About
IDBI Bank Ltd
IDBI Bank Ltd is one of India's largest commercial Banks. The Bank is a Universal Bank with their operations driven by a cutting edge core Banking IT platform. They offer personalized banking and financial solutions to their clients in the retail and corporate banking arena through their large network of Branches and ATMs, spread across length and breadth of India. The Bank has set up an overseas branch at Dubai.
The Bank operates in four segments, namely Wholesale Banking, Retail Banking, Treasury Services and Other Banking Operations. They have six wholly-owned subsidiaries, namely IDBI Homefinance Ltd, IDBI Gilts Ltd, IDBI Intech Ltd, IDBI Capital Market Services Ltd, IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd.
IDBI Bank Ltd was incorporated in the year 1964 as a wholly owned subsidiary of Reserve Bank of India with the name Industrial Development Bank of India. The company was regarded as a Public Financial Institution and continued to serve as a DFI for 40 years. In February 16, 1976, the ownership of the company was transferred to the Government of India by RBI and the company was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.
In the year 1982, the company transferred their International Finance Division to Export-Import Bank of India. In the year 1993, they formed one wholly owned subsidiary company, namely IDBI Capital Market Services Ltd for providing broad range of financial products and services. In June 7, 1995, the company made their Initial Public Offer (IPO), which brought down GOI holding to below 100%.
In March 2000, the company set up one wholly owned subsidiary company, namely IDBI Intech Ltd for providing Information Technology (IT) related activities of the organization. They established a public limited company in the home loan segment, namely 'IDBI Homefinance Ltd'. Also, they entered into a financial and technical collaboration agreement with Nepal Development Bank (NDB). In March 2001, they incorporated IDBI Trusteeship Services Ltd to take over the entire debenture business and assist to the subscribers and issuers of debentures by the way of up-to-date information and efficient professional services.
In March 2003, the Bank made an exit from their asset management activity by divesting their entire shareholding in IDBI Principal Asset Management company Ltd, IDBI Principal Trustee Company Ltd and all Trust Corpus rights of IDBI Mutual Fund in favour of their joint venture partner Principal Financial Services Inc USA, with a view to concentrate on their core business activities. They also divested their entire stake in Discount & Finance House of India Ltd (DFHI) in favour of SBI. In September 2003, the company diversified their business domain further by acquiring the entire shareholding of Tata Finance Ltd in Tata Home finance Ltd. The fully-owned housing finance subsidiary was renamed 'IDBI Homefinance Ltd'. bIn October 2004, the company was transformed into a banking company to undertake all kind of banking activities while continuing to play their secular Development Financial Institution role. Also, they changed their name to Industrial Development Bank of India Ltd. In 2005, Industrial Development Bank of India Ltd merged their banking subsidiary IDBI Bank with themselves. In October 2006, United Western Bank Ltd was amalgamated with the Bank as a part of the inorganic growth strategy.
In December 2006, the company incorporated a wholly owned subsidiary in the name of IDBI Gilts Ltd. for carrying on primary dealership business. Also, they signed an MoU with Life Insurance Corporation of India Ltd (LIC) in Mumbai for undertaking joint and take-out financing of long-gestation projects, including infrastructure projects. In July 2007, the Bank entered into fourth tie-up for trading in carbon credits with Sumitomo of Japan.
During the year 2007-08, the Bank came up with two innovative products Wealthsurance and Homesurance. They introduced 3-in-1 saving-cum-demat accounts with trading facility. Also, they increased their bouquet of retail products by launching Loan against Rent Receivables, Loan against Commercial Property, Reverse Mortgage Loan, Holiday Travel Loan and Loan to the staff of IDBI-Assisted units.
During the year, the Bank launched the MasterCard Debit Card, re-launched the cash card product and upgraded their Net Banking architecture thereby enhancing customer experience. They formalized tie-ups with IDBI Capital Market Services Ltd, a 100% subsidiary of the Bank, with Motilal Oswal Securities Ltd to offer state-of-the-art internet-based trading facility in Equities, Futures and Options markets.
During the year, the new state-of-the-art Treasury at the Bank's Head Office became operational. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48%. Also, the name of the bank was changed to IDBI Bank Ltd with effect from May 07, 2008.
During the financial year 2008-09, the Bank increased their branch network to 509 comprising 179 metropolitan branches, 175 urban branches, 100 semi urban branches and 55 rural branches. They implemented next'generation cash management system called i-cashweb, a web-based CMS solution. Also, they opened a Currency Chest at Chennai taking the total number to four. They got approval to collect sales tax in Maharashtra.
During the year, the Bank launched their Mobile Payment service enabling their customers to make payments for their purchases through mobile phones. They launched the multi currency acquiring facility in the merchant acquisition business. Also, they implemented a new Fund Transfer Pricing (FTP), based on the market linked bid and offer rates.
The Bank made a tie-up with IDBI Fortis Life Insurance Company Ltd for distribution of varied life insurance products, like wealthsurance, bondsurance, homesurance etc. Also they had an arrangement with Bajaz Allianz for selling general insurance products. They also distributed Co-branded products like FamilyCare, HomeCare and BusinessCare which cover all the categories such as asset insurance, corporate insurance, personal accident insurance and health insurance.
During the year 2009-10, the Bank opened 199 new branches, including Specialized Corporate Branches. They opened a currency chest at Panchkula taking the total number of currency chest to five. Also, they opened their first Cash Processing Centre (CPC) at Mulund, Mumbai. They won 'Special Jury Award' for their technological initiatives at the IBA Banking Technology Award 2009.
During the year, the Bank launched was new variants of the debit card, i.e., Kids Card and Platinum Card aimed at specific customer segments comprising kids and high networth individuals. They developed several new products with added features, namely Salary Account with Overdraft Facility and Scheme for providing Subordinated Debt. In July 2009, the Bank's Centralized Operations received the coveted ISO 9001:2008 certificate of registration.
In January 2010 , the Bank floated a wholly owned company namely, IDBI Asset Management Company (AMC) to undertake Mutual Fund (MF) business, which launched their first product 'IDBI Nifty Index Fund' during May 2010. Also, they incorporated IDBI MF Trustee Company Ltd with paid up capital of Rs.20 lakh. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs.
In June 2010, the Bank opened their first overseas branch at the Dubai International Finance Centre for providing corporate banking services including financial advisory and syndication of credit.
During the year 2010-11, the Bank provided facility of making on-line payments for e-commerce transactions though their debit card. A new variant debit card was launched exclusively for women customers. In order to encourage customers with regard to usage of debit card, a cash back scheme for debit card usage was also offered. Within the regulatory framework, cash withdrawal was allowed on debit card at various merchant establishments.
The Bank is increasingly committed to support government initiatives offering financial services to Economically Weaker Sections (EWSs) and Lower Income Groups (LIG) of society and accordingly offered, along with others, Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). In their efforts to ensure improved financial inclusion, the Bank signed MOU with Tribal Development Department, Government of Gujarat and is exploring similar partnership with other State Governments. The Bank also signed MOU with Unique Identification Authority of India (UIDAI) for acting as a registrar.
During the year, the Bank launched 'Loan Against Property' for the MSMEs to unlock value of their assets/properties. 'SME Smart Line of Credit' was also introduced so that MSMEs could take advantage of emerging business opportunities. In addition, the Bank implemented the 'Artisan Credit Card' scheme of Indian Banks' Association (IBA) to take care of the credit needs of the artisan community of the nation. To further enrich the MSME loan basket, the Bank made a tie-up with SIDBI in an exclusive arrangement to jointly finance MSME units, initially in 10 centres viz., Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Indore, Jaipur, Lucknow, Ludhiana and Rajkot, subsequently to be rolled out across the country. They also launched a software for Complaint Resolution Management (CRM) at branches.
The bank received ISO 9001:2008 certification for all their Currency Chests. They opened a new Currency Chest at Kochi taking the number of Currency Chests of your Bank to six. They also received ISO 9001:2008 certification for all their Centralised Clearing Units (CCUs).
In April 2011, two wholly-owned subsidiaries viz. IDBI Home Finance Ltd and IDBI Gilts Ltd were amalgamated with the Bank with effect from January 01, 2011.
IDBI Bank launched a USD 500 million 5.5 year Reg S Bond issue on 17 September 2012. The transaction received an overwhelming response and the issue was oversubscribed by 9 times. The issue was made under the USD 1.5 billion MTN Programme listed on the Singapore Stock Exchange. On 18 November 2012, IDBI Bank inaugurated the 1000th branch in Kannangudi, Tamil Nadu.
On 21 February 2013, IDBI Bank announced that has entered into a Memorandum of Cooperation (MOC) with EXIM Bank, wherein IDBI Bank and EXIM Bank would, inter alia, co-finance, co-arrange, syndicate rupee and foreign currency loans, jointly finance export-oriented projects in India, provide/avail refinance facility in Indian Rupees and/or Foreign Currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector. IDBI Bank and EXIM Bank would also co-operate in promotional activities, provide advisory services to assist each other's clients and co-operate in training of each others' staff members.
On 15 March 2013, IDBI Bank announced that it has partnered with eMudhraConsumer Services Ltd. (eMudhra), a licensed Certifying Authority (CA), to implement Digital Signature based authentication solution to strengthen and further secure its Corporate Inet Banking channel. The solution builds trust and enhances security in the electronic banking system thereby enhancing comfort and confidence of both, the customer and the bank while undertaking Third Party Fund Transfers and Bulk Transaction uploads.
The 40th Trade Finance (TF) Centre of IDBI Bank was inaugurated on 28 March 2013 at the IDBI Bank Building, BKC, Mumbai. IDBI Bank's TF Centre in BKC is an Authorized Dealer (AD) in foreign exchange, and would cater to the Trade Finance and Forex needs of Exporters, Importers and Retail customers.
IDBI Bank and Passenger Car Business Unit of International Cars & Motors Limited (ICML) entered into a Memorandum of Understanding (MoU) on 17 May 2013 for providing auto finance to prospective customers of ICML. As per the scheme modalities, ICML and its dealer network will collaborate with IDBI Bank for the purpose of 'Retail Activation' in order to facilitate vehicle financing business. On 22 May 2013, IDBI Bank inaugurated 29 branches, taking its total branch network to 1,111.
On 17 June 2013, IDBI Bank entered into a tie up arrangement with Jain Irrigation Systems Limited (JISL) for financing Minor Irrigation Systems to individual farmers. The tie-up provides assistance to farmers across all the branches of the bank wherever JISL has a dealer network. The tie-up will help farmers increase their acreage under irrigation by minimal use of available water resource. On 26 July 2013, Government of Maharashtra launched the eSBTR Project for online payment of Stamp Duties & Registration fees in partnership with IDBI Bank.
On 11 November 2013, IDBI Bank Ltd, through its DIFC Branch in Dubai, signed a loan agreement for USD 340 million with KfW, Germany. The loan would be availed by IDBI Bank for funding loans to the micro, small and medium-sized enterprises (MSME) directly or indirectly through Microfinance Institutions (MFIs) and Non Banking Finance Companies (NBFCs). Part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
On 28 May 2014, FICCI-CMSME, an affiliated body under the umbrella of the Federation of Indian Chambers of Commerce and Industry (FICCI), an apex Chamber of Commerce & Industry of India, and IDBI Bank announced a partnership through an MoU to make organized finance facility available for Micro, Small and Medium Enterprises (MSME) across the country at competitive interest rates.
On the occasion of the completion of 50 years of operations, IDBI Bank on 1 July 2014 launched mobile banking service for its customers. On 28 August 2014, IDBI Bank announced that it has opened more than 3.62 lakh basic savings accounts under the Pradhan Mantri Jan Dhan Yojana' to mobilize Basic Savings Bank Deposit Accounts (BSBDAs), promote financial literacy and meeting comprehensively the objective of financial inclusion.
On 4 September 2014, IDBI Bank launched its first e-lounge' at its Mahim branch in Mumbai. At IDBI Bank's e-lounge, customers can, on a self service basis, enjoy facilities such as ATM, Automated Cash Deposit (with a receipt and instant credit of the amount), Automated Cheque Deposit (with an acknowledgment receipt), Automated Pass Book Printing, e-Transact terminal for various Card and Net Banking holders to view balance, make a funds transfer, pay bills, recharge etc.
On 17 October 2014, IDBI Bank announced that its first Basel III compliant Additional Tier - I (AT- I) bonds amounting to Rs 2500 crore (Rs 1500 crore with an option to retain over-subscription upto Rs 1000 crore) received an overwhelming response and was fully subscribed prior to the closure date. The issue opened on 29 September 2014. The issue was competitively priced at a coupon of 10.75% p.a. payable annually.
On 28 November 2014, IDBI Bank inaugurated its zonal office at Chandigarh. The zonal office will play a vital role in helping the bank achieve its goal of expanding its retail loan and MSME loan portfolio. On 14 December 2014, IDBI Bank in association with NSDL Database Management Limited (NDML) launched the Electronic-Insurance Account (e-IA)'. e-IA is the portfolio of insurance policies of a policy holder held in electronic form with an insurance repository.
On 25 February 2015, IDBI Bank launched its Mobile Banking Application (App) with the branding 'IDBI Bank Go Mobile'. On 6 April 2015, IDBI Bank inaugurated its 3000th ATM at Punjabi Bagh, New Delhi.
On 10 April 2015, IDBI Bank Ltd and Life Insurance Corporation of India (LIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) for savings bank account holders of the bank. PMJBY is a life insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers life insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-50 years at an annual premium of Rs 330 plus service tax. The insurance cover will be available up to 55 years.
On 20 April 2015, IDBI Bank in association with National Payments Corporation of India (NPCI) launched the Rupay Platinum Debit card'. The Rupay Platinum Debit card' enables cost-effective, fast and secure access to large number of ATMs, POS terminals, e-commerce websites and participating merchant establishments across the country.
On 22 April 2015, IDBI Bank and Bajaj Allianz General Insurance Company Ltd (BAGIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for savings bank account holders of the bank. PMSBY is an accident insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers accident insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-70 years at an annual premium of Rs 12 plus service tax.
The General Refinance Agreement (GRA) between IDBI Bank and Micro Units Development and Refinance Agency (MUDRA) Ltd. was signed on 1 July 2015. IDBI Bank is one of the leading banks identified by MUDRA, eligible for the refinance scheme. As per the agreement, the bank will offer credit facilities up to Rs 10 lakh to Micro Enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and MUDRA will be providing refinance assistance to IDBI Bank for eligible sanctioned loan cases. The arrangement will be implemented through the branches of IDBI Bank on pan India basis.
On 30 July 2015, IDBI Bank launched its first self service Mini Branch Kiosk at its Cuffe Parade, Mumbai Branch which will address the customer's request of personalized cheque leaves dispensation and issue of Demand Draft & Pay Order on 24X7 basis. IDBI Bank would be the first bank in the country to make available these services on 24X7 basis.
IDBI Bank launched its first e-lounge at its Nager Bazar branch in Kolkata on 22 August 2015. The new section-in-branch is a step towards expanding the bank's presence in the digital world. The e-Lounge consists of 24x7 Kiosk based solutions designed to deliver a wide range of banking services round the clock, including deposit of bulk cash beyond regular banking hours.
On 30 November 2015, IDBI Bank inaugurated its state-of-the-art Security Operations Centre (SOC) at its Data Centre, Belapur, Navi Mumbai. Through the SOC, the bank will centrally monitor security devices like Firewalls, Routers, IDS/IPS, PIM, DLP, Antivirus, Phishing/Malware attempts and take corrective actions, in shortest span of time. The SOC will be a Command Centre for countering cyber threats and ensure compliance with the bank's Information Security Policy besides fulfilling the bank's objective of providing safe and secure banking to customers.
IDBI Bank inaugurated its Treasury Business Continuity Centre (BCP) on 28 August 2015 at its Bandra Kurla Complex, Mumbai office. The BCP site will serve as a near-site alternative to the bank's main Treasury Dealing centre in the event of any business disruption/disaster. The centre is fully equipped with state of the art technology and connectivity with integrated operations covering various market segments and can handle the front office, back office and mid-office functions of Treasury.
IDBI Bank launched a USD 350 million 5 year Reg S Green Bond issue on 23 November 2015. The transaction received an overwhelming response and the issue was oversubscribed by 3 times. The issue was made under the USD 5 billion MTN Programme listed on the Singapore Stock Exchange.
On 29 December 2015, IDBI Bank announced that it has received Rs 2229 crore from the Government of India (GoI) towards preferential allotment of equity shares of Rs 10 each to GoI at a price of Rs 75.28 per share in terms of the approval accorded by the Shareholders at the EGM of the bank held on 4 November 2015.
On 2 January 2016, IDBI Bank announced that it has mobilised Rs1900 crore through Basel III compliant Tier 2 bonds through two separate issues on private placement basis to strengthen its capital adequacy. The first issue of Rs1000 crore concluded on 31 December 2015 was for a tenor of 15 years with call option at the end of 10 years while the second issue of Rs 900 crore was concluded on 2 January 2016 with a tenor of 10 years. Both the issues carry a coupon of 8.62% p.a. payable annually. These issuances aggregating Rs1900 crore would augment capital adequacy ratio of the bank by about 55 basis points.
On 15 March 2016, IDBI Bank launched the nation's first of its kind 'G-Sec Investment Facility through ATM for Retail Investors' at the IDBI Bank's ATM at Corporate Centre, Mumbai. This facility is unique and first of its kind initiative of the bank to provide easy access to retail investors to invest in Government Securities. The facility of investing in G-Sec through ATM is an extension of IDBI Bank's Samriddhi G-Sec Portal to enable retail investors to transact in Government Securities
IDBI Bank launched the 'Stand Up India' Scheme on a pan India basis on the occasion of the 125th birth anniversary of Dr. Babasaheb Ambedkar on 14 April 2016. The objective of the scheme is to promote entrepreneurship amongst the scheduled caste/scheduled tribe and women and aid in their social upliftment. The proposed scheme shall facilitate eligible borrowers to avail loans between Rs 10 lakhs upto Rs 100 lakhs to promote productive and economic activity.
On 6 May 2016, IDBI Bank announced the opening of its IFSC Banking Unit (IBU) at India's first and only International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT). IDBI became the first public sector bank to open its IFSC Banking Unit (IBU) at GIFT. IDBI Bank's GIFT branch will provide full range of corporate banking services and will meet foreign currency funding needs of its vast Indian clientele. Through its GIFT branch IDBI Bank aims to foster greater trade and cross border transactions between India and rest of the world.
On 9 May 2017, IDBI Bank announced that the Reserve Bank of India (RBI), vide letter dated 5 May 2017, has initiated Prompt Corrective Action for IDBI Bank in view of the high net NPA and negative RoA. This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities.
On 13 June 2016, IDBI Bank announced the launch of IDBI Express', an unique banking solution, enabling customers to bank at their chosen time and place beyond banking hours, without having to visit the bank branch.
On 30 August 2016, IDBI Bank announced that it has raised Rs 1500 crore from its second tranche of Basel III compliant Additional Tier 1 (AT1) bonds. The issue opened and closed on 30 August 2016. The issue was competitively priced at a coupon of 11.09% p.a. payable annually.
During the quarter ended 30 June 2017, Life Insurance Corporation of India (LIC) infused Rs 394 crore in IDBI Bank by way of preferential allotment of equity shares. On 9 August 2017, IDBI Bank received further capital infusion of Rs 1861 crore from Government of India.
On 26 September 2017, IDBI Bank announced the launch of Project Nishchay' in partnership with The Boston Consulting Group (BCG) to accelerate its turnaround programme and improve financial performance. The project will be led by senior management at IDBI Bank along with BCG. Coordinating across multitude of initiatives, the bank will focus on four key areas - revenue enhancement, cost control & reduction, asset productivity and overall program management in consultation with BCG.
The Bank served its customers through its network of 1,916 branches, 3,779 ATMs and 58 e-lounges as on 31st March, 2018.
On 29 March 2018, IDBI Bank clarified that all the Pisciculture loans identified as fraudulent have been fully provided for and there will be no further impact on the profitability/balance sheet of the bank. The bank continues to pursue all legal actions to recover dues from the borrowers and has taken action against the erring officers.
The Board of Directors of IDBI Bank at its meeting held on 25 May 2018 approved in-principle, the proposal to initiate divestment of partial stake in IDBI Asset Management Limited to a strategic investor, subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by Delegated Authority.
On 8 August 2018, IDBI Bank informed the stock exchanges that Government of India (GoI) has conveyed no objection to reduction in GoI's shareholding in IDBI Bank below 50%, relinquishment of management control by GoI in IDBI Bank and acquisition of controlling stake in IDBI Bank by Life Insurance Corporation of India (LIC) as Promoter through Preferential Issue/open offer of equity, subject to requisite Regulatory approval and compliance with Laws. Earlier, on 16 July 2018, IDBI Bank received a letter from Life Insurance Corporation of India (LIC) expressing its interest in acquiring 51% controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer. IDBI Bank's Board of Directors at its meeting held on 17 July 2018 considered LIC's proposal and decided to seek Government of India's decision in is regard.
During the FY2019, the Bank's aggregate deposits and advances touched Rs 2,27,372 crore and Rs 1,46,790 crore, respectively.
As on 31 March 2019, the Bank had five subsidiaries, viz., IDBI Intech Ltd., IDBI Capital Markets & Securities Ltd., IDBI Asset Management Ltd., IDBI MF Trustee Company Ltd. and IDBI Trusteeship Services Ltd.
During FY 2018-19, the Bank has raised funds through Preferential allotment of equity shares to Government of India (GoI) in May 2018 aggregating to Rs 7881 crore and to LIC in (i) October 2018 aggregating to Rs 2098 crore, (ii) December 2018 aggregating to Rs 14,500 crore and (iii) January 2019 aggregating to Rs 5025.96 crore.
As on 31 March 2019, the Bank served its customers through its network of 1,892 branches, 3,700 ATMs and 58 e-lounges.
During the year 2018-19, the Bank received Share Application Money of Rs. 21624.15 Crore from Life Insurance Corporation of India (LIC) against which, Bank made preferential allotment of 355,51,05,535 Equity shares to LIC. Further, during the year LIC also made an open offer to the equity shareholders of IDBI Bank through which, it acquired 5,66,82,182 Equity Shares. Consequently, the shareholding of LIC rose to 51% of the total paid up share capital of the Bank.
The Bank has been categorized as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.
During FY2020, the Bank's aggregate deposits and advances touched Rs 2,22,424 crore and Rs 1,29,842 crore, respectively.
During the FY 2019-20, the Bank raised funds through preferential allotment of equity shares on 22 October 2019 aggregating to Rs 4743 crore (inclusive of premium amount, if any) to LIC (such that the shareholding of LIC post allotment aggregates upto 51% of Bank's expanded paid-up capital) and aggregating upto Rs 4557 crore (inclusive of premium amount, if any) to Government of India.
As on 31 March 2020, the Bank served its customers through its network of 1,892 branches, 3,683 ATMs and 58 e-lounges.
As on 31 March 2021, the Bank served its customers through its network of 1,886 branches, 3,403 ATMs and 58 e-lounges.
As on 31 March 2023, the Bank served its customers through its network of 1,928 branches, 3,334 ATMs and 58 e-lounges. The Bank added 42 branches to its network during the year 2023 to strengthen its retail franchise.
IDBI Bank Ltd
Chairman Speech
Trust is built with consistency
The year 2022-23 was another milestone year as your Bank made steady inroad in its
strategic endeavours of growth, profitability, operational efficiency, technological
upgradation, and adopting sustainable business and operational practices.
T. N. Manoharan
Chairman
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present the Bank's Annual Report
for the Financial Year (FY) 2022-23. I write to you with an undeniable sense of pride in
the way your Bank has performed during the financial year in terms of its business and
financial performance and also its commitment towards enhancing value for all its
stakeholders.
Economic Scenario
The global macroeconomic environment in the year 2022 was weighed down by deceleration
in the pace of economic growth with growing risks of recession, persistently high levels
of inflation across economies, continuing geopolitical uncertainties and tightened
financial conditions. Against this backdrop, the Indian economy emerged as a bright spot
in the global economic landscape with robust pace of inclusive growth, making it one of
the fastest growing major economies in the world.
India's banking sector, despite global spillovers, remained resilient during the year.
Factors such as strengthening of macroeconomic fundamentals and conducive policy
environment, coming on the back of comprehensive and structural reforms in the Indian
banking sector, lent stability and led the banks to further strengthen their balance
sheet, improve profitability and asset quality, as also maintain adequate levels of
capital and liquidity buffers. The robustness of the underlying fundamental strengths and
improvement in the overall asset quality enabled banks to respond in equal measure to meet
the expansion in the credit demand in the economy. With adequate capital buffers, the
banks were well positioned to support growth as also absorb certain headwinds, especially
caused by external factors.
Business Strategy
The conducive business environment provided the Bank with an added advantage in
pursuing its strategic objectives. The Bank persevered on its strategic imperatives
leading to strong balance sheet, healthy capital position and adequate provisioning. The
Bank continued to maintain strong focus on resource mobilisation, driven by growth in
deposits and also maintained low-risk loan mix through focus on lending to the retail
& priority sector. At the same time, the Bank also stepped up lending to augment
quality asset book.
Growth and Profitability
The comprehensive business strategy formulated by your Bank and conducive macroeconomic
conditions helped in ensuring a continued stable and profitable growth during the
Financial Year (FY) 2022-23. The Bank registered net profit for the third consecutive
financial year and the net profit surged to all-time-high of ` 3,645 crore in FY 2022-23,
registering a robust growth of 49% on a year-on-year basis. The Bank remained committed
towards its overall strategy of augmenting its granular business portfolio, both on the
asset and liability side. Your Bank's business improved with its net advances and total
deposits base registering double-digit growth during the year.
The concerted focus on improving the asset quality resulted in a substantial
improvement in its Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA)
ratios. As a safeguard, the Bank continued to maintain adequate provisioning with the
Provision Coverage Ratio (PCR) at 97.94% as at end-March 2023. The Bank remained
adequately capitalised with its capital ratios, viz. Capital to Risk (Weighted) Assets
Ratio (CRAR) and the Tier 1 ratio, well above the regulatory requirement.
An optimum mix of broad-based strategies, strategic business imperatives, robust
organisational structure, technological prowess and unwavering dedication of its workforce
paved the way for positioning your Bank as an inherently strong bank in the Indian banking
space.
I am happy to state that the Board of Directors of your Bank have recommended a
dividend of ` 1 (Rupee One only) per Equity Share of face value of ` 10 each of the Bank
for the financial year ended March 31, 2023, subject to approval of the shareholders at
the Annual General Meeting.
Way Forward
The year 2022-23 was another milestone year as your Bank made steady inroad in its
strategic endeavours of growth, profitability, operational efficiency, technological
upgradation, and adopting sustainable business and operational practices. Your Bank will
continue to expand its product and service offerings in line with the evolving business
environment and emerging customer preferences. Furthermore, your Bank will strive to
expand its reach, both physical and digital, to cater to the requirements of its customers
from all walks of life. Your Bank's adequate capital position will facilitate its march
towards higher growth trajectory.
Your Bank will seek to leverage its inherent strengths and capabilities to capitalise
on the business opportunities emerging on the back of improving macroeconomic fundamentals
to further enhance its profitability.
The Bank will continue to focus on greater degree of digitalisation by investing in
latest technological upgradation to enhance efficiency and strengthening its data
analytics capabilities to provide targeted banking solutions to its customers. Your Bank's
focus, though centered on augmenting its business, will continue to be on remaining
vigilant towards improving and ensuring healthy asset quality by taking proactive
preventive measures to avoid slippages. Apart from this, the Bank will strive to ingrain
robust governance, risk and compliance practices across all business and support functions
in order to uphold its reputation as a trusted bank among all its stakeholders.
Your Bank will seek to leverage its inherent strengths and capabilities to capitalise
on the business opportunities emerging on the back of improving macroeconomic fundamentals
to further enhance its profitability.
Expression of Gratitude
On behalf of the Board of Directors of IDBI Bank, I express my sincere thanks to the
Government of India (GOI), the Reserve Bank of India (RBI) and all the other statutory
& regulatory authorities for their support and guidance. I would also like to extend
my gratitude to shareholders and customers for their unstinted patronage, sustained
support and co-operation. Your Bank values your continued trust and confidence and shall
continue to work assiduously to live up to your expectations. I would also like to convey
my sincere appreciation to my colleagues on the Bank's Board for their visionary
leadership and invaluable contribution towards driving the Bank's governance and business
growth. Last but not the least, I would like to express my gratitude to the Top Management
and all employees of the Bank for exhibiting their unwavering dedication and commitment
that paved the way for the Bank to achieve its overall business objective and scale new
heights in spite of challenging business and operational environment. With best wishes,
T. N. Manoharan
Chairman
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IDBI Bank Ltd
Company History
IDBI Bank Ltd is one of India's largest commercial Banks. The Bank is a Universal Bank with their operations driven by a cutting edge core Banking IT platform. They offer personalized banking and financial solutions to their clients in the retail and corporate banking arena through their large network of Branches and ATMs, spread across length and breadth of India. The Bank has set up an overseas branch at Dubai.
The Bank operates in four segments, namely Wholesale Banking, Retail Banking, Treasury Services and Other Banking Operations. They have six wholly-owned subsidiaries, namely IDBI Homefinance Ltd, IDBI Gilts Ltd, IDBI Intech Ltd, IDBI Capital Market Services Ltd, IDBI Asset Management Ltd and IDBI MF Trustee Company Ltd.
IDBI Bank Ltd was incorporated in the year 1964 as a wholly owned subsidiary of Reserve Bank of India with the name Industrial Development Bank of India. The company was regarded as a Public Financial Institution and continued to serve as a DFI for 40 years. In February 16, 1976, the ownership of the company was transferred to the Government of India by RBI and the company was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country.
In the year 1982, the company transferred their International Finance Division to Export-Import Bank of India. In the year 1993, they formed one wholly owned subsidiary company, namely IDBI Capital Market Services Ltd for providing broad range of financial products and services. In June 7, 1995, the company made their Initial Public Offer (IPO), which brought down GOI holding to below 100%.
In March 2000, the company set up one wholly owned subsidiary company, namely IDBI Intech Ltd for providing Information Technology (IT) related activities of the organization. They established a public limited company in the home loan segment, namely 'IDBI Homefinance Ltd'. Also, they entered into a financial and technical collaboration agreement with Nepal Development Bank (NDB). In March 2001, they incorporated IDBI Trusteeship Services Ltd to take over the entire debenture business and assist to the subscribers and issuers of debentures by the way of up-to-date information and efficient professional services.
In March 2003, the Bank made an exit from their asset management activity by divesting their entire shareholding in IDBI Principal Asset Management company Ltd, IDBI Principal Trustee Company Ltd and all Trust Corpus rights of IDBI Mutual Fund in favour of their joint venture partner Principal Financial Services Inc USA, with a view to concentrate on their core business activities. They also divested their entire stake in Discount & Finance House of India Ltd (DFHI) in favour of SBI. In September 2003, the company diversified their business domain further by acquiring the entire shareholding of Tata Finance Ltd in Tata Home finance Ltd. The fully-owned housing finance subsidiary was renamed 'IDBI Homefinance Ltd'. bIn October 2004, the company was transformed into a banking company to undertake all kind of banking activities while continuing to play their secular Development Financial Institution role. Also, they changed their name to Industrial Development Bank of India Ltd. In 2005, Industrial Development Bank of India Ltd merged their banking subsidiary IDBI Bank with themselves. In October 2006, United Western Bank Ltd was amalgamated with the Bank as a part of the inorganic growth strategy.
In December 2006, the company incorporated a wholly owned subsidiary in the name of IDBI Gilts Ltd. for carrying on primary dealership business. Also, they signed an MoU with Life Insurance Corporation of India Ltd (LIC) in Mumbai for undertaking joint and take-out financing of long-gestation projects, including infrastructure projects. In July 2007, the Bank entered into fourth tie-up for trading in carbon credits with Sumitomo of Japan.
During the year 2007-08, the Bank came up with two innovative products Wealthsurance and Homesurance. They introduced 3-in-1 saving-cum-demat accounts with trading facility. Also, they increased their bouquet of retail products by launching Loan against Rent Receivables, Loan against Commercial Property, Reverse Mortgage Loan, Holiday Travel Loan and Loan to the staff of IDBI-Assisted units.
During the year, the Bank launched the MasterCard Debit Card, re-launched the cash card product and upgraded their Net Banking architecture thereby enhancing customer experience. They formalized tie-ups with IDBI Capital Market Services Ltd, a 100% subsidiary of the Bank, with Motilal Oswal Securities Ltd to offer state-of-the-art internet-based trading facility in Equities, Futures and Options markets.
During the year, the new state-of-the-art Treasury at the Bank's Head Office became operational. In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48%. Also, the name of the bank was changed to IDBI Bank Ltd with effect from May 07, 2008.
During the financial year 2008-09, the Bank increased their branch network to 509 comprising 179 metropolitan branches, 175 urban branches, 100 semi urban branches and 55 rural branches. They implemented next'generation cash management system called i-cashweb, a web-based CMS solution. Also, they opened a Currency Chest at Chennai taking the total number to four. They got approval to collect sales tax in Maharashtra.
During the year, the Bank launched their Mobile Payment service enabling their customers to make payments for their purchases through mobile phones. They launched the multi currency acquiring facility in the merchant acquisition business. Also, they implemented a new Fund Transfer Pricing (FTP), based on the market linked bid and offer rates.
The Bank made a tie-up with IDBI Fortis Life Insurance Company Ltd for distribution of varied life insurance products, like wealthsurance, bondsurance, homesurance etc. Also they had an arrangement with Bajaz Allianz for selling general insurance products. They also distributed Co-branded products like FamilyCare, HomeCare and BusinessCare which cover all the categories such as asset insurance, corporate insurance, personal accident insurance and health insurance.
During the year 2009-10, the Bank opened 199 new branches, including Specialized Corporate Branches. They opened a currency chest at Panchkula taking the total number of currency chest to five. Also, they opened their first Cash Processing Centre (CPC) at Mulund, Mumbai. They won 'Special Jury Award' for their technological initiatives at the IBA Banking Technology Award 2009.
During the year, the Bank launched was new variants of the debit card, i.e., Kids Card and Platinum Card aimed at specific customer segments comprising kids and high networth individuals. They developed several new products with added features, namely Salary Account with Overdraft Facility and Scheme for providing Subordinated Debt. In July 2009, the Bank's Centralized Operations received the coveted ISO 9001:2008 certificate of registration.
In January 2010 , the Bank floated a wholly owned company namely, IDBI Asset Management Company (AMC) to undertake Mutual Fund (MF) business, which launched their first product 'IDBI Nifty Index Fund' during May 2010. Also, they incorporated IDBI MF Trustee Company Ltd with paid up capital of Rs.20 lakh. As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs.
In June 2010, the Bank opened their first overseas branch at the Dubai International Finance Centre for providing corporate banking services including financial advisory and syndication of credit.
During the year 2010-11, the Bank provided facility of making on-line payments for e-commerce transactions though their debit card. A new variant debit card was launched exclusively for women customers. In order to encourage customers with regard to usage of debit card, a cash back scheme for debit card usage was also offered. Within the regulatory framework, cash withdrawal was allowed on debit card at various merchant establishments.
The Bank is increasingly committed to support government initiatives offering financial services to Economically Weaker Sections (EWSs) and Lower Income Groups (LIG) of society and accordingly offered, along with others, Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). In their efforts to ensure improved financial inclusion, the Bank signed MOU with Tribal Development Department, Government of Gujarat and is exploring similar partnership with other State Governments. The Bank also signed MOU with Unique Identification Authority of India (UIDAI) for acting as a registrar.
During the year, the Bank launched 'Loan Against Property' for the MSMEs to unlock value of their assets/properties. 'SME Smart Line of Credit' was also introduced so that MSMEs could take advantage of emerging business opportunities. In addition, the Bank implemented the 'Artisan Credit Card' scheme of Indian Banks' Association (IBA) to take care of the credit needs of the artisan community of the nation. To further enrich the MSME loan basket, the Bank made a tie-up with SIDBI in an exclusive arrangement to jointly finance MSME units, initially in 10 centres viz., Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Indore, Jaipur, Lucknow, Ludhiana and Rajkot, subsequently to be rolled out across the country. They also launched a software for Complaint Resolution Management (CRM) at branches.
The bank received ISO 9001:2008 certification for all their Currency Chests. They opened a new Currency Chest at Kochi taking the number of Currency Chests of your Bank to six. They also received ISO 9001:2008 certification for all their Centralised Clearing Units (CCUs).
In April 2011, two wholly-owned subsidiaries viz. IDBI Home Finance Ltd and IDBI Gilts Ltd were amalgamated with the Bank with effect from January 01, 2011.
IDBI Bank launched a USD 500 million 5.5 year Reg S Bond issue on 17 September 2012. The transaction received an overwhelming response and the issue was oversubscribed by 9 times. The issue was made under the USD 1.5 billion MTN Programme listed on the Singapore Stock Exchange. On 18 November 2012, IDBI Bank inaugurated the 1000th branch in Kannangudi, Tamil Nadu.
On 21 February 2013, IDBI Bank announced that has entered into a Memorandum of Cooperation (MOC) with EXIM Bank, wherein IDBI Bank and EXIM Bank would, inter alia, co-finance, co-arrange, syndicate rupee and foreign currency loans, jointly finance export-oriented projects in India, provide/avail refinance facility in Indian Rupees and/or Foreign Currency for extending short term export credit and long term capex loans to eligible export-oriented companies, particularly in the SME sector. IDBI Bank and EXIM Bank would also co-operate in promotional activities, provide advisory services to assist each other's clients and co-operate in training of each others' staff members.
On 15 March 2013, IDBI Bank announced that it has partnered with eMudhraConsumer Services Ltd. (eMudhra), a licensed Certifying Authority (CA), to implement Digital Signature based authentication solution to strengthen and further secure its Corporate Inet Banking channel. The solution builds trust and enhances security in the electronic banking system thereby enhancing comfort and confidence of both, the customer and the bank while undertaking Third Party Fund Transfers and Bulk Transaction uploads.
The 40th Trade Finance (TF) Centre of IDBI Bank was inaugurated on 28 March 2013 at the IDBI Bank Building, BKC, Mumbai. IDBI Bank's TF Centre in BKC is an Authorized Dealer (AD) in foreign exchange, and would cater to the Trade Finance and Forex needs of Exporters, Importers and Retail customers.
IDBI Bank and Passenger Car Business Unit of International Cars & Motors Limited (ICML) entered into a Memorandum of Understanding (MoU) on 17 May 2013 for providing auto finance to prospective customers of ICML. As per the scheme modalities, ICML and its dealer network will collaborate with IDBI Bank for the purpose of 'Retail Activation' in order to facilitate vehicle financing business. On 22 May 2013, IDBI Bank inaugurated 29 branches, taking its total branch network to 1,111.
On 17 June 2013, IDBI Bank entered into a tie up arrangement with Jain Irrigation Systems Limited (JISL) for financing Minor Irrigation Systems to individual farmers. The tie-up provides assistance to farmers across all the branches of the bank wherever JISL has a dealer network. The tie-up will help farmers increase their acreage under irrigation by minimal use of available water resource. On 26 July 2013, Government of Maharashtra launched the eSBTR Project for online payment of Stamp Duties & Registration fees in partnership with IDBI Bank.
On 11 November 2013, IDBI Bank Ltd, through its DIFC Branch in Dubai, signed a loan agreement for USD 340 million with KfW, Germany. The loan would be availed by IDBI Bank for funding loans to the micro, small and medium-sized enterprises (MSME) directly or indirectly through Microfinance Institutions (MFIs) and Non Banking Finance Companies (NBFCs). Part of the loan is dedicated for selected infrastructure projects to support municipalities and communities to improve health and living conditions.
On 28 May 2014, FICCI-CMSME, an affiliated body under the umbrella of the Federation of Indian Chambers of Commerce and Industry (FICCI), an apex Chamber of Commerce & Industry of India, and IDBI Bank announced a partnership through an MoU to make organized finance facility available for Micro, Small and Medium Enterprises (MSME) across the country at competitive interest rates.
On the occasion of the completion of 50 years of operations, IDBI Bank on 1 July 2014 launched mobile banking service for its customers. On 28 August 2014, IDBI Bank announced that it has opened more than 3.62 lakh basic savings accounts under the Pradhan Mantri Jan Dhan Yojana' to mobilize Basic Savings Bank Deposit Accounts (BSBDAs), promote financial literacy and meeting comprehensively the objective of financial inclusion.
On 4 September 2014, IDBI Bank launched its first e-lounge' at its Mahim branch in Mumbai. At IDBI Bank's e-lounge, customers can, on a self service basis, enjoy facilities such as ATM, Automated Cash Deposit (with a receipt and instant credit of the amount), Automated Cheque Deposit (with an acknowledgment receipt), Automated Pass Book Printing, e-Transact terminal for various Card and Net Banking holders to view balance, make a funds transfer, pay bills, recharge etc.
On 17 October 2014, IDBI Bank announced that its first Basel III compliant Additional Tier - I (AT- I) bonds amounting to Rs 2500 crore (Rs 1500 crore with an option to retain over-subscription upto Rs 1000 crore) received an overwhelming response and was fully subscribed prior to the closure date. The issue opened on 29 September 2014. The issue was competitively priced at a coupon of 10.75% p.a. payable annually.
On 28 November 2014, IDBI Bank inaugurated its zonal office at Chandigarh. The zonal office will play a vital role in helping the bank achieve its goal of expanding its retail loan and MSME loan portfolio. On 14 December 2014, IDBI Bank in association with NSDL Database Management Limited (NDML) launched the Electronic-Insurance Account (e-IA)'. e-IA is the portfolio of insurance policies of a policy holder held in electronic form with an insurance repository.
On 25 February 2015, IDBI Bank launched its Mobile Banking Application (App) with the branding 'IDBI Bank Go Mobile'. On 6 April 2015, IDBI Bank inaugurated its 3000th ATM at Punjabi Bagh, New Delhi.
On 10 April 2015, IDBI Bank Ltd and Life Insurance Corporation of India (LIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) for savings bank account holders of the bank. PMJBY is a life insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers life insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-50 years at an annual premium of Rs 330 plus service tax. The insurance cover will be available up to 55 years.
On 20 April 2015, IDBI Bank in association with National Payments Corporation of India (NPCI) launched the Rupay Platinum Debit card'. The Rupay Platinum Debit card' enables cost-effective, fast and secure access to large number of ATMs, POS terminals, e-commerce websites and participating merchant establishments across the country.
On 22 April 2015, IDBI Bank and Bajaj Allianz General Insurance Company Ltd (BAGIC) entered into a Memorandum of Understanding (MoU) to implement the Pradhan Mantri Suraksha Bima Yojana (PMSBY) for savings bank account holders of the bank. PMSBY is an accident insurance scheme announced in the Union Budget for the year 2015-16. The scheme offers accident insurance cover of Rs 2 lakh to the bank account holders in the age group of 18-70 years at an annual premium of Rs 12 plus service tax.
The General Refinance Agreement (GRA) between IDBI Bank and Micro Units Development and Refinance Agency (MUDRA) Ltd. was signed on 1 July 2015. IDBI Bank is one of the leading banks identified by MUDRA, eligible for the refinance scheme. As per the agreement, the bank will offer credit facilities up to Rs 10 lakh to Micro Enterprises, at a competitive interest rate under Pradhan Mantri Mudra Yojana (PMMY) and MUDRA will be providing refinance assistance to IDBI Bank for eligible sanctioned loan cases. The arrangement will be implemented through the branches of IDBI Bank on pan India basis.
On 30 July 2015, IDBI Bank launched its first self service Mini Branch Kiosk at its Cuffe Parade, Mumbai Branch which will address the customer's request of personalized cheque leaves dispensation and issue of Demand Draft & Pay Order on 24X7 basis. IDBI Bank would be the first bank in the country to make available these services on 24X7 basis.
IDBI Bank launched its first e-lounge at its Nager Bazar branch in Kolkata on 22 August 2015. The new section-in-branch is a step towards expanding the bank's presence in the digital world. The e-Lounge consists of 24x7 Kiosk based solutions designed to deliver a wide range of banking services round the clock, including deposit of bulk cash beyond regular banking hours.
On 30 November 2015, IDBI Bank inaugurated its state-of-the-art Security Operations Centre (SOC) at its Data Centre, Belapur, Navi Mumbai. Through the SOC, the bank will centrally monitor security devices like Firewalls, Routers, IDS/IPS, PIM, DLP, Antivirus, Phishing/Malware attempts and take corrective actions, in shortest span of time. The SOC will be a Command Centre for countering cyber threats and ensure compliance with the bank's Information Security Policy besides fulfilling the bank's objective of providing safe and secure banking to customers.
IDBI Bank inaugurated its Treasury Business Continuity Centre (BCP) on 28 August 2015 at its Bandra Kurla Complex, Mumbai office. The BCP site will serve as a near-site alternative to the bank's main Treasury Dealing centre in the event of any business disruption/disaster. The centre is fully equipped with state of the art technology and connectivity with integrated operations covering various market segments and can handle the front office, back office and mid-office functions of Treasury.
IDBI Bank launched a USD 350 million 5 year Reg S Green Bond issue on 23 November 2015. The transaction received an overwhelming response and the issue was oversubscribed by 3 times. The issue was made under the USD 5 billion MTN Programme listed on the Singapore Stock Exchange.
On 29 December 2015, IDBI Bank announced that it has received Rs 2229 crore from the Government of India (GoI) towards preferential allotment of equity shares of Rs 10 each to GoI at a price of Rs 75.28 per share in terms of the approval accorded by the Shareholders at the EGM of the bank held on 4 November 2015.
On 2 January 2016, IDBI Bank announced that it has mobilised Rs1900 crore through Basel III compliant Tier 2 bonds through two separate issues on private placement basis to strengthen its capital adequacy. The first issue of Rs1000 crore concluded on 31 December 2015 was for a tenor of 15 years with call option at the end of 10 years while the second issue of Rs 900 crore was concluded on 2 January 2016 with a tenor of 10 years. Both the issues carry a coupon of 8.62% p.a. payable annually. These issuances aggregating Rs1900 crore would augment capital adequacy ratio of the bank by about 55 basis points.
On 15 March 2016, IDBI Bank launched the nation's first of its kind 'G-Sec Investment Facility through ATM for Retail Investors' at the IDBI Bank's ATM at Corporate Centre, Mumbai. This facility is unique and first of its kind initiative of the bank to provide easy access to retail investors to invest in Government Securities. The facility of investing in G-Sec through ATM is an extension of IDBI Bank's Samriddhi G-Sec Portal to enable retail investors to transact in Government Securities
IDBI Bank launched the 'Stand Up India' Scheme on a pan India basis on the occasion of the 125th birth anniversary of Dr. Babasaheb Ambedkar on 14 April 2016. The objective of the scheme is to promote entrepreneurship amongst the scheduled caste/scheduled tribe and women and aid in their social upliftment. The proposed scheme shall facilitate eligible borrowers to avail loans between Rs 10 lakhs upto Rs 100 lakhs to promote productive and economic activity.
On 6 May 2016, IDBI Bank announced the opening of its IFSC Banking Unit (IBU) at India's first and only International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT). IDBI became the first public sector bank to open its IFSC Banking Unit (IBU) at GIFT. IDBI Bank's GIFT branch will provide full range of corporate banking services and will meet foreign currency funding needs of its vast Indian clientele. Through its GIFT branch IDBI Bank aims to foster greater trade and cross border transactions between India and rest of the world.
On 9 May 2017, IDBI Bank announced that the Reserve Bank of India (RBI), vide letter dated 5 May 2017, has initiated Prompt Corrective Action for IDBI Bank in view of the high net NPA and negative RoA. This action will not have any material impact on the performance of the bank and will contribute to improving the internal controls of the bank and improvement in its activities.
On 13 June 2016, IDBI Bank announced the launch of IDBI Express', an unique banking solution, enabling customers to bank at their chosen time and place beyond banking hours, without having to visit the bank branch.
On 30 August 2016, IDBI Bank announced that it has raised Rs 1500 crore from its second tranche of Basel III compliant Additional Tier 1 (AT1) bonds. The issue opened and closed on 30 August 2016. The issue was competitively priced at a coupon of 11.09% p.a. payable annually.
During the quarter ended 30 June 2017, Life Insurance Corporation of India (LIC) infused Rs 394 crore in IDBI Bank by way of preferential allotment of equity shares. On 9 August 2017, IDBI Bank received further capital infusion of Rs 1861 crore from Government of India.
On 26 September 2017, IDBI Bank announced the launch of Project Nishchay' in partnership with The Boston Consulting Group (BCG) to accelerate its turnaround programme and improve financial performance. The project will be led by senior management at IDBI Bank along with BCG. Coordinating across multitude of initiatives, the bank will focus on four key areas - revenue enhancement, cost control & reduction, asset productivity and overall program management in consultation with BCG.
The Bank served its customers through its network of 1,916 branches, 3,779 ATMs and 58 e-lounges as on 31st March, 2018.
On 29 March 2018, IDBI Bank clarified that all the Pisciculture loans identified as fraudulent have been fully provided for and there will be no further impact on the profitability/balance sheet of the bank. The bank continues to pursue all legal actions to recover dues from the borrowers and has taken action against the erring officers.
The Board of Directors of IDBI Bank at its meeting held on 25 May 2018 approved in-principle, the proposal to initiate divestment of partial stake in IDBI Asset Management Limited to a strategic investor, subject to compliance with all applicable laws and regulations and subject to final approval to be obtained for each transaction by Delegated Authority.
On 8 August 2018, IDBI Bank informed the stock exchanges that Government of India (GoI) has conveyed no objection to reduction in GoI's shareholding in IDBI Bank below 50%, relinquishment of management control by GoI in IDBI Bank and acquisition of controlling stake in IDBI Bank by Life Insurance Corporation of India (LIC) as Promoter through Preferential Issue/open offer of equity, subject to requisite Regulatory approval and compliance with Laws. Earlier, on 16 July 2018, IDBI Bank received a letter from Life Insurance Corporation of India (LIC) expressing its interest in acquiring 51% controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer. IDBI Bank's Board of Directors at its meeting held on 17 July 2018 considered LIC's proposal and decided to seek Government of India's decision in is regard.
During the FY2019, the Bank's aggregate deposits and advances touched Rs 2,27,372 crore and Rs 1,46,790 crore, respectively.
As on 31 March 2019, the Bank had five subsidiaries, viz., IDBI Intech Ltd., IDBI Capital Markets & Securities Ltd., IDBI Asset Management Ltd., IDBI MF Trustee Company Ltd. and IDBI Trusteeship Services Ltd.
During FY 2018-19, the Bank has raised funds through Preferential allotment of equity shares to Government of India (GoI) in May 2018 aggregating to Rs 7881 crore and to LIC in (i) October 2018 aggregating to Rs 2098 crore, (ii) December 2018 aggregating to Rs 14,500 crore and (iii) January 2019 aggregating to Rs 5025.96 crore.
As on 31 March 2019, the Bank served its customers through its network of 1,892 branches, 3,700 ATMs and 58 e-lounges.
During the year 2018-19, the Bank received Share Application Money of Rs. 21624.15 Crore from Life Insurance Corporation of India (LIC) against which, Bank made preferential allotment of 355,51,05,535 Equity shares to LIC. Further, during the year LIC also made an open offer to the equity shareholders of IDBI Bank through which, it acquired 5,66,82,182 Equity Shares. Consequently, the shareholding of LIC rose to 51% of the total paid up share capital of the Bank.
The Bank has been categorized as a 'Private Sector Bank' for regulatory purposes by Reserve Bank of India with effect from 21 January 2019 consequent upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.
During FY2020, the Bank's aggregate deposits and advances touched Rs 2,22,424 crore and Rs 1,29,842 crore, respectively.
During the FY 2019-20, the Bank raised funds through preferential allotment of equity shares on 22 October 2019 aggregating to Rs 4743 crore (inclusive of premium amount, if any) to LIC (such that the shareholding of LIC post allotment aggregates upto 51% of Bank's expanded paid-up capital) and aggregating upto Rs 4557 crore (inclusive of premium amount, if any) to Government of India.
As on 31 March 2020, the Bank served its customers through its network of 1,892 branches, 3,683 ATMs and 58 e-lounges.
As on 31 March 2021, the Bank served its customers through its network of 1,886 branches, 3,403 ATMs and 58 e-lounges.
As on 31 March 2023, the Bank served its customers through its network of 1,928 branches, 3,334 ATMs and 58 e-lounges. The Bank added 42 branches to its network during the year 2023 to strengthen its retail franchise.
IDBI Bank Ltd
Directors Reports
Directors' Report
Your Bank's Board of Directors is pleased to present the Report on the Bank's business
and operations for the financial year ended March 31, 2023.
IntheFinancialYear(FY)2022-23,theglobaleconomystageda broad-based recovery from the
COVID-19 pandemic induced output contraction but was confronted with new challenges
stemming from the escalation in geo-political tensions. This resulted in higher commodity
prices and thus, worsening the existing inflationary pressures. To combat the heightened
price pressures, several economies across the world embarked on monetary tightening which
led to increase in interest rates globally. Amidst the recessionary fears, sporadic surges
in the COVID-19 cases also impacted the global demand, thereby leading to a slowdown in
the cross-border trade flows. The simultaneous occurrence of these challenges weighed down
the global growth momentum during the year. Like the rest of the world, India also
was confronted with these challenges but withstood them better than most large economies,
aided by inherent strengths that have been reinforced by wide-ranging initiatives and
policy reforms in the recent years. In the post-pandemic period, the revival in economic
activities has been led by the concerted policy incentives for the most vulnerable and pandemic-affected
segments, higher public capex, release of pent-up consumption demand, higher investment
& capacity utilisation as well as rapid normalisation of movement of people and goods.
Consequently, the Indian economy continued to witness healthy economic growth in FY
2022-23. With this, India continued to remain one of the fastest growing major economies
in the world. In the year 2022, India also emerged as the fifth largest economy globally
with a nominal GDP of US$ 3.4 trillion. Gaining traction from the improvement in the
macroeconomic conditions, the banking sector further consolidated its financial health and
saw a sustained improvement in its performance. Backed by stronger balance sheets and
comfortable capital positions, the banks were well-positioned to cater to the growing
credit demand in the economy. The improved economic prospects saw a broad-based uptick in
the credit growth from all the segments. Though the rate cycle was on upswing, the credit
demand remained healthy on the back of higher capacity utilisation and higher corporate
profitability. With the interest rates on deposits also increasing in tandem with the
monetary policy rate, there has been a renewed shift in favour of bank deposits as an
investment avenue, thereby supporting the deposit growth in the economy. Aided by the
healthy growth in deposits and credit, most banks in India recorded an improvement in the
financial performance during the year.
Taking advantage of the conducive business environment, your Bank adopted a series of
strategic measures that helped it in recording further improvement in various financial
and operational parameters during the year.
FINANCIAL HIGHLIGHTS
As on March 31, 2023, your Bank's aggregate deposits and advances touched ` 2,55,499
crore and ` 1,62,568 crore, respectively. Your Bank's business highlights for the period
under review are presented in the following table:
Key Financials
( ` in crore)
|
As on March 31, 2022 |
As on March 31, 2023 |
| Capital |
10,752 |
10,752 |
| Reserves & Surplus |
30,910 |
34,566 |
| Deposits |
2,33,134 |
2,55,499 |
| Borrowings |
14,345 |
12,638 |
| Other Liabilities & Provisions |
12,462 |
17,047 |
| Total Liabilities |
3,01,603 |
3,30,502 |
| Cash & Balances with RBI |
27,796 |
16,639 |
| Balances with Banks & Money at Call & Short Notice |
7,915 |
12,646 |
| Investments |
82,988 |
99,690 |
| Advances |
1,36,955 |
1,62,568 |
| Fixed & Other Assets |
45,949 |
38,959 |
| Total Assets |
3,01,603 |
3,30,502 |
| For the period |
2021-22 |
2022-23 |
| Total Income |
22,982 |
24,942 |
| Total Expenses (other than provisions) |
15,487 |
16,206 |
| Provisions (other than tax) |
3,887 |
3,498 |
| Profit/ (Loss) Before Tax |
3,609 |
5,238 |
| Provision for Tax |
1,169 |
1,593 |
| Profit/ (Loss) After Tax |
2,439 |
3,645 |
During the year under review, your Bank's total income amounted to ` 24,942 crore,
comprising interest income of ` 20,570 crore and other income of ` 4,372 crore. Interest
expenses stood at ` 9,139 crore and operational expenses at ` 7,067 crore, accounting for
total expenditure (excluding provisions and contingencies) of ` 16,206 crore.
The increase in Net Interest Income (NII) and reduction in provisions (excluding tax
expenses) enabled the Bank to earn a net profit of ` 3,645 crore during FY 2022-23.
While the Earnings per Share (EPS) during the year was ` 3.39, the Book Value per Share
(excluding intangible assets and Deferred Tax Asset (DTA)) stood at ` 23.67 as on March
31, 2023. The Board of Directors have recommended a dividend of ` 1 (Rupee One
only) per Equity Share of face value of ` 10 each of the Bank for the financial
year ended March 31, 2023, subject to approval of the shareholders at the Annual General
Meeting.
REPORT ON THE PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES AND JOINT VENTURE
INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENT AS ON MARCH 31, 2023
|
Net Assets i.e. total assets minus total liabilities |
Share on profit or loss |
| Name of the Entity |
As % of consolidated net assets |
Amount ` ( in crore) |
As % of consolidated profit or loss |
Amount ( ` in crore) |
| Parent : IDBI Bank Ltd. |
97.55% |
45,318.48 |
98.35% |
3,645.09 |
| Subsidiaries |
|
|
|
|
| Indian : |
|
|
|
|
| 1. IDBI Capital Market & Securities Ltd. |
0.71% |
330.09 |
0.22% |
8.26 |
| 2. IDBI Intech Ltd. |
0.24% |
110.95 |
0.36% |
13.27 |
| 3. IDBI Asset Management Ltd. |
0.29% |
134.49 |
0.34% |
12.67 |
| 4. IDBI MF Trustee Co. Ltd. |
0.00% |
1.72 |
0.00% |
0.04 |
| 5. IDBI Trusteeship Services Ltd. |
0.66% |
305.70 |
1.31% |
48.37 |
| Foreign: |
NA |
NA |
NA |
NA |
| Minority Interest in all Subsidiaries |
0.30% |
138.48 |
0.59% |
21.91 |
| Associates (Investment as per the equity method)# |
|
|
|
|
| Indian: |
|
|
|
|
| 1. Biotech Consortium India Ltd. |
NA |
NA |
- |
- |
| 2. National Securities Depository Ltd. |
NA |
NA |
1.11% |
41.13 |
| 3. North Eastern Development Finance Corporation Ltd. |
NA |
NA |
- |
- |
| 4. Pondicherry Industrial Promotion Development & Investment Corporation Ltd.
(PIPDICL) |
NA |
NA |
NA |
NA |
| Foreign: |
NA |
NA |
NA |
NA |
| Joint Ventures (as per proportionate consolidation/ investment as per the
equity method) |
|
|
|
|
| Indian: |
|
|
|
|
| Ageas Federal Life Insurance Company Ltd. (Consolidated up to September 20, 2022) |
NA |
NA |
0.12% |
4.36 |
| Foreign: |
NA |
NA |
NA |
NA |
| Total |
99.75% |
46,339.92 |
101.22% |
3,751.27 |
| Elimination |
0.25% |
117.81 |
(1.22%) |
(45.21) |
| Net Total |
100.00% |
46,457.73 |
100.00% |
3,706.06 |
Note: None of the above subsidiaries have any subsidiary.
# Out of the four Associates, the financials for one of the Associates, viz., National
Securities Depository Ltd. (26.10%), have been included in the consolidated financial
results for the period up to December 31, 2022 and in respect of two Associates, viz.
North Eastern Development Finance Corporation Ltd. (25.00%) and Biotech Consortium India
Ltd. (27.93%), the accounts have been included in the consolidated financial results for
the period up to March 31, 2022. In case of Pondicherry Industrial Promotion Development
and Investment Corporation Ltd. (21.14%), the investment in the said company has been
written down to ` 1. The impact of Associates on the consolidated financial results is not
material.
MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING FINANCIAL POSITION OF IDBI BANK
WHICH HAVE OCCURRED DURING THE END OF FINANCIAL YEAR AND THE DATE OF BOARD REPORT
There were no material changes and commitments affecting the financial position of the
Bank, which occurred between the end of the financial year, i.e. March 31, 2023 and the
date of the Directors' Report.
THE DETAILS IN RESPECT OF ADEQUACY OF INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO THE
FINANCIAL STATEMENTS
According to Section 143(3)(i) of the Companies Act 2013, the report of the Statutory
Auditors should state whether the Bank has adequate Internal Financial Controls (IFCs)
system in place and what is the operating effectiveness of such controls, in the context
of the financial statements. The IFCs, as referred to in Section 143(3)(i) of the
Companies Act, 2013, relate to the Internal Financial Controls Over Financial Reporting
(IFCO-FR). The Bank's Management is responsible for establishing and maintaining internal
financial controls based on the internal control over financial reporting criteria
established by the Bank, considering the essential components of internal control stated
in the Guidance Note on Audit of IFCO-FR issued by the Institute of Chartered Accountants
of India (ICAI). These responsibilities include the design, implementation and maintenance
of adequate internal financial controls that were operating effectively for ensuring the
orderly and efficient conduct of its business, including adherence to the Bank's policies,
safeguarding of its assets, prevention and detection of frauds and errors, accuracy and
completeness of the accounting records, and timely preparation of reliable financial
information, as required under the Companies Act, 2013, the Banking Regulation Act, 1949
and the RBI guidelines. Your Bank has put in place an IFCO-FR Framework for
evaluation of the existing internal financial controls system and appointed a Consultant
for validating the compliances with respect to the documentation, certification, reporting
process of the controls across all business verticals/ departments and ascertaining the
adequacy and effectiveness of the controls in the Bank in all material respects with
respect to financial reporting. During FY 2022-23, the Consultant has submitted the
Internal Compliance Certificate for the quarters ended June 2022, September 2022, December
2022 and March 2023 after carrying out the testing and validation of all the underlying
processes as per the Bank's IFCO-FR framework. During the year under review, the
Consultant reviewed the compliance of 591 Risk Control Matrices (RCMs) and reported seven
observations for further compliance, of which four observations have been addressed by the
Bank and is complied with. The Bank is taking necessary action to ensure compliance and
closure of the remaining three open observations.
DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATE
PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH A DETAILED EXPLANATION
THEREOF, INCLUDING
| Particulars |
2021-22 |
2022-23 |
Comments |
| Return on Assets |
0.84% |
1.20% |
Net profit for FY 2022-23 was ` 3,645 crore as compared to net profit of `
2,439 crore in FY 2021-22. |
| Debt Equity Ratio (excluding intangibles) |
0.73% |
0.50% |
Borrowings made in India and outside India significantly decreased by ` 1,707 crore
and Net Worth improved by ` 5,726 crore. |
| Net NPA Ratio |
1.36% |
0.92% |
Net NPA decreased by ` 369 crore as also there was an increase in net advances by `
25,613 crore. |
| Gross NPA Ratio |
20.16% |
6.38% |
The Bank's Gross NPA decreased by ` 23,146 crore. |
CAPITAL ADEQUACY
Your Bank's ‘Total Capital + CCB' ratio was 20.44% as against the minimum
regulatory requirement of 11.50% as on March 31, 2023. Similarly, your Bank's ‘Common
Equity Tier 1 (CET1)
+ CCB' ratio was 18.08% as against the regulatory requirement of 8.00%. Your Bank's
‘Tier 1 + CCB' ratio stood at 18.08% as on March 31, 2023 as against the
regulatory requirement of 9.50%. Your Bank's Leverage Ratio as on March 31, 2023 was 7.86%
as against the minimum regulatory requirement of 3.50%.
BUSINESS STRATEGY
Considering the emerging opportunities and the potential challenges, your Bank
continued to pursue the broad contours of the business strategy envisaged for its
turnaround. The well-designed turnaround strategy of your Bank had helped in ensuring an
expeditious and broad-based improvement in its financial and operational health. The
Bank's core strategy was on driving profitable business growth while ensuring strong
balance sheet, fortified by healthy capital position with adequate provisioning. To cater
to the growing credit demand, the Bank also took concerted efforts to augment its low-cost
deposits, viz. CASA and retail term deposits, and supplemented it with growth in bulk
deposits. Targeting a granular and well-diversified asset portfolio, the Bank focussed on
ramping up the lending to the RAM (Retail, Agri & MSME) segment. At the same time, the
Bank cautiously stepped up its lending to the corporates by selectively assisting
well-rated corporates. The Bank also tapped the business synergies arising from its
association with the Life Insurance Corporation of India (LIC) to drive growth in its
business and improve its fee income by offering best-in-class, innovative, specialised
customised products & services to the employees, agents and subsidiaries of the LIC
for meeting their banking requirements. The strategic endeavours of the Bank helped it to
maintain its Cost of Deposits and Cost of Funds at competitive levels. Improvement in the
earning assets helped the Bank to record an improvement in the Net Interest Margin (NIM)
during the year. The Bank's stringent credit appraisal and credit monitoring standards
also helped in maintaining slippages at a manageable level. The Bank also stepped up its
recovery and upgradation efforts through various legal and regulatory routes to resolve
the stress in its delinquent asset portfolio. Complementing its business strategies, the
Bank focussed on ensuring better experience for all its customers by concentrating on
customer-centric initiatives. Emphasising on customer convenience and ease, the Bank
focussed on enhancing accessibility for its customers by expanding its physical branch
network and adding to the functionalities of its digital channels, viz. mobile and
internet banking. The Bank also endeavoured to create a seamless multi-channel
transactional experience for its customers as a part of its intent of ensuring customer
delight. Revisiting its existing offerings and introducing new offerings, the Bank ensured
that its gamut of products & services is attuned to the emerging needs and preferences
of its customers. Focussing on ensuring sustained and stable business growth, the Bank has
been driving a robust risk and compliance culture by encouraging all its employees to
integrate best practices in their day-to-day activities. Furthermore, the Bank is
committed to upholding and adhering to the highest standards in corporate governance. The
Bank promotes fairness, ethics and transparency in all its dealings to maintain the trust
of all its stakeholders and position itself as most trusted and preferred bank.
The strategic measures taken by the Bank, complemented by continued process and product
improvements, helped it to report a broad-based improvement in its operational and
financial performance in FY 2022-23.
KEY BUSINESS INITIATIVES
As an organisation, your Bank places customers at the core of its business strategy and
undertook a number of customer-centric business initiatives during the year. The Bank
leveraged its physical touchpoints of 1,928 branches and 3,334 ATMs and 58 e-lounges as
well as its digital channels to connect with its diverse customer base spread across the
country. Apart from offering traditional banking products and services, your Bank has also
been offering innovative banking and financial solutions to its customers. Taking into
cognisance the ever-changing business landscape, the Bank has been reviewing its existing
product offerings and business processes and _ne-tuning it to cater to the emerging
customer requirements. Your Bank has also been offering various value-added products and
services to its customers, keeping in view their risk profile and financial goals.
Furthermore, the Bank has been taking proactive measures to ramp-up its digital
infrastructure to cater to the pandemic-induced acceleration in the pace of digital
adoption and ensure seamless, contactless, convenient, safe and secure ‘Anytime
and Anywhere' banking experience for all its customers. Your Bank provides a wide
range of services on a round-the-clock basis through a wide range of digital channels such
as Mobile Banking, Internet Banking, WhatsApp Banking, UPI, Debit Cards, Credit Cards,
Point of Sale (PoS) terminals (both physical and digital), Internet Payment Gateway, ATMs,
etc. Additionally, your Bank has also been taking concerted efforts to promote usage of
these digital offerings as also increasing awareness among its customers regarding safe
banking practices while conducting banking transactions digitally.
Being true to its intended positioning as a retail-centric bank, your Bank has been
catering to a progressively large retail customer base by offering an entire bouquet of
retail-centric products such as Housing Loan (HL), Loan Against Property (LAP), Personal
Loan (PL), Education Loan (EL), Auto Loan (AL), Loan Against Securities (LAS), among other
products. Your Bank has put in place an Automated Loan Processing System (ALPS) to ensure
faster turnaround time in loan processing. Additionally, your Bank continued to augment
its customer engagement approach by extensive usage of data analytics and adoption of
Customer Relationship Management (CRM) tools.
Your Bank continued to contribute significantly towards lending to the priority sectors
by extending credit to Agriculture and Micro, Small & Medium Enterprises (MSME)
sectors. Your Bank has also been leveraging its Business Correspondent (BC)/ Business
Facilitator (BF) network to expand its reach to unserved and underserved sections of the
society. Your Bank has been proactive in furthering the objective of financial inclusion
by ensuring access to financial products and services needed by vulnerable sections of the
society at affordable cost in a fair and transparent manner. Towards this end, the Bank,
inter alia, has been extending loans under various government sponsored schemes and
ensuring access to various social security schemes and initiatives of the Government of
India. While the retail portfolio, viz., Retail, Agri & MSME, continued to be the
business focus, the Bank has also been targeting a calibrated growth in its corporate loan
book in alignment with its overall business strategy. Towards this end, your Bank has been
focussing on fresh acquisition of well-rated corporate accounts to ramp up its
corporate portfolio. Apart from this, your Bank also targeted growth in interest and
fee-based income through focussed improvement in utilisation of sanctioned fund-based and
non-fund based limits and also by cross-selling of products to deepen its existing
relationship. As a prudent measure, your Bank, while growing its asset book, has also been
focussing on maintaining its asset quality by closely monitoring slippages to minimise
fresh slippages. Simultaneously, your Bank has also been endeavouring to upgrade or
implement timely resolution for its stressed assets and NPA cases, along with augmenting
its standard advances loan book.
Your Bank offers a wide range of transaction banking products and services to its
corporate and retail customers at competitive pricing. Your Bank has been constantly
evolving and improving its core banking platform as also offering digitised trade
processing to increase customer engagements and make every step of the trade operation
process seamless and convenient. Your Bank has put in place appropriate operational and
compliance alerts to enable round-the-clock fraud monitoring.
Your Bank acts as an agent of the RBI in handling receipt and payment transactions of
the Central Government and the State Governments. Your Bank has enabled online collection
of Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance
Corporation (ESIC) dues. Your Bank is also authorised to collect the Central Government
taxes, to offer Small Savings Schemes, and to disburse Central Civil, Defence and Railway
Pensions. Your Bank has gone live with more advanced and secured module for collection of
direct taxes, i.e. Tax Information Network (TIN) 2.0.
Your Bank has integrated treasury operations in various market segments like Money
Market, Fixed Income, Foreign Exchange, Derivatives and Equities. Your Bank's Treasury is
supported by a pan-India sales team for effective marketing of foreign exchange, fixed
income and derivative products to its corporate as well as retail clients and provide them
with solutions for effectively managing exposures in currencies and also advising them
with investment solution in debt instruments. In addition to these business initiatives,
your Bank continued to bring about operational and process improvements to augment its
overall business efficiency. Furthermore, the Bank has also been making steady progress
towards technological innovation, upgradation and improvement in its IT infrastructure,
both software and hardware, to support its business operations. The detailed description
of the Bank's initiatives undertaken during the year is outlined in the Management
Discussion and Analysis section of the Annual Report.
IMPACT OF COVID-19 PANDEMIC ON THE BANK'S BUSINESS
The COVID-19 virus, a global pandemic affected the world's economy over the last two to
three years. The extent to which new wave of COVID-19 pandemic will impact the Bank's
operations and asset quality will depend on on-going as well as future developments, which
are uncertain at this stage. The management of the Bank is closely monitoring the
developments in this regard, including the likelihood of rise in customer defaults,
corresponding increase in provisioning requirements and taking necessary steps to mitigate
the same.
BOARD OF DIRECTORS
Your Bank's Board of Directors is broad-based and its constitution is governed by the
provisions of the Banking Regulation Act, 1949, the Companies Act, 2013, the Articles of
Association of the Bank and the requirements of Corporate Governance, as envisaged in the
Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (LODR Regulations). The Board functions directly as well
as through various Board-level committees constituted to provide focussed
governance in the important functional areas of the Bank. As per the Articles of
Association, the Board of Directors shall not be less than three and more than _fteen
members consisting of a Chairman appointed by the Board, one Whole-time MD &
CEO and two DMDs to be appointed by the Board, two Nominee Directors of LIC, two Nominee
Directors of GoI and eight Non-rotational Independent Directors (including the Chairman
and one Woman Independent Director). As on March 31, 2023, the Board comprised _fteen
Directors, viz., Shri T. N. Manoharan, Independent Director and Part-Time Chairman, Shri
Rakesh Sharma, MD & CEO, Shri Samuel Joseph Jebaraj & Shri Suresh Khatanhar, DMDs,
as Whole Time Directors; Shri Manoj Sahay & Shri Sushil Kumar Singh, Government
Nominee Directors; Shri Mukesh Kumar Gupta & Shri Raj Kumar, LIC Nominee Directors, as
Non-Executive Directors; Shri Gyan Prakash Joshi, Shri Bhuwanchandra B. Joshi, Shri
Samaresh Parida, Shri N. Jambunathan, Shri Deepak Singhal, Shri Sanjay Gokuldas Kallapur
and Smt. P. V. Bharathi as Independent Directors. The strength of 15 (_fteen) Directors on
the Board as on March 31, 2023 meets the requirement provided under Article 114(a) of the
Articles of Association of the Bank.
APEX COMMITTEES
The Board has a total of thirteen committees to oversee various functional areas of
your Bank's business and operations. The Board committees include Audit Committee of the
Board, Executive Committee, Nomination & Remuneration Committee, Stakeholders'
Relationship Committee, HR Steering Committee, Frauds Monitoring Committee, Recovery
Review Committee, Risk Management Committee, Corporate Social Responsibility Committee,
Non-Cooperative Borrowers' Review Committee, Customer Service Committee, Wilful
Defaulters' Review Committee and Information Technology Strategy Committee.
CORPORATE GOVERNANCE
Your Bank is committed to adopt the best Corporate Governance practices. It believes
that effective Corporate Governance is not just a requirement for regulatory compliance,
but also a facilitator for excellence in governance including enhancement of stakeholders'
value. The details of your Bank's Corporate Governance practices are given in this Annual
Report as a separate section under the Corporate Governance Report.
BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT
The Securities & Exchange Board of India (SEBI), vide its circular dated May 5,
2021, amended the SEBI (Listing Obligations & Disclosure Requirements) Regulations,
2015. As per the amendment, with effect from FY 2022-23, the top one thousand listed
entities based on market capitalisation are mandated to submit a Business Responsibility
& Sustainability Report (BRSR) in the format as specified in SEBI Circular dated May
10, 2021. The BRSR is intended towards having quantitative and standardised disclosures on
ESG (Environment, Social and Governance) parameters to enable comparability across
companies, sectors and time. The Bank's BRSR for FY 2022-23 has been hosted on its
website (https://www.idbibank.in/business-responsibility-and-sustainability-report.aspx).
STATEMENT UNDER SECTION 134 OF THE COMPANIES ACT, 2013 READ WITH RULE 5 OF THE
COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
There was one personnel in your Bank's service, during the financial year under review,
who received remuneration of over ` 1.02 crore annually. Further, there were no personnel
in the service of the Bank for a part of the year who received remuneration in excess of `
8.50 lakh per month. Also, there was no personnel employed throughout the financial year
or part thereof who was in receipt of remuneration at a rate, which in the aggregate, was
in excess of that drawn by Managing Director & CEO or Deputy Managing Directors of the
Bank and who held by himself or along with his spouse and dependent children, not less
than 2.0% of the equity shares of the Bank.
STATEMENT UNDER RULE 5(2) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL
PERSONNEL) RULES, 2014 FOR YEAR ENDED MARCH 31, 2023 – DETAILS OF TOP TEN EMPLOYEES
| Sr. No. |
Name |
Designation |
Annual Remuneration received (`) |
Nature of employment, whether contractual or otherwise |
Qualifications and experience of the employee |
Date of commencement of employment |
Age of such employee |
The last employment held by such employee before joining the company |
| 1. |
Shri Rakesh Sharma |
Managing Director & Chief Executive Officer |
16256834.41 |
Employee |
Post Graduate in Economics and CAIIB Experience in IDBI Bank: 4 years & 5 months |
10-10-2018 |
64 |
Canara Bank |
| 2. |
Shri Suresh Khatanar |
Deputy Managing Director |
9355140.22 |
Employee |
M.Com, CAIIB and ICWA Experience in IDBI Bank: 25 years & 9 months |
23-06-1997# |
59 |
Dena Bank |
| 3. |
Shri Samuel Joseph Jebaraj |
Deputy Managing Director |
9245994.16 |
Employee |
B.Sc, MBA and FRM Experience in IDBI Bank: 3 years & 6 months |
20-09-2019 |
54 |
Exim Bank |
| 4. |
Shri Sourav Kumar Dutta |
Head- IT |
8236770.89 |
Contractual |
BE, ME, MBA, Ph.D Experience in IDBI Bank: 1 year & 6 months |
01-09-2021 |
55 |
Payback - American Express |
| 5. |
Shri Arun Kumar Bansal |
Head-Treasury |
7416015.68 |
Contractual |
B.Com, M.Com Experience in IDBI Bank: 10 months |
15-06-2022 |
52 |
Indian Bank |
| 6. |
Shri Ajay Sharma |
Advisor-Human Resource & Training |
6773611.81* |
Contractual |
MBA, M.Com, I.C.W.A (Inter), CAIIB Experience in IDBI Bank: 5 months |
14-11-2022 |
60 |
IDBI Bank Ltd. |
| 7. |
Shri Dhiraj Saxena |
Head - Digital Banking & Emerging Payments |
6165205.28 |
Contractual |
B.Sc, Master of Computer Application, MBA Experience in IDBI Bank: 1 year & 6
months |
02-09-2021 |
48 |
L & T Financial Services |
| 8. |
Shri Jorty M. Chacko |
Executive Director |
5995711.20 |
Employee |
B.Com, M.Com, NCFM - AMFI Mutual Fund (Advisors) Module, CAIIB, NCFM - NSDL Depository
Operations Module Experience in IDBI Bank: 22 years & 10months |
20-05-2000 |
59 |
Federal Bank Ltd. |
| 9. |
Shri Padmabhushan Bahadure |
Chief Technology Officer |
5789338.71 |
Contractual |
Bachelor of Engineering, Management Programme , Post Graduate Diploma Experience in
IDBI Bank: 3 years & 7 months |
01-08-2019 |
46 |
State Bank of India |
| 10. |
Shri Rajeev Kumar |
Executive Director |
5718876.29 |
Employee |
B.Tech, MBA, CAIIB, Certificate in D-BASE & COBOL Experience in IDBI Bank: 29
years & 6 months |
17-09-1993 |
60 |
State Bank of India |
Note:
# Date of commencement of current designation for Shri Suresh Khatanhar as DMD in the
Bank is w.e.f. January 15, 2020
* Salary includes payment made to Shri Ajay Sharma as Executive Director upto October
31, 2022 and as Advisor-HR & Training w.e.f. November 14, 2022 - Remuneration includes
basic salary, allowances, perquisites as per the Income Tax rules but excludes employer's
contribution to PF/ Pension, non-monetary perquisite tax and accrued retirement benefits.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO a)
Conservation of Energy
The Bank has been taking several initiatives towards conservation of energy. The Bank
has replaced the conventional light fixtures with energy efficient light fixtures, lamps
and tubes to conserve power in various premises. The Bank is using inverter type/ Variable
Refrigerant Flow (VRF) energy efficient air-conditioners (ACs) in some of the new
branches/ Zonal Offices (ZOs). Depending on the requirement of the local electricity
boards, your Bank has installed Automatic Power Factor Control (APFC) panel at some of its
Zonal Offices and a few metro branches for energy conservation.
b) Technology Absorption
Your Bank has been proactively evaluating and absorbing the latest technology-based
innovations which has the potential to empower its business functions, enrich its customer
experience and optimise its readiness towards opportunities and challenges of the future.
During the year, your Bank further strengthened its IT infrastructure with the
initiative of second phase of industry standard technologies that includes Software
Defined Wide Area Network (SD-WAN) for additional branches, implemented new-age security
technologies ((Security Orchestration, Automation & Response (SOAR), Network Behaviour
Anomaly Detection (NBAD), Packet Capture (PCAP), User & Entity Behaviour Analytics
(UEBA) & Threat Intelligence Platform (TIP)) for building a Next Generation Security
Operations Centre (SOC) at both Data Centre (DC) & Disaster Recovery (DR) site.
Further, your Bank has implemented enterprise solution for IT Operations Management and is
also at an advanced stage of implementation of Integrated Collection & Recovery Module
(ICnRM).
Your Bank has implemented Real Application Cluster (RAC) in the Core Banking System
(CBS) to improve performance and resilience. Your Bank has upgraded the entire private
cloud hardware and software to meet the increasing needs of the business for just-in-time
provisioning of IT infrastructure resources. Your Bank has deployed the latest analytics
solution which uses the latest storage and server hardware. Your Bank is building IT
infrastructure to set up state-of-the-art Enterprise Data Warehouse for addressing
various reporting requirements and for obtaining business insights. Your Bank conducts
regular Disaster Recovery (DR) drills for critical IT systems that ensure seamless
availability and provides the assurance of the resilience of the critical systems. On the
digital front, your Bank has implemented state-of-the-art Application Programming
Interface Management (APIM) solution in an approach to facilitate digital transformation,
adoption with seamless integration with other applications on a need basis with minimal
effort and increased go-to-market capabilities of your Bank by going live for e-Bank
Guarantee application (e-BG) in partnership with National e-Governance Services Ltd
(NeSL). On the data refinement and enrichment fronts, your Bank is continuously refining
the process of the RBI return generation by removing manual intervention. Your Bank has
converted Automated Data Flow (ADF) output into eXtensible Business Reporting Language
(XBRL) format for majority of the returns out of applicable returns from the list of 32
returns released by the RBI in the first phase and is in the process of converting
remaining returns. Further, the Centre of Excellence (CoE) for Data Analytics has been set
up by your Bank with the objective of achieving improved customer wallet share.
Details of other initiatives undertaken in the Information Technology have been
provided in the Management Discussion and Analysis section of this Annual Report.
c) Foreign Exchange Earnings and Outgo
During the year, the total foreign exchange earned by the Bank was ` 579.65 crore
(excluding foreign currency cash flows in derivatives and foreign currency exchange
transactions) and the total foreign exchange outgo was ` 57.58 crore towards the operating
and capital expenditure requirements.
DIRECTORS' RESPONSIBILITY STATEMENT
The Board of Directors, hereby, declares and confirms that:
a. In the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures;
b. The Directors had selected such accounting policies and applied them consistently
and made judgements and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the Bank at the end of the financial year and of the
profit and loss of the Bank for that period;
c. The Directors had taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act for safeguarding
the assets of the Bank and for preventing and detecting fraud and other irregularities;
d. The Directors had prepared the annual accounts on a going concern basis;
e. The Directors had laid down internal financial controls to be followed by the Bank
and that such internal financial controls are adequate and were operating effectively; and
f. The Directors had devised proper systems to ensure compliance with the provisions of
all applicable laws and that such systems were adequate and operating effectively.
ACKNOWLEDGEMENTS
Your Bank's Board of Directors is grateful to the Government of India, the Reserve Bank
of India (RBI), the Securities & Exchange Board of India (SEBI), all the other
statutory/ regulatory authorities and the Life Insurance Corporation of India (LIC) for
their valuable co-operation and guidance. The Board also acknowledges, with gratitude, the
co-operation and support received from various State Governments and other banks/
financial institutions. The Board thanks various multilateral institutions and
international banks/ institutions for their support. The Board takes this opportunity to
put on record its deep sense of gratitude to its loyal shareholders and customers for
extending their support during the year and looks forward to their continued association
in the years ahead. The Board appreciates the sincere and devoted services rendered by its
entire staff and highly values their commitment and contributions towards the Bank.
| [Suresh Khatanhar] |
[Rakesh Sharma] |
| Deputy Managing Director |
Managing Director & CEO |
Place: Mumbai Date: April 29, 2023
  Â
IDBI Bank Ltd
Company Background
| Incorporation Year | 1964 |
| Registered Office | IDBI Tower WTC Complex 3rd Flr,Cuffe Parade Colaba
Mumbai,Maharashtra-400005 |
| Telephone | 91-22-66553355/22189111,Managing Director |
| Fax | 91-22-22180411 |
T N ManoharanRakesh Sharma| Company Secretary | Jyoti Biju Nair |
| Auditor | Varma & Varma/G D Apte & Co |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,MSEI ,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
IDBI Bank Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Gyan Prakash Joshi | Independent Director | 2023 |
| Bhuwanchandra Balkrishna Joshi | Independent Director | 2023 |
| Samaresh Parida | Independent Director | 2023 |
| N Jambunathan | Independent Director | 2023 |
| Rakesh Sharma | Managing Director & CEO | 2023 |
| Deepak Singhal | Independent Director | 2023 |
| Sanjay Gokuldas Kallapur | Independent Director | 2023 |
| Samuel Joseph Jebaraj | Deputy Managing Director | 2023 |
| Suresh Kishinchand Khatanhar | Deputy Managing Director | 2023 |
| P V Bharathi | Independent Director | 2023 |
| Jyoti Biju Nair | Company Sec. & Compli. Officer | 2023 |
| Mukesh Gupta | Nominee (LIC) | 2023 |
| T N Manoharan | Chairman & Independent Directo | 2023 |
| Sushil Kumar Singh | Nominee (Govt) | 2023 |
| Manoj Sahay | Nominee (Govt) | 2023 |
| Raj Kumar | Nominee (LIC) | 2023 |
| Jayakumar S. Pillai | Deputy Managing Director | 2023 |
IDBI Bank Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| BSE_200 |
| BSEDOLLEX |
| CNX500 |
| BSEMID |
| CNXMIDCAP |
| CNX200 |
| BSEALLCAP |
| BSEFINANCE |
| LMI250 |
| BSE100LTMC |
| NFTYLM250 |
| NFTYMC150 |
| NFTYMSC400 |
| NF500M5025 |
| NFTYTOTMKT |
IDBI Bank Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest & Discount | Rs. | 0 | 0 | 0 | 13336.6263 |
| Income on investments | Rs. | 0 | 0 | 0 | 5948.9546 |
| Other Interest | Rs. | 0 | 0 | 0 | 718.4169 |
| Interest on bal with RBI | Rs. | 0 | 0 | 0 | 565.7861 |