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
India.

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 Ltd.

IDBI Bank
 O verview of development banking in India

Th concept of development banking rose only after

e , Successive of the Great Depression in 1930s.
Second World War
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 Bank.
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

election:
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
authorised.

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.

Preamble
I:DBI 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
objective.

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.

Shareholders
I:DBI 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 Trading.

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

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
Group.

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:

Deposits
: he bank provides normal Savings Bank Accounts, Current
T
Accounts, Fixed Deposits, and Pension Accounts. But it also
provides special accounts like Suvidha plus Fixed Deposits
accounts & Sabka Accounts.

Loans
: he bank provides various loans like:
T
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

India.
Sender needs to know only the card number of the
beneficiary.
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.

Investment:
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:funds offer a simple and effective way to diversify your
Mutual
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
instruments.
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: an NRI (non-resident Indian) and privy to special
Being
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 insurance.

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.

FCN
R
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 of
USD/INR.
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
contract.

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
bank.

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
direction.
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:is on the move and so are the people who conduct it. For
Business
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: new Account Alert service gives you all this and more.
IDBI's
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
executed.

Gold
cardcard can be used to transact at IDBI ATMs and 13,000
The
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

cardcard enables you to access your IDBI account from
This
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
cardIDBI GiftCard allows your loved one to purchases goods
The
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
cardWorld Currency Card is a prepaid multi currency card
The
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.

SAFE
DEPOSIT:
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 borrower.

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
lenders.
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.

Phishin
g
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
them.
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
us.

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
form.
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 46 th 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.

A fter 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.

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

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