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IDBI Bank Ltd

BSE Code : 500116 | NSE Symbol : IDBI | ISIN:INE008A01015| SECTOR : Banks |

NSE BSE
 
SMC up arrow

40.55

0.30 (0.75%) Volume 2990035

27-Sep-2022 12:44:57

Prev. Close

40.25

Open Price

40.70

Bid Price (QTY)

40.55(7710)

Offer Price (QTY)

40.65(5130)

 

Today’s High/Low 41.05 - 40.30

52 wk High/Low 65.25 - 30.50

Key Stats

MARKET CAP (RS CR) 43332.18
P/E 16.72
BOOK VALUE (RS) 30.8714445
DIV (%) 0
MARKET LOT 1
EPS (TTM) 2.41
PRICE/BOOK 1.30541348656361
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 35.52
4

News & Announcements

21-Sep-2022

IDBI Bank divests its entire stake held in Ageas Federal Life Insurance Company

25-Aug-2022

Kolte Patil Developers Ltd leads gainers in 'A' group

25-Aug-2022

Volumes spurt at L&T Finance Holdings Ltd counter

22-Aug-2022

IDBI Bank Ltd - IDBI Bank Limited - Reply to Clarification Sought

21-Sep-2022

IDBI Bank divests its entire stake held in Ageas Federal Life Insurance Company

26-Jul-2022

IDBI Bank receives upgrade in issuer ratings

14-Jul-2022

IDBI Bank to convene board meeting

01-Jul-2022

IDBI Bank schedules AGM

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Axis Bank Ltd 532215 AXISBANK
Bandhan Bank Ltd 541153 BANDHANBNK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
CSB Bank Ltd 542867 CSBBANK
DCB Bank Ltd 532772 DCBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Equitas Small Finance Bank Ltd 543243 EQUITASBNK
Federal Bank Ltd 500469 FEDERALBNK
Fino Payments Bank Ltd 543386 FINOPB
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Jammu and Kashmir Bank Ltd 532209 J&KBANK
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd(Merged) 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Suryoday Small Finance Bank Ltd 543279 SURYODAY
Tamilnad Mercantile Bank Ltd 543596 TMB
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 14656136 0.14
Total Institutions 23879652 0.22
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 57444102 0.53
Total Promoters 10183974842 94.71
Total Public & others 472447443 4.40
Total 10752402175 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

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. IDBI Bank had a network of 2,095 branches and 3,394 ATMs & CRMs as on 31 December 2020. The bank also 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. 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.

IDBI Bank Ltd Chairman Speech

As we look back at the last year's performance, it is evident that the Bank is in the midst of a transformational journey to emerge as a leading player in the banking space by leveraging its inherent strengths as well as capitalising on emerging opportunities.

Dear Shareholders,

It gives me immense pleasure to write to you and present the Bank’s Annual Report for the Financial Year (FY) 2021-22.

The year that just passed by gave us an opportunity to prove the Bank’s resilience to sail through a challenging business and operating environment as also to lay the foundation for future growth. As we look back at the last year's performance, it is evident that the Bank is in the midst of a transformational journey to emerge as a leading player in the banking space by leveraging its inherent strengths as well as capitalising on emerging opportunities. Before I dwell on the business strategy and financial highlights of the Bank, I would like to recount some of the key macroeconomic developments globally and in India that would be helpful in facilitating a better understanding of the Bank’s performance.

Economic Scenario

During the year, countries across the world, including India, continued to be impacted by the COVID-19 pandemic but the effect on the economic activities was limited. As the caseloads declined and severity of infection reduced due to wider vaccination coverage, there was a phased roll-back of restrictions enabling greater movement of people and goods. This led to an uptick in pent-up consumer spending and some uptake in private investment, which coupled with public transfers and investments, aided in a recovery in output in the first half of FY 2021-22 for the economy.

Though the COVID-19 pandemic led India’s economy into a contraction of 6.6% in FY 2020-21, a broad range of fiscal, monetary and health related responses to the crisis supported the recovery in FY 2021-22. Besides, the structural and policy reform measures introduced by the Government over the years helped to mitigate a longer-lasting adverse impact of the crisis. After the outbreak of the COVID-19 pandemic, the Government unveiled a special economic and comprehensive package, viz. Atmanirbhar Bharat Abhiyaan, allocating more than Rs. 20 lakh crore (US$270 billion) or equivalent to 10% of India’s GDP to support the country’s economic revival in the backdrop of the pandemic. At the same time, the RBI maintained an accommodative monetary policy during the period. A number of additional steps were also taken by the RBI to ensure that there was adequate systemic liquidity in order to support the credit demand and stimulate economic revival. Consequently, despite the second and third waves of the pandemic, India recorded a real Gross Domestic Product (GDP) growth of 8.7% in FY_2021-22 on the back of broad-based improvement in all the sectors, viz. agriculture, industries and services of the economy. With this, India maintained its position as one of the fastest growing economies globally.

Banking Sector

The policy measures taken by the Government of India and the Reserve Bank of India after the outbreak of the pandemic also helped to ensure that the banking sector in India remained resilient. This is reflected by the observed trend in key indicators – credit & deposit off-take, capital adequacy, asset quality and profitability. With a gradual improvement in business sentiment and enhanced policy push through credit lines for various sectors, there was a revival in the credit off-take in the economy. The deposits too continued to register relatively healthy growth. Capital positions of the banks were also comfortable. The gross as well as net non-performing assets of the banks moderated while their Provision Coverage Ratios (PCRs) improved and most of the banks saw improvement in profitability.

Profit and Growth

Undeterred by the ‘new normal’ dictated by the pandemic, your Bank’s efforts during the year centred around focussed execution of initiatives in line with its strategic objectives through strengthening the organisational structure and scaling up the technological capabilities. Your Bank continued to persevere towards its envisaged business objective of positioning itself as a retail-oriented bank in order to build a stable and granularised business portfolio to ensure profitable growth on a sustained basis. It gives me great pride to share with you that the Bank not only recorded second consecutive year of net profit in FY 2021-22 but also the highest ever net profit as a commercial bank at Rs. 2,439 crore – up by 79% on an annualised basis. Your Bank recorded robust growth of 14% in its advances to Rs. 1.46 lakh crore as at end-March 2022.

The Bank’s focus on building a low-cost and quality retail liability portfolio saw a 14% growth in its Current Account and Savings Account (CASA) deposit book to

Rs. 1.32 lakh crore as at end-March 2022, leading to an improvement in the CASA ratio by 633 basis points (bps) on annualised basis to 56.77% as at end-March 2022. The capital position of the Bank remained comfortable with the Capital to Risk (Weighted) Assets Ratio (CRAR) at 19.06% (against the minimum regulatory requirement of 11.50%) and the Tier 1 capital (including Capital Conservation Buffer (CCB)) ratio at 16.68% (against the minimum regulatory requirement of 8.00%) as at end-March 2022.

Concerted recovery efforts helped the Bank to lower its Gross Non-Performing Assets (GNPAs) and Net Non-Performing Assets (NNPA) by 323 bps and 70_bps, respectively, to 19.14% and 1.27%, respectively, as at end-March 2022. The Bank’s Provision Coverage Ratio (PCR) stood at 97.63% as at end-March 2022 - one of the highest in the banking industry. The Bank’s growing business, healthy capital position and improvement in its asset quality augurs well as it reinforces the fact that the Bank is an inherently strong bank. The expeditious turnaround scripted by the Bank, notwithstanding a challenging business and operating environment, especially in the backdrop of the pandemic, is a testament to its inherent strengths.

Strategic Measures

Being attuned to the emerging developments in the banking space, your Bank will seek to leverage its growing retail franchise with wide-reaching distribution network – both physical and digital, expanding customer base and data analytics capabilities to ramp up its CASA deposit book and retail term deposits. Furthermore, the Bank will target ramping up its retail loan book, including loans to the priority sector segments, in its endeavour to achieve a de-risked and granular business mix. Given the revival in the credit demand from the economy, your Bank will seek to capitalise on the opportunity to expand its corporate loan book in a risk-calibrated manner by extending financial assistance to well-rated corporates.

Being adequately capitalised, the Bank is well-positioned to meet the growing credit demand in the economy. Striving to improve its profitability, the Bank will explore opportunities to tap cross-functional synergies in sync with its positioning as a one-stop solution for the financial and banking needs of all its customers from the retail, agri, MSME and corporate segments. Taking cognisance of the importance of being adaptable, the Bank will continue to invest in its transformation to remain relevant and reflective of the constantly changing customer preferences and thus, driving growth in its business.

Taking into account the opportunities and challenges stemming from growing influence of digital in the banking space, the Bank will continue to invest in technological upgradation, digitalisation of processes and strengthening its data analytics capabilities to ensure seamless and convenient transactional experience to its customers while also boosting operational performance. Last but not the least, your Bank will diligently monitor its asset quality to be able to take remedial measures at the earliest and avoid slippages. The Bank will continue to have a focussed approach to recover dues from the non-performing assets by taking all possible necessary steps. A cohesive and well-rounded business strategy is expected to help your Bank in accelerating the momentum that has been gained so far.

Expression of Gratitude

Before I conclude, it is my pleasure to thank Shri M. R. Kumar, who preceded me in the role of the Chairman of your Bank, for dedicating significant time and energy to steer your Bank towards a brighter future. I would also like to convey my sincere appreciation to my colleagues on your Bank’s Board for their invaluable contribution in strengthening the Bank. I would like to express my gratitude to the Top Management team and all employees of your Bank for their hard work and dedication that helped the Bank to continue on a profitable path in spite of the trying circumstances. I, on behalf of your Bank’s Board of Directors, would also like to express my sincere thanks to investors, customers and other stakeholders for their unstinted patronage and cooperation. The Bank values your trust, confidence and support and shall continue to work tirelessly to live up to your expectations.

With best wishes,

T. N. Manoharan

Chairman

   

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. IDBI Bank had a network of 2,095 branches and 3,394 ATMs & CRMs as on 31 December 2020. The bank also 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. 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.

IDBI Bank Ltd Directors Reports

Your Bank’s Board of Directors is pleased to present the Report on the Bank’s business and operations for the financial year ended March 31, 2022.

The COVID-19 pandemic continued to af_ict the lives of people across the world in the Financial Year (FY) 2021-22. Mutations of the coronavirus caused second and third waves in India which saw exponential surge in infection rates. However, these waves had a limited impact on the economy as compared to the first wave on account of largely localised restrictions which allowed for a semblance of normal operations by various sectors of the economy. Furthermore, proactive measures taken by the Government of India (GoI) and the Reserve Bank of India (RBI) shielded the vulnerable segments of the populace and businesses against the excesses of the economic impact of the pandemic. The policy support helped in steering the economy towards the path of recovery as is evidenced by a real Gross Domestic

Product (GDP) growth of 8.7% in FY 2021-22 as compared to a contraction of 6.6% in FY 2020-21. Notwithstanding the impact of the resurgent waves of the pandemic, the banking sector continued to be resilient, aided by structural reforms taken by the Government of India (GoI) in the recent years as well as measures announced by the policymakers in the wake of the pandemic. Despite this, the continued uncertainty due to the pandemic and dented consumer & business sentiments weighed down the credit growth to some extent for a substantial part of the year. It is essential to view the financial performance of your Bank in the backdrop of these developments for a nuanced perspective.

FINANCIAL HIGHLIGHTS

As on March 31, 2022, your Bank’s aggregate deposits and advances touched Rs. 2,33,134 crore and Rs. 1,45,772 crore, respectively. Your Bank’s business highlights for the period under review are presented in Table 1.

Table 1: Key Financials

(Rs. in crore)

As on March 31, 2021 As on March 31, 2022
Capital 10,752 10,752
Reserves & Surplus 26,059 30,910
Deposits 2,30,852 2,33,134
Borrowings 15,908 14,345
Other Liabilities & Provisions 14,193 12,278
Total Liabilities 2,97,764 3,01,419
Cash & Balances with RBI 13,013 13,593
Balances with Banks & Money at Call & Short Notice 22,209 13,117
Investments 81,023 82,988
Advances 1,28,150 1,45,772
Fixed & Other Assets 53,369 45,949
Total Assets 2,97,764 3,01,419
For the period 2020-21 2021-22
Total Income 24,497 22,985
Total Expenses (other than provisions) 17,462 15,490
Provisions (other than tax) 4,666 3,887
Profit/ (Loss) Before Tax 2,369 3,608
Provision for Tax 1,009 1,169
Profit/ (Loss) After Tax 1,359 2,439

During the year under review, your Bank’s total income amounted to Rs. 22,985 crore, comprising interest income of

Rs. 18,295 crore and other income of Rs. 4,690 crore. Interest expenses stood at Rs. 9,133 crore and operational expenses at Rs. 6,357 crore, accounting for total expenditure (excluding provisions and contingencies) of Rs. 15,490 crore.

Total provisioning of your Bank decreased for the year due to lower provisioning towards standard assets in the year under review which was offset by increase in provisioning for Non-Performing Assets (NPAs) due to lower reversal of provisions in comparison with previous year. The provisions include Rs. 3,252 crore towards provision for NPAs, bad debts written-off and investments. The increase in Net Interest Income (NII), other income and reduction in provisions enabled the Bank to earn a net profit of Rs. 2,439 crore during FY 2021-22. While the Earnings per Share (EPS) during the year were

Rs. 2.27, the Book Value per Share (excluding intangible assets and Deferred Tax Asset (DTA)) stood at Rs. 18.35 as at end-March 2022. The Board of your Bank has not recommended any dividend for FY 2021-22.

REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES & JOINT VENTURE INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AS ON MARCH 31, 2022

Net Assets i.e. total assets minus total liabilities

Share in profit or loss

Name of the Entity As % of Consolidated Net Assets Amount (In Rs. crore) As % of Consolidated Profit or Loss Amount (In Rs. crore)
Parent : IDBI Bank Ltd. 97.57% 41,661.98 96.27% 2,439.27
Subsidiaries
Indian :
1. IDBI Capital Markets & Securities Ltd. 0.77% 329.51 0.66% 16.75
2. IDBI Intech Ltd. 0.24% 103.90 0.67% 16.95
3. IDBI Asset Management Ltd. 0.29% 121.82 0.33% 8.45
4. IDBI MF Trustee Co. Ltd. 0.00% 1.69 0.00% 0.08
5. IDBI Trusteeship Services Ltd. 0.66% 282.97 2.04% 51.66
Foreign : NA NA NA NA
Minority Interest in all Subsidiaries 0.30% 128.19 0.92% 23.40
Associates (Investment as per the equity method)#
Indian
1. Biotech Consortium India Ltd. NA NA - -
2. National Securities Depository Ltd. NA NA 1.55% 39.33
3. North Eastern Development Finance Corporation Ltd. NA NA - -
4. Pondicherry Industrial Promotion Development & NA NA NA NA
Investment Corporation Ltd. ( PIPDICL)
Foreign : NA NA NA NA
Joint Ventures (as per proportionate consolidation/ investment as per the equity method)
Indian
1. Ageas Federal Life Insurance Company Ltd. 0.60% 257.24 0.93% 23.58
Foreign NA NA NA NA
Total 100.44% 42,887.30 101.54% 2,572.68
Elimination -0.44% -187.41 -1.54% -39.01
Net Total 100.00% 42,699.89 100.00% 2,533.67

 

Note: None of the above subsidiaries have any subsidiary.

# - The financials of three associates, viz. North Eastern Development Finance Corporation Ltd. (25%), Biotech Consortium India Ltd. (27.93%) and Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (21.14%) are not considered for consolidation on account of non-receipt of Financial Statements for FY 2021-22 and in case of one Associate, National Securities Depository Ltd. (26.10%), the financials has been taken up to December 2021, impact of which on Consolidated Financial Statements is not material. In case of the Associate, Pondicherry Industrial Promotion Development and Investment Corporation Ltd., the investment in the said company has been written down to Rs. 1.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION OF IDBI BANK WHICH HAVE OCCURRED DURING THE END OF FINANCIAL YEAR AND THE DATE OF BOARD REPORT

There were no material changes and commitments affecting the financial position of the Bank, which occurred between the end of the financial year, i.e. March 31, 2022 and the date of the Directors’ Report.

THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE FINANCIAL STATEMENTS

According to Section 143(3)(i) of the Companies Act 2013, the report of the Statutory Auditors should state whether the Bank has adequate Internal Financial Controls (IFCs) system in place and what is the operating effectiveness of such controls in the context of the financial statements. The IFCs, as referred to in Section 143(3) (i) of the Companies Act, relate to Internal Financial Controls Over Financial Reporting (IFCO-FR). The Bank’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by it, considering the essential components of internal control stated in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank’s policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records, and timely preparation of reliable financial information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949 and the guidelines issued by the RBI. Your Bank has put in place an IFCO-FR Framework for evaluation of the existing internal financial controls system and appointed a Consultant for validating the compliances with respect to the documentation, certification, reporting process of the controls across all business verticals/ departments and ascertaining the adequacy and effectiveness of the controls in the Bank in all material respects with respect to financial reporting. During FY 2021-22, the Consultant has submitted the Internal Compliance Certificate for all the quarters of FY 2021-22 after carrying out the testing and validation of all the underlying processes as per the Bank’s IFCO-FR framework. The Consultant reviewed the compliance of all the 591 Risk Control Matrices as on March 31, 2022 and reported four open issues for further compliance. The departments concerned are working closely for addressing these open issues.

DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATE PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH A DETAILED EXPLANATION THEREOF, INCLUDING:

Particulars 2020-21 2021-22 Comments
Return on Assets 0.46% 0.84% Net profit for FY 2021-22 is Rs. 2,439 crore as compared to net profit of Rs. 1,359 crore in FY 2020-21
Return on Equity (excluding intangibles) 10.06% 13.60% Net profit for FY 2021-22 is Rs. 2,439 crore as compared to net profit of Rs. 1,359 crore in FY 2020-21.
Debt Equity Ratio (excluding intangibles) 1.00% 0.73% Borrowings made in India and outside India have significantly decreased by Rs. 1,563 crore and improvement in net worth by Rs. 3,778 crore
Net NPA ratio 1.97% 1.27% Net NPA has decreased by Rs. 663 crore.

CAPITAL ADEQUACY

In adherence to the Pillar 1 guidelines of the RBI under Basel III framework, your Bank computes regulatory capital requirement for credit, market and operational risks on a quarterly basis. As per the Basel guidelines, banks in India are mandated to maintain the Capital Conservation Buffer (CCB) in a phased manner commencing from March 31, 2016.

In line with RBI’s notification dated February 5, 2021, your Bank has implemented the last tranche of Capital Conservation Buffer (CCB) with effect from October 1, 2021. Accordingly, the minimum regulatory requirement of ‘Total Capital + CCB’ was 11.50% as on March 31, 2022. Your Bank’s ‘Total Capital

+ CCB’ ratio was 19.06% as on March 31, 2022. Similarly, your Bank’s ‘Common Equity Tier 1 (CET1) + CCB’ ratio was 16.68% as against the regulatory requirement of 8.00%. Your Bank’s ‘Tier 1 + CCB’ ratio stood at 16.68% as on March 31, 2022 as against the regulatory requirement of 9.50%. Your Bank’s Leverage Ratio as on March 31, 2022 was 7.42% against the minimum regulatory requirement of 3.50%.

BUSINESS STRATEGY

The second wave of the pandemic in India, which peaked during the months of April 2021 and May 2021, saw lakhs of citizens in the country being affected by the coronavirus. In order to curb the spread of the virus, various State Governments re-imposed restrictions at localised levels, which permitted several economic activities to continue as usual, albeit at a smaller/ contained scale, in adherence with

COVID-19 protocols. The policymakers also continued to extend targeted policy support to the vulnerable sections of the society to minimise the economic impact of the pandemic on the lives and livelihoods of individuals. Against this backdrop, your Bank continued to remain committed towards its core objective of ensuring customer delight by serving its customers with a bouquet of products and services for meeting their banking and financial requirements. Considering the pandemic-led restriction on physical movement, various business enablers were put in place by the Bank to extend uninterrupted and seamless banking services to its customers, thereby enhancing its operational resilience. Equipped with the experience gained during the initial phase of the pandemic, the Bank was able to adopt a more targeted approach by _ne-tuning its product and services to align with the emerging expectations and preferences of its customers and to ensure a holistic banking experience. Thus, it is evident that the measures initiated by the Bank in the previous financial year to navigate through an environment disrupted by the outbreak of the pandemic gained further traction in FY 2021-22. Apart from displaying operational flexibility, the Bank also exhibited tangible improvements in its business and financial performance. The FY 2021-22 started on a strong footing with the Bank further consolidating its position aided by robust fundamentals as also improvement in its business prospects upon the removal of restrictions placed on it with the Bank’s exit from the RBI’s Prompt Corrective Action (PCA) framework in March 2021. The strategic imperatives pursued by the Bank within the broad contour of the overall business strategy paved the way for a broad-based turnaround in its performance during the year. In consonance with its overarching agenda of positioning itself as a retail-oriented bank, the Bank augmented the share of loans to retail and small & medium-sized enterprises in its total asset book. At the same time, the Bank also pursued growth in the corporate credit book, especially in the mid-size units, in a risk-calibrated manner. Towards this end, the Bank exercised caution while augmenting the asset portfolio (both retail and corporate) by taking into consideration the associated risk parameters. On the liability side, your Bank continued to boost the share of its low-cost deposit base, i.e. CASA deposits and retail term deposits to the total deposits while strategically lowering the reliance on bulk term deposits. The strategic imperatives adopted by the Bank on the asset and liability front aided in reduction in the key cost parameters, viz. cost of funds and cost of deposits. In addition to this, the Bank continued to realise the full potential of the business synergies arising from its association with the Life Insurance Corporation of India (LIC), which aided in further improving its income. The measures to augment its income were aptly supported by cost rationalisation measures to strengthen its bottom-line.

Taking cognisance of the importance of asset quality in ensuring a stable and profitable growth path, your Bank continued to emphasise on improving its asset quality with special focus on maximising recovery and up-gradation efforts of its delinquent asset portfolio through legal and regulatory routes in a bid to resolve the existing stress in its asset book. Dedicated teams set up for both corporate and retail portfolio accelerated the overall recovery process. In order to closely monitor the onset of stress in the portfolio and also prevent further slippages in its asset quality, the Bank also undertook proactive measures to strengthen its credit monitoring mechanism. These measures initiated by the Bank aided in reducing incipient stress, limiting slippages and enhancing its credit quality. Your Bank also undertook measures to further strengthen its Risk Management and Corporate Governance framework. Furthermore, your Bank also continued to promote a strong compliance culture by promoting and ensuring meticulous adherence to key laws, rules, regulations, internal policies and procedures and various codes of conduct, to maintain its reputation and win the trust of customers, investors and regulators.

These strategic measures were supplemented by a number of structural and systemic improvements, such as organisation restructuring, investment in technological up-gradation, augmenting data analytics prowess, further digitalisation of both internal as also customer-facing processes, introduction of innovative products & services, numerous employee-friendly initiatives, etc. The cohesive measures taken by your Bank paved the way for a holistic turnaround of the Bank in FY 2021-22.

KEY BUSINESS INITIATIVES

Customer centricity is at the core of your Bank’s business strategy. Your Bank, through its physical touch-points of 1,886 branches, 3,403 ATMs and 58 e-lounges, offers a wide range of banking products and services to cater to the emerging financial and investment requirements of its diverse customer base. Apart from _ne-tuning its existing bouquet of products and services, your Bank also introduced a number of innovative banking solutions in line with the changing business landscape and evolving customer preferences. Your Bank further leveraged the increased digital adoption by the customers by broad-basing its digital offerings and contactless solutions. Furthermore, your Bank also automated and digitised its processes to ensure seamless banking services and enhanced ease of banking, thereby offering a holistic customer experience. In alignment with the changing business landscape, your Bank proactively strengthened and revamped its digital infrastructure and capabilities for smooth, convenient, safe and secure ‘Anytime, Anywhere’ banking experience for its customers. Your Bank also established a forward looking approach towards cyber security to reinforce its vision of being the preferred and trusted bank for all its stakeholders.

Your Bank continued to target a progressively larger retail business portfolio in alignment with its overall business strategy of positioning itself as a retail-focussed bank by offeringawiderangeofretail-centricproductssuchasHousing Loans, Loan against Property, Personal Loans, Education Loans, Auto Loans, Loan against Securities, MSME Loans, Agri Loans, Gold Loans, among others. In order to ensure a faster turn-around time, your Bank processes these loans on an Automated Loan Processing System. Furthermore, the Bank also embarked on several IT initiatives for ensuring better customer experiences.

Your Bank continued to contribute significantly towards Priority Sector Lending (PSL) as mandated by the RBI by focussing on lending to Micro Enterprises, Direct Agri Non-Corporate (DANC) and Small & Marginal Farmers (SFMF). Your Bank also leveraged its Business Correspondent (BC)/ Business Facilitator (BF) channel to expand its reach, especially in the rural and semi-urban areas. Your Bank also entered into co-lending agreements to ramp up its Priority Sector Lending (PSL) portfolio. Your Bank is taking concerted efforts to further the objective of financial inclusion by ensuring convenient access to appropriate financial products & services to the vulnerable and financially excluded sections of the society at affordable cost in a fair and transparent manner. Your Bank has been making extensive use of technology and promoting financial literacy to ensure inclusive growth. Your Bank has been also extending loans under various social security schemes and initiatives of the Government of India.

In addition to meeting the financial requirements of its Retail, Agri and MSME (RAM) customers, your Bank endeavoured to cater to the financing needs of its corporate clientele in a risk-calibrated manner by extending term loans, working capital loans, packing credit and post-shipment credit to exporters, bill discounting, intra-day limits, channel financing & vendor financing, lending to Non-Banking Financial Companies (NBFCs) for on-lending to customers from the Priority Sector Lending (PSL) segment, etc. Your Bank leveraged the business synergies with the Life Insurance Corporation of India (LIC) by offering a wide array of innovative, specialised/ customised products and services to the employees, agents and subsidiaries of the LIC for meeting their banking and investment requirements.

Your Bank has a dedicated Trade Finance Department, which offers a wide range of products and services to its large corporate, mid corporate and retail customers at competitive pricing. The Bank also undertook a number of IT initiatives to make the transactional executions error-free and faster. With a view to benefitting from the emerging usage of Distributed Ledger Technology (DLT) in the sphere of Trade Finance, your Bank became one of the equity holders in Indian Banks’ Blockchain Infrastructure Co. Pvt. Ltd. (IBBIC), which is expected to facilitate in building processes to digitise and automate inter-organisation trade finance operations. Your Bank instituted effective system control mechanisms to mitigate cyber fraud risk in cross-border payments. Your Bank acts as an agent of the RBI in handling receipt and payment transactions of the Central Government and the State Governments. Your Bank is authorised to collect Central Government taxes, offer Small Savings Schemes, and to disburse Central Civil, Defence and Railway Pensions. Your Bank is active in collection of State Receipts in 14 States and two Union Territories. Your Bank also provides 24x7 internet banking facilities for tax payments. Your Bank offers customised and comprehensive range of Cash Management Services (CMS) for collection, payment and transaction banking solutions to suit the varied needs of the corporates. Your Bank offers various solutions like National Automated Clearing House (NACH), Virtual Account Facility, utility payments, direct debit facilities and other customised e-solutions that are technologically integrated (Host-to-Host) with client systems. Your Bank added two new digital products for corporates and with institutions, i.e. Corporate Liquidity Management Solutions (C-LMS) and Government Liquidity Management Solution (G-LMS) to cater to the liquidity management needs of corporates/ institutions. Among other services, your Bank is authorised to participate in e-freight payment system of the Indian Railways and for FASTag issuance and FASTag Acquiring Business. Your Bank also offers CMS collection and payment services to the LIC’s branch offices, divisional offices, Pension & Group Schemes (P & GS) offices, Individual Pension Policy (IPP) offices and other offices. Your Bank’s Treasury caters to the requirements of its corporate and retail clients by effectively marketing foreign exchange, fixed income and derivative products and also providing them with solutions to effectively manage their exposures. Your Bank also advises its clients on their investment in debt instruments (Government Securities, Non-Statutory Liquidity Ratio (NSLR) Bonds, etc.) through Constituents’ Subsidiary General Ledger (CSGL) accounts. Your Bank has also set up a dedicated Financial Institutions Group (FIG) to focus on domestic and foreign Financial Institutions (FIs) for offering various products/ services of the Bank. This group acts as a coverage group for offering products/ services relating to trade, cash management services, payments, forex, derivatives, money market and retail banking. The FIG also engages with the FIs for increasing the breadth of coverage and deepening the FI business.

Your Bank has been increasingly using data analytics and Machine Learning (ML) to improve its capabilities for customer acquisition and retention, to launch customised campaigns based on the analytics-driven input; to recommend business solutions for addressing complex business problems and issues; for assessment of credit risk and business potential; and taking corrective action with respect to loan accounts on a real-time basis with a focussed approach etc. Data analytics has aided the Bank in not only augmenting its business, NPA prediction, loan recovery and churn reduction but has also aided in number of process re-engineering. The detailed description of the Bank’s initiatives undertaken during the year is outlined in the Management Discussion and Analysis section of the Annual Report.

IMPACT OF THE COVID-19 PANDEMIC ON THE BANK’S BUSINESS

During FY 2020-21, the COVID-19 pandemic resulted in nation-wide lockdown during April–May 2020 period which substantially impacted the economic activity in the country. The subsequent easing of lockdown measures led to gradual improvements in the pace of economic activity and resulted in shift towards normalcy in the second half of FY 2020-21. In FY 2021-22, India witnessed two more waves of the pandemic and the re-imposition of the localised/ regional lockdown measures in certain parts of the country. At present, there has been a gradual lowering of COVID-19 cases and the countries around the world are witnessing a gradual revival in their economies, including India. The Bank has geared itself on all fronts to meet the challenges imposed by the pandemic. The Bank’s capital and liquidity position is strong and would continue to be the focus area for your Bank.

BOARD OF DIRECTORS

Your Bank’s Board of Directors is broad-based and its constitution is governed by the provisions of the Banking Regulation Act, 1949, the Companies Act, 2013, the Articles of Association of the Bank and the requirements of Corporate Governance, as envisaged in the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). The Board functions directly as well as through various Board-level committees constituted to provide focussed governance in the important functional areas of the Bank. As per the Articles of Association, the Board of Directors shall not be less than three and more than _fteen members consisting of a Chairman appointed by the Board, one Whole-time MD & CEO and two DMDs to be appointed by the Board, two Nominee Directors of the

LIC, two Nominee Directors of GoI and eight Non-rotational Independent Directors (including the Chairman and one Woman Independent Director).

As on March 31, 2022, the Board comprised of fourteen Directors, viz., Shri M. R. Kumar, Non-Executive Chairman, ShriRakeshSharma,MD&CEO,ShriSamuelJosephJebaraj and Shri Suresh Khatanhar, DMDs, as Whole Time Directors; Shri Anshuman Sharma, as Government Nominee Director and Shri Mukesh Kumar Gupta, LIC Nominee Director, as Non-Executive Directors; Shri Gyan Prakash Joshi, Shri Bhuwanchandra B. Joshi, Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur, Smt. P. V. Bharathi and Shri T. N. Manoharan as Independent Directors. The strength of 14 (fourteen) Directors on the Board as on March 31, 2022 meets the requirement provided under Article 114(a) of the Articles of Association of the Bank.

APEX COMMITTEES

The Board has a total of thirteen committees to oversee various functional areas of your Bank’s business and operations. The Board committees include Audit Committee of the Board, Executive Committee, Nomination

& Remuneration Committee, Stakeholders’ Relationship Committee, HR Steering Committee, Frauds Monitoring Committee,RecoveryReviewCommittee,RiskManagement Committee, Corporate Social Responsibility Committee, Non-Cooperative Borrowers’ Review Committee, Customer Service Committee, Wilful Defaulters’ Review Committee and Information Technology Strategy Committee.

CORPORATE GOVERNANCE

Your Bank is committed to adopt the best Corporate Governance practices. It believes that effective Corporate Governance is not just a requirement for regulatory compliance, but also a facilitator for excellence in governance including enhancement of stakeholders’ value. The details of your Bank’s Corporate Governance practices are given in this Annual Report as a separate section under the Corporate Governance Report.

BUSINESS RESPONSIBILITY REPORT

As per Regulation 34 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Bank’s Business Responsibility (BR) Report for FY 2021-22 has been hosted on its website under the link (https://www.idbibank.in/business-responsibility-report.asp). The BR Report describes initiatives taken by the Bank from an environmental, social and governance perspective.

STATEMENT UNDER SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014

There were no personnel in your Bank’s service, during the financial year under review, who received remuneration of over Rs. 1.02 crore annually. Besides, there were no personnel in the service of the Bank for a part of the year who received remuneration in excess of Rs. 8.50 lakh per month. Further, there were no personnel employed throughout the financial year or part thereof who was in receipt of remuneration at a rate, which in the aggregate, was in excess of that drawn by Managing Director & CEO or Deputy Managing Directors of the Bank and who held by himself or along with his spouse and dependent children, not less than 2% of the equity shares of the Bank.

STATEMENT UNDER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014 FOR YEAR ENDED MARCH 31, 2022 – DETAILS OF TOP TEN EMPLOYEES

Sr. No. Name Designation Annual Remuneration received (Rs.) Nature of employment, whether contractual or otherwise Qualifications and experience of the employee Date of commencement of employment Age of such employee The last employment held by such employee before joining the company
1 Shri Rakesh Sharma MD & CEO 8721245.16 Contractual Post Graduate in Economics and CAIIB Experience in IDBI Bank: 3 years 10-Oct-18 63 years Canara Bank
2 Shri Suresh Khatanhar* DMD 7158124.98 Contractual M.Com, CAIIB and ICWA Experience in IDBI Bank: 24 years 23-Jun-97 58 years Dena Bank
3 Shri Ashok Kumar Gautam# Head-Treasury 6571671.68 Contractual B.Sc, MBA and FRM Experience in IDBI Bank: 2 years 24-Jun-19 59 years Axis Bank
4 Shri Samuel Joseph Jebaraj DMD 6494752.38 Contractual BE (Hons.) and MBA Experience in IDBI Bank: 2 years 20-Sep-19 53 years Exim Bank
5 Shri Nagaraj Garla ED 5431515.92 Full Time B.Com, M.B.A, M.Com, I.C.W.A (Inter), Certification Programme in IT and Cyber Security for Senior Management, CAIIB, Certificate Examination in Trade Finance and Certificate Examination in SME Finance and CIMA Advanced Diploma in Management Accounting (UK) Experience in IDBI Bank: 22 years 17-Feb-00 52 years ING Vysya Bank
6 Shri Ajoy Nath Jha ED 5398230.61 Full Time M.A (Economics), M. Phil, CFA, Certified Information Security Professional, CAIIB and FRM Experience in IDBI Bank: 27 years 27-Dec-94 59 years Reserve Bank of India
7 Shri Madhav Vasant Phadke^ ED/ Advisor 5360444.29 Full Time B.A. LLM, MLL & LW - Diploma in Banking Experience in IDBI Bank: 30 years 16-May-91 60 years Maharashtra State Financial Corporation
8 Shri Anilkumar R. Jaiswara CGM 5238289.88 Full Time B.Com and CAIIB Experience in IDBI Bank: 33 years 25-Aug-88 56 years M/s. Malhotra Graphics
9 Shri Pradip Kumar Das ED 5223140.50 Full Time B.SC and MBA (Finance) Experience in IDBI Bank: 21 years 23-Jan-01 60 years Central Bank of India
10 Shri Ajay Sharma ED 5213701.79 Full Time M.B.A, M.Com, I.C.W.A (Inter) and CAIIB Experience in IDBI Bank: 34 years 02-Nov-87 59 years Punjab National Bank

 

*- Date of commencement of current designation for Shri Suresh Khatanhar as DMD in the Bank is w.e.f. January 15, 2020; # - Shri Ashok Kumar Gautam was in employment for part of the FY 2021-22; ^ - Shri M. V. Phadke was in full time employment for part of FY 2021-22 and continued as an advisor thereafter;

Remuneration includes basic salary, allowances, perquisites as per the Income Tax rules but excludes employer’s contribution to PF/ Pension, non-monetary perquisite tax and accrued retirement benefits.

The above list does not include employees sent on deputation whose salary is reimbursed by the other companies.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

a) Conservation of Energy

Your Bank took several measures for conservation of energy. For instance, the Bank replaced conventional light fixtures with energy efficient LED light fixtures, lamps & tubelights at the Bank’s Head Office building at Mumbai as well as all other office and residential buildings of the Bank in order to conserve power. The Bank is fitting new signages at its branches with LED lights in place of conventional power-consuming light fixtures. For all new or refurbished branches, your Bank is using LED lights in place of conventional lights. The Bank built water harvesting facility in the new residential buildings constructed at the Jawaharlal Nehru Institute of Banking and Finance (JNIBF), Hyderabad.

b) Technology Absorption

Your Bank has been proactively evaluating and absorbing the latest technology-based innovations that have potential to empower its business functions, enrich its customer experience and optimise its readiness towards opportunities and challenges of the future. A few noteworthy technology-driven reforms adopted by your Bank include enhancing the capabilities of Video KYC Account Opening (VAO) process to offer digital convenience to the customers to open savings bank accounts and implementing the Digital Rights Management (DRM) solution for protecting customer data shared with vendors providing various services. Your Bank further strengthened its IT infrastructure with the industry standard technologies that includes Software Defined Wide Area Network (SD-WAN) which is in an advanced stage of implementation and further implementing new-age security technologies (Security Orchestration, Automation & Response

(SOAR), Network Behaviour Anomaly Detection (NBAD), Packet Capture (PCAP), User & Entity Behaviour Analytics (UEBA) & Threat Intelligence Platform (TIP)) for building a Next Generation Security Operations Centre (SOC) at both Data Centre (DC) & Disaster Recovery (DR) site. Further, your Bank is also procuring an enterprise solution for IT Operations Management and also initiated a process of implementation of Integrated Collection & Recovery Module.

Your Bank upgraded the Core Banking Servers to the latest hardware, which brings about improved performance and resilience. Your Bank upgraded the entire private cloud hardware and software to meet the increasing needs of the business for Just-in-Time provisioning of IT infrastructure resources. Your Bank is now running the latest analytics solution and has set it up using the latest storage and server hardware and building IT infrastructure to set up state-of-the-art Application Programming Interface Management (APIM) micro-services platform. Your Bank conducted periodic Disaster Recovery (DR) drills for critical IT systems that ensured seamless availability even in the midst of the COVID-19 pandemic and mitigated the risk of disruption of IT services.

On the data refinement and enrichment fronts, your Bank successfully implemented Automated Data Flow (ADF) application and is continuously refining the process of the RBI returns generation by eliminating manual intervention. The RBI has launched a project, viz., Centralised Information Management System (CIMS) with the purpose of creating a single repository for collating banks’ data through system-to-system approach for regulatory submissions. Your Bank converted ADF output into eXtensible Business Reporting Language (XBRL) format for returns released by the RBI. Further, your Bank has set up the Centre of Excellence (COE) for Data Analytics with the objective of achieving improved customer wallet.

Your Bank, in the Advanced Analytics ecosystem, has been using cutting-edge tools & technologies, devising & implementing Statistical/ Predictive Models & Machine Learning Algorithms for providing quanti_able and actionable inputs. It is utilising diverse sources of data for Comprehensive Analysis, Customer Pro_ling, Predictive Modelling,

Forecasting, Trend Analysis, Marketing Analysis

& Risk Analytics and recommending business solutions to address complex business problems and issues. Details of other initiatives taken in the Information Technology ecosphere have been provided in the Management Discussion and Analysis section of this Annual Report. c) Foreign Exchange Earnings and Outgo

During the year, the total foreign exchange earned by the Bank was Rs. 96.53 crore (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and the total foreign exchange outgo was Rs. 26.19 crore towards the operating and capital expenditure requirements.

DIRECTORS’ RESPONSIBILITY STATEMENT

The Board of Directors, hereby, declares and confirms that: a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank at the end of the financial year and of the profit and loss of the Bank for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis;

e. The Directors had laid down internal financial controls to be followed by the Bank and that such internal financial controls are adequate and were operating effectively; and f. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

ACKNOWLEDGEMENTS

Your Bank’s Board of Directors is sincerely grateful to the Government of India, Reserve Bank of India (RBI), all other statutory/ regulatory authorities and Life Insurance Corporation of India (LIC) for their valuable co-operation and guidance. The Board also acknowledges, with gratitude, the co-operation and support received from various State Governments and other banks/ financial institutions. The Board thanks various multilateral institutions and international banks/ institutions for their support. The Board takes this opportunity to put on record its deep sense of gratitude to its loyal shareholders and customers for extending their support during the year and looks forward to their continued association in the years ahead. The Board appreciates the sincere and devoted services rendered by its entire staff and highly values their commitment towards the Bank.

[Suresh Khatanhar] [Samuel Joseph Jebaraj] [Rakesh Sharma]
Deputy Managing Director Deputy Managing Director Managing Director & CEO
Place: Mumbai
Date: May 02, 2022

   

IDBI Bank Ltd Company Background

T N ManoharanRakesh Sharma
Incorporation Year1964
Registered OfficeIDBI Tower WTC Complex 3rd Flr,Cuffe Parade Colaba
Mumbai,Maharashtra-400005
Telephone91-22-66553355/22189111,Managing Director
Fax91-22-22180411
Company SecretaryJyoti Biju Nair
AuditorVarma & Varma/G D Apte & Co
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

IDBI Bank Ltd Company Management

Director NameDirector DesignationYear
Gyan Prakash Joshi Independent Director 2022
Bhuwanchandra Balkrishna Joshi Independent Director 2022
Samaresh Parida Independent Director 2022
N Jambunathan Independent Director 2022
Rakesh Sharma Managing Director & CEO 2022
Deepak Singhal Independent Director 2022
Sanjay Gokuldas Kallapur Independent Director 2022
Samuel Joseph Jebaraj Deputy Managing Director 2022
Suresh Kishinchand Khatanhar Deputy Managing Director 2022
P V Bharathi Independent Director 2022
Jyoti Biju Nair Company Sec. & Compli. Officer 2022
Mukesh Gupta Nominee (LIC) 2022
T N Manoharan Part Time Chairman 2022
Sushil Kumar Singh Nominee (Govt) 2022
Manoj Sahay Nominee (Govt) 2022
Raj Kumar Nominee (LIC) 2022

IDBI Bank Ltd Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
CNX500
BSEMID
CNXMIDCAP
CNX200
BSEALLCAP
BSEFINANCE
LMI250
BSE100LTMC
NFTYLM250
NFTYMC150
NFTYMSC400
NF500M5025

IDBI Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest & Discount Rs.00013101.5095
Income on investments Rs.0005780.6392
Other Interest Rs.0001489.4448
Interest on bal with RBI Rs.000453.551

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