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IDBI Bank Ltd

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

NSE BSE
 
SMC down arrow

38.90

-1.65 (-4.07%) Volume 280564

07-May-2021 EOD

Prev. Close

40.55

Open Price

40.60

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

38.90(48930)

 

Today’s High/Low 40.90 - 38.80

52 wk High/Low 56.20 - 19.20

Key Stats

MARKET CAP (RS CR) 41826.84
P/E 30.87
BOOK VALUE (RS) 28.1869162
DIV (%) 0
MARKET LOT 1
EPS (TTM) 1.26
PRICE/BOOK 1.38007292901378
DIV YIELD.(%) 0
FACE VALUE (RS) 10
DELIVERABLES (%) 31.71
4

News & Announcements

06-May-2021

IDBI Bank Ltd - IDBI Bank Limited - Updates

05-May-2021

Volumes jump at Triveni Turbine Ltd counter

05-May-2021

CCEA gives in-principle approval for strategic divestment and transfer of management control in IDBI Bank

05-May-2021

Cabinet approves strategic disinvestment in IDBI Bank

05-May-2021

CCEA gives in-principle approval for strategic divestment and transfer of management control in IDBI

24-Apr-2021

IDBI Bank to conduct board meeting

15-Apr-2021

Board of IDBI Bank approves change in company secretary

26-Mar-2021

Board of IDBI Bank approves Rupee bond borrowing limit of Rs 8000 cr for FY22

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
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
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 20534922 0.19
Total Institutions 173872909 1.62
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 23736537 0.22
Total Promoters 10183974842 94.71
Total Public & others 350282965 3.26
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

Dear Shareholders,

I am glad to connect with all of you through your Bank's Annual Report for 2019-20. It has been around a year since I assumed the position of Chairman of the Bank in May 2019. The year 2019-20 was a challenging one on several fronts that has brought about changes not just in the way banking is conducted but also the way we conduct ourselves in our daily lives.

During the year, India was confronted with the challenge of a slowing economy on the back of weak investment and consumption demand. The challenge was compounded by the fact that the banking sector was combating asset quality issues which constrained their lending capabilities. However, there was steady progress being made by the banks with Government of India embarking on major policy reforms comprising regulatory/ legal reforms, etc. to strengthen the banking sector and thereby be instrumental in supporting a higher economic growth trajectory. In the midst of these reforms, technological developments, entry of non-traditional players in the banking space as well as emergence of tech-savvy clientele brought about its own set of challenges as also opportunities for the banks. There was a significant shift in not just the banking behaviour that saw growth in aspirational demand but also in the way banking was conducted to a more digital-oriented transactional behaviour.

However, the year 2019-20 also saw one of the world's greatest health threats that has profoundly impacted the economic health of the nation as well as of the people. The coronavirus outbreak has overtaken many lives across the world, presenting an unprecedented medical and economic challenge and will impact how we conduct business going forward. In India too, a nation-wide lockdown was announced in successive phases to contain the risk of widespread outbreak. However, this lockdown has had manifold impact in terms of absolute standstill in most economic activities resulting into loss of income.

It is noteworthy that the policymakers and the regulators have been responsive to the challenges posed by such an unprecedented situation and have announced several measures to support the affected economic sectors as well as segments of the society. The Government has also unveiled a comprehensive stimulus package, christened as ‘Atmanirbhar Bharat Abhiyan', under which wide-ranging reforms have been announced to enable India to emerge as a self-reliant economy. The various stimulus measures announced by the policymakers aggregating overRs. 20 lakh crore are expected to help the economy in addressing the present challenges by helping sectors such as MSMEs, small traders, persons engaged in agriculture and allied activities etc.

While there has been no immediate impact on the Indian banking sector, it is anticipated that, going forward, the disruption in economic activities due to the Covid-19 outbreak will affect the banking sector due to its exposure to affected industries and sectors. In this challenging environment, your Bank persevered in its efforts towards strengthening its financial health. The efforts undertaken by the Bank is also reflected in its financial performance, especially in Q4 FY 2019-20. After posting thirteen consecutive quarters of net losses, your Bank posted a net profit ofRs. 135 crore in Q4 FY 2019-20, marking a much-awaited turnaround. Your Bank has also showed improvement on several other fronts such as improvement in capital position, higher CASA ratio, increasing share of retail loans in the asset book, among other parameters.

Taking cognisance of the challenges posed in the midst of the novel coronavirus outbreak, your Bank has undertaken various initiatives and will continue to implement such measures to help its stakeholders. I would like to draw your attention to some of these measures undertaken by your Bank. In line with the regulatory guidelines, your Bank has extended a moratorium on payment of all instalments falling due between March 1, 2020 and August 31, 2020 for various categories of loans to the borrowers who opted for it. Recognising the liquidity constraints confronting MSMEs, your Bank has also extended additional credit limit to MSMEs affected by Covid-19 after careful assessment of the underlying viability. To support its customers in availing seamless services, your Bank has been implementing alternative work arrangements to allow for uninterrupted and time-bound processing of customer requests. Your Bank has kept its branches open and is following the necessary guidelines to ensure safety of its customers who need to avail services at the branches. In addition, your Bank has kept its ATMs well-stocked and functional to provide basic banking services such as cash withdrawal to its customers. Your Bank has simultaneously been encouraging customers to use digital channels to carry out their banking transactions. Your Bank has also been using its social media channels to spread awareness about do's and don'ts during the pandemic. Your Bank's workforce has shown commitment towards the nation in this fight against the pandemic by contributingRs. 5.12 crore towards the Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund). Your Bank is committed to support the policymakers and regulators in implementing stimulus package benefits to help the nation to rebuild itself by helping out the sections in need. Your Bank intends to do everything in its control to ensure that the government support is reaching the intended beneficiaries in a timely and cost-effective manner. The challenges are significant enough to be addressed by coming together of all to fight against the pandemic.

The coronavirus outbreak has affected a sea-change in the way businesses function, including the banking sector, especially in the retail banking space. As the economic ramifications of the outbreak spread, the banks are compelled to relook at their strategic priorities while also recalibrating the future strategies.

The social distancing and lockdown measures have resulted in a surge in digital channel transactions. At the same time, banks are working out ways to manage traditional banking functions which were typically never designed for remote work. There are looming concerns over asset quality as several industries, being non-operational for a while, would be adversely impacted in their debt servicing capabilities. While the balance sheets of banks may come under pressure due to deterioration in asset quality, recent initiatives by the Reserve Bank of India (RBI) at enabling banks to provide moratorium on retail and corporate loans would help in moderating the impact. Furthermore, there has been a transformative change in consumer behaviour towards more frugality, which implies that the demand from the retail segments may remain dented, going forward. In such a situation, banks need to devise a strategy that addresses the challenging times as well as the change in customer preferences in the aftermath of the coronavirus crisis.

The first and foremost impact on banking can be seen in terms of delivery channels. It may be that digital transactions or transactions through other alternate channels like call centres may witness a manifold growth. Simultaneously, there may be a decline in the footfall in the branches. Such a change in its day-to-day operations may be used strategically by banks to utilise front-line staff for targeted sales and decentralise certain routine activities to back offices. Furthermore, there may be a need to invest heavily in automation of certain processes, which can be beneficial for the banks in terms of redeployment of workforce to more productive avenues, economising cost, driving higher operational efficiencies as well as improving turnaround time. At the same time, banks will also need to develop human resources strategies to on-board executives with appropriate computer skills as well as designers to ideate about user interface to ensure seamless customer experience.

Banks may witness a surge in demand for credit as business, especially small business, seek financial assistance to revive their operations with enabling policy impetus from the RBI. Banks would need to rethink their capital allocation plans in response to their own risk appetite and the changing environment.

The unprecedented situation has also led to growing preference among individuals for the liquidity and safety offered by bank deposits. This presents an emerging opportunity for banks to raise low-cost deposits as well as enhance wallet share by providing wealth management solutions. Banks, which are able to tap this opportunity, would be able to fuel their business growth in an era defined by low margins.

Given the changing environment, the Bank would also accordingly strategise to overcome the challenges and tap the emerging opportunities. Your Bank has been progressively moving towards a retail-oriented model backed by data analytics and technological upgradations. I am confident that this strategy will serve your Bank well in the times ahead. Furthermore, your Bank will strive to remain strong and resilient to support all its stakeholders, including its shareholders, customers, employees as also the community at large.

Looking back at its journey over the years, your Bank has weathered unprecedented challenges in the past and has always managed to surmount them. I am confident that your Bank would similarly confront and overcome the current challenges with similar success. I request all the stakeholders of your Bank to continue supporting it in all its endeavours. Together, all of us will get through this unprecedented situation and will even emerge stronger than before.

With best wishes,

M. R. Kumar

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 its Business and Operations for the financial year ended March 31, 2020.

In the year 2019-20, the Indian economy experienced a broad-based deceleration with as low down in private consumption on the demand side and the weakening of growth momentum in both industry and services on the supply side. While agriculture and allied activities remained buoyant, industrial activities decelerated on the back of sharp slowdown in manufacturing activity, electricity, gas, water supply & other utility services as well as construction and growth in services sector moderated due to slowdown in trade, hotels, transport, communication and services related to broadcasting and financial services, real estate and professional services. The subdued domestic economic activities, during the year, was further impacted by the nation-wide lockdown announced in March 2020 to contain spread of coronavirus (Covid-19) pandemic. Banks, being an integral part of the economy, were consequently impacted due to India's economic slowdown and towards the end of the fiscal, due to the effect of Covid-19 pandemic. While comprehensive policy measures were initiated to minimise the impact of Covid-19 on the economy, the overall impact of these measures is expected to be observed with a lag. It is, therefore, crucial to view the performance of your Bank in this context.

Financial Highlights

As on March 31, 2020, your Bank's aggregate deposits and advances touchedRs. 2,22,424 crore andRs. 1,29,842 crore, respectively. Your Bank's business highlights for the period under review are presented in Table 1.

Table 1: Key Financials

(InRs. crore)
As on March 31, 2019 As on March 31, 2020
Capital 7,736 10,381
Reserves & Surplus 29,875 23,644
Deposits 2,27,372 2,22,424
Borrowings 45,288 36,749
Other Liabilities & Provisions 10,013 6,745
Total Liabilities 3,20,284 2,99,942
Cash & Balances with RBI 12,730 10,539
Balances with Banks & Money at Call & Short Notice 8,503 19,892
Investments 93,073 81,780
Advances 1,46,790 1,29,842
Fixed & Other Assets 59,188 57,890
Total Assets 3,20,284 2,99,942
For the period 2018-19 2019-20
Total Income 25,372 25,295
Total Expenses (other than provisions) 21,319 20,183
Provisions (other than tax) 26,879 14,079
Profit/ (Loss) Before Tax (22,827) (8,967)
Provision for Tax (7,711) 3,920
Profit/ (Loss) After Tax (15,116) (12,887)

During the year under review, your Bank's total income amounted toRs. 25,295 crore, comprising interest income ofRs. 20,825 crore and other income ofRs. 4,470 crore. Interest expenses stood atRs. 13,847 crore and operational expenses atRs. 6,336 crore, accounting for total expenditure (excluding provisions and contingencies) ofRs. 20,183 crore.

Total provisioning of your Bank declined for the year due to lower provisioning for Non-Performing Assets (NPAs). The provisions includeRs. 1 3,920 crore towards provision forNon-Performing Assets (NPAs), bad debts written-off and investments. As the provisioning remained substantial, your Bank incurred a net loss ofRs. 12,887 crore during FY 2019-20.

While the Earnings per Share (EPS) during the year was negative due to the losses, the Book Value per Share (excluding intangible assets) stood atRs. 11.21 as at end-March 2020.

Report on the Performance and Financial Position of Subsidiaries and Joint Venture included in the Consolidated Financial Statement as on March 31, 2020

Name of the entity

Net Assets, i.e., total assets minus total liabilities

Share in profit or loss

As % of consolidated net assets (InRs. Crore) As % of consolidated profit or loss (InRs. Crore)
1 2 3 4 5
Parent : IDBI Bank Ltd. 97.67% 34,024.37 100.41% (12,887.33)
Subsidiaries:
Indian:
1. IDBI Capital Markets & Securities Ltd. 0.88% 305.25 0.08% (9.66)
2. IDBI Intech Ltd. 0.18% 63.04 (0.07)% 9.07
3. IDBI Asset Management Company Ltd. 0.31% 108.85 (0.01)% 0.75
4. IDBI MF Trustee Company Ltd. 0.00% 1.57 0.00% 0.10
5. IDBI Trusteeship Services Ltd. 0.64% 224.40 (0.27)% 35.18
Foreign: NA NA NA NA
Minority Interests in all subsidiaries 0.30% 103.58 (0.12)% 15.94
Associates (Investment as per the equity method)
Indian
1. Biot ech Consortium India Ltd. NA NA 0.00% 0.35
2. National Securities Depository Ltd. NA NA (0.16)% 21.03
3. NSDL e-Governance Infrastructure Ltd. NA NA (0.05)% 6.72
4. Nor th Eastern Development Finance Corporation Ltd. NA NA NA NA
Foreign: NA NA NA NA
Joint Ventures (as per proportionate consolidation/ investment as per the equity method)
Indian
1. IDBI Federal Life Insurance Company Ltd. 1.27% 441.20 (0.55)% 70.96
Foreign NA NA NA NA
Total 100.96% 35,168.66 99.48% (12,768.76)
Elimination (0.96)% (332.94) 0.52% (66.48)
Net Total 100.00% 34,835.72 100.00% (12,835.24)

Note: None of the above subsidiaries have any subsidiary.

* - In respect of Pondicherry Industrial Promotion Development and Investment Corporation Ltd. (PIPDICL), the Bank has not received any financial statements & transactions details from the company. Hence, information is not consolidated in the above table. The Bank has written down investment in PIPDICL to Rupee one.

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 of the Bank, i.e. March 31, 2020 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, w.e.f. FY 2015-16, the report of the Statutory Auditors shall state whether the Bank has adequate Internal Financial Control (IFC) systems in place and the operating effectiveness of such controls, in the context of the financial statements. IFCs, as referred to in Section 143(3)(i) of the Companies Act, relate to Internal Financial Controls Over Financial Reporting (IFCO-FR). Your Bank's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Bank 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 & detection of frauds & errors, accuracy & 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 aspects with respect to financial reporting.

During 2019-20, the Consultant submitted the Internal Compliance Certificate for the quarters ended June 2019 to December 2019 after carrying out the testing and validation of all the underlying processes as per the Bank's IFCO-FR framework. The Consultant reviewed the status of action taken on the open issues carried forward in the quarterly report as on December 31, 2019, the updated status of compliance as on May 15, 2020 and reported that 5 out of the 13 open issues reported as on December 31, 2019 were adequately addressed and closed with the implementation of remedial measures. The concerned departments are working closely for addressing the remaining 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 2018-19 2019-20 Comments
Net Interest Margin (%) 2.03 2.61 Interest expenses decreased byRs. 2,319 crore and interest income decreased byRs. 1,247 crore resulting in an increase in Net Interest Income byRs. 1,072 crore.
Net NPA% to Net Advances 10.11 4.19 Net NPA has decreased byRs. 9,398 crore.
Provision Coverage Ratio (including Technical Write- offs (TWO)) 82.88% 93.74% Net NPA as on March 31, 2020 stood atRs. 5,439 crore as againstRs. 14,837 crore as on March 31, 2019.
Total Provision (including TWO) as on March 31, 2020 increased by Rs.9,273 crore.
CASA to % of total deposits 42.54% 47.74% CASA balance increased toRs. 1,06,188 crore as on March 31, 2020 as againstRs. 96,730 crore as on March 31, 2019 and total deposits have reduced toRs. 2,22,424 crore as on March 31, 2020 fromRs. 2,27,372 crore as on March 31, 2019.

* Including change of less than 25% in case of PCR and CASA

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 Capital Conservation Buffer (CCB) in a phased manner commencing from March 31, 2016. In line with the RBI's notification dated March 27, 2020 whereby the transitional arrangements of Basel III capital regulations were reviewed, the applicable CCB for March 31, 2020 was stipulated at 1.875%. Accordingly, the minimum regulatory requirement of ‘Total Capital + CCB' was 10.875% as on March 31, 2020. Your Bank's ‘Total Capital + CCB' ratio was 13.31% as on March 31, 2020. Similarly, your Bank's ‘Common Equity Tier 1 (CET1) + CCB' ratio was 10.54% as against the regulatory requirement of 7.375%. Your Bank's ‘Tier 1 + CCB' ratio stood at 10.57% as on March 31, 2020 as against the regulatory requirement of 8.875%.Your Bank's Leverage Ratio as on March 31, 2020 was 4.97% against the minimum regulatory requirement of 3.50%.

Your Bank has a Board-approved policy on Internal Capital Adequacy Assessment Process (ICAAP) in line with the Pillar 2 norms of the Basel III framework. This policy enables your Bank to internally assess and quantify those risks which are not covered under Pillar 1 as well as to develop appropriate strategies to manage and mitigate risks under normal and stressed conditions.

Your Bank has also put in place a comprehensive stress testing framework in line with the RBI guidelines. The stress testing framework enables your Bank to assess its performance under exceptional but plausible events and facilitates appropriate proactive strategies to meet unforeseen contingencies. The framework also includes scenario analysis and reverse stress testing. Scenario analysis covers a study on impact of further increase in gross NPA, crystallisation on Non-Fund facilities in NPAs & Technically Written-Off (TWO) accounts and impact of illiquid securities on capital and profitability of the Bank. Your Bank also separately created scenarios to make a preliminary assessment of the detrimental impact of Covid-19 pandemic on the various sectors to which the Bank has exposure, which, in turn, will adversely affect the Bank's profitability. The mechanism of reverse stress testing has been added to the framework to find the level of stress which may adversely impact the capital to take it to a pre-determined floor level.

Your Bank has adopted a Disclosure Policy in accordance with the Pillar 3 requirements under the Basel norms. Accordingly, disclosures as at the end of each quarter are hosted on your Bank's website, thereby exhibiting high degree of transparency.

Your Bank follows the Standardised Approach under Credit Risk for computation of capital charge. Your Bank follows Basic Indicator Approach (BIA) to compute regulatory capital charge for Operational Risk. A comprehensive set of Key Risk Indicators (KRIs) and Risk & Control Self-Assessment (RCSA) framework has been rolled out across different business segments for ensuring effective control mechanism. For Market Risk, your Bank uses Standardised Measurement Method (SMM) to compute regulatory capital requirements.

Business Strategy

During the year, your Bank continued to pursue its strategic endeavours of repositioning itself as a retail-focussed bank by rebalancing its business mix. On the asset front, the Bank undertook concerted efforts to granularise its portfolio mix through targeted growth in retail assets. Towards this end, your Bank focussed on augmenting growth in advances towards Retail, Agri and MSME (RAM) segments, which has also aided in lowering the Bank's Risk Weighted Assets (RWAs). On the liability front, measures were initiated to augment the share of low-cost deposits in total deposits by enhancing the share of CASA and retail deposit base, which has aided the Bank in reducing its overall cost of deposits. In alignment with its business strategy, your Bank consciously restricted its corporate loan book in order to migrate towards a capital light model while simultaneously de-risking its business portfolio.

The acquisition of majority stake by the Life Insurance Corporation of India (LIC) in the Bank also unfolded a number of business synergies, especially on the retail front. To realise the full potential arising out of these business synergies, a joint Task Force has been constituted, with the senior management of the Bank and LIC as its members, to chart out the future roadmap, both for the Bank as also for the associate companies. The Task Force has identified major areas of synergies for the short-term such as selling of LIC policies through the Bank's branches, management of cash and other premium receipts of LIC through the Bank's branches, enabling the technical wherewithal available in both the Bank and LIC for offering digital solutions to both the policy holders of LIC and customers of the Bank. To derive mutual benefit from these synergies, a Working Group has also been created to carry forward the initiatives identified for synergy by the Task Force and effectively implement the decisions taken at the management level.

Your Bank remained committed towards its vision of becoming one of the most preferred and trusted banks for all its stakeholders. Accordingly, your Bank adopted a customer-centric strategy by focusing on customer delight. The Bank has successfully launched Data Analytics and Customer Relationship Management (CRM) sales modules which enabled the Bank to adopt a focussed and targeted approach towards delivering the right product at the right time to its customers. Furthermore, your Bank continued to invest in technological innovation and up-gradation in order to ensure better customer service and experience. Your Bank also remains committed towards the Government of India's (GoI's) Enhanced Access and Service Excellence (EASE).

Apart from measures undertaken to augment its business performance, your Bank also strived to strengthen its financial health by improving its asset quality. Your Bank focussed its efforts towards containment of fresh Non-Performing Assets (NPAs) and maximising recovery from the existing impaired assets. Your Bank has a dedicated vertical, viz. NPA Management Group (NMG), for focussed and aggressive approach towards resolution and recovery. Your Bank has set up a dedicated desk to handle cases under Corporate Insolvency Resolution Process (CIRP). Furthermore, your Bank has also set up a dedicated team for focussed attention for recovery in the retail segment. Apart from these measures, the Bank has a Credit Monitoring Group (CMG) with the objective of monitoring the onset of stress in the Bank's portfolio. Your Bank also successfully implemented an automated and comprehensive bank-wide Early Warning Signals (EWS) System which has augmented the Bank's capabilities to identify high-risk accounts and accounts showing early signs of stress in the pre-Special Mention Accounts (SMAs) stage. These initiatives have resulted in reduction of incipient stress, containment of slippage and improvement in credit quality of the Bank.

Your Bank, recognising the importance of a robust risk infrastructure in decision making process and enhancing business sustainability, has been proactively strengthening its risk management practices. Additionally, your Bank is also promoting a strong compliance culture in the Bank by adhering to key laws, rules, regulations, and various codes of conduct, to maintain its reputation and win the trust of customers, investors and regulators.

Key Business Initiatives

In alignment with its strategic imperatives, your Bank has undertaken a number of initiatives across the entire spectrum of its products and services to meet the banking requirements and financial goals of its retail as well as corporate customers. In addition to introducing new products and services, your Bank has also revamped its existing suite of products and services to cater to the evolving customer preferences and emerging banking and regulatory landscape.

To tap the synergies emerging from the majority stake acquisition by LIC, your Bank has continued to offer a wide array of innovative, specialised and customised products and services to the employees, agents and subsidiaries of LIC for meeting their banking and investment requirements.

Your Bank is effectively leveraging its geographical network of 1,892 branches, 3,683 ATMs and 58 e-lounges to serve its customers. In addition to the brick-and-mortar branches, the Bank is also strengthening and revamping its digital infrastructure with state-of-the-art features for smooth, convenient, safe and secure, anytime, anywhere banking experience for its customers. Furthermore, your Bank also introduced a number of new and innovative applications to pass on the benefits of technological advancement to its customers. In alignment with the GoI's ‘DigiDhan Mission' aimed at encouraging greater use of digital payments by all sections of the society, your Bank has designated one officer at every retail branch as a ‘Digital Guru' to act as a single point of contact for all digital product related queries.

Your Bank remains committed towards promoting the priority sectors by actively contributing to Priority Sector Lending (PSL), thereby also adhering to the RBI's mandate. Your Bank is also proactively contributing towards the national objective of inclusive growth by ensuring access to financial products and services by the vulnerable sections of the society at affordable cost in a fair and transparent manner. Your Bank also leveraged its network of Business Correspondents (BCs)/ Business Facilitators (BFs) in an effort to increase penetration in rural and semi-urban areas and thereby, ensure greater financial inclusion as also provide an added impetus to its Priority Sector Lending (PSL) business. As financial literacy is a pre-requisite for effective financial inclusion, your Bank undertook a number of initiatives to improve financial literacy among the beneficiaries to enable them to make best use of the financial services offered to them.

Your Bank provides an entire gamut of Trade Finance (TF) products and services to its customers through its Category B Authorised Dealer TF centres and identified Retail TF branches. Your Bank also secured a mandate from the GoI in March 2019 to conduct oil and non-oil Indo-Iran trade settlements in Indian Rupees (INR) under the Bilateral Rupee Payment Mechanism.

Your Bank acts as an agent for Central Government and State Governments to manage their receipts and payments. Your Bank is authorised to collect Central Government Taxes and State Receipts in select States and Union Territories, offer Small Savings Schemes through its branches and disburse Central Civil, Defence and Railway Pensions. Your Bank has also enabled online collection of Employees' Provident Fund Organisation

(EPFO) and Employees' State Insurance Corporation (ESIC) dues. Your Bank offers effective Cash Management Services (CMS) by extending a comprehensive range of collections and payment solutions. Your Bank has been empanelled as the sole sponsor bank for various GoI schemes such as Pradhan Mantri Shram Yogi Maan-Dhan, Pradhan Mantri Kisan Maan-Dhan and Pradhan Mantri Laghu Vyapari Samman. Your Bank is also authorised to participate in e-freight payment system of Indian Railways and is collecting e-freight in select Zones. Your Bank is also authorised to facilitate utility bill payments through Bharat Bill Payment System (BBPS).

During the year, your Bank continued to invest in technological innovation and upgradation to augment its business while maintaining its focus on customer service and experience. Your Bank also laid special emphasis on upgrade and overhaul of many of its critical IT hardware systems and committed long term investments in the enrichment of its IT assets.

In order to promote data-driven sales, your Bank has set up a Centre of Excellence (COE) for Data Analytics with the objective of achieving improved customer wallet share by delivering the right products at the right time. 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 Covid-19 pandemic on the Bank's business

The SARS-CoV-2 virus responsible for Covid-19 continues to spread across the globe, including India. This has resulted in a significant volatility and adversity in global and Indian markets and economic activity. Implementation and extensions of lockdown have resulted in disruptions of business and common life. With the situation still unfolding, it is difficult to predict time horizons and to gauge the eventual impact. The major identified challenges for the Bank's borrowers across various industry sectors are expected to arise from eroding cash flows and elongated working capital cycles. The Bank is gearing itself on all fronts to meet these challenges. Despite these events and conditions, the Bank's results in future are not expected to be significantly adverse nor have an impact on the going concern assumption.

The liquidity position, ability to service debt or any other commitments, capital or profitability of the Bank may not be significantly impacted. However, the Bank is constantly monitoring the status of above parameters and taking corrective actions.

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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR Regulations). The Board functions directly as well as through various board committees constituted to provide focussed governance in the important functional areas of the Bank. The Board of Directors includes 15 members with the Chairman of LIC as Non-Executive Chairman of the Bank, MD & CEO and two DMDs, one Official Nominee Director of LIC, two Nominee Directors of GoI and eight Independent Directors including one Woman Independent Director.

As on March 31, 2020, the Board comprised fourteen Directors, viz., Shri M. R. Kumar, Non-Executive Chairman, Shri Rakesh Sharma, MD & CEO, Shri Samuel Joseph Jebaraj and Shri Sur esh Khatanhar, DMDs, as Whole Time Ms. Meera Swarup and Shri Sudhir Shyam, Government Nominee Directors and Shri Rajesh Kandwal, LIC Nominee Director, as Non-Executive Directors; Shri Gyan Prakash Joshi, Dr. Ashima Goyal, Shri Bhuwanchandra B. Joshi, Shri Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal and Shri S anjay Gokuldas Kallapur as Independent Directors. present strength of 14 (fourteen) Directors on the Board meets the requirement provided under Article 114(a) of the Articles of Association.

Apex Committees

The Board has a total of fourteen 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 and Remuneration Committee, Stakeholders' Relationship Committee, HR Steering Committee, Frauds Monitoring Committee, Recovery Review Committee, Risk Management Committee, Independent Directors' 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 Corporate Governance Report.

Business Responsibility Report

Securities and Exchange Board of India (SEBI), vide Gazette Notification dated December 26, 2019, amended the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. As per the amendment, the Annual Report of the top one thousand listed entities based on market capitalisation must include Business Responsibility Report (BRR). The BR Report should describe initiatives taken by the listed entity from an The environmental, social and governance perspective. The Bank's Business Responsibility Report has been hosted on the website of the Bank (https://www.idbibank.in/business-responsibility-report.asp).

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 overRs. 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 ofRs. 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 Director 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, 2020 – Details of Top Ten Employees

The statement indicating details of top ten employees of the Bank in terms of remuneration drawn during FY 2019-20 is as follows:

Sr. No. Name

Desig- nation

Annual Remuneration received (`)

Nature of employment, whether contractual or otherwise

Qualifications and experience of the employee Date of commencement of employment

The last employment held by such employee before joining the company

The age of such employee

1. Shri Ashok Kumar Gautam ED 6067840.67 Contractual B.Sc and CAIIB (CAIIB - Certified Associate of the Indian Institute of Bankers) Experience in IDBI Bank – 11 months June 24, 2019 Axis Bank 57 years, 5 months
2. Shri Suresh Khatanhar

DMD

5406776.95

Formerly ED and currently DMD

M.Com (Commerce Post Graduate), I.C.W.A. (Cost Accountant), CAIIB (CAIIB - Certified Associate of the Indian Institute of Bankers), Certification Programme in IT and Cyber Security for Senior Management (Certification - Other) Experience in IDBI Bank – 22 years 11 months January 15, 2020 (as DMD)

Dena Bank

56 years, 9 months

3. Shri Shailendra Govind Nadkarni

ED

4571304.44

Confirmed Employee

B.E (Engineering Graduate), M.E (Engineering Post Graduate), Certification Programme in IT and Cyber Security for Senior Management (Certification - Other), CAIIB (CAIIB - Certified Associate of the Indian Institute of Bankers) Experience – 26 years 7 months

November 01, 1993

Bombay Port Trust

55 years, 5 months

4. Shri Arun Kumar Aggarwal

CGM

4456558.46

Confirmed Employee

B.Sc (Science Graduate), M.B.A (Management Graduate), CAIIB (CAIIB - Certified Associate of the Indian Institute of Bankers), Dip. in COBOL (Diploma) Experience – 33 years 5 months

December 22, 1986

J.K Industries Ltd

58 years, 7 months

5.Shri Subroto Gupta*

Advisor

4437579.75

Formerly ED and currently Advisor

B.Tech (Engineering Graduate), I.C.W.A. (Cost Accountant), Certification Programme in IT and Cyber Security (Certification - Other) Experience - 31 years 11 months

November 18, 2019 (As Advisor)

West Bengal Consultancy Organisation Ltd.

60 years, 8 months

6.Shri Sunit Sarkar

CGM

4399904.36

Confirmed Employee

B.Tech (Engineering Graduate), Post Graduate Diploma in Business Management (Management Graduate), I.C.W.A (Cost Accountant), CAIIB (CAIIB - Certified Associate of the Indian Institute of Bankers) Experience - 26 years 9 months

September 01, 1993

ESAB(I) Ltd

53 years, 10 months

7.Shri Mohammad Afzal Khan

CGM

4386950.01

Confirmed Employee

B.Sc (Science Graduate), Certification Programme in IT and Cyber Security (Certification - Other), Dip. in Computer Programming, System Analysis & Design (Diploma) Experience - 31 years 6 months

November 21, 1988

Right Business Systems Pvt. Ltd.

57 years, 9 months

8.Shri Anil C. Raj

CGM

4378086.59

Confirmed Employee

B.Sc (Science Graduate), L.L.M (Law Post Graduate) Experience - 30 years 4 months

February 01, 1990

Practicing Advocate

57 years, 10 months

9.Shri Sudhir Sharad Kulkarni

CGM

4346025.8

Confirmed Employee

B.E (Engineering Graduate), JAIIB (JAIIB - Junior Associate of the Indian Institute of Bankers) Experience - 29 years 8 months

September 26, 1990

Hindustan Fluoro Carbons Ltd.

55 years, 10 months

10.Smt. Baljinder Kaur Mandal

CGM

4338429.97

Confirmed Employee

B.E (Engineering Graduates), P.G.D.M (PGD in Management), JAIIB (JAIIB - Junior Associate of the Indian Institute of Bankers) Experience - 32 years

June 01, 1988

IDBI Bank Ltd.

54 years, 8 months

* - Includes remuneration as ED up to September 30, 2019 and subsequently, as Advisor w.e.f. November 18, 2019.

Conservation of Energy, Technology Absorption, Foreign Exchange Earnings and Outgo a) Conservation of Energy

Y our Bank has taken the following measures towards conservation of energy:

C onventional light fixtures have been replaced with energy-efficient LED light fixtures/ lamps/ tubes to save power consumption at the Bank's Head Office in Mumbai as well as all other offices and residential buildings of the Bank.

? The new signages at the Bank's branches are being fitted with LED lights in place of conventional power consuming light fixtures.

? F or all new or refurbished branches, LED lights being used in place of conventional fluorescent/ PL lamps.

? Solar panels have been installed for common lighting/ pumps etc. in the Bank's new office building as well as residential buildings developed by NBCC (India) Ltd. at New Delhi and new residential buildings developed by Central Public Works Department of India (CPWD) at the Jawaharlal Nehru Institute of Banking and Finance (JNIBF) Annexe in Hyderabad.

? W ater harvesting facility has also been new residential buildings constructed at the JNIBF Annexe in Hyderabad.

b) T echnology Absorption

Y our Bank has been proactively scrutinising absorbing the latest technology-based innovations which 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 recently by your Bank include successful and smooth migration of Bank's Core Banking Solution from 7.x to 10.x, upgradation of its internet banking system from its current E-Banking (EB) version to latest system namely Finacle E-Banking Architecture (FEBA), implementation of Early Warning Signals (EWS) Solution, successful roll-out of Analytics and CRM Sales modules, build-up of Enterprise-wide Data Warehouse (EDW), successful roll-out of offsite module and online module with mobile application of Enterprise-wide Fraud Risk Management Solution (EFRMS). Under EDW project, your Bank has built various analytical/ predictive models for NPA prediction for various loan products, churn prediction for portfolio of Agri/ MSME, current/ saving account, cross-sell up-sell model, customer profiling and segmentation, etc. Your Bank successfully implemented Automated Data Flow (ADF) application and Centralised Information Management System (CIMS) for generation of returns and furnishing to RBI respectively through automated process. Your Bank's upgraded internet banking application has features like UPI-based payments, additional security features such as CAPTCHA, image, phrase while logging in for retail and corporate net banking, customisable widgets in dashboard, personalised dashboard for retail & corporate net banking, Bharat Bill Payment System (BBPS) integration etc. Your Bank's mobile banking application is also integrated with EFRMS for real-time adaptive authentication, i.e. analysis of abnormal changes in login, linking of other bank's accounts through UPI in mobile banking and also to schedule interbank fund transfer (NEFT) option.

Y our Bank has already upgraded the capacity

Security Operations Centre (SOC). Your Bank is also working towards further strengthening its security aspects, enhance its capacity under the private cloud architecture to adequately provide for future business growth, set-up and implement an Application Programming Interface (API) gateway to be used for micro-services, rolling of Virtual Desktop Interface (VDI), chatbot on the cloud, setup Artificial Intelligence (AI) and Machine Learning (ML) for emerging areas like Cognitive Chat Bots, implementation of next generation firewalls. While your Bank has already embarked upon implementation of various futuristic solutions like an Online Loan Review System for automation of the lending related processes, the Bank is also in the foray of implementing many security initiatives like Enterprise Data Loss Prevention (DLP) and data classification solution, Backup Solution for in end-points and encryption, etc. Details of other initiatives taken in the Information Technology space have been provided in the Management Discussion and Analysis section of the Annual Report.

c) F oreign Exchange Earnings and Outgo

D uring the year, total foreign exchange earned by Bank wasRs. 9,284.35 lakh (excluding foreign currency cash flows in derivatives and foreign currency exchange transactions) and total foreign exchange outgo was

Rs.15,147.09 lakh towards the operating and capital expenditure requirements.

RBI's Prompt Corrective Action (PCA)

The RBI, vide its letter dated May 05, 2017, initiated PCA for your Bank in view of its high net Non-Performing Assets (NPA) and negative Return on Assets (ROA). The Bank has been taking necessary actions to comply with the RBI's directive in this regard. The Bank has also put in place a comprehensive turnaround strategy to improve its financial position. Furthermore, in compliance with the RBI directive with regard to restriction in fresh corporate exposure, the Bank has reviewed its internal credit policy and has been working towards limiting its corporate exposure.

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;

of c.its The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this 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.

[Samuel Joseph Jebaraj] [Rakesh Sharma]
Deputy Managing Director Managing Director & CEO
Place: Mumbai
Date: May 30, 2020

   

IDBI Bank Ltd Company Background

Mangalam Ramasubramanian KumarRakesh 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
AuditorK S Aiyar & Co/JLN US & Co/M P Chitale & Co
Face Value10
Market Lot1
ListingBSE,MSEI ,NSE,
RegistrarKFin Techologies Pvt 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 2020
Ashima Goyal Independent Director 2020
Bhuwanchandra Balkrishna Joshi Independent Director 2020
Samaresh Parida Independent Director 2020
N Jambunathan Independent Director 2020
Rakesh Sharma Managing Director 2020
Rajesh Kandwal Nominee (LIC) 2020
Deepak Singhal Independent Director 2020
Sanjay Gokuldas Kallapur Independent Director 2020
Mangalam Ramasubramanian Kumar Chairman (Non-Executive) 2020
Meera Swarup Nominee (Govt) 2020
Samuel Joseph Jebaraj Deputy Managing Director 2020
Anshuman Sharma Nominee (Govt) 2020
Suresh Kishinchand Khatanhar Deputy Managing Director 2020
P V Bharathi Additional Director 2020
Jyoti Biju Nair Company Secretary 2020

IDBI Bank Ltd Listing Information

Listing Information
BSE_500
BSE_200
BSEDOLLEX
CNX500
BSEMID
BSEALLCAP
BSEFINANCE
LMI250
BSE100LTMC
NFTYMSC400

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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