Introduction to the Sector/ Company

INDIANBANKINGINDUSTRY
ThepaceofdevelopmentfortheIndianbankingindustryhasbeentremendousoverthe
past decade. As the world reels from the global financial meltdown, Indias banking sector
hasbeenoneoftheveryfewtoactuallymaintainresiliencewhilecontinuingtoprovide
growthopportunities,afeatunlikelytobematchedbyotherdevelopedmarketsaroundthe
world.
TheIndianbankingindustryhascomealongwayfrombeingasleepybusinessinstitution
toahighlyproactiveanddynamicentity.Theliberalizationandeconomicreformshave
largelybroughtaboutthistransformation.Theentryofprivatebankshasrevampedthe
servicesandproductportfolioofnationalizedbanks.Withefficiencybeingthemajorfocus,
theprivatebanksareleveragingontheirstrengths.Tocompetewiththeprivatebanks,the
publicsectorbanksarenowgoinginformajorimagechangesandcustomerfriendly
schemes.Increasingcompetitionandtechnologydrivenproductsaresomeofthetrends
whichthebankingindustryiscurrentlyexperiencing.Thetechnologyorientedbankinghas
becomeoneofthelatestsuccessmantrainmarketespeciallytowinoverthecustomers.
Duetoentryofprivatebankswhichareknownfortechnicalandfinancialinnovationtheir
professionalmanagementhasgainedaremarkablepositioninbankingsector.
"Agoodbankisnotonlythefinancialheartofthecommunity,butalsoonewithan
obligationofhelpingineverypossiblemannertoimprovetheeconomicconditionsofthe
commonpeople"(Anonymous)
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EVOLUTION&GROWTHOFBANKINGININDIA
ThereminisceofbankinginIndiacanbetracedbacktothe4thcenturyBCinthe'Kautilya
Arthashastra',whichcontainsreferencestocreditorsandlenders.Italsomakesareference
to"Interestoncommoditiesloaned"(PRAYOGPRATYADANAM)tobeaccountedas
revenueofthestate.Thus,lendingactivitieswerenotentirelyunknowninthemedieval
Indiaandtheconceptsuchas'priorityofclaimsofcreditors'and'commoditylending'was
establishedbusinesspracticeseventhen.Howevertherealrootsofcommercialbankingin
Indiacanbetracedbacktotheearlyeighteenthcenturywiththeestablishmentofthethree
presidencybanks.
THETHREEPRESIDENCYBANKS
TheBankofCalcuttawasthefirstpartofthegoldentriangleestablishedinJune1806,
whichwasrenamedasBankofBengalinJanuary1809.Thiswasfollowedbythe
establishmentoftheBankofMadrasinJuly1843,asajointstockcompany,throughtheir
organizationandamalgamationoffourbanksviz.,MadrasBank,CarnaticBank,Bankof
MadrasandtheAsiaticBank.ThelastpresidencybankBankofBombaywhichwasalso
lastbanktobesetupundertheBritishRajwasestablishedin1868.ThethreePresidency
Bankswiththeir70branchesweremergedin1921toformtheImperialBankofIndia.
PRESIDENCYBANKSTOIMPERIALBANK
Thenewmonolithtookonthetripleroleofacommercialbank,abanker'sbankanda
bankertothegovernment.Thusprovingthattheconceptofmergersandconsolidationas
wellastheirsuccessinthebankingsystemofIndia,isnotasrecentaphenomenonasis

oftenthoughttobe.Betweenthe1865&1913anumberofIndianprivatebankemerged
whichareevenreigningsuccessfullytoday.
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ESTABLISHMENTOFOTHERPRIVATEBANKS
ThefirstbankwhichwasexclusivelysetupbyIndianswasAllahabadBank,followedby
PunjabNationalBankLtd.setupin1895withheadquartersatLahore.Otherprivatebanks
establishedduringthisperiodwereBankofIndia&CentralBankofIndiaestablishedin
1911,BankofBaroda(1908);CanaraBank(1906),IndianBank(1907)andBankof
Mysore(1913).Until1935allthebankswhichweresetuponlybelongedtotheprivate
sector.Intheabsenceofanyregulatoryframework,theseprivateownersofbankswereat
libertytousethefundsastheywanted,theydeemedappropriateandresultantlythebank
failure&exploitationofthepoorwerefrequentphenomenon.Thereforeinordertocontrol
&regulatethesebankstheReserveBankofIndiawasestablished.
ESTABLISHMENTOFRESERVEBANKOFINDIA(1935)
TheReserveBankofIndiawasestablishedonApril1,1935inaccordancewiththe
provisionsoftheReserveBankofIndiaAct,1934.Theestablishmentofthiscentralbankof
thecountryendedthequasicentralbankingroleoftheImperialBank.Thelatterceasedto
bebankerstotheGovernmentofIndiaandinsteadbecameagentoftheReserveBankfor
thetransactionofgovernmentbusinessatcentreatwhichthecentralbankwasnot
established.EvenaftertheformationaswellasnationalizationofRBIthegrowthof
economy&bankswasveryslowandbanksstillexperiencedperiodicfailure.Thereforein
ordertostreamlinethefunctioningandactivitiesofthe1100commercialbankspresent
then,theGovernmentofIndiacameupwithinMarch1949,aspeciallegislation,calledthe
BankingCompaniesAct,1949.
THEBANKINGREGULATIONACT
TheBankingAct1949wasaspeciallegislation,applicableexclusivelytothebanking
companies.ThisActwaslaterrenamedastheBankingRegulationActfromMarch1966.
TheActvestedintheReserveBankofIndiatheresponsibilityrelatingtolicensingof
banks,branchexpansion,andliquidityoftheirassets,managementandmethodsof
working,amalgamation,reconstructionandliquidation.ThusgivingRBIauthorityalong
withresponsibility&ignitingthefirstpartofbankingtransformationinIndia.Thesecond
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pathbraking&transformationefforttookplacein1955withtheestablishmentofthe
IndianBankingSector'StateBankofIndia.
FORMATIONOF"THESTATEBANKOFINDIA"
In1951,whentheFirstFiveYearPlanwaslaunched,thedevelopmentofruralIndiawas
giventhehighestpriority.ThecommercialbanksofthecountryincludingtheImperial
BankofIndiahadtillthenconfinedtheiroperationstotheurbansectorandwerenot
equippedtorespondtotheemergentneedsofeconomicregenerationoftheruralareas.In
order,therefore,toservetheeconomyingeneralandtheruralsectorinparticular,theAll
IndiaRuralCreditSurveyCommitteerecommendedthecreationofastatepartneredand
statesponsoredbankbytakingovertheImperialBankofIndia,andintegratingwithit,the
formerstateownedorstateassociatebanks.AnactwasaccordinglypassedinParliament
inMay1955andtheStateBankofIndiawasconstitutedon1July1955.Howeveritwas

soonrealizedthatStateBankaloneisnotsufficientforthedevelopmentoftheeconomy
&moregovernmentsponsoredbanksarerequired&accordinglytheplanfor
nationalizationwaspassedin1968.Thusformingthethirdturningpointinthehistoryof
IndianBankinginIndia.
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I.PublicSectorBanks:PSBarethoseinwhichthemajoritystakeisheldbytheGovernment
ofIndia(GoI).PublicsectorbankstogethermakeupthelargestcategoryintheIndian
bankingsystem.TherearecurrentlypublicsectorbanksinIndia.TheyincludetheSBIand
itsassociatebanks,nationalizedbanks(suchasAllahabadBank,CanaraBanketc)and
IDBIBankLtd.
II.PrivateSectorBanks:Inthistypeofbanks,themajorityofsharecapitalistheldbyprivate
individualsandcorporate.NotallPrivatesectorbankswerenationalizedin1969,and1980.
Theprivatebankswhichwerenotnationalizedarecollectivelyknownastheoldprivate
sectorbanksandincludebankssuchasTheJammuandKashmirBankLtd.,LordKrishna
BankLtdetc.Entryofprivatesectorbankswashoweverprohibitedduringthe
postnationalization
period.InJuly1993,aspartofthebankingreformprocessandasa
measuretoinducecompetitioninthebankingsector,RBIpermittedtheprivatesectorto
enterintothebankingsystem.Thisresultedinthecreationofanewsetofprivatesector
banks,whicharecollectivelyknownasthenewprivatesectorbanks.
III.ForeignBanks:ForeignBankshavetheirregisteredandheadofficesinaforeigncountry
butoperatethroughtheirbranchesinIndia.TheRBIpermitsthesebankstooperateeither
throughbranches;orthroughwhollyownedsubsidiaries.ForeignbanksinIndiaare
requiredtoadheretoallbankingregulations,includingprioritysectorlendingnormsas
applicabletodomesticbanks.Inadditiontotheentryofthenewprivatebanksinthemid
90s,theincreasedpresenceofforeignbanksinIndiahasalsocontributedtoboosting
competition.
IV.Otherpublicsectorbank:(CategorizationofIDBIBankLtd.asOTHERPUBLIC
SECTORBANKbyRBI)IndustrialDevelopmentBankofIndiaLtd.(sincerenamedas
IDBIBankLtd.)wasincorporatedunderCompaniesAct1956,asaLimitedCompany,
registeredwiththeRegistrarofCompanies,Maharashtra,MumbaivideCertificateof
incorporationdated27thSeptember,2004.IntermsoftheArticlesofAssociationofthe
IDBIBankLtd.,theCentralGovernmentbeingashareholderofthecompanyshall,atall
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times,maintainnotlessthan51%oftheIssuedCapitalofthecompany.Consideringthe
shareholdingpattern,IDBILtd.hasbeencategorizedunderaNewSubGroup"OtherPublic
SectorBanks".
ReserveBankofIndiahas,videitsletternoDBOD.BP.1630/21.04.152/200405dated
April15,2005confirmedthatIDBILtd.(sincerenamedasIDBIBankLtd.)maybe
consideredasGovernmentownedbank.
IDBIBankLtd.tobeTreatedonPARwithNationalizedBanks/SBI
MinistryofFinancehasvideitscircularno.F.No.7/96/2005BOAdatedDecember31,2007

advisedSecretariesofallMinistries/DepartmentsofGovernmentofIndiathatthebankmaybe
treatedonparwithNationalizedBanks/StateBankofIndiabyGovt.Departments/PublicSector
Undertakings/otherentitiesforallpurposes,includingdeposits/bonds/investments/
guarantees
etc.andGovernmentbusiness.
CURRENTSCENARIO
Theindustryiscurrentlyinatransitionphase.Ontheonehand,thePSBs,whicharethe
mainstay
oftheIndianBankingsystem,areintheprocessofsheddingtheirflabintermsofexcessive
manpower,excessivenonPerformingAssets(Npas)andexcessivegovernmentalequity,while
on
theotherhandtheprivatesectorbanksareconsolidatingthemselvesthroughmergersand
acquisitions.
TheprivateplayershowevercannotmatchthePSBsgreatreachgreatsizeandaccesstolow
cost
deposits.ThereforeoneofthemeansforthemtocombatthePSBshasbeenthroughthemerger
and
acquisition(M&A)route.Overthelasttwoyears,theindustryhaswitnessedseveralsuch
instances.Forinstance,HdfcBanksmergerwithTimesBankIciciBanksacquisitionofITC
Classic,INGVysyabankmergerwithkotakMahindrabank,AnagramFinanceandBankof
Madura.CenturionBank,IndusindBank,BankofPunjab,issaidtobeontheoutlook.TheUTI
bankGlobalTrustBankmergerhoweveropenedaPandorasboxandbroughtaboutthe
realizationthatallwasnotwellinthefunctioningofmanyoftheprivatesectorbanks.
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PrivatesectorBankshavepioneeredinternetbanking,phonebanking,anywherebanking,mobile
banking,debitcards,AutomaticTellerMachines(ATMs)andcombinedvariousotherservices
and
integratedthemintothemainstreamBankingarena..
.Meanwhiletheeconomicandcorporatesectorslowdownhasledtoanincreasingnumberof
banks
focusingontheretailsegment.ManyofthemarealsoenteringthenewvistasofInsurance.
Banks
withtheirphenomenalreachandaregularinterfacewiththeretailinvestorarethebestplacedto
enterintotheinsurancesector.BanksinIndiahavebeenallowedtoprovidefeebasedinsurance
serviceswithoutriskparticipation,investinaninsurancecompanyforprovidinginfrastructure
and
servicessupportandsetupofaseparatejointventureinsurancecompanywithriskparticipation
RECENTDEVELOPMENTSINBANKINDUSTRY
LaunchOfJanDhanYojana
SchemeDetails
PradhanMantriJanDhanYojana(PMJDY)isanationwideschemelaunchedbyIndian
government

inAugust2014.Inthisschemefinancialinclusionofeveryindividualwhodoesnothaveabank
accountistobeachieved.Theschemewillensurefinancialaccesstoeveryonewhowasnotable
to
getbenefitsofmanyotherfinancerelatedgovernmentschemes.Thesefinancialservicesinclude
Banking/Savings&DepositAccounts,Remittance,Credit,Insurance,Pensionwhichwillbe
made
availabletoallthecitizensineasyandaffordablemode.
AccountcanbeopenedinanybankbranchorBusinessCorrespondent(BankMitr)outlet.
PMJDY
accountsarebeingopenedwithZerobalance.However,iftheaccountholderwishestoget
cheque
book,he/shewillhavetofulfillminimumbalancecriteria.According to the data issued by
finance
ministry, till September 2014 around 40 million (4 crores) bank accounts have been
opened under the
Pradhan Mantri Jan Dhan Yojana since the scheme launched.

Howevertherewasanotherfinancialscheme(Swabhimaan)launchedearlierinwhichthetarget
of
openingthebankaccountswasforvillagesonly.ButinPradhanMantriJanDhanYojnathe
entire
individualsirrespectiveoftheirarea(ruralorurban)cangetabankaccountwithoutdepositing
any
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amountiftheyfulfillothereligibilitycriteria.Thisschemeisverybeneficialfortherural
population
wherebankingservicesandotherfinancialinstitutionarerarelyavailable.
UndertheJanDhanYojnaanyonewhoisIndiacitizenaboveageof10yearsanddoesnothave
a
bankaccount,canopentheaccountwithzerobalance.Accountcanbeopenedinanybank
branch
orBusinessCorrespondent(BankMitr)outlet,speciallydesignedforthepurposeofopeningthe
accountsunderthisscheme.Theschemealsoprovidesfacilityofaccidentalinsurancecoverup
to
rupeesonelacwithoutanychargefortheaccountholder.
TheaccountholdersunderthejandhanyojanawillbegivenaRuPaydebitcardwhichcanbe
used
atallATMsforcashwithdrawalandatmostoftheretailoutletsformakingtransactionfor
purchases.
BENEFITSOFPRADHANMANTRIJANDHANYOJANA
ThePradhanMantriJanDhanYojanaormorepopularlyknownasPMJDYschemeisplanning
on
revolutionizingthetraditionalbankingsysteminIndiabyprovidingthebankingopportunityand
insurancecoveragetoallincludingthepoor.ItisaninitiativetakenbythePrimeMinister
Narendra

Modiwhostartedthisambitiousprojecttohelpthepoorbecomemorefinanciallyconfident
through
thisventureandallowingeverycitizentherighttohavetheirownbankaccountandinsurance
coveragewhichwaspreviouslyimpossibleformostofthepopulationunderpoverty.
Thepurposeofthisschemewilldefinitelybenefittheoveralleconomyofthecountryandthe
schemeprovidessomelucrativebenefitswhichshouldcertainlybeavailedandconsidered.Here
is
listedsomeimportantbenefitsofthePradhanMantriJanDhanYojna(PMJDY)schemewhich
wouldcertainlyinspirethecountrytoamoreprosperousfutureforall.
LifeinsuranceBenefit:UnderthePMJDYschemetheaccountholderswillbegivenworth
Rs.30000insurancecoverageiftheycomplywithcertainspecificationoftheschemewhich
includesopeninganaccountbyJanuary26,2015andhavinganaccidentalinsurancecoverageof
overRs.200000.
Loanbenefits:TheaccountholdercantakeloanbenefitofuptoRs.5000fromthebankaftersix
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monthsfromopeningtheaccount.Thoughtheamountmightseeminsignificantformanybutwe
havetorealizetheschemeisdirectedmostlytowardspeoplebelowthepovertylineandwhoare
strugglingdesperatelytosustaintheireverydayliving.Theloanbenefitcanbeascintillaofhope
forthosepeoplewhocouldutilizetheloanamountandinvestitinamoreprofitableoutcome,
particularlyinfarmingorotheragriculturalprospect.
Mobilebankingfacilities:Thoughthetechnologyofusingsmartphonestoconductourbank
transactionsisnotnovelanymorebutthePMJDYschemewillallowitsaccountholderstoavail
the
samefacilitiesofcheckingbalanceandtransferringfundsthroughanormalcellphonewhichis
moreaffordabletothegeneraleconomy.
HencePMJanDhanYojanaisindeedaprosperousventureandwecertainlyhopethePrime
Ministerandthemasseconomyarebothbenefitedthroughthisnewventure.
SECURITYSOCIALSCHEMESBYPRIMEMINISTER
Withtheaimofwideningtheprocessoffinancialinclusioninthecountry,PrimeMinister
NarendraonMay9,2015launchedthreeambitioussocialsecurityschemesrelatingto
insurance
andpensionnamed;OnhisfirstvisittoWestBengalaftertakingoverasprimeminister,hekick
startedthe"PradhanMantriSurakshaBimaYojana"(accidentinsurance),"PradhanMantri
Jeevan
JyotiYojana"(lifeinsurance)and"AtalPensionYojana"ataprogrammeinNazrulManchhere.
TheJanSurakshaYojana,underwhichtheschemeswerelaunchedcountrywide,isexpectedto
reducethenumberofzerobalancebankaccountscreatedundertheJanDhanYojana.The
schemes
targetthepoorandunorganisedsectorthatareneithercoveredbyanyformofinsurancenorget
pension.
Undertheaccidentinsurancescheme,apersonwillbeprovidedcoverofRs.200,000foran
annual
premiumofRs.12.Thecoverisforaccidentaldeathorpermanenttotaldisability.

Theschemewillbeavailabletopeopleintheagegroupof18to70yearswithasavingsbank
account,whogivetheirconsenttojoinandenableautodebitonorbeforeMay31forthe
coverage
periodJune1toMay31onanannualrenewalbasis.
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ThelifeinsuranceschemewillofferarenewableoneyearlifecoverofRs.200,000toallsavings
bankaccountholdersintheagegroupof18to50years,coveringdeathduetoanyreason,fora
premiumofRs.330perannumpersubscriber.
Ontheotherhand,thepensionschemefocusesontheunorganizedsectorandprovides
subscribers
afixedminimumpensionofRs.1,000,Rs.2,000,Rs.3,000,Rs.4,000orRs.5,000permonth
starting
attheageof60years,dependingonthecontributionoptionexercisedonenteringatanage
between
18and40years.
Thus,theperiodofcontributionbyanysubscriberunderAPYwouldbe20yearsormore.
Thebenefitoffixedminimumpensionenjoyssovereignguarantee.
Whiletheschemeisopentobankaccountholdersintheprescribedagegroup,thecentral
governmentwouldalsococontribute50percentofthetotalcontributionorRs.1,000per
annum,
whicheverislower,forfiveyears.
ThegovernmentcontributionwillbeforthosejoiningtheschemebeforeDec31,2015,arenot
membersofanystatutorysocialsecurityschemeandarenotincometaxpayers.
Itisestimatedthattheunorganizedsectorworkers,whichconstitute88percentofthetotallabor
forceof47.29crore,asperthe66thRoundofNSSOSurveyof201112,donothaveanyformal
pensionprovision.(Source:JanDhanYojana)
IDBIBankLtd.
IndustrialDevelopmentbankofIndia(IDBI)wasconstitutedunderIndustrialDevelopmentbank
ofIndiaAct,1964asaDevelopmentFinancialInstitutionandcameintobeingasonJuly01,
1964videGoInotificationdatedJune22,1964.ItwasregardedasaPublicFinancialInstitution
intermsoftheprovisionsofSection4AoftheCompaniesAct,1956.Itcontinuedtoserveasa
DFIfor40yearstilltheyear2004whenitwastransformedintoaBank.
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Inresponsetothefeltneedandoncommercialprudence,itwasdecidedtotransformIDBIintoa
Bank.Forthepurpose,IndustrialDevelopmentbank(transferofundertakingandRepeal)Act,
2003[RepealAct]waspassedrepealingtheIndustrialDevelopmentBankofIndiaAct,1964.In
termsoftheprovisionsoftheRepealAct,anewcompanyunderthenameofIndustrial
DevelopmentBankofIndiaLimited(IDBILtd.)wasincorporatedasaGovt.Companyunderthe
CompaniesAct,1956onSeptember27,2004.Thereafter,theundertakingofIDBIwas
transferredtoandvestedinIDBILtd.witheffectfromtheeffectivedateofOctober01,2004.In
termsoftheprovisionsoftheRepealAct,IDBILtd.hasbeenfunctioningasaBankinaddition
toitsearlierroleofafinancialinstitution.
MergerofIDBIBankLtd.withIDBILtd.

TowardsachievingthefasterinorganicgrowthoftheBank,IDBIBankLtd.,awhollyownedsubsidiary
ofIDBILtd.wasamalgamatedwithIDBILtd.intermsoftheprovisionsofSection44AoftheBanking
RegulationAct,1949providingforvoluntaryamalgamationoftwobankingcompanies.Themerger
becameeffectivefromApril02,2005.
MergerofUnitedWesternbankwithIDBILtd.
TheUnitedWesternbankLtd.(UWB),aSatarabasedprivatesectorbankwasplacedundermoratorium
byRBI.UponIDBILtd.showinginteresttotakeoverthesaidbanktowardsitsfurtherinorganicgrowth,
RBIandGovt.ofIndiaamalgamatedUWBwithIDBILtd.intermsoftheprovisionsofSection45ofthe
BankingRegulationAct,1949.ThemergercameintoeffectonOctober03,2006.
ChangeofnameofIDBILtd.toIDBIBankLtd.
InorderthatthenameoftheBanktrulyreflectsthefunctionsitiscarryingon,thenameoftheBankwas
changedtoIDBIBankLimitedandthenewnamebecameeffectivefromMay07,2008uponissueofthe
FreshCertificateofIncorporationbyRegistrarofCompanies,Maharashtra.TheBankhasbeen
accordinglyfunctioninginitspresentnameofIDBIBankLimited

IDBIBankLtd.isaUniversalBankwithitsoperationsdrivenbyacuttingedgecoreBankingIT
platform.TheBankofferspersonalizedbankingandfinancialsolutionstoitsclientsintheretail
andcorporatebankingarenathroughitslargenetworkofBranchesandATMs,spreadacross
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lengthandbreadthofIndia.WehavealsosetupanoverseasbranchatDubaiandhaveplansto
openrepresentativeofficesinvariousotherpartsoftheGlobe,forencashingemergingglobal
opportunities.Ourexperienceoffinancialmarketswillhelpustoeffectivelycopewith
challengesandcapitalizeontheemergingopportunitiesbyparticipatingeffectivelyinour
countrys growth process.IDBIBankistheyoungest,newgeneration,publicsectoruniversal
bankthatridesonacuttingedgecorebankingInformationTechnologyplatform.Thisenables
theBanktoofferpersonalizedbankingandfinancialsolutionstoitsclients.TheBankhadan
aggregateBalancesheetsizeofRs.3,28,997croreandtotalbusinessofRs.4,33,460croreason
March31,2014.IDBIBank'soperationsduringthefinancialyearendedMarch31,2014resulted
inanetprofitofRs.1121crore.
VisionoftheBankisTO BE THE MOST PREFERRED AND TRUSTED BANK
ENHANCING VALUE FOR ALL STAKEHOLDERS.
IDBIS PROFILE
IDBIBankLtd.istodayoneofIndia'sleadingcommercialBanks.Forover40years,IDBI
Bankhasessayedakeynationbuildingrole,firstastheapexDevelopmentFinancial
Institution(DFI)(July1,1964toSeptember30,2004)intherealmofindustryandthereafter
asafullservicecommercialBank(October1,2004onwards).AsaDFI,theerstwhileIDBI
stretcheditscanvasbeyondmereprojectfinancingtocoveranarrayofservicesthat
contributedtowardsbalancedgeographicalspreadofindustries,developmentofidentified
backwardareas,emergenceofanewspiritofenterpriseandevolutionofadeepandvibrant
capitalmarket.OnOctober1,2004,theerstwhileIDBIBankconvertedintoaBanking
company(asIndustrialDevelopmentBankofIndiaLimited)toundertaketheentiregamutof
BankingactivitieswhilecontinuingtoplayitssecularDFIrole.Postthemergersofthe
erstwhileIDBIBankwithitsparentcompany(IDBILtd.)onApril2,2005(appointeddate:
October1,2004)andthesubsequentmergeroftheerstwhileUnitedWesternBankLtd.with
IDBIBankonOctober3,2006,thetechsavvy,newgenerationBankwithmajority

GovernmentshareholdingtodaytouchesthelivesofmillionsofIndiansthroughanarrayof
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corporate,retail,SMEandAgriproductsandservices.
HeadquarteredinMumbai,IDBIBankridesonthebackofarobustbusinessstrategy,a
competentanddedicatedworkforceandastateoftheartinformationtechnologyplatform,
tostructureanddeliverpersonalizedandinnovativeBankingservicesandcustomized
financialsolutionstoitsclientsacrossvariousdeliverychannels.
AsanUniversalBank,IDBIBank,besidesitscorebankingandprojectfinancedomain,has
anestablishedpresenceinassociatedfinancialsectorbusinesseslikeCapitalMarket,
InvestmentBankingandMutualFundBusiness.Goingforward,IDBIBankisstrongly
committedtoworktowardsemergingasthe'Bankofchoice'and'themostvaluedfinancial
conglomerate',besidesgeneratingwealthandvaluetoallitsstakeholders.

Focus of the Study

Forbetterunderstandingoftheconceptofworkingcapitalandtogaininsightaboutthe
assessmentofworkingcapitalanditsvariousmethodsusedinit.Theprojectreportisrequiredto
focuson
IDBIplacementinthebankingindustryandhowitselectsitsclientsforworkingcapital
funding.
WorkingcapitalfunctioningatIDBI.
VariousworkingcapitalproductsofIDBIBankLtd.
On basis of focus of study formulate the project objectives
The Group Project will include
Objective of the study
Industry/ Company Overview and Environment analysis
Review of Literature
Research Methodology
Analysis, interpretation and Recommendations