loan Financing.

2010:

IDBI Bank has opened its first abroad branch at the Dubai International Financial Center.

2011:

IDBI Federal Life dispatches new arrangement for senior residents.

24
IDBI bank has chosen to select "A Mystery Shopping" technique in request to watch out for the
criticism on client experience, their recognition and desires.

IDBI Bank Ltd has educated BSE that Government of India (GOI) has, vide its letter dated
December 27, 2011, exhorted that GOI is effectively thinking about the Bank's solicitation for capital
help and expects to mix capital assets in the Bank by method for Preferential Allotment of Equity for
GOI, subject to important endorsements from the Board of Directors and different other statutory
bodies.

Despite the low charge cited in the offer to coordinate, IDBI bank figured out how to win the order
of people in general offer (IPO) of National Building Construction Corp Ltd (NBCC). The offer
welcomed should choose two trader financiers for the issue, a month ago. Further, choice of the
brokers was through a two phase procedure of specialized and budgetary offers.

2012:

IDBI Mutual Fund propelled another open finished store of assets conspire named "An IDBI Gold
Fund and RDQuo".

IDBI Bank cuts financing costs on home credits, slices store.

IDBI Bank delegates B K Batra as entire time executive.

IDBI Bank has propelled an online gateway, IDBI Samriddhi, to sell its Certificate of Deposits
(CDs) to the individual and institutional financial specialists, in this way including another
achievement in the expanding job of innovation in the financial part.

The Indian Banking industry, which is represented by the Banking Regulation Act of India, 1949 can
be extensively grouped into two significant classifications, non-planned banks and booked banks.
Booked banks involve business banks and the co-employable banks. As far as proprietorship, business
banks can be additionally gathered into nationalized banks, the State Bank of India and its gathering
banks, local rustic banks and private segment banks (the old/new household and outside). These banks
have more than 67,000 branches spread the nation over in each city and towns of all alcove and corners
of the land. The principal period of budgetary changes brought about the nationalization of 14
significant banks in 1969 and brought about a move from Class banking to Mass banking. This thus
brought about a huge development in the topographical inclusion of banks. Each bank needed to

25
reserve a base level of their advance portfolio to parts recognized as "Need Sectors". The assembling
segment additionally developed during the 1970s in ensured environs and the financial part was a basic
source. The following influx of changes saw the nationalization of 6 progressively business banks in
1980. From that point forward the quantity of booked business banks expanded four-overlap and the
quantity of bank offices expanded eight-overlay. What's more, that was not the breaking point of
development. After the second period of money related division changes and progression of the area
in the mid nineties, the Public Sector Banks (PSBs) discovered it very hard to contend with the new
private part banks and the remote banks. The new private division banks originally showed up after
the rules allowing them were given in January 1993. Eight new private division banks are by and by
in activity. These banks because of their poor start approach cutting edge innovation, which thus
encourages them to save money on labor costs.

During the year 2000, the State Bank of India (SBI) and its 7 partners represented a 25% offer in stores
and 28.1% offer in credit. The 20 nationalized banks represented 53.2% of the stores and 47.5% of
credit during a similar period. The portion of outside banks (numbering 42), local rustic banks and
other planned business banks represented 5.7%, 3.9% and 12.2% separately in stores and 8.41%,
3.14% and 12.85% individually in credit during the year 2000. About the detail of the present situation
we will experience the patterns in current economy of the nation.

Current Scenario:

• IDBI Bank Repo Linked Retail loans to be effective from October 1, 2019
Mumbai, September 9, 2019: IDBI Bank vide its press release dated August 30, 2019 had announced
that it would introduce Repo Rate linked Home and Auto Loan with effect from September 10, 2019

To promote green initiative, additional discount of 10 bps will be offered for purchase of electric car
under Suvidha Plus Auto Loan. Speaking on the occasion Shri Rakesh Sharma MD&CEO, said “Our
retail segment loan book is growing at 19% YOY and this measure will surely help us to improve the
business under the segment”

• IDBI Bank introduces Repo Linked Lending and Bulk Deposit Rates
Mumbai, August 29, 2019: IDBI bank has launched a new Home Loan and Auto Loan product
linked to Reserve Bank of India’s repo rate.

26
The Bank has also introduced Bulk deposits linked to the Repo rate in select Buckets. The Interest
rate on the new Home loan and Auto Loan variant will be directly linked to the repo rate and thereby
help in quick monetary transmission.

The Bank’s customers will have the twin option of selecting either the MCLR linked product or the
newly launched repo rate linked product.

The revised rates are applicable w.e.f. September 10, 2019.

• IDBI Bank reduces Marginal Cost of funds-based Lending Rate (MCLR)

Mumbai, August 08, 2019: IDBI Bank reduces Marginal Cost of Funds based Lending Rates
(MCLR) as under:

Tenor MCLR ( in % )
Overnight 7.85%
One Month 8.10%
Three Month 8.35%
Six Month 8.50%
One Year 8.85%
Two Year 8.95%
Three Year 9.10%

The above revised rates are applicable w.e.f. August 12, 2019. The bank has reduced MCLR by 5
bps to 15 bps across various tenors

• Launch of Portfolio Management Services by IDBI Bank

Mumbai July 24, 2019: IDBI Bank has launched Portfolio Management Services (PMS) for HNW
Customers at Taj Lands End, Bandra, Mumbai on 17th July 2019. Bank has tied up with its own
subsidiary IDBI Capital to distribute PMS to the Bank’s HNW Clients.

This PMS will be served by our top 100 branches across 12 Cities. This will enhance the distribution
product portfolio of the Bank. The clients will be benefited by getting professional PMS services of
the fund manager to achieve desirable investment goals.

Aggregate Performance of the Banking Industry:

27
Combination deposits of scheduled commercial banks multiplied at a compounded annual average
growth fee (cagr) of 17.8% all through 1969-99, at the same time as financial institution credit score
increased at a cagr of 16.3% in step with annum. Banks’ investments in authorities and other
authorized securities recorded a cagr of 18.8% in keeping with annum at some point of the same
length.

In fy01 the financial slowdown led to a gross home product (gdp) growth of best 6.0% as in
opposition to the previous year’s 6.4%. The wpi index (a degree of inflation) multiplied by using
7.1% as against 3.3% in fy00. Similarly, cash deliver (m3) grew by round 16.2% as against 14.6% a
yr in the past.

The growth in mixture deposits of the scheduled commercial banks at 15.4% in fy01 percent
become lower than that of 19.3% inside the previous year, while the increase in credit by using scbs
bogged down to 15.6 percent in fy01 against 23% a year in the past.

The commercial slowdown additionally affected the earnings of listed banks. The internet
income of 20 listed banks dropped by way of 34.43% within the sector ended march 2001. Net
income grew through 40.75% in the first zone of 2000-2001, however dropped to 4.56% within the
fourth quarter of 2000-2001.

On the capital adequacy ratio (vehicle) the front whilst maximum banks managed to
fulfill the norms, it become a feat done with its very own proportion of difficulties. The car, which at
gift is 9.0%, is probable to be hiked to 12.0% by means of the year 2004 based on the basle
committee recommendations. Any bank that wishes to grow its assets wishes to also shore up its
capital on the same time in order that its capital as a percent of the chance-weighted belongings is
maintained at the stipulated rate. Whilst the ipo route become a miles-fancied one within the early
‘90s, the contemporary state of affairs doesn’t appearance too attractive for financial institution
majors.

Consequently, banks have been forced to explore other avenues to shore up their capital base. While
some are wooing foreign partners to add to the capital others are employing the M&A route. Many are
also going in for right issues at prices considerably lower than the market prices to woo the investors.

Interest Rate Scene:

The two years, publish the East Asian crises in 1997-98 saw a climb within the international interest
prices. It became handiest inside the later 1/2 of FY01 that the usa Fed cut hobby quotes. India has
however remained extra or much less insulated. The beyond 2 years in our us of a become

28
characterised via a mounting aim of the Reserve bank of India (RBI) to steadily reduce interest prices
ensuing in a narrowing differential among global and domestic fees.

The RBI has been affecting financial institution price and CRR cuts at ordinary
periods to improve liquidity and decrease costs. The simplest exception turned into in July 2000
while the RBI expanded the cash Reserve Ratio (CRR) to stem the autumn in the rupee against the
dollar. The steady fall in the interest quotes resulted in squeezed margins for the banks in
fashionable.

29
Governmental Policy:

The government isn't keen to provide any additional capital to IDBI Bank NSE -3.35 %, which calls
for round Rs 7,000 crore to meet regulatory necessities and enhance its lending e-book.

The bank has indicated that it will need this money inside the contemporary financial itself,
consistent with official privy to the improvement. It had reported a lack of Rs 4,918 crore inside the
final area of FY19 and Rs 15,116 crore for the overall year.

The financial institution is already monetising its non-core belongings to raise capital. Any public
offer will depend upon how a great deal lively participation is there from the promoter and the
second largest shareholder,” stated one of the officers. since the government is not eager to
participate in a rights problem, that might not be a possible choice, he said.

IDBI and LIC didn’t reply to queries.

LIC and IDBI are discussing capital-raising plans with the government, the second one official said.
The authorities might also are searching for the opinion of the regulation ministry on whether or not
the now privatisedidbibanknse -3.35 % should be taken into consideration a country-run financial
institution, or be treated on a par with non-public banks as categorized by the reserve financial
institution of india, a senior authentic stated.

The development comes after the crucial vigilance commission, in reaction to a finance ministry
question, stated idbi bank will continue to return below the authorities’s vigilance oversight. Non-
public banks do no longer fall below the ambit of the vigilance fee.

Idbi, installation in 1964 underneath an act of parliament, is regarded as a public monetary

organization under the companies act, but the government has ceded its control control inside the
company. Therefore, the confusion.

“we continue to remember it a kingdom-run financial entity but may additionally searching for in
addition clarity if wanted,” a senior government respectable told et. In respond to questions about
public region banks in each houses, the government has clarified that facts includes figures for idbi
bank.

The union cabinet had, in august closing 12 months, authorised acquisition of controlling stake inside
the bank by way of state-run insurer life insurance organization of india (lic) as promoter, and
bringing down the authorities’s stake within the f ..

30
Implications of Some Recent Policy Measures:

The allowing of PSBs to shed manpower and dilution of equity are moves in an effort to lend more
autonomy to the enterprise. with the intention to lend more intensity to the capital markets the RBI had
in November 2000 additionally changed the capital marketplace publicity norms from 05% of financial
institution’s incremental deposits of the preceding yr to 05% of the bank’s total domestic credit within
the previous 12 months. but this circulate did no longer have the preferred impact, as in, at the same
time as most banks kept away almost absolutely from the capital markets, some personal zone banks
went overboard and surpassed limits and indulged in doubtful inventory marketplace deals. The
possibilities of seeing banks making a comeback to the stock markets are therefore quite unlikely in
the near destiny.

The pass to boom overseas Direct investment FDI limits to forty nine% from 20% all
through the primary region of this financial came as a welcome declaration to overseas players trying
to get a foot keep in the Indian Markets by means of investing in inclined Indian companions who are
starved of net worth to satisfy automobile norms. Ceiling for FII investment in organizations become
also accelerated from 24% to 49% and have been blanketed within the ambit of FDI funding.

31
 DATA ANALYSIS & INTERPRETATION
FINANCIAL STATEMENT

IDBI Bank Profit & Loss Account For The Year End 31 ST March

in Rs. Crore
Particulars
Mar-19 Mar-18 Mar-17

Income

Interest Earned 23,026.53 27,791.37 28,043.10

Other Income 7,008.88 3,967.60 3,410.36

Total Income 30,035.41 31,758.97 31,453.46

Expenditure

Interest Expended 17,386.21 22,039.71 21,953.81

Employee cost 1,781.08 2,203.59 1,674.05

Selling, Admin. & Misc. Expenses 18,733.31 12,314.87 11,276.23

Depreciation 372.73 358.94 214.18

Operating Expenses 4,744.68 5,140.14 4,129.59

Provision & Contingencies 16,142.44 9,736.59 9,034.87

Total Expenditure 38,273.33 36,917.11 35,118.27

Net Profit For the year -8,237.92 5,158.14 -3,664.80

Profit brought forward -8,492.39 2,827.28 912.19

Total -16,730.31 -7,985.42 -2,752.61

32
Equity Dividend 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00

Earnings per Share (Rs.) -26.71 -25.05 -17.80

Equity Dividend (%) 0.00 0.00 0.00

Book Value (Rs.) 52.39 83.28 107.41

Transfers:

Transfer to Statutory Reserve 433.7 506.97 74.67

Transfer to Other Reserve 0.00 0.00 0.00

Proposed Dividend / Transfer to Govt. 0.00 0.00 0.00

Balance c/f to Balance Sheet -17,164.01 -8,492.39 -2,827.28

Total -16,730.31 -7,985.42 -2,752.61

33
 • IDBI Bank Balance Sheet as at 31ST March

in Rs. Crore
Particulars
Mar-19 Mar-18 Mar-17

Capital & Liabilities

Equity Share Capital 3,083.86 2,058.82 2,058.82

Reserves & Surplus 13,071.98 15,087.09 20,055.15

Revaluation Reserve 5,053.88 5,417.75 5,607.83

Net Worth 21,209.82 22,563.66 27,721.80

Deposits 2,47,931.61 2,68,538.10 2,65,719.83

Borrowings 63,185.53 56,363.98 69,573.94

Total Debt 3,11,117.14 3,24,902.08 3,35,293.77

Other Liabilities & Provisions 17,986.77 14,302.18 11,356.57

Total Liabilities 3,50,313.63 3,61,767.92 3,74,372.14

Assets

Cash & Balances with RBI 13,163.69 13,346.92 13,822.91

Balance with Banks, Money at Call 20,522.40 19,337.16 2,757.63

34
Advances 1,71,739.95 1,90,825.92 2,15,893.45

Investments 91,606.06 92,934.41 98,999.43

Gross Block 6,269.10 6,808.94 7,023.13

Accumulated Depreciation 0.00 0.00 0.00

Net Block 6,269.10 6,808.94 7,023.13

Capital Work in Progress 501.89 539.85 424.19

Other Assets 46,510.56 37,974.70 35,451.39

Total Assets 3,50,313.63 3,61,767.92 3,74,372.14

Contingent Liabilities 2,07,316.76 2,01,931.13 2,12,856.92

Book Value (Rs.) 52.39 83.28 107.41

Interpretation:
The Comparative Balance Sheet has studied that the performance of financial position of IDBI Bank
has been found satisfactory. It has found that there is 25.83% increase in net worth from 2017 to
2019 year and 27.01% growth in total debt from 2017 to 2019 year. The total liabilities have
registered 27.84% increase in the year 2019 as compared to the year 2017 and the assets have also
shown the same results

35
 A. Liquidity Ratio:

1. Current Ratio:

Current Assets
Current Ratio =Current Liabilities

CURRENT RATIO

Table 6.1 Showing the Bank's Current Ratio

Current Assets Current Liabilities Ratio

Year
(A) (B) (A/B)

2016-17 3,44,044.55 3,29,103.91 1.0454

2017-18 3,54,958.96 3,39,204.26 1.0464

2018-19 3,67,349.00 3,46,650.34 1.0597

CURRENT RATIO Ratio (A/B)

1.065

1.06

1.055

1.05

1.045

1.04

1.035
2016-17 2017-18 2018-19

• INTERPRETATION:

Table 6.1 presents Current Ratio of three years from 2017 to 2019. In the
above proportions the bank's present proportion of 2017 is 1.0454, 2018 is 1.0464 and 2019 is
1.0597 it gives us that bank's present proportion is expanding positive development step by step

36
 2. Cash Ratio:

Cash
Cash Ratio =
Current Liabilities

CASH RATIO

Table 6.2 Showing the Bank's Cash Ratio

Cash Current Liabilities Ratio

Year
(A) (B) (A/B)

2016-17 33,686.09 3,29,103.91 0.1024

2017-18 32,684.08 3,39,204.26 0.0964

2018-19 16,580.54 3,46,650.34 0.0478

Cash Ratio
0.12

0.1

0.08

0.06

0.04

0.02

0
2016-17 2017-18 2018-19

• INTERPRETATION:

Table 6.2presents Cash Ratio of three years from 2017 to 2019. In the above proportions the bank's
fast proportion of 2017 is 0.1024, 2018 is 0.0964 and 2019 is 0.0478 it gives us that bank liquidity is
really awful in light of the fact that it's diminishing step by step.

37
 3. Quick Ratio:

Quick Assets
Quick Ratio =
Current Liabilties

QUICK RATIO

Table 6.3 Showing the Bank's Quick Ratio

Quick Assets Current Liabilities Ratio

Year
(A) (B) (A/B)

2016-17 3,44,044.55 3,29,103.91 1.0454

2017-18 3,54,958.96 3,39,204.26 1.0464

2018-19 3,67,349.00 3,46,650.34 1.0597

QUICK RATIO
Ratio Ratio (A/B)
1.065

1.06

1.055

1.05

1.045

1.04

1.035
2016-17 2017-18 2018-19

• INTERPRETATION: Table 6.3presents Quick Ratio of three years from 2017 to 2019. In
the above ratios the bank’s quick ratio (acid test ratio) of 2017 is 1.0454, 2018 is 1.0464 and
2019 is 1.0597 it shows us that bank liquidity increasing positive growth year by year.

38
 B. Profitability Ratio:

1. Net Profit Margin Ratio:

Net Profit
Net Profit Margin Ratio = Sales

NET PROFIT MARGIN RATIO

Table 6.4 Showing the Bank's Net Profit Margin Ratio

Net Profit Sales Ratio

Year
(A) (B) (A/B)

2016-17 16,730.31 23,026.53 0.7266

2017-18 7,985.42 27,791.37 0.2873

2018-19 2,752.61 28,043.10 0.0982

Net Profit Margin Ratio

0.8000

0.7000

0.6000

0.5000

0.4000 Ratio (A/B)

0.3000

0.2000

0.1000

0.0000

• INTERPRETATION:

Table 6.4 presents Net Profit Margin Ratio of three years from 2017 to 2019.
In the above proportions the bank's net overall revenue proportion of 2017 is 0.7266, 2018 is 0.2873
and 2019 is 0.0982 it gives us that bank benefit isn't good since it's diminishing step by step.

39
Return on Common Stock Equity Ratio:

Net Income
Current Ratio =
Common Stock Equity

RETURN ON COMMON STOCK EQUITY RATIO

Table 6.5 Showing the Bank's Return on Common Stock Equity Ratio

Net Income Common Stock Equity Ratio

Year
(A) (B) (A/B)

2016-17 16,730.31 3,083.00 5.4266

2017-18 7,985.42 2,058.82 3.8786

2018-19 2,752.61 2,058.82 1.3370

Return on Common Stock Equity Ratio

6.0000

5.0000

4.0000

3.0000 Ratio (A/B)

2.0000

1.0000

0.0000

• INTERPRETATION:

Table 6.5 presents Return on Common Stock Equity Ratio of three years from
2017 to 2019. In the above ratios the bank’s net profit margin ratio of 2017 is 5.4266, 2018 is 3.8786
and 2019 is 1.3370 it shows us that bank profitability is not satisfactory because it’s decreasing year
by year.

40
 3. Return on Total Assets:

Net Profit
Return on Total Assets Ratio =
Total Assets

RETURN ON TOTAL ASSETS

Table 6.6 Showing the Bank's Return on Total Assets Ratio

Net Profit Total Assets Ratio

Year
(A) (B) (A/B)

2016-17 16,730.31 3,50,313.63 0.0478

2017-18 7,985.42 3,61,767.92 0.0221

2018-19 2,752.61 3,74,372.14 0.0074

Return on Total Assets

0.0600

0.0500

0.0400

0.0300 Ratio (A/B)

0.0200

0.0100

0.0000

• INTERPRETATION:

Table 6.6 presents Return on Asset Ratio of three years from 2017 to 2019. In the above
proportions the bank's arrival on resource proportion of 2017 is 0.0478, 2018 is 0.0221 and

41
 2019 is 0.0074 it gives us that bank productivity isn't agreeable in light of the fact that it's
diminishing step by step.

C. Assets Management Ratio:

1. Current Assets Turnover Ratio:

Sales
Current Assets Turnover Ratio =
Current Assets

CURRENT ASSETS TURNOVER RATIO

Table 6.7 Showing the Bank's Current Assets Turnover Ratio

Sales Current Assets Ratio

Year
(A) (B) (A/B)

2016-17 23,026.53 3,44,044.55 0.0669

2017-18 27,791.37 3,54,958.96 0.0783

2018-19 28,043.10 3,67,349.00 0.0763

Current Assets Turnover Ratio

0.0800
0.0780
0.0760
0.0740
0.0720
0.0700 Ratio (A/B)
0.0680
0.0660
0.0640
0.0620
0.0600

• INTERPRETATION:

42
Table 6.7 presents Current Asset Turnover Ratio of three years from 2017 to 2019. In the above
proportions the bank's present resource turnover proportion of 2017 is 0.0669, 2018 is 0.0783 and
2019 is 0.0763 it gives us that bank current resource turnover proportion isn't excessively great as
liquidity since it's fluctuating step by step.

2. Total Assets Turnover Ratio:

Sales
Total Assets Turnover Ratio =Total Assets

TOTAL ASSETS TURNOVER RATIO

Table 6.8 Showing the Bank's Fixed Assets Turnover Ratio

Sales Total Assets Ratio

Year
(A) (B) (A/B)

2016-17 23,026.53 3,50,313.63 0.0657

43
 2017-18 27,791.37 3,61,767.92 0.0768

2018-19 28,043.10 3,74,372.14 0.0749

Total Assets Turnover Ratio

0.0780
0.0760
0.0740
0.0720
0.0700
Ratio (A/B)
0.0680
0.0660
0.0640
0.0620
0.0600

• INTERPRETATION:

Table 6.8 presents Total Asset Turnover Ratio of three years from 2017 to 2019. In the above
proportions the bank's absolute resource turnover proportion of 2017 is 0.657, 2018 is 0.0768 and 2019
is 0.0749 it gives us that bank complete resource turnover proportion isn't great as liquidity since it's
fluctuating step by step.

3. Debt Equity Ratio:

Total Liabilities
Debt Equity Ratio =Total Shareholder′ s Equity

DEBT EQUITY RATIO

Table 6.9 Showing the Bank's Debt Equity Ratio

Total Liabilities Total Shareholder's Equity Ratio

Year
(A) (B) (A/B)

44
 2016-17 3,50,313.63 3,083.86 113.60

2017-18 3,61,767.92 2,058.82 175.72

2018-19 3,74,372.14 2,058.82 181.84

Debt Equity Ratio

175.72 181.84

113.60

Ratio (A/B)

• INTERPRETATION:

Table 6.9 presents Debt Equity Ratio of three years from 2017 to 2019. In the
above ratios the bank’s debt equity ratio of 2017 is 113.60, 2018 is 175.72 and 2019 is 181.84 it shows
us that bank debt equity ratio is favorable as compare to previous two years.

45
CHAPTER 7 7

FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

Findings:

• In overall, the performance of financial position of IDBI Bank has been found satisfactory.
• The profitability ratio analysis conducted in the study reveals that IDBI Bank have shown the
Downbeat tendency and then has shown the positive trend in the performance of profitability
ratios.
• Total Assets as at March 2019 of IDBI were Rs. 2,33,572 crore and have declined by 20%
when compared to previous FY. This is a serious matter and needs IDBI Bank’s immediate
remedial action.
• Interest Income was Rs.15,272.6 crore and with the other salary of Rs. 2,290.9 crore. Complete
Gross pay was Rs. 17,563.5 crore. PBT was Rs. 1,044.7 crore and PAT was Rs. 1,031.1 crore.
• EPS remained at Rs.14.20 Book esteem per share remained at Rs. 113 and a Dividend of 30 %
suggested on completely settled up value capital.
• Total CRAR 11.31% against RBI stipulated standards of 9%. Center CRAR 6.24% against RBI
stipulated standards of 6%.

46
 Conclusions:

• After doing research I came to know about functionally of banking sector in India how
banks are working and how they provided services to customer. banking sector in Indian
has given an effective and inspiring responses to the economic region reforms. Entry of
latest private banks and shaken up Public sector banks to competition. The monetary
sector reforms have delivered India economic gadget closer to worldwide requirements.
With the India more and more getting integrated with the worldwide monetary world, the
Indian banking quarter has a nonetheless long manner to visit seize up with their counter
elements.Banking sector in Indian has given a high-quality and inspiring responses to the
monetary quarter reforms. Entry of latest personal banks and shaken up Public sector
banks to competition. The financial region reforms have added India economic system
in the direction of worldwide requirements.

• I come to know from this research the bank of India has various products & services and
this product & services satisfied their customers well. The product & services are like
Ancillary services, Cards, Deposit scheme, Loan, Personal loan, Home Loan andOnline
Services.

• After this research in 2017 there are a great margin of profit as well as 2019 income of
IDBIbank is lower than the 2017 to till 2019.Current liabilities of the IDBIBank is higher
than current assets.

• I came to know about the profit and loss of the IDBIbank . It is increasing every year.
2017 and 2019 there are a great margin of profit, In 2019 income of bank is greater than
the 2017, 2018, 2019.

• I observed balance sheet statement of the IDBIBank and I came to know the Current
liabilities are more than current assets.

47
 Suggestion

• Since there is just two part of IDBI bank and just three ATMs in Mumbai, so it is essential for
IDBI bank to open more branches and introduce more ATMs to serve the immense market of
Mumbai particularly.
• More assets ought to be distributed in the market of Mumbai as there is large undiscovered
market in Mumbai, so it gets important for IDBI bank for taking an edge over the contenders.
• A short promoting effort in Mumbai has created great outcomes in a limited ability to focus
times, so to increase long haul benefits is vital for IDBI bank to carry on this crusade with
greater force.
• Besides opening more branches it ought to likewise search for opening some expansion
counter in Kutub close Meherauli and one in Khanpur.
• As Government is the larger part investor in the portions of IDBI bank, which makes this
bank more dependable than other private banks, this thing can be utilized in the support of
IDBI bank by making individuals mindful about this reality and winning their confidence.

48
CHAPTER 8 7

BIBLIOGRAPHY

• Hand Book on Banking Awarness – N.K.GUPTA

• Indian financial system – BHARATI PATHAK
• Banking and Financial system – V.NITYANANDA SHARMA
• Aaker Kumar and Day, Marketing research, 6th Ed., John Willy & sons, 1997.
• The Economics times
• Datt R. and Sundaram K.P.M., 2006: ‘Indian Economy’, S. Chand & Company Ltd., New Delhi,
781.

WEBLIOGRAPHY

• www.idbibank.com
• www.en.wikipedia.org/wiki/IDBI_Bank
• www.goodreturns.in/company/idbi-bank/history.html
• www.moneycontrol.com/idbi-bank/balancesheet
• www.moneycontrol.com/idbi-bank/profitandloss
• www.capitalmarket.com/financialanalysis/idbi-bank

49