COMPANY PROFILE
The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as "other public sector bank".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 in terms of reach with 975 ATMs, 568 branches and 352 centers. 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) IDBI BANK , as a private bank after government policy for new generation private banks.
HISTORY
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 16 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.
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.
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’.
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.
IN NEWS
IDBI Bank, which has been mandated to raise Rs 13,000 crore syndicated loan for Reliance Power's Krishnapatanam Ultra Mega Power Project (UMPP) has put the process on hold. RPower has designated IDBI Bank as the lead arranger for the syndication. The bank is likely to take few more weeks to begin the syndication process, a source close to the development said. The lender was supposed to approach other banks early this month to join the consortium but is yet to start the process owing to the prevailing market conditions. The bank was supposed to approch other lenders early this month. However, the process (of raising the amount) has been held back for the time being. It may take a few more weeks to commence. IDBI Bank has already committed its part of the Rs 13,000 crore loan and will be primarily looking at the Rupee part of the debt.
IDBI Bank announced the repayment of its 11.5 per cent SLR Bonds, 2009 on September 26, 2009.No interest will accrue on the bonds after September 25,2009 and the book closure of the 54th series will be observed with effect from August 26,2009.
IDBI Bank, on March 31, 2009 obtained an approval from The Reserve Bank of India to sponsor a Mutual Fund and to set up (i) an Asset Management Company and (ii) a Trustee Company as subsidiaries.
IDBI Bank has been steadily expanding its delivery platform during the year, which, as on date, comprises 537 branches and 914 ATMs, encompassing 323 centres.
IDBI Bank has been steadily expanding its delivery platform during the year, which, as on date, comprises 537 branches and 914 ATMs, encompassing 323 centres.
IDBI Bank bagged the prestigious Banking Technology Award for being the first mover in this category. This award was instituted jointly by the Indian Banks' Association (IBA) and the Trade Fairs & Conference International.
IDBI Bank, on December 17, 2008 launched a strategic partnership with PayMate, India's leading mobile commerce company, to enable Mobile Payments facility for its over 3.5 million customers. The Bank's customers can use PayMate's revolutionary, easy-convenient-secure mobile payment service. Additionally, the Bank's customers can also use their mobile phones to pay for booking movie & flight tickets, restaurant bills, mobile recharge, online purchase and retail shopping at over 13,000 merchants in India registered with PayMate.
IDBI Bank has been mandated by the Government of Maharashtra to collect
- Sales Tax on its behalf from the FY 2008-09. Effective from February 16,
- 2009, this facility has been made available to existing customers of the Bank
- as well as other tax payers.
IDBI Bank has announced a slew of measures to boost flow of credit to Micro, Small and Medium Enterprises (MSME) sector. The Bank through its City SME Centers (CSCs) has facilitated single point MSME solutions / customer care to all Micro, Small and Medium Enterprises.
IDBI Bank launched its brand campaign in various media viz. TV, Print, Outdoor, Online and Radio in September 2008. The campaign with the taglines 'Not just for the Big boys' and 'banking for all' has been appreciated and has been able to change the perception about the Bank in people’s mind from a 'Big Industries' Bank to a nimble-footed bank which is loved across customer spectrum as the “Bank of Choice” for all customer segments. The Ad has been ranked second by a leading News channel, among all the different Advertisements shown across TV channels during the year 2008. IDBI Bank also received the 'Gold' Award from Public Relations Council of India (PRCI) for the Bank's Corporate Brand TV Commercial in electronic medium being adjudged the best.
IDBI Bank's overseas foray is in advanced stage with applications filed with the respective countries for opening offices at Singapore and Dubai and a representative office at Shanghai. The approvals are expected shortly, and the first foreign office is expected to open for business within one month.
FINANCIAL RESULTS
| Highlights of FY09 financial results (FY09 Vs FY08) |
PROFITABILITY
IDBI reported a net profit of Rs.314 crore for the quarter and Rs.859 crore for the year ended March 31, 2009, as against Rs.245 crore and Rs.729 crore in the corresponding quarter and year ended March 31, 2008. This amounts to an increase in net profit by 17.7% for the year and 28.2% for the quarter, compared to corresponding period of last year.
Sources:
The informations given above are subject to change to keep your self updated please visit the official website of the bank : www.idbi.com
0 Response to "Industrial Development Bank of India Ltd (IDBI)"
Post a Comment