2. Introduction.
IDBP is one of Pakistan's oldest development
financing institution created with the primary
objective of extending term finance for investment in
the manufacturing sector of the economy.
IDBP has also become an important component of the
financial sector of Pakistan and is playing an active
role in money and capital market of the country.
4. Head Office .
3rd Floor State Life Building No.2, Wallace Road,
Off: I.I. Chundrigar Road, Karachi-74000
Phone : +92-21-99213601-10, Fax : +92-21-99213644
Email : idbp@idbp.com.pk
5. Branches Network
The Head Office of Industrial Development Bank of Pakistan is situated at
Karachi, Pakistan. The Bank currently operates with following 13 branches:
In Capital Territory: Islamabad and Rawalpindi branch (part of the province of
Punjab)
In the province of Sindh: Main branch Karachi, Hyderabad and Larkana branch
In the province of Punjab: Faisalabad, Lahore and Multan branch
In the province of Khyber Pakhtunkhwa: Abbottabad and Peshawar branch
In the province of Baluchistan: Quetta branch
In the province of Gilgit/Baltistan: Gilgit branch
In Azad Kashmir: Mirpur Azad Kashmir branch
6. REASON FOR
ESTABLISHMENT/OBJECTIVES.
The Bank provides medium and long term finance in
local and foreign currencies for the creation of fixed
assets to new industrial projects as well as for
expansion.
It also facilitates transfer of technologies from
developed countries to industrial enterprises in
Pakistan.
7. Paid up capital.
IDBP is wholly owned by Government of Pakistan with
total paid up capital 500 Million, 57% of its shares held
by Federal Government, 36% by State Bank of Pakistan
and 7% by Provincial Governments and other Public
sector corporations.
8. Sources of funds.
1 ) Borrowing from the Federal Government.
2 ) Borrowing from the state bank of Pakistan.
3) Re discounting of bills.
4) Time deposits.
5) Issue and sale of bonds and debentures.
9. Sort of financing assistant.
IDBP has the unique distinction of financing the first
ever projects for a diversified list of products like;
UHT pack milk,
three wheelers,
radio/wireless receiving sets,
marble processing,
coal mining,
PVC deep sea fishing etc
10. Functions.
DEVELOPMENT BANKING BUSINESS
Provides medium and long term finances
Provides guarantee, loans.
COMMERCIAL BANKING BUSINESS
Deposits
Remittances
Bills
Short term advances
Guarantees .
Letter of Credit.
Foreign exchange accounts.
11. MERCHANT BANKING BUSINESS
Underwriting of public issue of shares
Bridge Financing
Leasing .
COLLECTION OF UTILITY BILLS
Telephone Bills at all branches, and Gas Bills at Branches in Karachi.
12. Products.
Loans
Provides guarantee, loans
Provides short and medium term finances
Deposits
Saving Banking Account{4% p.a. (half yearly)}
Business Deposits Account{4% p.a. (half yearly)}
Term Deposits{6.5% p.a. (half yearly)}
Special Deposits (Scheme Abolished) {6% p.a. (monthly)}
Besh Baha Munafa Certificates (Scheme Abolished) {6% on maturity}
TALIMI Certificates (Scheme Abolished) {5% on maturity}
13. SWOT Analysis
Strength
Large number of potential customers is base
Government support by way of tax
Volatility of bank interest rate
Better scope for accessing market information
Offer variety of products to the investors
Weakness
Poor participation of retail investors
Lack of focus
Under performance
Poor service conditions
14. Opportunities
Huge untapped market in other big cities
High level of saving habits among the people
Liberalized business environment
Using online mode of trading systems
Threats
Increasing the competition among the players
High level of volatility in the stock market
15. Conclusion
The new focus of bank is to shift operational emphasis to commercial banking
operations.
Emphasis is also being laid on providing export finance and meeting the sunning
financial needs of the existing industrial projects. The financial health of IDBP is not
satisfactory at present it is facing serious problems of non-payment of loans. This has
adversely affected the profitability and liquidity.