Industrial Development Bank of India Ltd. Members are: Names Roll Nos Vinita Adwani 01 Madhavi Pandey 41 Drishti Rai 45 Nikita Tharwani 60 Kshtija Waghmare 65
Introduction to IDBI Bank:- Industrial Development Bank of India Type Public sector bank Founded 1964 Headquarters India Key people Yogesh Agarwal, Chairman Industry Finance Products Financial Services Employees 8989 Website www.idbibank.com
The Industrial Development Bank of India Limited commonlyknown by its acronym IDBI. It is one of Indias leading publicsector banks and 4th largest Bank in overall ratings. RBIcategorized IDBI as an "other public sector bank". It wasestablished on July 1, 1964 by an Act of Parliament .The mainaim behind setting up of IDBI was to provide credit and otherfacilities for the Indian industry, which was still in the initialstages of growth and development. The IndustrialDevelopment Bank of India (IDBI) was established under anAct of Parliament as a wholly owned subsidiary of theReserve Bank of India. The total revenue of Bank is $500M 1B.Institutions built by IDBI bank:-Some of the institutions built by IDBI are the National StockExchange of India (NSE), the National Securities DepositoryServices Ltd (NSDL), the Stock Holding Corporation of India(SHCIL), and IDBI BANK, which today is owned by the IndianGovernment, though for a brief period it was a privatescheduled bank.Infrastructure:-It is currently the tenth largest development bank in theworld in terms of reach with:- 1140 ATMs, 689 branches>Metro-206, Urban-273, Semi-Urban-138, Rural-72 and 458centers.
The Branches of IDBI Bank are as follows:-Andheri Dadar Lower Parel Bandra Dahisar Malad Belapur Fort Mulund (E)&(W)Bhayandar Ghatkopar Nariman PointBorivali Girgaon Sion Chembur Goregaon Vashi CMS Kalina Vile Parle etc.Change of ownership:-In 16 February 1976, the ownership of IDBI was transferred tothe Government of India and it was made the principal
financial institution for coordinating the activities ofinstitutions engaged in financing, promoting and developingindustry in the country. Although Government shareholdingin the Bank came down below 100% following IDBI’s publicissue in July 1995, the former continues to be the majorshareholder (current shareholding: 52.3%).Recommendation by Narasimam committee:-Narasimam committee recommends that IDBI should give upits direct financing functions and concentrate only inpromotional and refinancing role. But this recommendationwas rejected by the government. Later RBI constituted acommittee under the chairmanship of S.H.Khan to examinethe concept of development financing in the changed globalchallenges. This committee is the first to recommend theconcept of universal banking. The committee wanted to thedevelop financial institution to diversify its activity. Itrecommended to harmonise the role of developmentfinancing and banking activities by getting away from theconventional distinction between commercial banking anddevelopmental banking.Diversification of IDBI Bank:- In September 2003, IDBI acquired the entire shareholdingof Tata Finance Limited in Tata Home Finance Ltd. Since then,the fully owned housing subsidiary was known as IDBI HomeFinance Limited.
Government of India had decided to transform IDBI into acommercial bank so as to have low-cost current, savingsbank deposits, which would help overcome most of thelimitations of the current business of development financeonly to diversify its client base. This would have a positiveimpact on the Bank’s overall cost of funds and facilitatelending at more competitive rates to its clients. It would offervarious retail products, continuing the existing relationshipwith retail investors . Further, the new IDBI hopes to ownone stop super-shop and become most preferred brand forproviding total financial and banking solutions to corporateand individuals, capitalizing the Indian industry and clientrequirements and large retail base. Next year, on July 29, 2004, the Board of Directors of IDBIand IBDI Bank approved the merger of IDBI Bank with theIndustrial Development Bank of India Ltd. The merger wascompleted in the financial year ending of 2005.IDBI Bank alsoacquired United Western Bank in 2006. IDBI would continueto provide its products and services even after convertinginto a banking company. In addition, they would providewholesale and retail banking products, designed to suit thespecific needs cash flow requirements of corporate andindividuals. IDBI would keep the strong corporaterelationships built up over the years to offer customized andtotal financial solutions for all corporate business needs,term loans and working capital finance, strategic advisory,etc.
Subsidiaries of IDBI Bank:-IDBI Bank has the following subsidiaries: IDBI Capital Market Services Limited IDBI Home Finance Limited IDBI Intech Limited IDBI Gilts LimitedRole and Functions of IDBI:-Role: From the time of existence, IDBI has been very good not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country. It has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects. It has done good, particularly in the pre-reform era (1964-91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained ‘development banking’ charter. It’s activities confines of long-term lending to industry , balanced industrial growth through development of backward areas, modernization of specific industries,
employment generation, entrepreneurship development . Support services for creating a vibrant domestic capital market.Functions: IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernization and diversification purposes. During financial sector IDBI evolved an array of fund and fee-based services with a view for providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients. It also provides indirect financial assistance by way of refinancing of loans, extended by 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.Products and Services offered by Bank:- Personal Banking:- Deposits
o Savings Account (basically for salaried persons) o Current Account (for businessmen) o Fixed Deposits (for everyone) o Suvidha Tax Saving Fixed Deposit o Pension Accounts o Sabka Account o Super Shakti Account for Women o Jubilee Plus Account Loans o Home Loans o Loans Against Property o Education Loans o Personal Loan o Loan Against Securities o Reverse Mortgage Loan o Auto LoanPayments o Tax Payments o Stamp Duty payments o EasyFill o Bill Payment o Card to Card Money Transfer o Online Payments o PayMateInvestments Advisory o Smart Financial Planning o Mutual Fund
o Insurance Fixed Income SecuritiesCards o Gold Debit Card o International Debit cum ATM Card o Gift Card o World Currency Card o Cash Card o KIDS Debit Card o Foundation Day Cash Back Scheme 2009 o Platinum CardInstitutional Banking o Institutional Savings Account o Corporate Payroll Account24 Hours Banking o Phone Banking o SMS Banking o Account Alerts o Internet BankingOther products o Lockers o India PostPreferred BankingNRI ServicesCapital Market
o IPO o Demat Corporate Banking :-Following products and services are offered by IDBI Bank forthe corporates: o Project Finance o Infrastructure Finance o Syndication, Underwriting & Advisory Services o Carbon Credits Business o Working Capital o Cash Management Services o Trade Finance o Tax Payments o Derivatives o Technology Upgradation Fund Scheme (TUFS) o Film Financing Scheme o Direct Discounting Bills o Rehabilitation Finance SME Finance:-Following SME Finance products are offered by the IDBIBank: Sulabh Vyapar Loan
Dealer Finance Funding under CGFMSE Direct Credit Scheme - SIDBI Preferred customer scheme - IDBI Bank / SIDBI Vendor financing (Pre - Sale) Vendor financing (Post - Sale) Lending Against the Security of Future Credit Card Receivables Working Capital Financing - Software Development Entities Finance to Medical Practitioners Loan to SRWTO SME Hosiery Special Current Account Other:- Agri-business ProductsDifference from other Banks:-IDBI bank is different from others because other banks dealin banking business but this bank first deals in financing thevarious industries for development in the country and thendoes the banking business. Even now this bank providesfinance to various industries for the development. It alsofinances to film business. Before diversification of IDBI tobank it used to deal in financing business to various industriesand firms.
Marketing Strategy:-The bank has two ways of marketing namely:- 1. Through Branch 2. Through Sales Department1.Through Branch:- In this method they talk directly to the existing customers about the various new schemes and other important information. According to the bank people this method is effective but the information does not go to large number of people. Because of this method the people are not aware of various schemes and important announcements about our bank so they cannot open account with us.2.Through Sales Department:- In this method the sales department employees take the whole responsibility of giving the common people the information about the new schemes and facilities. The employees take the help of pamphlets, advertisement in television ,etc., go door-to-door for distributing pamphlets, give advertisements on internet on various websites most visited by people, etc. This method has positive impact that
the people come to know about the various new schemes and facilities. This method is approved by the employees.Services to employees working with IDBI Bank:-The bank provides various service to the people working ineach and every branch of IDBI bank. They provide theiremployees with various services and also motivate themtowards work. Services:- Salary/Increments For full attendance in every week they give their employees bonus along with salary Provident Fund Pensions Good working conditions with health security &other things Breaks for refreshment &canteen for employees. Holiday packages Residential Help Trips Various Loans:- Educational, Housing, Personal, etc. Different Employee Schemes, etc. These are the various services provided by bank to help the employees to work honestly.
Motivation of Employees:- They motivate employees by various ways. They are:- Employee of Week (every week) Employee of Month (every month) Employee of Year (every year) Motivating Trips Bonuses & Increment in salary Seminars Training Various Activities, etc. These are the various ways of motivating used by the bank management to inculcate working habit in the employees.Recruitment Methods:-There are two methods of recruiting employees they are asfollows:- i. Internal Methodii. External Method i. Internal Method:- In this method the bank people give promotions to their existing employees and do
the transfer of the people from other branches. They also talk to their existing customers for some employees who require jobs. ii. External Method:- In this method the recruiting department of the bank prepare and plan for pamphlets and advertisement in newspapers and distribute pamphlets to people in the public places. They also take help of banners and put them up in public places and wherever necessary.The Present:-Today, IDBI Bank is counted amongst the leading publicsector banks of India, apart from claiming the distinction ofbeing the 4th largest bank, in overall ratings. It is presentlyregarded as the tenth largest development bank in theworld, mainly in terms of reach. This is because of its widenetwork of 1140 ATMs, 689 branches-->Metro-206, Urban-273, Semi-Urban-138, Rural-72 and 458 centers. Apart frombeing involved in banking services, IDBI has set upinstitutions like The National Stock Exchange of India (NSE),The National Securities Depository Services Ltd. (NSDL) andthe Stock Holding Corporation of India(SHCIL).
Vision ”To be trusted partner in progress by leveragingquality human capital and setting global standards of excellence to build the most valued financial conglomerate .”