42421315 introduction of idbi bank

8/8/2019 42421315 Introduction of IDBI Bank

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Introduction of IDBI Bank:The Industrial Development Bank of India Limited, now more

popularly known as IDBI Bank, was established as a wholly-owned

subsidiary of Reserve Bank of India. The foundation of the bank was

laid down under an Act of Parliament, in July 1964. The main aimbehind the setting up of IDBI was to provide credit and other facilities

for the Indian industry, which was still in the initial stages of growth

and development. In February 1976, the ownership of IDBI was

transferred to Government ofIndia.

After the transfer of its ownership, IDBI became the main

institution, through which the institutes engaged in financing,

promoting and developing industry were to be coordinated. In

January 1992, IDBI accessed domestic retail debt market for the first

time, with innovative Deep Discount Bonds, and registered path-breaking success.

The following year, it set up the IDBI Capital Market Services Ltd., asitswholly-ownedsubsidiary, to offer a broad range of financial services, includingBond Trading, Equity Broking, Client Asset Management andDepository Services.

In September 1994, in response to RBI's policy of

opening up domestic banking sector to private participation, IDBI setup IDBI Bank Ltd., in association with SIDBI. In July 1995, public

issue of the bank was taken out, after which the Government's

shareholding came down (though it still retains majority of the

shareholding in the bank). In September 2003, IDBI took over Tata

Home Finance Ltd, renamed IDBI Home finance Limited, thus

diversifying its business domain and entering the arena of retail

finance sector

The year 2005 witnessed the merger of IDBI Bank with

the Industrial Development Bank of India Ltd. The new entitycontinued to its development finance role, while providing an array of

wholesale and retail banking products (and does so till date). The

following year, IDBI Bank acquired United Western Bank (which, at

that time, had 230 branches spread over 47 districts, in 9 states). In


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the financial year of 2008, IDBI Bank had a net income of Rs 9415.9

crores and total assets of Rs 120,601 crores.

The PresentToday, IDBI Bank is counted amongst the leading public sector

banks of India, apart from claiming the distinction of being the 4th

largest bank, in overall ratings. It is presently regarded as the tenth

largest development bank in the world, mainly in terms of reach. This

is because of its wide network of 509 branches, 900 ATMs and 319

centers. Apart from being involved in banking services, IDBI has set

up

Introduction1.1 One of the important functions of the Bank is to accept deposits from the

public for the purpose of lending. In fact, depositors are the majorstakeholders ofthe Banking System. The depositors and their interests form the key area oftheregulatory framework for banking in India and this has been enshrined in theBanking Regulation Act, 1949. The Reserve Bank of India is empowered toissuedirectives / advices on interest rates on deposits and other aspects regarding

conduct of deposit accounts from time to time. With liberalization in thefinancialsystem and deregulation of interest rates, banks are now free to formulatedeposit

products within the broad guidelines issued by RBI.1.2 This policy document on deposits outlines the guiding principles inrespectof formulation of various deposit products offered by the Bank and termsand

conditions governing the conduct of the account. The document recognizestherights of depositors and aims at dissemination of information with regard tovarious aspects of acceptance of deposits from the members of the public,conductand operations of various deposits accounts, payment of interest on variousdeposit


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accounts, closure of deposit accounts, method of disposal of deposits ofdeceaseddepositors, etc., for the benefit of customers. It is expected that thisdocument willimpart greater transparency in dealing with the individual customers andcreateawareness among customers of their rights. The ultimate objective is that thecustomer will get services they are rightfully entitled to receive withoutdemand.Deposit Policy2

1.3 While adopting this policy, the bank reiterates its commitment toindividualcustomers outlined in .Code of Banks Commitment to Customers. issued by

Banking Codes and Standards Board of India and Bankers' Fair PracticeCode ofIndian Banks' Association. This document is a broad framework underwhich therights of common depositors are recognized. Detailed operationalinstructions onvarious deposit schemes and related services will be issued from time totime.2 Types of Deposit Accounts

2.1While various deposit products offered by the Bank are assigned

differentnames, the deposit products can be categorized broadly into the followingtypes.(i) "Demand deposits" means a deposit received by the Bank which can bewithdrawn on demand by the depositor.(ii) .Savings deposit. means a form of demand deposit designated as.SavingsAccount., .Savings Bank Account., .Savings Deposit Account. etc which issubject to restrictions as to the number of withdrawals as also the amounts of

withdrawals permitted by the bank during any specified period. Currentlythe bankdoes not restrict the number of withdrawals and amounts of withdrawalsduringany specified period. The bank will give the notice to the depositor, if suchrestrictions are introduced in future.(iii) "Term deposit" means a deposit received by the Bank for a fixed period


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withdrawable only after the expiry of the fixed period and includes depositssuchas Recurring / Short Deposits / Fixed Deposits /Monthly Income / QuarterlyIncome/Sweep-in deposits (held in units) or any other form of Fixeddeposits.Deposit Policy3

(iv) .Notice Deposit. means term deposit for specific period butwithdrawable ongiving at least one complete banking day's notice.(v) "Current Account" means a form of demand deposit wherefromwithdrawalsare allowed any number of times depending upon the balance in the accountor up

to a particular agreed amount and also includes other deposit accounts whichareneither Savings Deposit nor Term Deposit.3 Account Opening and Operation of Deposit Accounts

3.1 The Bank, before opening any deposit account, will carry out duediligenceas required under "Know Your Customer" (KYC) guidelines issued by RBIand orother norms or procedures adopted by the Bank. If the decision to open anaccountof a prospective depositor requires clearance at a higher level, reasons foranydelay in opening of the account will be informed to him and the finaldecision ofthe Bank will be conveyed at the earliest to him.3.2 The account opening forms and other material would be provided to the

prospective depositor by the Bank. The same will contain details ofinformation to

be furnished and documents to be produced for verification and / or for

record. Itis expected of the Bank official opening the account to explain the

proceduralformalities and provide necessary clarifications sought by the prospectivedepositor when he approaches for opening a deposit account.3.3 For deposit products like Savings Bank Account and Current DepositAccount, the Bank will normally stipulate certain minimum balances to be


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maintained as part of terms and conditions governing operation of suchaccounts.Failure to maintain minimum balance in the account will attract levy ofcharges asspecified by the Bank from time to time. For Savings Bank Account theBank mayDeposit Policy4

also place restrictions on number of transactions, cash withdrawals, etc., forgiven

period. Similarly, the Bank may specify charges for issue of cheques books,additional statement of accounts, duplicate passbook, folio charges, etc. Allsuchdetails, regarding terms and conditions for operation of the accounts and

scheduleof charges for various services provided will be communicated to the

prospectivedepositor while opening the account. Any changes in the schedule of chargesorthe terms and conditions will be communicated to the customers 30 days inadvance.3.4 Savings Bank Accounts can be opened for eligible person / persons andcertain organizations / agencies (as advised by Reserve Bank of India (RBI)fromtime to time).Current Accounts can be opened by individuals / partnership firms / PrivateandPublic Limited Companies / HUFs / Specified Associates / Societies / Trusts

/

Limited Liability Partnerships (LLPs) etc.Term Deposits Accounts can be opened by individuals / partnership firms /Privateand Public Limited Companies / HUFs/ Specified Associates / Societies /

Trusts,etc.3.5 The due diligence process, while opening a deposit account will involvesatisfying about the identity of the person and verification of address.Obtainingintroduction of the prospective depositor from a person acceptable to theBank and


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obtaining recent photograph of the person/s opening / operating the accountare

part of the due diligence process.3.6 In addition to the due diligence requirements under KYC norms, theBankis required by law to obtain Permanent Account Number (PAN) or GeneralIndex

Problem with IDBI recruitment

Dear SIr/Madam,

I had applied for post of Asst Manager in IDBI Bank, advertised in themonth of January 2009,

I Submit form accordingly with the Chalan of Rs. 350 & Rs.50 due to OBCCategory, my form was selected & got a Hall ticket for written Exam.written Examination Center was Chennai. I qualifed in the writtenexamination & recieved an interview call letter dated 4th May 2009 at IDBI

bank, Bhopal Schedueled time 9.30 am, When I reach at particular center ofInterviewat 9.30 am they make me to wait till 1'O clock, at the last momentduring varification of my documents the bank people said, " you are noteligible for this interview, you don't have experience of any bank orFinanacial institue", I had submitted my form with my experience in a

particular company, that time they accepted all the conditions.No falsepresentataion from my side during filling the form regarding experience.

If according to Bank people I am not eligible for the post so, WHY theyselected my form, WHY they send a INTERVIEW call letter, I am verydisappointed BY IDBI bank.They had not even give permission to attendinterview, they reject my form after such a long process(qualifiing in thewritten exam, getting call for interview)

I spend money for travelling( for written exam & interview) & wasted my

valuable time, for this interview i had taken leave which will consider asLeave without pay for the month of May 2009,

I suffered alot because of IDBI people mistake, being a lady I travelled alonefrom Hyd to Bhopal Only for this interview, its kind a mental harrashmentthat i got from IDBI bank recruitment.


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Problem with IDBI paisabuilderApril 1, 2010By soundari

I am using IDBI paisabuilder. for the past 6 months i am notable to login. I raised the complain by mail and by call also. It saysthat Invalid connection parameters. Please contact the systemadministrator. .

Whenever i called the customercare they are telling that pls tryafter 24 hrs. I am doing the same for so many time. I am paying theyearly charge but they are not allowing me to use. I dont know towhom to contact and how to solve it. Please help me to solve this

ObjectivesIDBI Properties Corporation aims at the optimal

utilization of systems technology to support thepeople's various initiatives relative to specific aspectsof its operations. At present, there is a maximumutilization of systems support in the ongoingenhancements in loan processing, collecting andaccounting procedures.

All measures have been undertaken not only to maintain IDBI'sstatus as one of the top consumer lending companies in the World,

but also to demonstrate to its stockholders, investors, employees,clients and the general public the magnitude of its commitment todo business in the most professional and efficient manner.

All of this is in line with the Company's vision of becoming, in
http://www.indiaconsumerforum.org/?author=628http://www.indiaconsumerforum.org/?author=628


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the near future, a transnational and publicly listed provider of fullyautomated, world-class consumer lending products and services.

Client Snapshot

IDBI Ltd is one of the top ten Development Banking Institutions in theworld. Over the years since its inception, it has proven itself as a strategicinvestor and successfully promoted several world-class institutions withinIndia, which have revolutionized the Indian financial markets.

Following the merger, the combined entity is known as IDBI Ltd,undertakes activities ranging from project finance to retail banking, andshortly expects to enter the insurance market as well. IDBI has an asset baseof Rs 81,000 crore (as in March 2005) and employee strength of about

4000+.

IDBI Ltd' Approach

IDBI Ltd was prompt to respond & adept to emerging scenario byunderstanding the impact of changes in distribution of services, customer

profiles & preferences, industry trends and acted upon the same to convertthe change to its advantage. IDBI Ltd has devised a customer centric servicedelivery strategy, focusing on simple & value added services by utilizing themost convenient and commonly used delivery channels. This required

enhancing the existing technology base to meet the varied and diversecustomer requirements.

IT Team @ IDBI Ltd

IT Team at IDBI Ltd under the strong management leadership hassuccessfully aligned business objectives with the smart technologicalimplementations to the optimum utilization for the organizational advantage.

The concept of any time, any where banking has been made possible by

offering uniform services across various alternate channels such as ATM,Phone banking, Mobile banking, Internet banking, etc. All the channels areintegrated to the core banking system in a secure and real time basis.

In the last 12 months our Bank has launched several technologicallyinnovative and customer-centric key initiatives, providing effective alternatechannels of payment to the customers. This has also resulted in weaning


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away a number of customers from the traditional banking channels to themore cost-effective alternate channels. Furthermore, there has been asubstantial improvement in the staff productivity, since the employees nowfocus on business development rather than mundane operations.

IDBI Ltd has set the examples in product & services deliveries leveragingthe technology platforms available to its efficiency & reliability to overall

boost the customer confidence & perspective.

IDBI Ltd believes in the principle of keeping the tech-team trim and utilizetheir services optimally to deliver cutting-edge; rather bleeding-edgetechnological solutions. We have very judiciously decided on theoutsourcing strategy. This enables our internal team to focus on newinitiatives and enhancements to existing products. We also endeavor to

ensure that the technological solutions that we provide are scalable and cost-effective.

Technology and Tech Initiatives

In IDBI Ltd, expenditure on technology is considered to be an investmentand not a cost. Investment in technology is part of the plan to put in place

building blocks for creating the right organizational infrastructure. Largeinvestments have been made in back-end technology to strengthen

processes, systems and control. This, in the long run, propelled by a top

quality management team has clearly set IDBI Ltd apart from itscompetitors.

Keeping in line with the policy of leveraging technology to drive itsbusiness, IDBI Ltd constantly endeavors to implement and deploy new &emerging technology to drive the business needs to the extent of not justmeeting, but exceeding customer expectations. IDBI Ltd has alwaysendeavored to use its high-technology platform to provide cutting-edgeservices to its customers.

IDBI Ltd offers its clients, fully secured and real time electronic deliverychannels, providing convenient and secure access to the bankinginformation. It also provides its customers centralized multi-branchconnectivity integrated to a heterogeneous Core Banking System across

branches in India. This integration provides a seamless access point forclients for all the banking products and services across the channels.


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IDBI Ltd believes in a better-integrated customer relationship channel forsuperior customer service. The bottom line is to make all services availablethrough all channels as listed below.

Branch banking Internet Banking Mobile banking Tele-banking ATM Network Multi- Functional Kiosk Network Point of Sale transactions

IDBI Ltd is the only bank that allows its customers to pay all their billsacross any channel i.e. Branch, ATM, Phone Banking, Mobile banking and

Internet banking with Auto pay facility. For example, a customer mayregister for his mobile bill payment through Internet banking. He can pay the

bill through ATM or Phone banking or Mobile banking, when the bill ispresented.

Keeping pace with the ever-rising demands of our modern day clients, it hasbeen our endeavor to provide value added service with cutting edgetechnologies to our clients. In this direction our Bank has launched many

payment initiatives. The capabilities of Internet banking and web-enabledtalking ATMs have been fully exploited in most of these initiatives.

Using a single access to IDBI Ltd's Internet Banking, a customer can query& transact a variety of information related to different applications /

products, access the Demat particulars, access the details with respect toGOI bonds, make a Card-to-Card transfer, effect an online tax payment,

purchase National Savings Certificate, Cash Management, etc.

IDBI Ltd was also the frontrunner with respect to secured electronictransmission of tax collection data through the usage of Digital SignatureCertificates.

IDBI Ltd launched a strategic Internet Banking platform to facilitate on linepayments to & from corporate customers & its dealers /agents, therebyenhancing corporate business through new-age technology and offeringsupply chain financing solutions.

Overall IT spending for year 2005-2006


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Overall IT Spending for year 2005-2006 was approximately 50 Croresapproximately. Major spending this year has contributed to the branchautomation initiative and the data center set up catering to computingrequirements of the growing organization. In tangible benefits derived fromsmart implementations of IT initiatives are summarized as follows:

The Returns on Investment (ROI) for implementing IT inorganizational processes in the range of 50-75%. Organizational

processes have improved and tasks get completed with greatefficiency, speed and accuracy.

Customer centric initiatives improved the customer satisfaction asmeasured in terms of Number of Positive responses by customers.

Improved performance levels measured interms of TAT through Stateof the art computing infrastructure and technology platform

Integration for centralized Monitoring, Control and Reporting.

In the Post merger scenario, the very important activity was completed thatis to seamlessly integrate the IT team at both the units of IDBI Ltd. Themajor IT initiatives were focused towards centralization andApplication/system integration of both the units i.e. the erstwhile IDBI andIDBI Bank to consolidate and bring it to the common technology platform.Also there was a pressing urgency to set up the state- of-the-art ITInfrastructure to cater to the ambitious growth needs of the merged entity.

Some of the specific Initiatives are showcased below:

Customer Centric Innovative Value Added Service Delivery

Airline ticketing through ATM Network

IDBI Ltd. is the First Bank In The World To Launch Airline TicketingThrough ATM. We launched a first of its kind retail innovation in the world

by incorporating the convenience of booking airline tickets on our ATMs.We have tied up with Indian Airlines to provide this service for booking

domestic air tickets through our ATMs. IDBI customers can now use theirDebit cum ATM card at the nearest IDBI ATM and key in the travel detailsto buy an airline ticket 24 x 7. The transaction slip generated by the ATMcan be exchanged for a boarding pass at the airport upon showing properidentification proof. This utility allows customers to choose the best possibletravel option at the best prices.


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Internet Banking Enabled Multi-Functional KIOSK

The bank has enabled Internet Banking on Multi-functional Kiosk, whichwill fulfill the banking, needs of our customer base spread including remotelocations through out the country. Customer can access their accountsummary, clearing details and statement details through their Debit / ATMcard, which can be viewed or printed. All services available to InternetBanking customers are available through Kiosk. Non-customers can viewthe products offered by the Bank and also request for additional informationon various products. Website Integration of Both SBUs

IDBI website is the "Single Window" facility for accessing various servicesoffered by the bank ranging from Project finance to Retail banking.Customers can access the Corporate as well as Retail I-Net banking facility

through the corporate website. Customers can also access their WorldCurrency & Cash CARD Accounts through Website.

Post merger the Corporate web site was revamped totally by merging thetwo websites i.e. of IDBI Ltd & erstwhile IDBI Bank into a single websiterepresenting truly the IDBI Ltd as a homogeneous entity and accommodatedthe entire products & services portfolio from both the entities.

Website provides other utilities like EMI calculators, Real time Stockmarket updates, latest news updates to make the customers feel comfortable.

Corporate Internet Banking

We have migrated our Corporate Internet Banking to Finacle eCorporate, amore robust & functionality rich java based platform. Finacle eCorporateoffers a host of additional features and functionalities to our clients, some ofwhich are highlighted below.

1. Multi level workflow rules for financial transactions based oncorporate specific needs.

2. Corporate role mapping, where the hierarchy of the corporate userscan be mapped and financial transactions can be based on theorganizational matrix.

3. Creation of Division wise / Zone wise / Region wise accountclassification, giving clients the flexibility to decide who views whichaccount within the company.

4. Maker checker facility for online tax payments.


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5. Corporate level administrator, who can do user maintenance relatedactivities at the corporate end.

6. Transaction copy feature to save time while entering similartransactions.

7. Multi record entry/approval/ rejection of transactions.

National Electronic Funds Transfer (NEFT)

IDBI has setup a structure to initiate electronic communication with theIDRBT and the other banks. The structure of this system is more tunedtowards the decentralized scenario keeping in view the non-networked PSU

banks.

We have leveraged the existing setup of fully networked branches and

devised an end to end solution which blends seamlessly with our corebanking system viz Finacle. This system requires bare minimum datacapture on part of branches. The central processing unit can then, at perstipulated times, generate data uploads to-n-fro the NEFT system. This way,outward debit and inward credit transactions through NEFT has becomealmost an extension of our core banking system. The system is built usingthe J2EE Architecture and can be ported / scaled up on any other platformshould the need be.

Insta Online Account Facility

Insta Online Account is yet another customer friendly initiative from IDBIBank. It is a web-based account opening facility, which is accessible to the

NRI clients through our site. Insta Online Account helps convert a casualNRI browsing our site into our esteemed client - on real-time basis. Thefacility offers convenience of opening account from anywhere, at anytime tothe NRI Customers and it is a Zero cost of high quality customer acquisitionwith no direct sales effort / cost.

Setting up The Srate-of-The-Aat IT Infrastructure

Setup of Data Center and Disaster Recovery Center

With a view to ensure better customer service and in order to cater to thefuture computing requirements of the growing organization, we built a newData Center (DC) at Industrial Development Bank of India Ltd., IDBI


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Building, Plot No 39/40/41, Sector 11, CBD - Belapur, Navi Mumbai - 400614

It may be added, this is a LEVEL-3 Data Center with state-of-the-artsystems and solutions to provide very high uptimes with no single point offailure. The development of a Disaster Recovery Center (DRC) is alsocompleted at Chennai to take care of Business continuity in case of disaster.Both the centers have state-of-the-art systems and solutions to provide forvery high uptimes with no single point of failures. Unique feature about thisDRC is that it is a 100% replica of DC with online DRC backup system.

Branch Automation

IDBI Branch network automation is one of the important technology driven

initiative that has been kicked off this year. The first phase will automatearound 100 branches across country leveraging WAN/LAN/Leased linebased network connectivity with the high quality IT softwares, hardwaresand network equipments.

Technology Platform Integration

We have successfully integrated following DFI products into theorganizational Technology platform Finacle to provide a commontechnology platform for centralized Monitoring, Control and Reporting.

Suvidha Accounts Centralization

IDBI Ltd has a term deposit product called SUVIDHA offered asFixed Deposit from DFI. These accounts were managed indecentralized branch level system and there was no centralized set upfor monitoring, parameterization and MIS generation at the entire

bank level. This centralization initiative aimed at consolidating Bank'sBank's entire customer accounts into single & centralized system and

provide a common technology platform for generating MIS centrally.

NCAS (New Centralized Accounting System) Migration into Finacle

NCAS (New Centralized Accounting System) is one of thesubsystems used by DFI unit at IDBI Ltd for managing all their GLlevel entries. All Asset Liability Management MIS are managed bythis system. This particular initiative aimed at migrating the existing


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NCAS system into common technology platform i.e. Finacle forproviding online browser based centralized GL system for entire bankand facilitating online centralized MIS for decision support.

Corporate Finance System Migration to Finacle

IDBI has decided to move from Informix based disparate systems atvarious locations to an Oracle based centralized and on-line system ofFinacle Core Banking Solution, with a view to move to a singlecentralized database for the entire bank and single unified GL for

better MIS and supervision. The requisite system was developed in-house, with the help of external expertise, which will seamlesslyintegrate with our Core Banking solution without any manualintervention.

Common Exposure Reporting System

The initiative aimed at providing the centralized, online and consolidatedMIS Generation system for the entire bank's exposure reporting. The systemintegrates the centralized core-banking system from commercial bankingunit and the distributed branch level systems from DFI unit seamlessly to

provide common platform for compliance reporting and managing entirebank's exposures effectively. Functions of IDBI are as follow:

Functions of idbi bank

The responsibility of co-cordinating the working of institutionsengaged in financing, promoting and developing industries was seen asmajor aspect of the bank and it was vested with all the duties statedabove.Suitable plan, procedure, mechanism was adopted to achieve the targets.Undertakes promotional activitiesEntrepreneurship development programmers can be seen in this bank

Consultancy services for small and medium enterprises are provided.Up gradation of technology is given importance and the technology is wellused.Programmers for economic up liftmen of the underprivileged is taken asthe main aspect and all the necessary steps to achieve its aim weresuccessfully implemented.


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Industrial development has been made faster due to the moves of theIDBI .It finances all the industries that are under its cover allextends its support to all the industrial concerns. The size ofoperations performed by IDBI were spectacular and the bank bought up arevolution in the industrial field.


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Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating theworking of institutions engaged in financing, promotingand developing industries. It has evolved an appropriatemechanism for this purpose. IDBI alsoundertakes/supports wide-ranging promotional activitiesincluding entrepreneurship development programmes fornew entrepreneurs, provision of consultancy services forsmall and medium enterprises, upgradation of technologyand programmes for economic upliftment of theunderprivileged.

IDBI's role as a catalyst

IDBI's role as a catalyst to industrial developmentencompasses a wide spectrum of activities. IDBI canfinance all types of industrial concerns covered under theprovisions of the IDBI Act. With over three decades ofservice to the Indian industry, IDBI has grown substantiallyin terms of size of operations and portfolio.

Developmental Activities of IDBI

Promotional activities

In fulfilment of its developmental role, the Bank continuesto perform a wide range of promotional activities relating todevelopmental programmes for new entrepreneurs,consultancy services for small and medium enterprisesand programmes designed for accredited voluntaryagencies for the economic upliftment of theunderprivileged. These include entrepreneurship

development, self-employment and wage employment inthe industrial sector for the weaker sections of societythrough voluntary agencies, support to Science andTechnology Entrepreneurs' Parks, Energy Conservation,Common Quality Testing Centres for small industries.

Technical Consultancy Organisations
http://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/idbi.htmlhttp://finance.indiamart.com/investment_in_india/idbi.html


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With a view to making available at a reasonable cost,consultancy and advisory services to entrepreneurs,particularly to new and small entrepreneurs, IDBI, incollaboration with other All-India Financial Institutions, hasset up a network of Technical Consultancy Organisations(TCOs) covering the entire country. TCOs offer diversifiedservices to small and medium enterprises in the selection,formulation and appraisal of projects, their implementationand review.

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to

industrial development, IDBI played a prime role in settingup of the Entrepreneurship Development Institute of Indiafor fostering entrepreneurship in the country. It has alsoestablished similar institutes in Bihar, Orissa, MadhyaPradesh and Uttar Pradesh. IDBI also extends financialsupport to various organisations in conducting studies orsurveys of relevance

Deconstructing Delhi Land and Finance: DLF

With the DLF IPL craze reaching a crescendo, the surfeit of cricketscores and statistics drove me to delve deeper into the acronym forthe phenomenon. And Im not talking about IPL, but DLF. DelhiLand and Finance or DLF is arguably Indias leading real estateDevelopment Company, with revenues of about $35 Billion, and in

2007 a market capitalization greater than $30 Billion. K.P.Singh,the head of the group has really transformed fragmented holdingsof agricultural land into a modern metropolis. He is now one of theworlds wealthiest men (8th in the Forbes list). The transformationof vast acres of undeveloped land into one of Indias most modern

places, Gurgaon, with sleek office towers, shopping malls,
http://sairam-iyer.blogspot.com/2008/05/deconstructing-delhi-land-and-finance.htmlhttp://sairam-iyer.blogspot.com/2008/05/deconstructing-delhi-land-and-finance.html


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multiplexes, upscale homes and condominiums, has been anextraordinary feat. The question is how was this feat possible inIndias Paralytic political climate? What came as an even biggersurprise was that DLF has been around from 1946, before partition

(Whoaa!!). Most of the posh South Delhi area has been developedby DLF.K.P.Singh married DLF founder: Raghuvendra Singhs daughterand inherited the company and thus began his association withDLF and his tryst with destiny. His entry into the family businesscoincided with Indias changing land policies. In 1957 the DelhiDevelopment Act (DDA) was passed which made the landdevelopment a concern of the state. This would have made DLF

and similar operators crestfallen, and situation became even grimwith the socialist shift in 1961 with a total elimination of privatesector in urban development. This was also the time when a

plethora of fly-by-night developers started operating under thestate patronage. During the sixties, DLF totally went in the

background.During Prime minister Rajiv Gandhis (wish he could have still

been alive..) regime things started to look up. He saw the potential

to business, when the state got out of the business of being inbusiness. In Mr. Singhs words You know these three and a halfthousand acres on which DLF sits? The government did not justhand it to me and say :Go Build.The process of acquiring landhad been a slow, painful and laborious activity. Mr. Singhnegotiated with 700 familes each having 4 to 5 acres. Dealing withsuch a heterogeneous society was no mean task. Pacifying hostilefamily members, dealing with various stake-holders , some evenliving miles away from the land was a torrid time. According to

him, assemblage of land remains the biggest problem indeveloping it. Unlike in other countries (read China), a bull-dozercouldnt have been run over the occupants. Even if one of themwent to court, the litigation that would have followed would havekept Mr. Singh busy for all his life.The modus operandi was pretty simple. Take a loan from one


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farmer, and then promptly use it to buy additional land. Thefarmers became the bankers and DLF became the bank for them. Itwas literally all about trust. The interest was delivered to thefarmers personally, something which cannot be imagined

nowadays. The business model followed the contemporary U.S.Businesses that consolidate so-called fragmented industries. Thefarmers were brought together to accomplish with the large

properties, what individual farmers could never have imagined.DLF still operates in much the same way. Brokers, sometimesrepresent unknown buyers and sellers, and often brokers dontknown one anothers identity (reminds me of a scene from Khoslaka Ghosla, where Navin Nischol mouths Aap broker hain ya

party?). The identity crisis helps DLF to buy the land at less thanits actual worth due to government distortions that constricteffective land supply: Urban Land ceiling and RegulationAct.DLFs success story has definitely been a massiveentrepreneurial feat. Though it is a part of Indias big developerswhich do profit unduly from the opacity of the land market and arecomplicit in perpetuating such opacity. The widespread suspicionof a nexus made of the mafia, the media, builder and politicians is

also rife. But it is definitely compensating for a state that resistsdevelopment for fear of treading on individual property rights andalso doing its popularity no harm by sponsoring Mano-Ranjan kaBaap:IPL.

bfls

ABSTRACT

Location-based routing intends to send packets toward geographicdirection of destination. For this, source nodes needs to knownabout destination position via a location service. Whereas the mainconcept of ad hoc networking is being independent from aninfrastructure, applying a distribution algorithm has been a keydesign principle for a location service. Destruction of single nodes


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shouldn't lead to disruption of location service. Moreover,scalability is a desirable characteristic for large networks. So, weoffered a distributed and fault tolerant location service method(DFLS) for ad hoc networks in this paper. This method is a

hierarchical and explicit Quorum-based location service method. Inthis method, location servers in each cluster have abstractinformation about other clusters. So, this method will haveresponse time similar to flat methods. But, it is similar tohierarchical methods in terms of implementation complexity.Evaluation show that this method (DFLS), compared to the

previous methods, decreased the response time to location queriesand control overheads, also it increased fault tolerance and packet

delivery rate.


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DISADVANTAGES IN UNIVERSAL BANKING :-

1. To meet with the increasing demands of customers.

The establishment of new private sector banks and foreign banks have rapidly changed

the competitive landscape in the Indian consumer banking industry and placed greaterdemands on banks to gear themselves up to meet the increasing needs of customers. Forthe dissatisfied current day bank customers, it is not only relevant to offer a wide menu ofservices but also provide these in an increasingly efficient manner in terms of cost, timeand convenience.

E.g.: Today there is a lot of burden on staff members, they are given no or less number ofbank holidays, the time limit is 8-8.

2. Merger with DFI {Biggest Challenge}.

Development Financial Institutions (DFIs) opting for conversion into Universal Banks bymerger/reverse merger routes may also face certain difficult situations on account ofAsset Liability Mismatches, burden of mounting NPAs and differences in regulatoryprescriptions applicable to FIs and banks such as CRR and SLR requirements and prioritysector lending. The asset profile of DFIs in India is predominately of long-term nature,which also includes a very high level of non-performing assets.

E.g.: NPAs of ICICI and IDBI were transferred to ICICI Bank and IDBI Bankrespectively after their merger.

3. Statutory Liquid Ratio {SLR} and Cash Reserve Ratio {CRR} requirements of

DFI.

In case DFIs are converted into banks they would also be subject to the reserverequirement like banks. CRR and SLR burden that wasn't there for DFI will be appliedafter its merger with any bank. This would mean that all liabilities issued by the DFIs inthe past would also be subject to reserve requirements and since the assets structure ofDFIs are largely of long term nature it would be very difficult for them to maintain therequired level of SLR/CRR.

4. High cost of funds for DFI.

Cost of deposits is high as the only source of funds is Fixed Deposits having higher RateOf Interest. Costs of funds for Fixed Deposit are higher than CASA {Current accountSavings account}. CASA has low cost, as the Rate Of Interest is low. Further, the cost atwhich DFIs have been raising resources in the past has generally remained high ascompared to banks and maintenance of CRR/SLR of such liabilities, which may earnlower returns, would adversely affect the profitability of Universal Banks. Compliance ofpriority sector lending norms, which earn lower returns, may also create difficultsituations for such bank. Risk Management is one of the major challenges, where in the


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financial activity carries with it various risks, which would need to be identified,measured, monitored and controlled by Universal Banks. The nature of risks andmitigating techniques for different financial product/services will be different andtherefore, Universal Banks will be required to develop comprehensive system of eachproduct/service and each kind of risk.

5. Improving risk management systems

With the increasing degree of deregulation and exposure of banks to various types ofrisks, efficient risk management systems have become essential. For enhancing the riskmanagement system in banks, Reserve Bank has issued guidelines on asset liabilitymanagement and risk management systems in banks in 1999 and Guidelines Notes onCredit Risk Management and Market Risk Management in October 2002 and theGuidance Note on Operational risk management in 2005.

E.g.: Today most banks have stopped personal loans because there is no guarantee, no

loans are granted for travel and tourism, i.e. holiday loans too are stopped.

1. Supervisory and regulatory infrastructure

Another aspect is related to building up of supervisory infrastructure. The regulatoryframework would need to be strengthened so as to cover all aspects of Universal Bankingeither under control of one regulator or a co-coordinating mechanism would have to bedeveloped among different regulators like the Reserve Bank of India, SEBI, InsuranceRegulatory, Authority etc. The regulators will have to frame sound mechanism to protectthe interest of all concerned including the customer, the Universal Banking Institutionand the financial system of the country.

1. Supervisory of financial conglomerates

In view of increased focus on empowering supervisors to undertake consolidatedsupervision of bank groups and since the Core Principle for Banking Supervisory issuedby the BASEL committee on Banking Supervision have underscored consolidatedsupervision as an independent principle, the Reserve Bank of India had introduced, as aninitial step, consolidated accounting and other quantitative methods to facilitateconsolidated supervision. The components of consolidated supervision include,consolidated financial statements intended for public disclosure, consolidated prudentialreports intended or supervisory assessment of risk and application of certain prudential

regulations on group basis. In due course, consolidated supervision as introduced abovewould evolve to cover.

1. Technology improvement and compensation and incentive systems foremployees

It is likely that Universal Banks of roughly the same size and providing roughly the samerange of services may have very different cost levels per unit of output on account of


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efficiency differences in the use of labour and capital, effectiveness in the sourcing andapplication of available technology, and perhaps effectiveness in the acquisition ofproductive inputs, organization designs, compensation and incentive system-and justplain better management.

1. Conflict of interest between commercial and investment banking

Larger the banks, the greater will be the effects of the failure on the system. Also there isthe fear that such institutions, by virtue of their sheer size would gain monopoly power inthe market, which can have undesirable consequences for economic efficiency. Furthercombining commercial and investment banking can give rise to conflict of interest.

10. Sharpening skills

The far-reaching changes in the banking and financial sector entail a fundamental shift inthe set of skills required in banking. To meet increased competition and manage risk, the

demand for specialized banking functions, using IT, as a competitive tool has to go up.Special skills in retail banking, treasury, risk management, foreign exchange,development banking, etc, will need to be carefully nurtured and built. Thus, the twinpillars of the banking sector i.e. human resource and IT will have to be strengthened.Thus the need of the day is a combination of improved technology and quality humanresources.

11. Competition

Monopolistic competition among universal banks will decrease their profit margin.

12. Government interferences

Interferences by government in public sector banks through RBI are hampering progressof universal banks.

13. Present economic recession

Recession is affecting universal banks in a big way as their investment in infrastructure aswell as the establishment expenses is much higher as compared to public sector banks.


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IDBI bank home loan india73rate or flag this pageTweet this

By rudejohn

IDBI looking to expand it's retail credit foray

Even as the amalgamation of Industrial Development Bank of India Ltd (IDBI) andUnited Western Bank Ltd (UWB) gets close to completion, IDBI has chalked out anaggressive retail strategy with its partner in major loans like: home loan, education loan,mutual funds and credit cards.

IDBI took over the weak, old private sector bank, headquartered in western Maharashtra,in October 2006. UWB is the second bank that has been taken over by IDBI, adevelopment financial institution that became a bank by merging with IDBI Bank, itsown listed subsidiary.Now IDBI wants to transform itself from a wholesale bank to a financial intermediary

that seeks to service the masses. Currently, corporate loans account for 77% of IDBI'sRs62,353 crore advance portfolio. IDBI wants to go the whole nine yards in the retailsegment over the next three-five years. The lender plans to target small- and medium-sized enterprises (SME) and agricultural businesses.

IDBI home loan news....

Festive cheer: Some banks to cut home, augo rates - Business Standard

Business Standard Festive cheer: Some banks to cut home, augo rates BusinessStandard Another state-run lender, Bank of Baroda, is also planning to give

better rates on home and auto loan products. According to an IDBI Bankofficial, ... and more - 19 hours ago

Short term plans good for risk averse investors - Myiris.com

Myiris.com Short term plans good for risk averse investors Myiris.com Homeloan rates would typically follow the movement in the deposit rates,unless the
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housing loan segment sees a slowdown wherein higher resources cost may ... andmore - 3 hours ago

Fixed rate home loans are history - mydigitalfc.com

Fixed rate home loans are history mydigitalfc.com Out of the total home loanproviders including all banks and housing finance companies, the four largestplayers HDFC, SBI, ICICI Bank and LIC Housing ... and more - 9 days ago

Garware Polyester to issue pref shares to IDBI

Garware Polyester Ltd (GPL) plans to issue cumulative redeemable preference sharesaggregating Rs 49.54 crore to Industrial Development Bank of India Ltd(IDBI).

The company is also issuing 10,19,022 equity shares of Rs 10 each at a premium of Rs48.88 per equity share aggregating to Rs 6 crore, a company statement said here today.The company has received shareholders approval at an extra-ordinary general bodymeeting (EGM) held here.This is a part of the financial re-structuring undertaken by the company. Its balance sheetratios have substantially improved, thereby strengthening the financial health of thecompany, it said.

IDBI reduces fixed home loan rates

IDBI Ltd cut the interest rates on fixed home loans by about 100 basis points witheffect from September 1. However, the floating interest rate continues to remainunchanged. The bank has also increased rates on fixed deposits for some maturities.

For fixed loans the revised rate for loans up to three years is 12.5 per cent (13.5-14 percent) and for loans up to five years it is 12.75 per cent (13.75-14.25 per cent). Thefloating rate remains unchanged at 11.25 per cent, said a press release from the bank.IDBI also raised deposit rates on fixed deposits up to Rs 15 lakh for a period of ninemonths to one year to 7.75 per cent (7.25 per cent); from one year to one year six months- 8.5 per cent (8 per cent); one year six months to two years - 8.5 per cent (8 per cent);two years to three years - 8.5 per cent (8 per cent); three years to five years - 8.75 per cent(8.25 per cent); five years to less than 10 years - 8.75 per cent (8.25 per cent) and for 10years 8.75 per cent (8.25 per cent).

IDBI Bank home loan folio swells to Rs 1040 cr

IDBI Bank's home loan portfolio has grown by 360 per cent to Rs 1040 crore by mid-March in the current fiscal, according to its Managing Director and Chief ExecutiveGunit Chadha.
http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFCVpFpc-8t6eV8aNnUPhUaTHREHw&url=http://www.mydigitalfc.com/news/fixed-rate-home-loans-are-history-458http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFCVpFpc-8t6eV8aNnUPhUaTHREHw&url=http://www.mydigitalfc.com/news/fixed-rate-home-loans-are-history-458


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"The home loan portfolio, a fastest growing retail segment at the beginning of the currentfiscal was at Rs 227 crore and has touched Rs 1040 crore by mid March", he toldreporters at the launch of new ATM-based information service here today.The retail asset base was expected to touch Rs 1500 crore and contribute 30 per cent tothe total bank business by end of this fiscal, he added.

Don't get burdened from home loan

Are you burdened by the increased rate of EMIs on housing loans? Are you finding itdifficult to manage the increased EMIs? Will it be right to buy a house now?

If you want to buy a second house, is it the right time to go for one?I HAVE TWO YEARS OLD HOME LOAN FROM IDBI BANKOF 20 YEARS .. ASTHE PRICES OF FLAT HAVE NOW DOUBLED CAN I SELL OFF & WHAT IS THEPROCEDURE???Harsh Roongta CEO Apnaloan.com answers, Off course you can sell of the flat. You will

need to clear off the loan before you do so. Read the detailed process for selling aproperty with an existing loan.

Advantages of IDBI Home Loans

>Flexibility of choosing between Floating or Fixed interest rate

->EMI on monthly reducing balance

->Personalised doorstep service

->Simple documentation

->Legal and technical assistance

->Balance transfer facility

->Reassessment and adjustment of applicant's loan eligibility in case of change of incomeand residence status

Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating the working of institutionsengaged in financing, promoting and developing industries. It has evolved an appropriatemechanism for this purpose. IDBI also undertakes/supports wide-ranging promotionalactivities including entrepreneurship development programmes for new entrepreneurs,provision of consultancy services for small and medium enterprises, upgradation oftechnology and programmes for economic upliftment of the underprivileged.

IDBI's role as a catalyst


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IDBI's role as a catalyst to industrial development encompasses a wide spectrum ofactivities. IDBI can finance all types of industrial concerns covered under the provisions ofthe IDBI Act. With over three decades of service to the Indian industry, IDBI has grownsubstantially in terms of size of operations andportfolio.

Developmental Activities of IDBI

Promotional activities

In fulfilment of its developmental role, the Bank continues to perform a wide range ofpromotional activities relating to developmental programmes for new entrepreneurs,consultancy services for small and medium enterprises and programmes designed foraccredited voluntary agencies for the economic upliftment of the underprivileged. Theseinclude entrepreneurship development, self-employment and wage employment in theindustrial sector for the weaker sections of society through voluntary agencies, support to

Science and Technology Entrepreneurs' Parks, Energy Conservation, Common QualityTesting Centres for small industries.

Technical Consultancy Organisations

With a view to making available at a reasonable cost, consultancy and advisory servicesto entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration withother All-India Financial Institutions, has set up a network of Technical ConsultancyOrganisations (TCOs) covering the entire country. TCOs offer diversified services tosmall and medium enterprises in the selection, formulation and appraisal of projects, theirimplementation and review.

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to industrial development, IDBIplayed a prime role in setting up of the Entrepreneurship Development Institute of Indiafor fostering entrepreneurship in the country. It has also established similar institutes inBihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support tovarious organisations in conducting studies or surveys of relevance to ind Citizens'Charter of IDBI Bank for Investors:Responsive and Responsible Preamble IDBI Bank, in its continued andcommitted endeavour to provide prompt and quality service to its valued clients, hasintroduced this Citizens' Charter. The Citizens' Charter is intended to provide informationin respect of IDBI Bank's various activities relating to customer service, for the benefit ofits customers. It is not a legal document creating rights and obligations.Introduction IDBI Bank provides financial assistance to industrial concerns by way ofa variety of products and services which include project finance, equipment finance, assetcredit, equipment lease, technology upgradation fund scheme, refinance for medium scaleindustries and bills finance. It provides project-related finance for the establishment ofthe new industrial projects as well as for expansion, diversification and modernisation of
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existing industrial enterprises. In response to the changing financial needs of industries,IDBI Bank has also designed other products to meet the short term funding, core workingcapital and other short term requirements of industrial units. It also offers fee-basedservices in the areas of merchant banking, corporate advisory services, forex services, etc.IDBI Bank has also set up subsidiaries and associates to offer banking products &

services, capital market and trusteeship services, as also registrar and transfer servicesstructured to meet customised client requirements.

For meeting the fund requirements thereof as well as towards its various other businessoperations, IDBI Bank raises resources directly from the market (at market - relatedinterest rates) from retail as well as institutional investors - both within India and abroad,through a variety of investor-friendly instruments. IDBI Bank's resource raising effortshave brought it closer to all sections of society. Resource Raising IDBI Bank hasbeen mobilising resources through a combination of debt and equity. It made a publicissue of equity shares in 1995 in terms of the Offer Document approved by SEBI. IDBIBank's shares are listed on National Stock Exchange and Mumbai Stock Exchange. The

shares can be held in dematerialised (demat) form in National Securities Depository Ltd.(NSDL) or Central Depository Services (India) Ltd. (CDSL). NSDL/CDSL aredepositories where the securities of an investor are held in electronic form through themedium of Depository Participants (DPs). This facility obviates the difficulties of loss,signing of transfer deeds, delay in transfer, etc. and offers scope for paperless trading.

IDBI Bank also raises funds from the public through public issues of unsecured bonds.The objective of various bond issues is to part finance funding requirement of IDBI Bankand at the same time provide appropriate investment opportunities for the retail investors.The three Registrars appointed by IDBI Bank for various public issues have also beenretained for servicing the public issues of IDBI Bank. The addresses of theseRegistrars are:

M/s. Karvy Computershare Private Ltd.,Karvy House,Avenue 4, Street No.1,Banjara Hills,Hyderabad - 500 034.

Tel.No. (040) 23312454, 23320251/ 751/752Fax No. (040) 2331 9434 / 1968, 23323049E-mail :[email protected]

Investor Services of India Ltd.IDBI Bldg.,2nd Floor, "A" Wing,Plot Nos.39, 40 & 41,Sector 11, CBD Belapur,Navi Mumbai - 400 614.

Tel No. (022) 27579636-44Fax No. (022) 27579650E-mail :[email protected]@isilindia.com

M/s. DATAMATICS Financial Software &

Services Ltd.Plot No.A-16 & A-17, Part-B,Cross Lane, MIDC, Marol, Andheri (E),Mumbai - 400093.

Tel No. (022) 28200540/538 / 28375519 /

28213383-92Fax No. (022) 28369408E-mail : [email protected]

Investor Relations IDBI Bank has designed a customer-friendly website(www.idbi.com) which contains complete information about the organisation, itsproducts and services, investment opportunities and various deposit schemes. It also has a
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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contact system for the convenience of posting investors' queries which are responded toon a real-time basis.

In order to create the requisite awareness among investors, a booklet containingguidelines to its shareholders is brought out by IDBI Bank and made available to

investors on a complimentary basis.

IDBI Bank has an exclusive team of officers to attend to post-issue complaints /suggestions of equity holders and bond holders.

Besides, IDBI Bank has set up an Customer Relations Management Cell at its HeadOffice to attend to grievances of investors. The Cell is managed by experienced andtrained personnel from IDBI Bank and assisted by representatives of the three Registrars,namely, Investor Services of India Ltd., Karvy Computershare Private Ltd. andDatamatics Financial Software & Services Ltd. Orientation of Staff for InvestorService IDBI Bank makes significant efforts to motivate its staff and inculcate in them

the spirit of prompt and diligent servicing, aimed at securing investor satisfaction. Overthe years, IDBI Bank has put in every effort to bring about excellence in the serviceprovided and to meet the increasing / changing training needs of the employees, in theevolving business scenario. Grievance Redressal Procedure The followingavenues are open to the investors for redressal of their grievances:

Oral representations to IDBI Bank officials at HO/Branch Office convenient tothe investor;

Written representation to the Officer-in-charge of the Branch Office nearest tohis/her station or to Head Office.

Complaints/Suggestion boxes are also placed at the main entrance/gate of each

office for the convenience of investors. Written complaint can be sent to SEBI/RBI/DOCA for redressal. Complaint proforma has been made available on IDBI Bank website (copy

appended for ready reference). Investors' feedback form is attached which may be filled and dropped in the

suggestion box at the IDBI Bank, Head Office / Branch or mailed to the GeneralManager, DOMESTIC RESOURCES DEPT.(Customer Relations ManagementCell), IDBI, IDBI Tower, 7TH FLOOR, Cuffe Parade, Mumbai 400 005. TEL.NO.(022) - 2216 4385 / 2215 1051; FAX NO. (022) 2218 0930; EMAIL ID:[email protected].

Time Frame for Various Investor Services It is the endeavour of IDBI Bank toprovide prompt and efficient service to its investing public. An indicative time frame forattending to various investor grievances is given below.

Job Description Time-frame

Allotment of Securities/bonds Within 30 days of closure of the public issue

Refund of application moneyin case of non-allotment

Within 30 days of closure of the public issue and withinterest for the period of delay beyond 30 days, if any.


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Payment of interest/dividendOn due dates (Investors are requested to refer to theinstrument for ascertaining the due date)

Redemption payment ofsecurities

On maturity dates as pre-determined and notified in theOffer Document.

In case of early redemption ofsecurities

Within 30 days after surrender of the instrument dulydischarged by the holder(s)

Duplicate issue of BondsWithin 6 weeks of receipt of request along with all relevantdocuments such as indemnity bond/surety and undertaking.

Postal loss of certificate(s)Only after necessary notification regarding the loss/non-receipt of the original share certificate is given in thenewspapers.

Duplicate issue of interestwarrants/dividend warrants

Within 20 days after the expiry of the currency of thewarrant and on receipt of relevant documents such asindemnity bond/surety, subject to receipt of reconciliationfrom Bankers.

Revalidation of interestwarrants

Immediately over the counter if the request has come withinsix months from the date of issue of the warrant; otherwiseduplicate warrant will be issued within 20 days.

Revalidation of dividendwarrants

On expiry of the validity period, subject to receipt ofreconciliation from Banks.

Change of address Immediately on receipt of information

Change in Bank Mandate Immediately on receipt of information

Request for transmission of

securities in case of death ofsingle holder

Transmission will be effected within 30 days after receipt ofsecurities alongwith all relevant documents such as attested

copy of the will, attested copy of the death certificate,attested copy of court order/succession certificate /Letter ofadministration for effecting the transmission.

Request for transmission ofsecurities in case of death ofone of the holders in a jointholding

Within 30 days of the receipt of original securities and anattested copy of the death certificate.

Request for transfer of sharecertificate

Within 30 days of lodgment of securities.

Request for consolidation of

share certificates

Within 30 days of lodgment of securities.

Request for change in nameconsequent upon change inmarital status

Within 30 days of receipt of original certificates along withattested copy of marriage certificate or decree of divorceissued by competent authority, old specimen signature andnew specimen signature duly attested by the banker.

Nodal Officer for Investor Grievances Mrs. Kiran S. BalwaniHead - Customer Care CenterIDBI Bank Ltd


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Central Road, MIDC Plot No. 82/83,Road No. 7, Street No. 15,MIDC, Andheri (E), Mumbai - 400 093.Tel No. (022) 66977800 extn 7510Email id: [email protected] Code of Business Principles Business Partners IDBI

Bank is committed to establishing mutually beneficial relations with its customers andbusiness partners. It also expects its partners to adhere to business principles consistentwith its own, in all its business dealings. Business Integrity IDBI Bank shall notgive or receive, whether directly or indirectly, bribes or other improper advantages forbusiness or financial gain. No employee may offer, give or receive any gift or payment,which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected immediately and reported to management. Community InvolvementIDBI Bank strives to be a trusted corporate citizen and, as an integral part of society, tofulfil its responsibilities to the societies and communities in which it operates.

All the services and commitments are honoured without the citizen having to pay any

bribe

ustrial development. Question

i want to prepay my home loan taken from HDFC .what are the advantages anddisadvantages ?

Answer

If you have surplus funds and you can also pre-pay a part of the home loan as it willreduce the monthly EMI burden. Quite a few banks do not charge pre-payment penalty ifthe loan is prepaid partially. The definition of what constitutes partial pre-payment varies

from bank to bank. This will ensure savings in pre-payment penalty and at the same timehelp you to save on high interest costs on a substantial portion of the loan. However,before you decide to pre-pay a home loan, it is in your interest to first clear off allunsecured dues like credit card dues and personal loans. Also, make sure that you havesome money set aside to meet emergency expenses. Tax calculation can change the viewon pre-payment. You can also check the Should I PrePay my loan calculator.

cici Bank Home Loan

Features: The bank offers home loans to Indians and NRIs for purchase of new andresale properties as well as plots. The loan tenure is available up to 25 years. A Free

Personal Accident Insurance is also offered. The loan is available at fixed and floatinginterest rates. Loan transfer option is also available.

< >> >

ICICI Bankis the largest private sector bank in India. No doubt about it. It was theconfluence of one of
mailto:[email protected]://www.apnaloan.com/loan-advice-india/prepay-loan-calculator.htmlmailto:[email protected]://www.apnaloan.com/loan-advice-india/prepay-loan-calculator.html


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the biggest financial corporation and a once great bank known for its serviceand promptness. Is it still so? No way. I dont think so. At least, in my opinion. If youasked me an opinion about ICICI Bank in 1998 or earlier, I would have given it a 5 starrating. No doubt about it. Will I give it the same, as I have been a customer for 5+ years?No. Not a chance. In the due course of this review, I shall analyze the pros and cons of

this bank and compare it against other banks that I have known. What happened to a oncean excellent bank these days? We shall see.

< >> >

To understand about this big bank, we need to understand how it became so big aforce to reckon with. ICICI (Industrial Credit Investment Corporation of India) promotedthe ICICI bank in 1994 with its stake reducing to 46% after the IPO in 1998. ICICI is awell-known name in India along withIDBIand was formed in 1955 at the initiative of theWorld Bank, Indian Government and Indian Industries. Both of these institutions have anexceptional brand-image and one of the highest possible ratings from CRISIL and other

rating organizations. ICICI can be considered an oligopolistic corporation along withIDBI (please M2M me, if you want to discuss this!). ICIC listed in NYSE in 2000. In2001 it underwent a tight marriage with Bank of Madura in a stock-only amalgamation.This was a tough marriage and I guess they are still suffering from this hiccup, whichkind of substantiates their mediocre performance today, in my perspective. This and themerger with the ICICI Corporation have caused some management strain and some toughmerger time. I could only wish they come over this and serve the customers in a bettermanner.

< >> >

I first became an ICICI bank customer in 1998 when I became an NRI customer.Things were rather mundane and normal. Compared to the other big nationalized banksand Citibank, I felt ICICI Bank was the best and got some great feedback from friendsand relatives alike. My initial relationship was excellent. This continued till 2001. All thefacilities were of the highest grade. Their email follow-ups, request resolution, customerservice and everything they served were of the highest grade. They also baffled me bycalling me overseas with regard to certain transactions and request. So, I would havegiven a 5 star rating in 1998.

What changed since then?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This bank grew leaps and bounds ever since the IPO in 1998 as well as the NYSElisting in 2000. The numbers of customers were huge and the merger with Bank OfMadura added to the woes of the service. As there is a saying Quality is inverselyproportional to Quantity, ICICI bank yielded to this very true philosophy. I am attachingan email I sent to their NRI center regarding a change of address for my NRI account thatwas taking more than 2 months as it involved a written mail, which they lost twice anddidnt do it right first time. A password reset for the infinity (infinitely, infinitesimally,


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infuriating, inferior information system) that took considerable amount of time and twocouriers from them. They sent one to the wrong address, and the other one, to the rightaddress with the wrong password. The Industrial Development Bank of India Limited(IDBI) (BSE: 500116) is one ofIndia's leading public sector banks and 4th largest Bank inoverall ratings. RBI categorised IDBI as an "other public sector bank". It was established

in 1964 by an Act of Parliament to provide credit and other facilities for the development ofthe fledgling Indian industry.[1] It is currently 10th largest development bank in the worldin terms of reach with 1228 ATMs, 725 branches and 486 centers.[2] Some of theinstitutions built by IDBI are theNational Stock Exchange of India(NSE), theNational SecuritiesDepository Services Ltd (NSDL), theStock Holding Corporation of India (SHCIL), the Credit Analysis &Research Ltd, theExport-Import Bank of India(Exim Bank), the Small Industries Development bank ofIndia(SIDBI), theEntrepreneurship Development Institute of India, and IDBI BANK, which today isowned by the Indian Government, though for a brief period it was a private scheduledbank.

Contents[hide]

1 Recent developments

2 Overview of development banking in India

3 Industrial Development Bank of India (IDBI)

4 Industrial Investment Bank of India Ltd.

5 Acquisition of United Western Bank

6 See also

7 References

8 External links

[edit] Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI hastaken steps to reshape its role from a development finance institution to a commercialinstitution. With theIndustrial Development Bank (Transfer of Undertaking and Repeal)Act, 2003, IDBI attained the status of a limited company viz. "Industrial DevelopmentBank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued therequisite notification on 30 September 2004 incorporating IDBI as a 'scheduled bank'under theRBI Act, 1934. Consequently, IDBI, formally entered the portals of bankingbusiness as IDBIL from 1 October 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBIBank entered into a joint venture with Federal Bank and Fortis Insurance International toform IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended theyear with over 300 Cr in premiums as on 31 March 2009.
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[edit] Overview of development banking in India

The concept of development banking rose only afterSecond World War, after the GreatDepression in 1930s. The demand for reconstruction funds for the affected nationscompelled in setting up a worldwide institution for reconstruction. As a result the IBRD

was set up in 1945 as a worldwide institution for development and reconstruction. Thisconcept has been widened all over the world and resulted in setting up of large number ofbanks around the world which coordinating the developmental activities of differentnations with different objectives among the world. The Narashimam committee hadrecommended to give up its direct financing functions and to perform only thepromotional and refinancing role. However, the S.H.Khan committee, appointed by theRBI, recommended its transformation into a universal bank. [3]

The course of development of financial institutions and markets during the post-Independence period was largely guided by the process of planned development pursuedin India with emphasis on mobilisation of savings and channeling investment to meet

Plan priorities. At the time of Independence in 1947, India had a fairly well-developedbanking system. The adoption of bank dominated financial development strategy wasaimed at meeting the sectoral credit needs, particularly of agriculture and industry.Towards this end, the Reserve Bankconcentrated on regulating and developing mechanismsfor institution building. The commercial banking network was expanded to cater to therequirements of general banking and for meeting the short-term working capitalrequirements of industry and agriculture. Specialised development financial institutions(DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership ofthe Reserve Bank were set up to meet the long-term financing requirements of industryand agriculture. To facilitate the growth of these institutions, a mechanism to provideconcessional finance to these institutions was also put in place by the Reserve Bank.

The first development bank In India incorporated immediately after independence in1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneerinstitutional credit to medium and large-scale. Then after in regular intervals thegovernment started new and different development financial institutions to attain thedifferent objectives and helpful to five-year plans.

The early history of Indian banking and finance was marked by strong governmentalregulation and control. The roots of the national system were in the State Bank of IndiaActof 1955, which nationalized the former Imperial Bank of India and its seven associatebanks. In the early days, this national system operated alongside of a large private

banking system. Banks were limited in their operational flexibility by the governmentsdesire to maintain employment in the banking system and were often drawn intotroublesome loans in order to further the governments social goals.

The financial institutions in India were set up under the strong control of both central andstate Governments, and the Government utilized these institutions for the achievements inplanning and development of the nation as a whole. The all India financial institutionscan be classified under four heads according to their economic importance that are:
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All-India Development Banks Specialized Financial Institutions Investment Institutions State-level institutions Other institutions

[edit] Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 underan Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16February 1976, the ownership of IDBI was transferred to the Government of India and itwas made the principal financial institution for coordinating the activities of institutionsengaged in financing, promoting and developing industry in the country. AlthoughGovernment shareholding in the Bank came down below 100% following IDBIs publicissue in July 1995, the former continues to be the major shareholder (currentshareholding: 52.3%). During the four decades of its existence, IDBI has been

instrumental not only in establishing a well-developed, diversified and efficient industrialand institutional structure but also adding a qualitative dimension to the process ofindustrial development in the country. IDBI has played a pioneering role in fulfilling itsmission of promoting industrial growth through financing of medium and long-termprojects, in consonance with national plans and priorities. Over the years, IDBI hasenlarged its basket of products and services, covering almost the entire spectrum ofindustrial activities, including manufacturing and services. IDBI provides financialassistance, both in rupee and foreign currencies, for green-field projects as also forexpansion, modernisation and diversification purposes. In the wake of financial sectorreforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand

of financial and corporate advisory requirements of its clients. IDBI also providesindirect financial assistance by way of refinancing of loans extended by State-levelfinancial institutions and banks and by way of rediscounting of bills of exchange arisingout of sale of indigenous machinery on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (196491),incatalyzing broad based industrial development in the country in keeping with itsGovernment-ordained development banking charter. In pursuance of this mandate,IDBIs activities transcended the confines of pure long-term lending to industry andencompassed, among others, balanced industrial growth through development ofbackward areas, modernisation of specific industries, employment generation,

entrepreneurship development along with support services for creating a deep and vibrantdomestic capital market, including development of apposite institutional framework.

Narasimam committee[4] recommends that IDBI should give up its direct financing functionsand concentrate only in promotional and refinancing role. But this recommendation wasrejected by the government. Latter RBI constituted a committee under the chairmanshipof S.H.Khan to examine the concept of development financing in the changed globalchallenges. This committee is the first to recommend the concept of universal banking.
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The committee wanted to the development financial institution to diversify its activity. Itrecommended to harmonise the role of development financing and banking activities bygetting away from the conventional distinction between commercial banking anddevelopmental banking.

In September 2003, IDBI diversified its business domain further by acquiring the entireshareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBIs forayinto the retail finance sector. The fully-owned housing finance subsidiary has since beenrenamed IDBI Home finance Limited. In view of the signal changes in the operatingenvironment, following initiation of reforms since the early nineties, Government ofIndia has decided to transform IDBI into a commercial bank without eschewing itssecular development finance obligations. The migration to the new business model ofcommercial banking, with its gateway to low-cost current, savings bank deposits, wouldhelp overcome most of the limitations of the current business model of developmentfinance while simultaneously enabling it to diversify its client/ asset base. Towards thisend, theIDB (Transfer of Undertaking and Repeal) Act2003 was passed by Parliament in

December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (withmajority Government holding; current share: 58.47%) and transformation into acommercial bank. The provisions of the Act have come into force from 2 July 2004 interms of a Government Notification to this effect. The Notification facilitated formation,incorporation and registration of Industrial Development Bank of India Ltd. a

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