WELCOME To
Banking Sector
IDBI BANK Industrial Development Bank of INDIA
CONTENT Developing Banking Development of Indian Banking Introduction to IDBI Bank Merger of IDBI Bank & UWB Bank Recent Development Security of Bank Management of IDBI Bank Financial Result 2006-07 Summary
Developing Banking • Banking rose after Second World War & succession of The Great Depression 1930 • Reconstruction of fund was necessary on world wide base • In 1945, IBRD setup a world wide International Bank of Development & Construction • Help for setting up healthy number of Bank’s all over world • Development of Bank was necessary in different nation for different objective’s
Development of Indian Banking
• Strategy adopted by Indian Banking aims to meet sectorial credit need’s particularly in the field of Agriculture & Industry • RBI aims on regulation & developing mechanisms for institution building. • Specialised Development Financial Institutions (DFIs) such as the IDBI, NABARD, NHB & SIDBI for long term Finanical Service incorporation with RBI • India’s 1st developed bank incorporated in 1948, under Industrial Finance Corporation Act • Imperial bank of India & Seven associates were Nationalised as SBI (State Bank of India) under Act 1955 • Financial Inst. in India were set up under the strong
All Indian Financial Institutions • • • • •
All-India Development Banks Specialized Financial Institutions Investment Institutions State-level institutions Other institutions
Introduction to IDBI Bank • In July 1964, IDBI was established under Act of Parliament as wholly subsidiary of RBI • In Feb 1976, IDBI transfers their ownership to Govt. of India • It was Financial Inst. for coordinating activities for industry engaged in financing, promoting etc. • In Jan 1992, for 1st time assurance was given to retail debt market in form of deep discount bound, which help for record breaking success • In Dec 1993, IDBI Capital Market Service ltd ranging financial services such as Bond ,Equity, Broking Client Asset Mgnt & Depositor Services • In Sept 1994, RBI policy of opening up domestic banking sector to private participation n SIDBI set up IDBI Bank Ltd • In July 1995, IDBI made a public issue & had a major shareholder. Bank has current shareholding of 58.47%
Introduction to IDBI Bank • In July 2004, IDBI as company was transfer as banking company under Banking Regulation Act 1949 • It obtained a statutory clearance from RBI • It commence banking biz in accordance to Banking Regulation Act 1949 • Business transaction were carried under the IDBI Act of 1964 & appointed date notification was given by Central Govt. • Due to Commercialization of bank it provide low cost deposit on CA (Current A/c) ,Saving Bank A/c (SB A/c) • It had a +ve impact on banking overall cost of fund’s at more competitive rate
Merger of IDBI Bank & UWB Bank
• United Western Bank (UWB), a Satara based bank merged with IDBI on Oct 3,2006 • It will function as a branch of IDBI • UWB had a Standard & Poor ( S&P ), huge bad debt which could affect IDBI Financial Profile • IDBI will access to 230 Branches,75 ATM of UWB located in Maharashtra • UWB was richest Loan Market • Rs 150.50 cr paid to UWB for shareholder at market price of Rs 28/- & had reqd to pay shareholder
Merger of IDBI Bank & UWB Bank • Payment was made to creditor & debtor • Working Staff or Employee of Bank will continue to work under IDBI • Even after having S&P, Sources rated UWB BB+ • UWB has 230 bank across Maharashtra, Goa & Karnataka • UWB deposit Rs 6400/- cr & 3000 employee • IDBI had deposit of 24.14 billons (Rs 103,839 cr)
Recent Development • From 2000 onward bank has been going under some technological changes due to growing competition • As their has been a drastic change in banking technology • Growing competition & change in technology; bank made service available such as e-banking, telebanking & mobile banking • Bank provide merely 7 types of account’s such as Current A/c, Saving Bank A/c ,Fixed Deposit, Suvidha Tax Saving Fixed Deposit, Suvidha Plus Fixed Deposit, Pension A/c & Sabka Account • Bank also provide Credit Card, Insurance, Card to Card transfer, NRI service & Offer loan
Recent Development • e-Banking: login to www.idbi.com; enter Internet Banking user ID (Customer ID) & enter password • By e-Banking anyone can access to their A/c & get whatever they want • Tele- Banking: just dial 66937000 & access to your A/c, which can provide all the information of you’re A/c • Mobile Banking: for Balance enquiry just write BalspacePin number& sent it to 9820346920 /9821043718 • A/c such as Suvidha Tax Saving Fixed Deposit, Suvidha Plus Fixed Deposit, Pension A/c & Sabka Account provide different service & benefit • Credit Card such as Gold Debit Card, International Debit-cum-ATM Card, Gift Card & World Currency Card give’s many benefit • Insurance such as Family Care, Life Insurance give’s many benefit
Recent Development • •
A/c are use for maintaining records Suvidha Tax Saving Fixed Deposit: interest rates 9.5%* p.a. for regular deposits and 10.0%* p.a. for Senior Citizens, higher returns on investment • Suvidha Plus Fixed Deposit: interest rates 9.5%* p.a. for regular deposits and 10.0%* p.a. for Senior Citizens for 300,500 & 800 day’s, minimum investment Rs 10000/- & deposit should be multiple of Rs 1000/• Pension A/c: Open an IDBI Pension Account & receive your pension without any hassles • Sabka Account: open you’re A/c by just paying Rs 250/- & enjoy benefit's • Benefit you get from this A/c are: 7. Zero Balance Savings Account 8. Free local Cheque Book 9. International ATM-cum-Debit Card 10. Free Internet Banking facility
Recent Development • Card are Liquid Cash help during large amount transaction • Types of Card: Gold Debit Card, International Debitcum-ATM Card, GiftCard & World Currency Card • Gold Debit Card: Petrol surcharge waiver (transaction form Rs 400 to Rs 2000/-) , Insurance cover, Daily limits (cash withdrawal/purchase upto Rs 75000/-) , Loyalty redemptions (1 point on Rs 100/-) , Discounts at merchant establishments • International Debit-cum-ATM Card: Zero lost card liability insurance, can access to Anywhere, anytime • GiftCard: can be use more than once, until the value of the card get exhausted, so its a perfect gift for every occasion
Recent Development • Insurance are protection for our Future • Life Insurance: IDBI incorporated with Birla Sun Life Insurance for insurance, provide good investment opportunity with growth potential • Family Care: without any hassle's best medical treatment in case of a sudden illness, accidents or an emergency surgery. A complete health cover for your entire family • Card to Card transfer: Cheaper, faster & convenient than Demand Drafts, telegraphic transfers & PayableAt-Par cheques, Beneficiary location need not be known, can be accessed using ATM, Internet Banking or through the branch, funds will be transferred within 2-3 working days & transferred to any debit or credit card in India
Recent Development • •
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Loan are solution to your unsolved question Types of Loan: Home Loans, Loans against Home, Education Loans & Education Loans. Home Loans: hassle free home loans, Loans against Home: Education, Business, Marriage Purchase or improvement of property & Medical treatment or any other personal need Education Loans: financial support to deserving/ meritorious students for pursuing higher education in India & abroad Benefit of Loan by IDBI : Personalised doorstep service Simple documentation
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Legal & technical assistance
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Recent Development • •
Branch Network No. of Branches 3. Metro = 171 4. Urban = 132 5. Semi-Urban = 85 6. Rural = 46 • IDBI Bank have 8. 435 Branches 9. 256 Centers 10. 537 ATMs 11. 18 Extension counter
Security of Bank • Security is not just about terminology but part & parcel of its organisational culture –S.Shinde Head, IT, IDBI • Technology use by the is effective & efficient • Multiple firewalls from different vendors • Anti-virus • IDS • Ethical hackers as a line of defence against external threats • The Unique Feature of IDBI • Bank always try to Innovate new things • Internal Certification is given (ISA) • Certified Information System Auditor (CISM) • Nothing is perfect & there can never be 100% safety
Management of IDBI Bank • Board-Managed Organization. • Day-to-day management of operations of the Bank is vested with the Chairman & Managing Director & two Deputy Managing Directors • As on March 31, 2007, bank has a combined employee base of 7500, which including experts such as accountancy, management, engineering, law, computer technology, banking & economics.
Board of Director • Mr. Yogesh Agarwal, Chairman & Managing Director
• Mr. O.V. Bundellu, Deputy Managing Director
Board of Director • Mr. Vinod Rai Secretary Financial Sector, Ministry of Finance, Department of Financial Services
• Mr. Jitender Balakrishnan, Deputy Managing Director
Financial Result 2006-07 • • • • •
Growth in Biz Key stock indicator Balance Sheet Financial Highlights- FY 2006-07 Strong Capital Position
Financial Result 2006-07 Growth in Biz As on:
Deposits Advances
31-03-05 15103
31-03-06 26001
45414
52739
(Rs.cror 31-03-07 e)
43354 62471
Deposits at Rs.43,354 Cr; growth of 67% Retail Deposits grow by 27% CASA at 25.4% of total deposits Advances at Rs.62,471 Cr; growth of 18.5% Retail Advances constitute 15.7% of total advances (Previous Year 16.2%)
Financial Result Shareholding Key stock 2006-07 Pattern M a rk e t p rice p e r sh a re (R s) 95 indicator @
MarketCapitalisation(Rs.crore) (USDBln) Earningspershare(Rs) Bookvalueper share(Rs) PricetoBookRatio P:ERatio
March 31, 2007 6,872 Others Public 4.1% 1.56 Foreign 15.1% 8.70 Insitutional Investors 85.62 10.3% 1.11 10.91
@-May 31, 20076th IDBI is ranked among Public Sector banks in terms of Market Capitalization
Govt. of India 52.7%
Indian Financial Institutions 17.8%
GoI to retain at least 51% stake at all times
Balance Sheet Particulars LIABILITIES
Capital Reserves&Surplus NetWorth Deposits Borrowings Other Liabilities&Provisions Total ASSETS Cash&balancewithRBI Balancewithbanksandmoneyatcall Investments Advances FixedAssets[incl leasedassets] Other Assets Total
Rs.Crore 31-Mar-06
31-Mar-07
724 5648 6372 26001 47530 8662 88565
724 7576 8300 43354 42404 9781 103839
2680 2683 25351 52739 810 4302 88565
5406 1505 25675 62471 2778 6004 103839
FY 2006-07 IDBI • Balance sheet at Rs.1,03,839 cr. (USD 24.14 bln) • Total business including deposits, borrowings and advances at Rs.148229 cr. (USD 34.46bln) – Total business(excl. borr.) Rs.1,05,825 Cr. (USD 24.60 bln) • Total Income – Rs.7373 cr. (USD 1.71 bln) • PAT at Rs.630 cr. (USD 146.48 mln) • Net NPAs at 1.12% of net advances • CRAR 13.73% [Tier-I 9.11%] • RoA – 0.67%; RoE – 9.69% IDBI Group • Total Income – Rs.7517 cr. (USD 1.75 bln) • PAT – Rs.588 cr. (USD 136.71 mln) (Conversions based on March 31,2007 exchange rates of 1 USD=Rs.43.01)
Strong Capital Position 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%
T ier I Capit al
T ier II Capit al
T ot al CAR
30- Sep- 04
14.9%
3.3%
18.2%
31- Mar- 05
11.9%
3.6%
15.5%
31- Mar- 06
11.7%
3.1%
14.8%
31- Mar- 07
9.1%
4.6%
13.7%
Capital considerably higher than the current RBI requirement of 9% Scope for raising further capital by way of Perpetual Tier I and Upper Tier II capital of around Rs.1200 crore (USD 277 mln) and Rs.2766 crore (USD 636 mln) respectively
Summary • IDBI is Multi-Standard Bank. • IDBI is one of the leading Pvt. Sector Bank in the country • It is one of the oldest Bank in Indian History of Banking. • It is a well maintain Organization. • It’s a Bank after Independence which has many up’s & down . • It is Bank which has major hold on stock market. • It seen to developing according to the Time & Technology. • IDBI is ranked 6th among Public Sector banks in terms of Market Capitalization. • It offer many facilities such e-Banking, Mobile Banking & Tele-Banking.
Web-blography • Google Search (Wikipedia)
• IDBI.com
•Thanx a lot to our Govind Sir……
Banking World Presented: • Kunal.D.S no 41 • Amarjeet.J no 13 • Mohit.M no 25 • Pratik.K no 18 • Pawan.K no 17 • Atul.S no 40