About
IDBI Bank Ltd
IDBI Bank Ltd is one of India's largest commercial Banks. The Bank is a Universal Bank with their operations driven by a cutting edge core Banking IT platform. They offer personalized banking and financial solutions to their clients in the retail and corporate banking arena through their large network of Branches and ATMs, spread across length and breadth of India. The Bank has set up an overseas branch at Dubai.
The Bank operates in four segments, namely Wholesale Banking, Retail Banking, Treasury Services and Other Banking Operations. They have six wholly-owned subsidiaries, namely IDBI Homefinance Ltd, IDBI Gilts Ltd, IDBI Intech Ltd, IDBI Capital Market Services Ltd, IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd.
IDBI Bank Ltd was incorporated in the year 1964 as a wholly owned subsidiary of Reserve Bank of India with the name Industrial Development Bank of India. The company was regarded as a Public Financial Institution and continued to serve as a DFI for 40 years. In February 16, 1976, the ownership of the company was transferred to the Government of India by RBI and the company was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.
In the year 1982, the company transferred their International Finance Division to Export-Import Bank of India. In the year 1993, they formed one wholly owned subsidiary company, namely IDBI Capital Market Services Ltd for providing broad range of financial products and services. In June 7, 1995, the company made their Initial Public Offer (IPO), which brought down GOI holding to below 100%.
In March 2000, the company set up one wholly owned subsidiary company, namely IDBI Intech Ltd for providing Information Technology (IT) related activities of the organization. They established a public limited company in the home loan segment, namely 'IDBI Homefinance Ltd'. Also, they entered into a financial and technical collaboration agreement with Nepal Development Bank (NDB). In March 2001, they incorporated IDBI Trusteeship Services Ltd to take over the entire debenture business and assist to the subscribers and issuers of debentures by the way of up-to-date information and efficient professional services.
In March 2003, the Bank made an exit from their asset management activity by divesting their entire shareholding in IDBI Principal Asset Management company Ltd, IDBI Principal Trustee Company Ltd and all Trust Corpus rights of IDBI Mutual Fund in favour of their joint venture partner Principal Financial Services Inc USA, with a view to concentrate on their core business activities. They also divested their entire stake in Discount & Finance House of India Ltd (DFHI) in favour of SBI. In September 2003, the company diversified their business domain further by acquiring the entire shareholding of Tata Finance Ltd in Tata Home finance Ltd. The fully-owned housing finance subsidiary was renamed 'IDBI Homefinance Ltd'. bIn October 2004, the company was transformed into a banking company to undertake all kind of banking activities while continuing to play their secular Development Financial Institution role. Also, they changed their name to Industrial Development Bank of India Ltd. In 2005, Industrial Development Bank of India Ltd merged their banking subsidiary IDBI Bank with themselves. In October 2006, United Western Bank Ltd was amalgamated with the Bank as a part of the inorganic growth strategy.
In December 2006, the company incorporated a wholly owned subsidiary in the name of IDBI Gilts Ltd. for carrying on primary dealership business. Also, they signed an MoU with Life Insurance Corporation of India Ltd (LIC) in Mumbai for undertaking joint and take-out financing of long-gestation projects, including infrastructure projects. In July 2007, the Bank entered into fourth tie-up for trading in carbon credits with Sumitomo of Japan.
During the year 2007-08, the Bank came up with two innovative products Wealthsurance and Homesurance. They introduced 3-in-1 saving-cum-demat accounts with trading facility. Also, they increased their bouquet of retail products by launching Loan against Rent Receivables, Loan against Commercial Property, Reverse Mortgage Loan, Holiday Travel Loan and Loan to the staff of IDBI-Assisted units.
During the year, the Bank launched the MasterCard Debit Card, re-launched the cash card product and upgraded their Net Banking architecture thereby enhancing customer experience. They formalized tie-ups with IDBI Capital Market Services Ltd, a 100% subsidiary of the Bank, with Motilal Oswal Securities Ltd to offer state-of-the-art internet-based trading facility in Equities, Futures and Options markets.
During the year, the new state-of-the-art Treasury at the Bank's Head Office became operational. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48%. Also, the name of the bank was changed to IDBI Bank Ltd with effect from May 07, 2008.
During the financial year 2008-09, the Bank increased their branch network to 509 comprising 179 metropolitan branches, 175 urban branches, 100 semi urban branches and 55 rural branches. They implemented next'generation cash management system called i-cashweb, a web-based CMS solution. Also, they opened a Currency Chest at Chennai taking the total number to four. They got approval to collect sales tax in Maharashtra.
During the year, the Bank launched their Mobile Payment service enabling their customers to make payments for their purchases through mobile phones. They launched the multi currency acquiring facility in the merchant acquisition business. Also, they implemented a new Fund Transfer Pricing (FTP), based on the market linked bid and offer rates.
The Bank made a tie-up with IDBI Fortis Life Insurance Company Ltd for distribution of varied life insurance products, like wealthsurance, bondsurance, homesurance etc. Also they had an arrangement with Bajaz Allianz for selling general insurance products. They also distributed Co-branded products like FamilyCare, HomeCare and BusinessCare which cover all the categories such as asset insurance, corporate insurance, personal accident insurance and health insurance.
During the year 2009-10, the Bank opened 199 new branches, including Specialized Corporate Branches. They opened a currency chest at Panchkula taking the total number of currency chest to five. Also, they opened their first Cash Processing Centre (CPC) at Mulund, Mumbai. They won 'Special Jury Award' for their technological initiatives at the IBA Banking Technology Award 2009.
During the year, the Bank launched was new variants of the debit card, i.e., Kids Card and Platinum Card aimed at specific customer segments comprising kids and high networth individuals. They developed several new products with added features, namely Salary Account with Overdraft Facility and Scheme for providing Subordinated Debt. In July 2009, the Bank's Centralized Operations received the coveted ISO 9001:2008 certificate of registration.
In January 2010 , the Bank floated a wholly owned company namely, IDBI Asset Management Company (AMC) to undertake Mutual Fund (MF) business, which launched their first product 'IDBI Nifty Index Fund' during May 2010. Also, they incorporated IDBI MF Trustee Company Ltd with paid up capital of Rs.20 lakh. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs.
In June 2010, the Bank opened their first overseas branch at the Dubai International Finance Centre for providing corporate banking services including financial advisory and syndication of credit.
During the year 2010-11, the Bank provided facility of making on-line payments for e-commerce transactions though their debit card. A new variant debit card was launched exclusively for women customers. In order to encourage customers with regard to usage of debit card, a cash back scheme for debit card usage was also offered. Within the regulatory framework, cash withdrawal was allowed on debit card at various merchant establishments.
The Bank is increasingly committed to support government initiatives offering financial services to Economically Weaker Sections (EWSs) and Lower Income Groups (LIG) of society and accordingly offered, along with others, Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). In their efforts to ensure improved financial inclusion, the Bank signed MOU with Tribal Development Department, Government of Gujarat and is exploring similar partnership with other State Governments. The Bank also signed MOU with Unique Identification Authority of India (UIDAI) for acting as a registrar.
During the year, the Bank launched 'Loan Against Property' for the MSMEs to unlock value of their assets/properties. 'SME Smart Line of Credit' was also introduced so that MSMEs could take advantage of emerging business opportunities. In addition, the Bank implemented the 'Artisan Credit Card' scheme of Indian Banks' Association (IBA) to take care of the credit needs of the artisan community of the nation. To further enrich the MSME loan basket, the Bank made a tie-up with SIDBI in an exclusive arrangement to jointly finance MSME units, initially in 10 centres viz., Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Indore, Jaipur, Lucknow, Ludhiana and Rajkot, subsequently to be rolled out across the country. They also launched a software for Complaint Resolution Management (CRM) at branches.
The bank received ISO 9001:2008 certification for all their Currency Chests. They opened a new Currency Chest at Kochi taking the number of Currency Chests of your Bank to six. They also received ISO 9001:2008 certification for all their Centralised Clearing Units (CCUs).
In April 2011, two wholly-owned subsidiaries viz. IDBI Home Finance Ltd and IDBI Gilts Ltd were amalgamated with the Bank with effect from January 01, 2011.
IDBI Bank launched a USD 500 million 5.5 year Reg S Bond issue on 17 September 2012. The transaction received an overwhelming response and the issue was oversubscribed by 9 times. The issue was made under the USD 1.5 billion MTN Programme listed on the Singapore Stock Exchange. On 18 November 2012, IDBI Bank inaugurated the 1000th branch in Kannangudi, Tamil Nadu.
On 21 February 2013, IDBI Bank announced that has entered into a Memorandum of Cooperation (MOC) with EXIM Bank, wherein IDBI Bank and EXIM Bank would, inter alia, co-finance, co-arrange, syndicate rupee and foreign currency loans, jointly finance export-oriented projects in India, provide/avail refinance facility in Indian Rupees and/or Foreign Currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector. IDBI Bank and EXIM Bank would also co-operate in promotional activities, provide advisory services to assist each other's clients and co-operate in training of each others' staff members.
On 15 March 2013, IDBI Bank announced that it has partnered with eMudhraConsumer Services Ltd. (eMudhra), a licensed Certifying Authority (CA), to implement Digital Signature based authentication solution to strengthen and further secure its Corporate Inet Banking channel. The solution builds trust and enhances security in the electronic banking system thereby enhancing comfort and confidence of both, the customer and the bank while undertaking Third Party Fund Transfers and Bulk Transaction uploads.
The 40th Trade Finance (TF) Centre of IDBI Bank was inaugurated on 28 March 2013 at the IDBI Bank Building, BKC, Mumbai. IDBI Bank's TF Centre in BKC is an Authorized Dealer (AD) in foreign exchange, and would cater to the Trade Finance and Forex needs of Exporters, Importers and Retail customers.
IDBI Bank and Passenger Car Business Unit of International Cars & Motors Limited (ICML) entered into a Memorandum of Understanding (MoU) on 17 May 2013 for providing auto finance to prospective customers of ICML. As per the scheme modalities, ICML and its dealer network will collaborate with IDBI Bank for the purpose of 'Retail Activation' in order to facilitate vehicle financing business. On 22 May 2013, IDBI Bank inaugurated 29 branches, taking its total branch network to 1,111.
On 17 June 2013, IDBI Bank entered into a tie up arrangement with Jain Irrigation Systems Limited (JISL) for financing Minor Irrigation Systems to individual farmers. The tie-up provides assistance to farmers across all the branches of the bank wherever JISL has a dealer network. The tie-up will help farmers increase their acreage under irrigation by minimal use of available water resource. On 26 July 2013, Government of Maharashtra launched the eSBTR Project for online payment of Stamp Duties & Registration fees in partnership with IDBI Bank.
On 11 November 2013, IDBI Bank Ltd, through its DIFC Branch in Dubai, signed a loan agreement for USD 340 million with KfW, Germany. The loan would be availed by IDBI Bank for funding loans to the micro, small and medium-sized enterprises (MSME) directly or indirectly through Microfinance Institutions (MFIs) and Non Banking Finance Companies (NBFCs). Part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
On 28 May 2014, FICCI-CMSME, an affiliated body under the umbrella of the Federation of Indian Chambers of Commerce and Industry (FICCI), an apex Chamber of Commerce & Industry of India, and IDBI Bank announced a partnership through an MoU to make organized finance facility available for Micro, Small and Medium Enterprises (MSME) across the country at competitive interest rates.
On the occasion of the completion of 50 years of operations, IDBI Bank on 1 July 2014 launched mobile banking service for its customers. On 28 August 2014, IDBI Bank announced that it has opened more than 3.62 lakh basic savings accounts under the Pradhan Mantri Jan Dhan Yojana' to mobilize Basic Savings Bank Deposit Accounts (BSBDAs), promote financial literacy and meeting comprehensively the objective of financial inclusion.
On 4 September 2014, IDBI Bank launched its first e-lounge' at its Mahim branch in Mumbai. At IDBI Bank's e-lounge, customers can, on a self service basis, enjoy facilities such as ATM, Automated Cash Deposit (with a receipt and instant credit of the amount), Automated Cheque Deposit (with an acknowledgment receipt), Automated Pass Book Printing, e-Transact terminal for various Card and Net Banking holders to view balance, make a funds transfer, pay bills, recharge etc.
On 17 October 2014, IDBI Bank announced that its first Basel III compliant Additional Tier - I (AT- I) bonds amounting to Rs 2500 crore (Rs 1500 crore with an option to retain over-subscription upto Rs 1000 crore) received an overwhelming response and was fully subscribed prior to the closure date. The issue opened on 29 September 2014. The issue was competitively priced at a coupon of 10.75% p.a. payable annually.
On 28 November 2014, IDBI Bank inaugurated its zonal office at Chandigarh. The zonal office will play a vital role in helping the bank achieve its goal of expanding its retail loan and MSME loan portfolio. On 14 December 2014, IDBI Bank in association with NSDL Database Management Limited (NDML) launched the Electronic-Insurance Account (e-IA)'. e-IA is the portfolio of insurance policies of a policy holder held in electronic form with an insurance repository.
On 25 February 2015, IDBI Bank launched its Mobile Banking Application (App) with the branding 'IDBI Bank Go Mobile'. On 6 April 2015, IDBI Bank inaugurated its 3000th ATM at Punjabi Bagh, New Delhi.
On 10 April 2015, IDBI Bank Ltd and Life Insurance Corporation of India (LIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) for savings bank account holders of the bank. PMJBY is a life insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers life insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-50 years at an annual premium of Rs 330 plus service tax. The insurance cover will be available up to 55 years.
On 20 April 2015, IDBI Bank in association with National Payments Corporation of India (NPCI) launched the Rupay Platinum Debit card'. The Rupay Platinum Debit card' enables cost-effective, fast and secure access to large number of ATMs, POS terminals, e-commerce websites and participating merchant establishments across the country.
On 22 April 2015, IDBI Bank and Bajaj Allianz General Insurance Company Ltd (BAGIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for savings bank account holders of the bank. PMSBY is an accident insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers accident insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-70 years at an annual premium of Rs 12 plus service tax.
The General Refinance Agreement (GRA) between IDBI Bank and Micro Units Development and Refinance Agency (MUDRA) Ltd. was signed on 1 July 2015. IDBI Bank is one of the leading banks identified by MUDRA, eligible for the refinance scheme. As per the agreement, the bank will offer credit facilities up to Rs 10 lakh to Micro Enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and MUDRA will be providing refinance assistance to IDBI Bank for eligible sanctioned loan cases. The arrangement will be implemented through the branches of IDBI Bank on pan India basis.
On 30 July 2015, IDBI Bank launched its first self service Mini Branch Kiosk at its Cuffe Parade, Mumbai Branch which will address the customer's request of personalized cheque leaves dispensation and issue of Demand Draft & Pay Order on 24X7 basis. IDBI Bank would be the first bank in the country to make available these services on 24X7 basis.
IDBI Bank launched its first e-lounge at its Nager Bazar branch in Kolkata on 22 August 2015. The new section-in-branch is a step towards expanding the bank's presence in the digital world. The e-Lounge consists of 24x7 Kiosk based solutions designed to deliver a wide range of banking services round the clock, including deposit of bulk cash beyond regular banking hours.
On 30 November 2015, IDBI Bank inaugurated its state-of-the-art Security Operations Centre (SOC) at its Data Centre, Belapur, Navi Mumbai. Through the SOC, the bank will centrally monitor security devices like Firewalls, Routers, IDS/IPS, PIM, DLP, Antivirus, Phishing/Malware attempts and take corrective actions, in shortest span of time. The SOC will be a Command Centre for countering cyber threats and ensure compliance with the bank's Information Security Policy besides fulfilling the bank's objective of providing safe and secure banking to customers.
IDBI Bank inaugurated its Treasury Business Continuity Centre (BCP) on 28 August 2015 at its Bandra Kurla Complex, Mumbai office. The BCP site will serve as a near-site alternative to the bank's main Treasury Dealing centre in the event of any business disruption/disaster. The centre is fully equipped with state of the art technology and connectivity with integrated operations covering various market segments and can handle the front office, back office and mid-office functions of Treasury.
IDBI Bank launched a USD 350 million 5 year Reg S Green Bond issue on 23 November 2015. The transaction received an overwhelming response and the issue was oversubscribed by 3 times. The issue was made under the USD 5 billion MTN Programme listed on the Singapore Stock Exchange.
On 29 December 2015, IDBI Bank announced that it has received Rs 2229 crore from the Government of India (GoI) towards preferential allotment of equity shares of Rs 10 each to GoI at a price of Rs 75.28 per share in terms of the approval accorded by the Shareholders at the EGM of the bank held on 4 November 2015.
On 2 January 2016, IDBI Bank announced that it has mobilised Rs1900 crore through Basel III compliant Tier 2 bonds through two separate issues on private placement basis to strengthen its capital adequacy. The first issue of Rs1000 crore concluded on 31 December 2015 was for a tenor of 15 years with call option at the end of 10 years while the second issue of Rs 900 crore was concluded on 2 January 2016 with a tenor of 10 years. Both the issues carry a coupon of 8.62% p.a. payable annually. These issuances aggregating Rs1900 crore would augment capital adequacy ratio of the bank by about 55 basis points.
On 15 March 2016, IDBI Bank launched the nation's first of its kind 'G-Sec Investment Facility through ATM for Retail Investors' at the IDBI Bank's ATM at Corporate Centre, Mumbai. This facility is unique and first of its kind initiative of the bank to provide easy access to retail investors to invest in Government Securities. The facility of investing in G-Sec through ATM is an extension of IDBI Bank's Samriddhi G-Sec Portal to enable retail investors to transact in Government Securities
IDBI Bank launched the 'Stand Up India' Scheme on a pan India basis on the occasion of the 125th birth anniversary of Dr. Babasaheb Ambedkar on 14 April 2016. The objective of the scheme is to promote entrepreneurship amongst the scheduled caste/scheduled tribe and women and aid in their social upliftment. The proposed scheme shall facilitate eligible borrowers to avail loans between Rs 10 lakhs upto Rs 100 lakhs to promote productive and economic activity.
On 6 May 2016, IDBI Bank announced the opening of its IFSC Banking Unit (IBU) at India's first and only International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT). IDBI became the first public sector bank to open its IFSC Banking Unit (IBU) at GIFT. IDBI Bank's GIFT branch will provide full range of corporate banking services and will meet foreign currency funding needs of its vast Indian clientele. Through its GIFT branch IDBI Bank aims to foster greater trade and cross border transactions between India and rest of the world.
On 9 May 2017, IDBI Bank announced that the Reserve Bank of India (RBI), vide letter dated 5 May 2017, has initiated Prompt Corrective Action for IDBI Bank in view of the high net NPA and negative RoA. This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities.
On 13 June 2016, IDBI Bank announced the launch of IDBI Express', an unique banking solution, enabling customers to bank at their chosen time and place beyond banking hours, without having to visit the bank branch.
On 30 August 2016, IDBI Bank announced that it has raised Rs 1500 crore from its second tranche of Basel III compliant Additional Tier 1 (AT1) bonds. The issue opened and closed on 30 August 2016. The issue was competitively priced at a coupon of 11.09% p.a. payable annually.
During the quarter ended 30 June 2017, Life Insurance Corporation of India (LIC) infused Rs 394 crore in IDBI Bank by way of preferential allotment of equity shares. On 9 August 2017, IDBI Bank received further capital infusion of Rs 1861 crore from Government of India.
On 26 September 2017, IDBI Bank announced the launch of Project Nishchay' in partnership with The Boston Consulting Group (BCG) to accelerate its turnaround programme and improve financial performance. The project will be led by senior management at IDBI Bank along with BCG. Coordinating across multitude of initiatives, the bank will focus on four key areas - revenue enhancement, cost control & reduction, asset productivity and overall program management in consultation with BCG.
The Bank served its customers through its network of 1,916 branches, 3,779 ATMs and 58 e-lounges as on 31st March, 2018.
On 29 March 2018, IDBI Bank clarified that all the Pisciculture loans identified as fraudulent have been fully provided for and there will be no further impact on the profitability/balance sheet of the bank. The bank continues to pursue all legal actions to recover dues from the borrowers and has taken action against the erring officers.
The Board of Directors of IDBI Bank at its meeting held on 25 May 2018 approved in-principle, the proposal to initiate divestment of partial stake in IDBI Asset Management Limited to a strategic investor, subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by Delegated Authority.
On 8 August 2018, IDBI Bank informed the stock exchanges that Government of India (GoI) has conveyed no objection to reduction in GoI's shareholding in IDBI Bank below 50%, relinquishment of management control by GoI in IDBI Bank and acquisition of controlling stake in IDBI Bank by Life Insurance Corporation of India (LIC) as Promoter through Preferential Issue/open offer of equity, subject to requisite Regulatory approval and compliance with Laws. Earlier, on 16 July 2018, IDBI Bank received a letter from Life Insurance Corporation of India (LIC) expressing its interest in acquiring 51% controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer. IDBI Bank's Board of Directors at its meeting held on 17 July 2018 considered LIC's proposal and decided to seek Government of India's decision in is regard.
During the FY2019, the Bank's aggregate deposits and advances touched Rs 2,27,372 crore and Rs 1,46,790 crore, respectively.
As on 31 March 2019, the Bank had five subsidiaries, viz., IDBI Intech Ltd., IDBI Capital Markets & Securities Ltd., IDBI Asset Management Ltd., IDBI MF Trustee Company Ltd. and IDBI Trusteeship Services Ltd.
During FY 2018-19, the Bank has raised funds through Preferential allotment of equity shares to Government of India (GoI) in May 2018 aggregating to Rs 7881 crore and to LIC in (i) October 2018 aggregating to Rs 2098 crore, (ii) December 2018 aggregating to Rs 14,500 crore and (iii) January 2019 aggregating to Rs 5025.96 crore.
As on 31 March 2019, the Bank served its customers through its network of 1,892 branches, 3,700 ATMs and 58 e-lounges.
During the year 2018-19, the Bank received Share Application Money of Rs. 21624.15 Crore from Life Insurance Corporation of India (LIC) against which, Bank made preferential allotment of 355,51,05,535 Equity shares to LIC. Further, during the year LIC also made an open offer to the equity shareholders of IDBI Bank through which, it acquired 5,66,82,182 Equity Shares. Consequently, the shareholding of LIC rose to 51% of the total paid up share capital of the Bank.
The Bank has been categorized as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.
During FY2020, the Bank's aggregate deposits and advances touched Rs 2,22,424 crore and Rs 1,29,842 crore, respectively.
During the FY 2019-20, the Bank raised funds through preferential allotment of equity shares on 22 October 2019 aggregating to Rs 4743 crore (inclusive of premium amount, if any) to LIC (such that the shareholding of LIC post allotment aggregates upto 51% of Bank's expanded paid-up capital) and aggregating upto Rs 4557 crore (inclusive of premium amount, if any) to Government of India.
As on 31 March 2020, the Bank served its customers through its network of 1,892 branches, 3,683 ATMs and 58 e-lounges.
As on 31 March 2021, the Bank served its customers through its network of 1,886 branches, 3,403 ATMs and 58 e-lounges.
As on 31 March 2023, the Bank served its customers through its network of 1,928 branches, 3,334 ATMs and 58 e-lounges. The Bank added 42 branches to its network during the year 2023 to strengthen its retail franchise.
IDBI Bank Ltd
Chairman Speech
Trust is built with consistency
The year 2022-23 was another milestone year as your Bank made steady inroad in its
strategic endeavours of growth, profitability, operational efficiency, technological
upgradation, and adopting sustainable business and operational practices.
T. N. Manoharan
Chairman
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present the Bank's Annual Report
for the Financial Year (FY) 2022-23. I write to you with an undeniable sense of pride in
the way your Bank has performed during the financial year in terms of its business and
financial performance and also its commitment towards enhancing value for all its
stakeholders.
Economic Scenario
The global macroeconomic environment in the year 2022 was weighed down by deceleration
in the pace of economic growth with growing risks of recession, persistently high levels
of inflation across economies, continuing geopolitical uncertainties and tightened
financial conditions. Against this backdrop, the Indian economy emerged as a bright spot
in the global economic landscape with robust pace of inclusive growth, making it one of
the fastest growing major economies in the world.
India's banking sector, despite global spillovers, remained resilient during the year.
Factors such as strengthening of macroeconomic fundamentals and conducive policy
environment, coming on the back of comprehensive and structural reforms in the Indian
banking sector, lent stability and led the banks to further strengthen their balance
sheet, improve profitability and asset quality, as also maintain adequate levels of
capital and liquidity buffers. The robustness of the underlying fundamental strengths and
improvement in the overall asset quality enabled banks to respond in equal measure to meet
the expansion in the credit demand in the economy. With adequate capital buffers, the
banks were well positioned to support growth as also absorb certain headwinds, especially
caused by external factors.
Business Strategy
The conducive business environment provided the Bank with an added advantage in
pursuing its strategic objectives. The Bank persevered on its strategic imperatives
leading to strong balance sheet, healthy capital position and adequate provisioning. The
Bank continued to maintain strong focus on resource mobilisation, driven by growth in
deposits and also maintained low-risk loan mix through focus on lending to the retail
& priority sector. At the same time, the Bank also stepped up lending to augment
quality asset book.
Growth and Profitability
The comprehensive business strategy formulated by your Bank and conducive macroeconomic
conditions helped in ensuring a continued stable and profitable growth during the
Financial Year (FY) 2022-23. The Bank registered net profit for the third consecutive
financial year and the net profit surged to all-time-high of ` 3,645 crore in FY 2022-23,
registering a robust growth of 49% on a year-on-year basis. The Bank remained committed
towards its overall strategy of augmenting its granular business portfolio, both on the
asset and liability side. Your Bank's business improved with its net advances and total
deposits base registering double-digit growth during the year.
The concerted focus on improving the asset quality resulted in a substantial
improvement in its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA)
ratios. As a safeguard, the Bank continued to maintain adequate provisioning with the
Provision Coverage Ratio (PCR) at 97.94% as at end-March 2023. The Bank remained
adequately capitalised with its capital ratios, viz. Capital to Risk (Weighted) Assets
Ratio (CRAR) and the Tier 1 ratio, well above the regulatory requirement.
An optimum mix of broad-based strategies, strategic business imperatives, robust
organisational structure, technological prowess and unwavering dedication of its workforce
paved the way for positioning your Bank as an inherently strong bank in the Indian banking
space.
I am happy to state that the Board of Directors of your Bank have recommended a
dividend of ` 1 (Rupee One only) per Equity Share of face value of ` 10 each of the Bank
for the financial year ended March 31, 2023, subject to approval of the shareholders at
the Annual General Meeting.
Way Forward
The year 2022-23 was another milestone year as your Bank made steady inroad in its
strategic endeavours of growth, profitability, operational efficiency, technological
upgradation, and adopting sustainable business and operational practices. Your Bank will
continue to expand its product and service offerings in line with the evolving business
environment and emerging customer preferences. Furthermore, your Bank will strive to
expand its reach, both physical and digital, to cater to the requirements of its customers
from all walks of life. Your Bank's adequate capital position will facilitate its march
towards higher growth trajectory.
Your Bank will seek to leverage its inherent strengths and capabilities to capitalise
on the business opportunities emerging on the back of improving macroeconomic fundamentals
to further enhance its profitability.
The Bank will continue to focus on greater degree of digitalisation by investing in
latest technological upgradation to enhance efficiency and strengthening its data
analytics capabilities to provide targeted banking solutions to its customers. Your Bank's
focus, though centered on augmenting its business, will continue to be on remaining
vigilant towards improving and ensuring healthy asset quality by taking proactive
preventive measures to avoid slippages. Apart from this, the Bank will strive to ingrain
robust governance, risk and compliance practices across all business and support functions
in order to uphold its reputation as a trusted bank among all its stakeholders.
Your Bank will seek to leverage its inherent strengths and capabilities to capitalise
on the business opportunities emerging on the back of improving macroeconomic fundamentals
to further enhance its profitability.
Expression of Gratitude
On behalf of the Board of Directors of IDBI Bank, I express my sincere thanks to the
Government of India (GOI), the Reserve Bank of India (RBI) and all the other statutory
& regulatory authorities for their support and guidance. I would also like to extend
my gratitude to shareholders and customers for their unstinted patronage, sustained
support and co-operation. Your Bank values your continued trust and confidence and shall
continue to work assiduously to live up to your expectations. I would also like to convey
my sincere appreciation to my colleagues on the Bank's Board for their visionary
leadership and invaluable contribution towards driving the Bank's governance and business
growth. Last but not the least, I would like to express my gratitude to the Top Management
and all employees of the Bank for exhibiting their unwavering dedication and commitment
that paved the way for the Bank to achieve its overall business objective and scale new
heights in spite of challenging business and operational environment. With best wishes,
T. N. Manoharan
Chairman
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IDBI Bank Ltd
Company History
IDBI Bank Ltd is one of India's largest commercial Banks. The Bank is a Universal Bank with their operations driven by a cutting edge core Banking IT platform. They offer personalized banking and financial solutions to their clients in the retail and corporate banking arena through their large network of Branches and ATMs, spread across length and breadth of India. The Bank has set up an overseas branch at Dubai.
The Bank operates in four segments, namely Wholesale Banking, Retail Banking, Treasury Services and Other Banking Operations. They have six wholly-owned subsidiaries, namely IDBI Homefinance Ltd, IDBI Gilts Ltd, IDBI Intech Ltd, IDBI Capital Market Services Ltd, IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd.
IDBI Bank Ltd was incorporated in the year 1964 as a wholly owned subsidiary of Reserve Bank of India with the name Industrial Development Bank of India. The company was regarded as a Public Financial Institution and continued to serve as a DFI for 40 years. In February 16, 1976, the ownership of the company was transferred to the Government of India by RBI and the company was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.
In the year 1982, the company transferred their International Finance Division to Export-Import Bank of India. In the year 1993, they formed one wholly owned subsidiary company, namely IDBI Capital Market Services Ltd for providing broad range of financial products and services. In June 7, 1995, the company made their Initial Public Offer (IPO), which brought down GOI holding to below 100%.
In March 2000, the company set up one wholly owned subsidiary company, namely IDBI Intech Ltd for providing Information Technology (IT) related activities of the organization. They established a public limited company in the home loan segment, namely 'IDBI Homefinance Ltd'. Also, they entered into a financial and technical collaboration agreement with Nepal Development Bank (NDB). In March 2001, they incorporated IDBI Trusteeship Services Ltd to take over the entire debenture business and assist to the subscribers and issuers of debentures by the way of up-to-date information and efficient professional services.
In March 2003, the Bank made an exit from their asset management activity by divesting their entire shareholding in IDBI Principal Asset Management company Ltd, IDBI Principal Trustee Company Ltd and all Trust Corpus rights of IDBI Mutual Fund in favour of their joint venture partner Principal Financial Services Inc USA, with a view to concentrate on their core business activities. They also divested their entire stake in Discount & Finance House of India Ltd (DFHI) in favour of SBI. In September 2003, the company diversified their business domain further by acquiring the entire shareholding of Tata Finance Ltd in Tata Home finance Ltd. The fully-owned housing finance subsidiary was renamed 'IDBI Homefinance Ltd'. bIn October 2004, the company was transformed into a banking company to undertake all kind of banking activities while continuing to play their secular Development Financial Institution role. Also, they changed their name to Industrial Development Bank of India Ltd. In 2005, Industrial Development Bank of India Ltd merged their banking subsidiary IDBI Bank with themselves. In October 2006, United Western Bank Ltd was amalgamated with the Bank as a part of the inorganic growth strategy.
In December 2006, the company incorporated a wholly owned subsidiary in the name of IDBI Gilts Ltd. for carrying on primary dealership business. Also, they signed an MoU with Life Insurance Corporation of India Ltd (LIC) in Mumbai for undertaking joint and take-out financing of long-gestation projects, including infrastructure projects. In July 2007, the Bank entered into fourth tie-up for trading in carbon credits with Sumitomo of Japan.
During the year 2007-08, the Bank came up with two innovative products Wealthsurance and Homesurance. They introduced 3-in-1 saving-cum-demat accounts with trading facility. Also, they increased their bouquet of retail products by launching Loan against Rent Receivables, Loan against Commercial Property, Reverse Mortgage Loan, Holiday Travel Loan and Loan to the staff of IDBI-Assisted units.
During the year, the Bank launched the MasterCard Debit Card, re-launched the cash card product and upgraded their Net Banking architecture thereby enhancing customer experience. They formalized tie-ups with IDBI Capital Market Services Ltd, a 100% subsidiary of the Bank, with Motilal Oswal Securities Ltd to offer state-of-the-art internet-based trading facility in Equities, Futures and Options markets.
During the year, the new state-of-the-art Treasury at the Bank's Head Office became operational. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48%. Also, the name of the bank was changed to IDBI Bank Ltd with effect from May 07, 2008.
During the financial year 2008-09, the Bank increased their branch network to 509 comprising 179 metropolitan branches, 175 urban branches, 100 semi urban branches and 55 rural branches. They implemented next'generation cash management system called i-cashweb, a web-based CMS solution. Also, they opened a Currency Chest at Chennai taking the total number to four. They got approval to collect sales tax in Maharashtra.
During the year, the Bank launched their Mobile Payment service enabling their customers to make payments for their purchases through mobile phones. They launched the multi currency acquiring facility in the merchant acquisition business. Also, they implemented a new Fund Transfer Pricing (FTP), based on the market linked bid and offer rates.
The Bank made a tie-up with IDBI Fortis Life Insurance Company Ltd for distribution of varied life insurance products, like wealthsurance, bondsurance, homesurance etc. Also they had an arrangement with Bajaz Allianz for selling general insurance products. They also distributed Co-branded products like FamilyCare, HomeCare and BusinessCare which cover all the categories such as asset insurance, corporate insurance, personal accident insurance and health insurance.
During the year 2009-10, the Bank opened 199 new branches, including Specialized Corporate Branches. They opened a currency chest at Panchkula taking the total number of currency chest to five. Also, they opened their first Cash Processing Centre (CPC) at Mulund, Mumbai. They won 'Special Jury Award' for their technological initiatives at the IBA Banking Technology Award 2009.
During the year, the Bank launched was new variants of the debit card, i.e., Kids Card and Platinum Card aimed at specific customer segments comprising kids and high networth individuals. They developed several new products with added features, namely Salary Account with Overdraft Facility and Scheme for providing Subordinated Debt. In July 2009, the Bank's Centralized Operations received the coveted ISO 9001:2008 certificate of registration.
In January 2010 , the Bank floated a wholly owned company namely, IDBI Asset Management Company (AMC) to undertake Mutual Fund (MF) business, which launched their first product 'IDBI Nifty Index Fund' during May 2010. Also, they incorporated IDBI MF Trustee Company Ltd with paid up capital of Rs.20 lakh. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs.
In June 2010, the Bank opened their first overseas branch at the Dubai International Finance Centre for providing corporate banking services including financial advisory and syndication of credit.
During the year 2010-11, the Bank provided facility of making on-line payments for e-commerce transactions though their debit card. A new variant debit card was launched exclusively for women customers. In order to encourage customers with regard to usage of debit card, a cash back scheme for debit card usage was also offered. Within the regulatory framework, cash withdrawal was allowed on debit card at various merchant establishments.
The Bank is increasingly committed to support government initiatives offering financial services to Economically Weaker Sections (EWSs) and Lower Income Groups (LIG) of society and accordingly offered, along with others, Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). In their efforts to ensure improved financial inclusion, the Bank signed MOU with Tribal Development Department, Government of Gujarat and is exploring similar partnership with other State Governments. The Bank also signed MOU with Unique Identification Authority of India (UIDAI) for acting as a registrar.
During the year, the Bank launched 'Loan Against Property' for the MSMEs to unlock value of their assets/properties. 'SME Smart Line of Credit' was also introduced so that MSMEs could take advantage of emerging business opportunities. In addition, the Bank implemented the 'Artisan Credit Card' scheme of Indian Banks' Association (IBA) to take care of the credit needs of the artisan community of the nation. To further enrich the MSME loan basket, the Bank made a tie-up with SIDBI in an exclusive arrangement to jointly finance MSME units, initially in 10 centres viz., Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Indore, Jaipur, Lucknow, Ludhiana and Rajkot, subsequently to be rolled out across the country. They also launched a software for Complaint Resolution Management (CRM) at branches.
The bank received ISO 9001:2008 certification for all their Currency Chests. They opened a new Currency Chest at Kochi taking the number of Currency Chests of your Bank to six. They also received ISO 9001:2008 certification for all their Centralised Clearing Units (CCUs).
In April 2011, two wholly-owned subsidiaries viz. IDBI Home Finance Ltd and IDBI Gilts Ltd were amalgamated with the Bank with effect from January 01, 2011.
IDBI Bank launched a USD 500 million 5.5 year Reg S Bond issue on 17 September 2012. The transaction received an overwhelming response and the issue was oversubscribed by 9 times. The issue was made under the USD 1.5 billion MTN Programme listed on the Singapore Stock Exchange. On 18 November 2012, IDBI Bank inaugurated the 1000th branch in Kannangudi, Tamil Nadu.
On 21 February 2013, IDBI Bank announced that has entered into a Memorandum of Cooperation (MOC) with EXIM Bank, wherein IDBI Bank and EXIM Bank would, inter alia, co-finance, co-arrange, syndicate rupee and foreign currency loans, jointly finance export-oriented projects in India, provide/avail refinance facility in Indian Rupees and/or Foreign Currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector. IDBI Bank and EXIM Bank would also co-operate in promotional activities, provide advisory services to assist each other's clients and co-operate in training of each others' staff members.
On 15 March 2013, IDBI Bank announced that it has partnered with eMudhraConsumer Services Ltd. (eMudhra), a licensed Certifying Authority (CA), to implement Digital Signature based authentication solution to strengthen and further secure its Corporate Inet Banking channel. The solution builds trust and enhances security in the electronic banking system thereby enhancing comfort and confidence of both, the customer and the bank while undertaking Third Party Fund Transfers and Bulk Transaction uploads.
The 40th Trade Finance (TF) Centre of IDBI Bank was inaugurated on 28 March 2013 at the IDBI Bank Building, BKC, Mumbai. IDBI Bank's TF Centre in BKC is an Authorized Dealer (AD) in foreign exchange, and would cater to the Trade Finance and Forex needs of Exporters, Importers and Retail customers.
IDBI Bank and Passenger Car Business Unit of International Cars & Motors Limited (ICML) entered into a Memorandum of Understanding (MoU) on 17 May 2013 for providing auto finance to prospective customers of ICML. As per the scheme modalities, ICML and its dealer network will collaborate with IDBI Bank for the purpose of 'Retail Activation' in order to facilitate vehicle financing business. On 22 May 2013, IDBI Bank inaugurated 29 branches, taking its total branch network to 1,111.
On 17 June 2013, IDBI Bank entered into a tie up arrangement with Jain Irrigation Systems Limited (JISL) for financing Minor Irrigation Systems to individual farmers. The tie-up provides assistance to farmers across all the branches of the bank wherever JISL has a dealer network. The tie-up will help farmers increase their acreage under irrigation by minimal use of available water resource. On 26 July 2013, Government of Maharashtra launched the eSBTR Project for online payment of Stamp Duties & Registration fees in partnership with IDBI Bank.
On 11 November 2013, IDBI Bank Ltd, through its DIFC Branch in Dubai, signed a loan agreement for USD 340 million with KfW, Germany. The loan would be availed by IDBI Bank for funding loans to the micro, small and medium-sized enterprises (MSME) directly or indirectly through Microfinance Institutions (MFIs) and Non Banking Finance Companies (NBFCs). Part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
On 28 May 2014, FICCI-CMSME, an affiliated body under the umbrella of the Federation of Indian Chambers of Commerce and Industry (FICCI), an apex Chamber of Commerce & Industry of India, and IDBI Bank announced a partnership through an MoU to make organized finance facility available for Micro, Small and Medium Enterprises (MSME) across the country at competitive interest rates.
On the occasion of the completion of 50 years of operations, IDBI Bank on 1 July 2014 launched mobile banking service for its customers. On 28 August 2014, IDBI Bank announced that it has opened more than 3.62 lakh basic savings accounts under the Pradhan Mantri Jan Dhan Yojana' to mobilize Basic Savings Bank Deposit Accounts (BSBDAs), promote financial literacy and meeting comprehensively the objective of financial inclusion.
On 4 September 2014, IDBI Bank launched its first e-lounge' at its Mahim branch in Mumbai. At IDBI Bank's e-lounge, customers can, on a self service basis, enjoy facilities such as ATM, Automated Cash Deposit (with a receipt and instant credit of the amount), Automated Cheque Deposit (with an acknowledgment receipt), Automated Pass Book Printing, e-Transact terminal for various Card and Net Banking holders to view balance, make a funds transfer, pay bills, recharge etc.
On 17 October 2014, IDBI Bank announced that its first Basel III compliant Additional Tier - I (AT- I) bonds amounting to Rs 2500 crore (Rs 1500 crore with an option to retain over-subscription upto Rs 1000 crore) received an overwhelming response and was fully subscribed prior to the closure date. The issue opened on 29 September 2014. The issue was competitively priced at a coupon of 10.75% p.a. payable annually.
On 28 November 2014, IDBI Bank inaugurated its zonal office at Chandigarh. The zonal office will play a vital role in helping the bank achieve its goal of expanding its retail loan and MSME loan portfolio. On 14 December 2014, IDBI Bank in association with NSDL Database Management Limited (NDML) launched the Electronic-Insurance Account (e-IA)'. e-IA is the portfolio of insurance policies of a policy holder held in electronic form with an insurance repository.
On 25 February 2015, IDBI Bank launched its Mobile Banking Application (App) with the branding 'IDBI Bank Go Mobile'. On 6 April 2015, IDBI Bank inaugurated its 3000th ATM at Punjabi Bagh, New Delhi.
On 10 April 2015, IDBI Bank Ltd and Life Insurance Corporation of India (LIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) for savings bank account holders of the bank. PMJBY is a life insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers life insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-50 years at an annual premium of Rs 330 plus service tax. The insurance cover will be available up to 55 years.
On 20 April 2015, IDBI Bank in association with National Payments Corporation of India (NPCI) launched the Rupay Platinum Debit card'. The Rupay Platinum Debit card' enables cost-effective, fast and secure access to large number of ATMs, POS terminals, e-commerce websites and participating merchant establishments across the country.
On 22 April 2015, IDBI Bank and Bajaj Allianz General Insurance Company Ltd (BAGIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for savings bank account holders of the bank. PMSBY is an accident insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers accident insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-70 years at an annual premium of Rs 12 plus service tax.
The General Refinance Agreement (GRA) between IDBI Bank and Micro Units Development and Refinance Agency (MUDRA) Ltd. was signed on 1 July 2015. IDBI Bank is one of the leading banks identified by MUDRA, eligible for the refinance scheme. As per the agreement, the bank will offer credit facilities up to Rs 10 lakh to Micro Enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and MUDRA will be providing refinance assistance to IDBI Bank for eligible sanctioned loan cases. The arrangement will be implemented through the branches of IDBI Bank on pan India basis.
On 30 July 2015, IDBI Bank launched its first self service Mini Branch Kiosk at its Cuffe Parade, Mumbai Branch which will address the customer's request of personalized cheque leaves dispensation and issue of Demand Draft & Pay Order on 24X7 basis. IDBI Bank would be the first bank in the country to make available these services on 24X7 basis.
IDBI Bank launched its first e-lounge at its Nager Bazar branch in Kolkata on 22 August 2015. The new section-in-branch is a step towards expanding the bank's presence in the digital world. The e-Lounge consists of 24x7 Kiosk based solutions designed to deliver a wide range of banking services round the clock, including deposit of bulk cash beyond regular banking hours.
On 30 November 2015, IDBI Bank inaugurated its state-of-the-art Security Operations Centre (SOC) at its Data Centre, Belapur, Navi Mumbai. Through the SOC, the bank will centrally monitor security devices like Firewalls, Routers, IDS/IPS, PIM, DLP, Antivirus, Phishing/Malware attempts and take corrective actions, in shortest span of time. The SOC will be a Command Centre for countering cyber threats and ensure compliance with the bank's Information Security Policy besides fulfilling the bank's objective of providing safe and secure banking to customers.
IDBI Bank inaugurated its Treasury Business Continuity Centre (BCP) on 28 August 2015 at its Bandra Kurla Complex, Mumbai office. The BCP site will serve as a near-site alternative to the bank's main Treasury Dealing centre in the event of any business disruption/disaster. The centre is fully equipped with state of the art technology and connectivity with integrated operations covering various market segments and can handle the front office, back office and mid-office functions of Treasury.
IDBI Bank launched a USD 350 million 5 year Reg S Green Bond issue on 23 November 2015. The transaction received an overwhelming response and the issue was oversubscribed by 3 times. The issue was made under the USD 5 billion MTN Programme listed on the Singapore Stock Exchange.
On 29 December 2015, IDBI Bank announced that it has received Rs 2229 crore from the Government of India (GoI) towards preferential allotment of equity shares of Rs 10 each to GoI at a price of Rs 75.28 per share in terms of the approval accorded by the Shareholders at the EGM of the bank held on 4 November 2015.
On 2 January 2016, IDBI Bank announced that it has mobilised Rs1900 crore through Basel III compliant Tier 2 bonds through two separate issues on private placement basis to strengthen its capital adequacy. The first issue of Rs1000 crore concluded on 31 December 2015 was for a tenor of 15 years with call option at the end of 10 years while the second issue of Rs 900 crore was concluded on 2 January 2016 with a tenor of 10 years. Both the issues carry a coupon of 8.62% p.a. payable annually. These issuances aggregating Rs1900 crore would augment capital adequacy ratio of the bank by about 55 basis points.
On 15 March 2016, IDBI Bank launched the nation's first of its kind 'G-Sec Investment Facility through ATM for Retail Investors' at the IDBI Bank's ATM at Corporate Centre, Mumbai. This facility is unique and first of its kind initiative of the bank to provide easy access to retail investors to invest in Government Securities. The facility of investing in G-Sec through ATM is an extension of IDBI Bank's Samriddhi G-Sec Portal to enable retail investors to transact in Government Securities
IDBI Bank launched the 'Stand Up India' Scheme on a pan India basis on the occasion of the 125th birth anniversary of Dr. Babasaheb Ambedkar on 14 April 2016. The objective of the scheme is to promote entrepreneurship amongst the scheduled caste/scheduled tribe and women and aid in their social upliftment. The proposed scheme shall facilitate eligible borrowers to avail loans between Rs 10 lakhs upto Rs 100 lakhs to promote productive and economic activity.
On 6 May 2016, IDBI Bank announced the opening of its IFSC Banking Unit (IBU) at India's first and only International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT). IDBI became the first public sector bank to open its IFSC Banking Unit (IBU) at GIFT. IDBI Bank's GIFT branch will provide full range of corporate banking services and will meet foreign currency funding needs of its vast Indian clientele. Through its GIFT branch IDBI Bank aims to foster greater trade and cross border transactions between India and rest of the world.
On 9 May 2017, IDBI Bank announced that the Reserve Bank of India (RBI), vide letter dated 5 May 2017, has initiated Prompt Corrective Action for IDBI Bank in view of the high net NPA and negative RoA. This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities.
On 13 June 2016, IDBI Bank announced the launch of IDBI Express', an unique banking solution, enabling customers to bank at their chosen time and place beyond banking hours, without having to visit the bank branch.
On 30 August 2016, IDBI Bank announced that it has raised Rs 1500 crore from its second tranche of Basel III compliant Additional Tier 1 (AT1) bonds. The issue opened and closed on 30 August 2016. The issue was competitively priced at a coupon of 11.09% p.a. payable annually.
During the quarter ended 30 June 2017, Life Insurance Corporation of India (LIC) infused Rs 394 crore in IDBI Bank by way of preferential allotment of equity shares. On 9 August 2017, IDBI Bank received further capital infusion of Rs 1861 crore from Government of India.
On 26 September 2017, IDBI Bank announced the launch of Project Nishchay' in partnership with The Boston Consulting Group (BCG) to accelerate its turnaround programme and improve financial performance. The project will be led by senior management at IDBI Bank along with BCG. Coordinating across multitude of initiatives, the bank will focus on four key areas - revenue enhancement, cost control & reduction, asset productivity and overall program management in consultation with BCG.
The Bank served its customers through its network of 1,916 branches, 3,779 ATMs and 58 e-lounges as on 31st March, 2018.
On 29 March 2018, IDBI Bank clarified that all the Pisciculture loans identified as fraudulent have been fully provided for and there will be no further impact on the profitability/balance sheet of the bank. The bank continues to pursue all legal actions to recover dues from the borrowers and has taken action against the erring officers.
The Board of Directors of IDBI Bank at its meeting held on 25 May 2018 approved in-principle, the proposal to initiate divestment of partial stake in IDBI Asset Management Limited to a strategic investor, subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by Delegated Authority.
On 8 August 2018, IDBI Bank informed the stock exchanges that Government of India (GoI) has conveyed no objection to reduction in GoI's shareholding in IDBI Bank below 50%, relinquishment of management control by GoI in IDBI Bank and acquisition of controlling stake in IDBI Bank by Life Insurance Corporation of India (LIC) as Promoter through Preferential Issue/open offer of equity, subject to requisite Regulatory approval and compliance with Laws. Earlier, on 16 July 2018, IDBI Bank received a letter from Life Insurance Corporation of India (LIC) expressing its interest in acquiring 51% controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer. IDBI Bank's Board of Directors at its meeting held on 17 July 2018 considered LIC's proposal and decided to seek Government of India's decision in is regard.
During the FY2019, the Bank's aggregate deposits and advances touched Rs 2,27,372 crore and Rs 1,46,790 crore, respectively.
As on 31 March 2019, the Bank had five subsidiaries, viz., IDBI Intech Ltd., IDBI Capital Markets & Securities Ltd., IDBI Asset Management Ltd., IDBI MF Trustee Company Ltd. and IDBI Trusteeship Services Ltd.
During FY 2018-19, the Bank has raised funds through Preferential allotment of equity shares to Government of India (GoI) in May 2018 aggregating to Rs 7881 crore and to LIC in (i) October 2018 aggregating to Rs 2098 crore, (ii) December 2018 aggregating to Rs 14,500 crore and (iii) January 2019 aggregating to Rs 5025.96 crore.
As on 31 March 2019, the Bank served its customers through its network of 1,892 branches, 3,700 ATMs and 58 e-lounges.
During the year 2018-19, the Bank received Share Application Money of Rs. 21624.15 Crore from Life Insurance Corporation of India (LIC) against which, Bank made preferential allotment of 355,51,05,535 Equity shares to LIC. Further, during the year LIC also made an open offer to the equity shareholders of IDBI Bank through which, it acquired 5,66,82,182 Equity Shares. Consequently, the shareholding of LIC rose to 51% of the total paid up share capital of the Bank.
The Bank has been categorized as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.
During FY2020, the Bank's aggregate deposits and advances touched Rs 2,22,424 crore and Rs 1,29,842 crore, respectively.
During the FY 2019-20, the Bank raised funds through preferential allotment of equity shares on 22 October 2019 aggregating to Rs 4743 crore (inclusive of premium amount, if any) to LIC (such that the shareholding of LIC post allotment aggregates upto 51% of Bank's expanded paid-up capital) and aggregating upto Rs 4557 crore (inclusive of premium amount, if any) to Government of India.
As on 31 March 2020, the Bank served its customers through its network of 1,892 branches, 3,683 ATMs and 58 e-lounges.
As on 31 March 2021, the Bank served its customers through its network of 1,886 branches, 3,403 ATMs and 58 e-lounges.
As on 31 March 2023, the Bank served its customers through its network of 1,928 branches, 3,334 ATMs and 58 e-lounges. The Bank added 42 branches to its network during the year 2023 to strengthen its retail franchise.
IDBI Bank Ltd
Directors Reports
IDBI Bank Ltd
Company Background
| Incorporation Year | 1964 |
| Registered Office | IDBI Tower WTC Complex 3rd Flr,Cuffe Parade Colaba
Mumbai,Maharashtra-400005 |
| Telephone | 91-22-66553355/22189111,Managing Director |
| Fax | 91-22-22180411 |
T N ManoharanRakesh Sharma| Company Secretary | Jyoti Biju Nair |
| Auditor | Varma & Varma/G D Apte & Co |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
IDBI Bank Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Gyan Prakash Joshi | Independent Director | 2023 |
| Bhuwanchandra Balkrishna Joshi | Independent Director | 2023 |
| Samaresh Parida | Independent Director | 2023 |
| N Jambunathan | Independent Director | 2023 |
| Rakesh Sharma | Managing Director & CEO | 2023 |
| Deepak Singhal | Independent Director | 2023 |
| Sanjay Gokuldas Kallapur | Independent Director | 2023 |
| Samuel Joseph Jebaraj | Deputy Managing Director | 2023 |
| Suresh Kishinchand Khatanhar | Deputy Managing Director | 2023 |
| P V Bharathi | Independent Director | 2023 |
| Jyoti Biju Nair | Company Sec. & Compli. Officer | 2023 |
| Mukesh Gupta | Nominee (LIC) | 2023 |
| T N Manoharan | Chairman & Independent Directo | 2023 |
| Sushil Kumar Singh | Nominee (Govt) | 2023 |
| Manoj Sahay | Nominee (Govt) | 2023 |
| Raj Kumar | Nominee (LIC) | 2023 |
| Jayakumar S. Pillai | Deputy Managing Director | 2023 |
IDBI Bank Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| BSEMID |
| CNXMIDCAP |
| CNX200 |
| BSEALLCAP |
| BSEFINANCE |
| LMI250 |
| BSE100LTMC |
| NFTYLM250 |
| NFTYMC150 |
| NFTYMSC400 |
| NF500M5025 |
| NFTYTOTMKT |
IDBI Bank Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest & Discount | Rs. | 0 | 0 | 0 | 13336.6263 |
| Income on investments | Rs. | 0 | 0 | 0 | 5948.9546 |
| Other Interest | Rs. | 0 | 0 | 0 | 718.4169 |
| Interest on bal with RBI | Rs. | 0 | 0 | 0 | 565.7861 |