Contets

 INTRODUCTION
 COMPANY PROFILE
 VISION
 MISSION
 OBJECTIVE
 ORGANIZATIONAL STRUCTURE
 FINANCE DEPARTMENT
 HUMAN RESOURCE DEPARTMENT
 PRODUCTION DEPARTMENT
 OBJECTIVE OF PROJECT
 RESEARCH METHODOLOGY
 TYPES OF RESEARCH
 TYPES OF DATA
 DATA ANALYSIS TOOLS
 GRAPHICAL REPRESENTATION OF COLLECTED
DATA
 FINANCIAL ANALYSIS
 FINDINGS
 RECOMMANDATION
 CONCLUSION
 BIBIOLIOGRAPHY
 INTRODUCTION OF PROJECT

The Indian Banking industry, which is governed by the Banking Regulation

Act of India, 1949 can be broadly classified into two major categories, non-
scheduled banks and scheduled banks. Scheduled banks comprise
commercial banks and the co-operative banks. In terms of ownership,
commercial banks can be further grouped into nationalized banks, the State
Bank of India and its group banks, regional rural banks and private sector
banks (the old/ new domestic and foreign). These banks have over 67,000
branches spread across the country in every city and villages of all nook and
corners of the land.
The first phase of financial reforms resulted in the nationalization of 14
major banks in 1969 and resulted in a shift from Class banking to Mass
banking. This in turn resulted in a significant growth in the geographical
coverage of banks. Every bank had to earmark a minimum percentage of
their loan portfolio to sectors identified as “priority sectors”. The
manufacturing sector also grew during the 1970s in protected environs and
the banking sector was a critical source. The next wave of reforms saw the
nationalization of 6 more commercial banks in 1980. Since then the number
of scheduled commercial banks increased four-fold and the number of bank
branches increased eight-fold. And that was not the limit of growth.
After the second phase of financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB) s found it
extremely difficult to compete with the new private sector banks and the
foreign banks. The new private sector banks first made their appearance
after the guidelines permitting them were issued in January 1993. Eight new
private sector banks are presently in operation. These banks due to their late
start have access to state-of-the-art technology, which in turn helps them to
save on manpower costs.
During the year 2000, the State Bank Of India (SBI) and its 7 associates
accounted for a 25 percent share in deposits and 28.1 percent share in credit.
The 20 nationalized banks accounted for 53.2 percent of the deposits and
47.5 percent of credit during the same period. The share of foreign banks
(numbering 42), regional rural banks and other scheduled commercial banks
accounted for 5.7 percent, 3.9 percent and 12.2 percent respectively in
deposits and 8.41 percent, 3.14 percent and 12.85 percent respectively in
credit during the year 2000.about the detail of the current scenario we will
go through the trends in modern economy of the country.
 COMPANY PROFILE

Current Scenario:

The industry is currently in a transition phase. On the one hand, the PSBs,
which are the mainstay of the Indian Banking system are in the process of
shedding their flab in terms of excessive manpower, excessive non
Performing Assets (Npas) and excessive governmental equity, while on the
other hand the private sector banks are consolidating themselves through
mergers and acquisitions.
PSBs, which currently account for more than 78 percent of total banking
industry assets are saddled with NPAs (a mind-boggling Rs 830 billion in
2000), falling revenues from traditional sources, lack of modern technology
and a massive workforce while the new private sector banks are forging
ahead and rewriting the traditional banking business model by way of their
sheer innovation and service. The PSBs are of course currently working out
challenging strategies even as 20 percent of their massive employee strength
has dwindled in the wake of the successful Voluntary Retirement Schemes
(VRS) schemes. The private players however cannot match the PSB’s great
reach, great size and access to low cost deposits. Therefore one of the means
for them to combat the PSBs has been through the merger and acquisition
(M& A) route. Over the last two years, the industry has witnessed several
such instances. For instance, HDFC Bank’s merger with Times Bank Icici
Bank’s acquisition of ITC Classic, Anagram Finance and Bank of Madurai.
Centurion Bank, Indusind Bank, Bank of Punjab, Vysya Bank are said to be
on the lookout. The UTI bank- Global Trust Bank merger however opened a
pandora’s box and brought about the realization that all was not well in the
functioning of many of the private sector banks.
Private sector Banks have pioneered internet banking, phone banking,
anywhere banking, mobile banking, debit cards, Automatic Teller Machines
(ATMs) and combined various other services and integrated them into the
mainstream banking arena, while the PSBs are still grappling with
disgruntled employees in the aftermath of successful VRS schemes. Also,
following India’s commitment to the W To agreement in respect of the
services sector, foreign banks, including both new and the existing ones,
have been permitted to open up to 12 branches a year with effect from 1998-
99 as against the earlier stipulation of 8 branches.
Tasks of government diluting their equity from 51 percent to 33 percent in
November 2000 has also opened up a new opportunity for the takeover of
even the PSBs. The FDI rules being more

rationalized in Q1FY02 may also pave the way for foreign banks taking the
M& A route to acquire willing Indian partners.
Meanwhile the economic and corporate sector slowdown has led to an
increasing number of banks focusing on the retail segment. Many of them
are also entering the new vistas of Insurance. Banks with their phenomenal
reach and a regular interface with the retail investor are the best placed to
enter into the insurance sector. Banks in India have been allowed to provide
fee-based insurance services without risk participation, invest in an
insurance company for providing infrastructure and services support and set
up of a separate joint-venture insurance company with risk participation.
Aggregate Performance of the Banking Industry:

Aggregate deposits of scheduled commercial banks increased at a

compounded annual average growth rate (Cagr) of 17.8 percent during 1969-
99, while bank credit expanded at a Cagr of 16.3 percent per annum. Banks’
investments in government and other approved securities recorded a Cagr of
18.8 percent per annum during the same period.
In FY01 the economic slowdown resulted in a Gross Domestic Product
(GDP) growth of only 6.0 percent as against the previous year’s 6.4 percent.
The WPI Index (a measure of inflation) increased by 7.1 percent as against
3.3 percent in FY00. Similarly, money supply (M3) grew by around 16.2
percent as against 14.6 percent a year ago.
The growth in aggregate deposits of the scheduled commercial banks at 15.4
percent in FY01 percent was lower than that of 19.3 percent in the previous
year, while the growth in credit by
SCBs slowed down to 15.6 percent in FY01 against 23 percent a year ago.
The industrial slowdown also affected the earnings of listed banks. The net
profits of 20 listed banks dropped by 34.43 percent in the quarter ended
March 2001. Net profits grew by 40.75 percent in the first quarter of 2000-
2001, but dropped to 4.56 percent in the fourth quarter of 2000-2001.
On the Capital Adequacy Ratio (CAR) front while most banks managed to
fulfill the norms, it was a feat achieved with its own share of difficulties. The
CAR, which at present is 9.0 percent, is likely to be hiked to 12.0 percent by
the year 2004 based on the Basle Committee recommendations. Any bank
that wishes to grow its assets needs to also shore up its capital at the same
time so that its capital as a percentage of the risk-weighted assets is
maintained at the stipulated rate. While the IPO route was a much-fancied
one in the early ‘90s, the current scenario doesn’t look too attractive for
bank majors. Consequently, banks have been forced to explore other avenues
to shore up their capital base. While some are wooing foreign partners to add
to the capital others are employing the M& A route. Many are also going in
for right issues at prices considerably lower than the market prices to woo
the investors.
Interest Rate Scene
The two years, post the East Asian crises in 1997-98 saw a climb in the
global interest rates. It was only in the later half of FY01 that the US Fed cut
interest rates. India has however remained more or less insulated. The past 2
years in our country was characterized by a mounting intention of the
Reserve Bank Of India (RBI) to steadily reduce interest rates resulting in a
narrowing differential between global and domestic rates.
The RBI has been affecting bank rate and CRR cuts at regular intervals to
improve liquidity and reduce rates. The only exception was in July 2000
when the RBI increased the Cash Reserve Ratio (CRR) to stem the fall in the
rupee against the dollar. The steady fall in the interest rates resulted in
squeezed margins for the banks in general.

VISION

To be a world class provider of financial security to individuals and

corporates and to be amongst the top three private sector life insurance
companies in India
MISSION
To be the first preference of our customers by providing innovative, need
based life insurance and retirement solutions to individuals as well as
corporates. These solutions will be made available by well-trained
professionals through a multi channel distribution network and superior
technology.
Our endeavour will be to provide constant value addition to customers
throughout their relationship with us, within the regulatory framework. We
will provide career development opportunities to our employees and the
highest possible returns to our shareholders

OBJECTIVE

 Integrity

 Commitment

 Passion

 Seamlessness

 Speed

ORGANIZATIONAL STRUCTURE

Industrial development bank of India

The industrial development bank of India(IDBI) was established in 1964 by

parliament as wholly owned subsidiary of reserve bank of India. In 1976, the
bank’s ownership was transferred to the government of India. It was
accorded the status of principal financial institution for coordinating the
working of institutions at national and state levels engaged in financing,
promoting, and developing industries.
IDBI has provided assistance to development related projects and
contributed to building up substantial capacities in all major industries in
India. IDBI has directly or indirectly assisted all companies that are
presently reckoned as major corporates in the country. It has played a
dominant role in balanced industrial development.
IDBI set up the small industries development bank of India (SIDBI) as
wholly owned subsidiary to cater to specific the needs of the small-scale
sector.
IDBI has engineered the development of capital market through helping in
setting up of the securities exchange board of India(SEBI), National stock
exchange of India limited(NSE), credit analysis and research
limited(CARE), stock holding corporation of India limited(SHCIL), investor
services of India limited(ISIL), national securities depository
limited(NSDL), and clearing corporation of India limited(CCIL)
In 1992, IDBI accessed the domestic retail debt market for the first time by
issuing innovative bonds known as the deep discount bonds. These new
bonds became highly popular with the Indian investor.
In 1994, IDBI Act was amended to permit public ownership up to 49 per
cent. In July 1995, it raised over Rs 20 billion in its first initial public (IPO)
of equity, thereby reducing the government stake to 72.14 per cent. In June
2000, a part of government shareholding was converted to preference
capital. This capital was redeemed in March 2001, which led to a reduction
in government stake. The government stake currently is 51 per cent.
In august 2000, IDBI became the first all India financial institution to obtain
ISO 9002: 1994 certification for its treasury operations. It also became the
first organization in the Indian financial sector to obtain ISO 9001:2000
certification for its forex services.
FINANCE DEPARTMENT

IDBI has played a pioneering role, particularly in the pre-reform era (1964-
91),in catalyzing broad based industrial development in the country in
keeping with its Government-ordained ‘development banking’ charter. In
pursuance of this mandate, IDBI’s activities transcended the confines of pure
long-term lending to industry and encompassed, among others, balanced
industrial growth through development of backward areas, modernisation of
specific industries, employment generation, entrepreneurship development
along with support services for creating a deep and vibrant domestic capital
market, including development of apposite institutional framework.

Narasimam committee recommends that IDBI should give up its direct

financing functions and concentrate only in promotional and refinancing
role. But this recommendation was rejected by the government. Latter RBI
constituted a committee under the chairmanship of S.H.Khan to examine the
concept of development financing in the changed global challenges. This
committee is the first to recommend the concept of universal banking. The
committee wanted to the development financial institution to diversify its
activity. It recommended to harmonise the role of development financing
and banking activities by getting away from the conventional distinction
between commercial banking and developmental banking.

In September 2003, IDBI diversified its business domain further by

acquiring the entire shareholding of Tata Finance Limited in Tata Home
finance Ltd., signaling IDBI’s foray into the retail finance sector. The fully-
owned housing finance subsidiary has since been renamed ‘IDBI Home
finance Limited’. In view of the signal changes in the operating
environment, following initiation of reforms since the early nineties,
Government of India has decided to transform IDBI into a commercial bank
without eschewing its secular development finance obligations. The
migration to the new business model of commercial banking, with its
gateway to low-cost current, savings bank deposits, would help overcome
most of the limitations of the current business model of development finance
while simultaneously enabling it to diversify its client/ asset base. Towards
this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed
by Parliament in December 2003. The Act provides for repeal of IDBI Act,
corporatisation of IDBI (with majority Government holding; current share:
58.47%) and transformation into a commercial bank. The provisions of the
Act have come into force from July 2, 2004 in terms of a Government
Notification to this effect. The Notification facilitated formation,
incorporation and registration of Industrial Development Bank of India Ltd.
as a company under the Companies Act, 1956 and a deemed Banking
Company under the Banking Regulation Act 1949 and helped in obtaining
requisite regulatory and statutory clearances, including those from RBI.
IDBI would commence banking business in accordance with the provisions
of the new Act in addition to the business being transacted under IDBI Act,
1964 from October 1, 2004, the ‘Appointed Date’ notified by the Central
Government. IDBI has firmed up the infrastructure, technology platform and
reorientation of its human capital to achieve a smooth transition.

IDBI Bank, with which the parent IDBI was merged, was a vibrant new
generation Bank. The Pvt Bank was the fastest growing banking company in
India. The bank was pioneer in adapting to policy of first mover in tier 2
cities. The Bank also had the least NPA and the highest productivity per
employee in the banking industry.
On July 29, 2004, the Board of Directors of IDBI and IDBI Bank accorded
in principle approval to the merger of IDBI Bank with the Industrial
Development Bank of India Ltd. to be formed incorporated under the
Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and
Repeal) Act, 2003 (53 of 2003), subject to the approval of shareholders and
other regulatory and statutory approvals. A mutually gainful proposition with
positive implications for all stakeholders and clients, the merger process is
expected to be completed during the current financial year ending March 31,
2005.
HUMAN RESOURCE DEPARTMENT

The Human Resources department of IDBI had an induction manual on the

intranet to initiate new employees into the organization. The manual had
reams and reams of text running into hundreds of pages. The volume of
information made it difficult for the user to assimilate company policies and
operating procedures.

IDBI partnered with Indigo Consulting to transform a standard induction

manual into a fun and lively user experience. The Indigo Consulting team
developed a strategy and outlined the contours of a solution:

i) Reader-friendly - The solution required to be innovative in presenting text,

text and more text.
ii) Holds the user's attention till the end - The proposed solution had to
ensure that HR could track usage and the user completed reading the entire
manual.
iii) Maintenance-friendly - The new induction manual required updating
from time to time. The solution had to account for a content management
system.

The Solution

To overcome the challenge of presenting lots of textual information in an

interesting and user-friendly fashion, the idiom of motorcar rally was used.
This creative concept was finalised over many others keeping in mind the
young target audience, and their interests. Each department was presented as
a metophor for a racing situation. For instance, the Finance department was
a 'petrol pump' in the course of the Rally - where the driver (employee going
through the module) stops to refuel. The importance of the function, along
with its structure, was presented at the stop. For the legal department, the car
drove towards a check post.

The solution offered the user the option to determine the type and order of
sections to be accessed, while quizzes along the way ensured attention &
assimilation. On completion of the quiz, the score was mailed to the
department head. When the user completed the manual, a registration form
with details of the user was submitted to generate an employee ID. This
ensured that the entire course was completed. An elementary content
management system was provided that enabled the client to update the
manual.

The module was developed in Flash and XML. Flash Scripting made it
possible to track user movement, his score and time spent in the various
sections. XML was consciously chosen to overcome the 'complex future
maintenance' trap that most Flash projects fall in to after initial development.
3-D graphics were used to set the context and recreate a specific
environment.
MARKETING DEPARTMENT

Marketing involves a range of processes concerned with finding out what

consumers want, and then providing it for them. This involves four key
elements, which are referred to as the 4P's (the marketing mix). A useful
starting point therefore is to carry out market research to find out about
customer requirements in relation to the 4Ps.

Market research
There are two main types of market research: Quantitative research
involves collecting a lot of information by using techniques such as
questionnaires and other forms of survey. Qualitative research
involves working with smaller samples of consumers, often asking
them to discuss products and services while researchers take notes
about what they have to say. The marketing department will usually
combine both forms of research.
The marketing department will seek to make sure that the company
has a marketing focus in everything that it does. It will work very
closely with production to make sure that new and existing product
development is tied in closely with the needs and expectations of
customers
PRODUCTION DEPARTMENT

IDBI Bank offer bulk filing of returns for its corporate salary account
customers, under the Suvidha scheme offered by the income-tax department.
This service will be offered jointly by IDBI Bank and Filemyreturns in six
cities — Mumbai, New Delhi, Bangalore, Chennai, Ahmedabad and Pune.

The services are being offered with special discounts for IDBI Bank
customers in the range of 25 per cent. Corporate customers will have an
added advantage with help-desks and seminars with experts for personal
counselling on tax planning. Filemyreturns will also provide advice and
assistance in filling any tax-saving instruments and in application for PAN.

IDBI Bank head (retail banking) Ajay Bimbhat says: "This tie-up is in
keeping with our pursuit to offer value-added services to our customers. This
is a step towards fulfilling a gap between banking and non-banking services
and we will now be able to provide our customers with the best of both
services."

www.filemyreturns.com is India’s premier citizen-to-government (C2G)

payroll and tax management services organisation that offers customers the
advantage of convenient banking, online tax consultancy and facilitation in
filing tax returns.
"We intend to bridge the gap between the government and citizens by acting
as a catalyst that takes care of all the tax-related worries of a citizen at the
same time assisting the government in transparent tax administration, says
Filemyreturns managing director Prasad R.
"With the recent notification from CBDT allowing bulk filing of returns by
salaried employees Filemyreturns is uniquely poised to offer these services
to the corporates. Our endeavour is to bring the Aaykar Bhavan to the
doorstep of the citizen and thereby helping the income-tax department to
widen the tax base of salaried individuals and individuals coming under the
one by six scheme," he adds.
The tie-up with IDBI Bank, he believes, "will help us to make the Suvidha
scheme a success and assist the government in their endeavour to simplify
the tax process. We are proud to be associated with IDBI Bank, whose
mission is to become technology-led and service-driven company marketing
financial services with integrity."

OBJECTIVE OF PROJECT

 To determine and analyze the Market Potential of the IDBI BANK

Bokaro Steel City

 To analyses the policy of IDBI.

 To study and determine the competitor position in the market.

 To know what consumer look for while policy of their share being
purchased

 To know the satisfaction /dissatisfaction level towards IDBI

 To create familiar and motivate individual to banking sector

 To provide information related to product and policies of banking sector

RESEARCH METHODOLOGY

Project study which is being conducted by me for the last two month is not
only a formality for the fulfillment of the two year full time Post Graduate
Diploma in Business Management. But being a management student and a
good employee I tried my best to extract best of the information available in
the market for the use of society and people. The objectives have been
classified by me in this project form personal to professional, but here I am
not disclosing my personal objective which have been achieved by me while
doing the project. Only professional objectives which are being covered by
me in this project are as following-
- To know about environmental factors affecting IDBI Bank’s
performance.
- To analyze the role of advertisement for bank performance.
- To know the perception and conception of customers towards banking
products and specially focused for IDBI Bank’s product.
- To explore the potential areas for the new bank branches which will
provide both price and people to the bank with constant promotion
and placing strategy.

TYPES OF RESEARCH
 Descriptive V/s Analitical
 AppliedV/s Fundamental
 Quantitive V/s Qualititative
 Conceptual V/s Empirical
 Simulation Research
 Exploratory Research
  Historical Research

TYPES OF DATA
For the purpose of project data is very much required which works as a food
for process which will ultimately give output in the form of information. So
before mentioning the source of data for the project I would like to mention
that what type of data I have collected for the purpose of project and what it
is exactly.
1. Primary Data:

Primary data is basically the live data which I collected on field while
doing cold calls with the customers and I shown them list of question for
which I had required their responses. In some cases I got no response
form their side and than on the basis of my previous experiences I filled
those fields.
Source: Main source for the primary data for the project was
questionnaires which I got filled by the customers or some times filled
myself on the basis of discussion with the customers.
2. Secondary Data:

Secondary data for the base of the project I collected from intranet of the
Bank and from internet, RBI Bulletin, Journal by ICFAI University.
DATA ANALYSIS TOOLS

As no study could be successfully completed without proper tools and

techniques, same with my project. For the better presentation and right
explanation I used tools of statistics and computer very frequently. And I am
very thankful to all those tools for helping me a lot. Basic tools which I used
for project from statistics are-
- Bar Charts
- Pie charts
- Tables
bar charts and pie charts are really useful tools for every research to show
the result in a well clear, ease and simple way. Because I used bar charts and
pie cahrts in project for showing data in a systematic way, so it need not
necessary for any observer to read all the theoretical detail, simple on seeing
the charts any body could know that what is being said.
Technological Tools
Ms- Excel
Ms-Access
Ms-Word
Above application software of Microsoft helped me a lot in making project
more interactive and productive.
Microsoft-Excel had a great role in my project, it created for me a situation
of “you sit and get”. I provided it simply all the detail of data and in return it
given me all the relevant information..
Microsoft-Access did the performance of my personal assistant who
organizes my all the details of document without disturbing them even a
single time in all the project duration.
And in last Microsoft-Word did help me for the documentation of the project
in a presentable form.
Applied Principles and Concepts
While I started to do the project the main thing which was the matter of
concern was that around what principles I have to revolve my project.
Because with out having any hypothesis and objective we can not determine
that what output or result we are expecting form the project.
And second thing is that having only tools and techniques for the purpose of
project is not relevant until unless we have the principals for which we have
to use those tools and techniques.
Mathematical Averages
Standard Deviation
Correlation
GRAPHICAL REPRESENTATION OF COLLECTED DATA

Table1: Correlation between awareness of customers about IDBI bank & their Age

AGE NO. OF RESPONSE

20-25 25
25-30 46
30-35 34
35-40 23
40-45 21
45-50 22
50-60 24
60-ABOVE 55
 60
RESPONSES
50
40
30 NO. OF RESPONSE
20
10
0

VE
0

-A 0
5

0
-3

-4

-4

60 -6
-2

-3

-5

BO
20

25

30

35

40

45

50
AGE GROUP

TABLE 2: PERCEPTION OF IDBI AS A BANK

TYPE OF BANK RESPONSES

PRIVATE 50
PUBLIC 45
PRIVATE/PUBLIC 100
DON'T KNOW 55

TABLE 3 : RATING OF CUSTOMERS FOR IDBI BANK AS A GOOD

BANK
 PARAMETER RESPONSES
EFFICIENCY 75%
INTERNET BANKING/ATMs 25%
PRODUCT RANGE 95%
NETWORK 33%
PHONE BANKING 22%

22%
33% EFFICIENCY
75% INTERNET
BANKING/ATMs
PRODUCT RANGE

NETWORK
95% PHONE BANKING
25%

TABLE 4: MARKET SHARES IN SAKET IN COMPARISION TO COMPETITORS

BANK NAME % OF SHARE

SBI 30%
IDBI 15%
ICICI 25%
PNB 10%
HDFC 5%
HSBC 5%
OTHERS 10%
TABLE 5: FACTORS RESPONSIBLE FOR PERFORMANCE OF IDBI BANK IN

NOIDA

PARAMETERS % OF SHARE
PRODUCT 50%
ADVERTISMENT 5%
MANPOWER 25%
NET-BANKING 2%
PHONE BANKING 5%
INVESTMENT SCHEME 10%
NETWORK 3%
TABLE6 : COMPARATIVE STUDY WITH MAJOR

COMPETITORS ON BASIC PARAMETERS

CANARA
PARAMETERS/BANKS IDBI ICICI SBI PNB HSBC
BANK
PRODUCT 20% 15% 30% 15% 10% 10%
ADVERTISMENT 3% 45% 15% 20% 7% 10%
MANPOWER 10% 50% 2% 3% 25% 10%
NET-BANKING 3% 50% 10% 12% 8% 17%
PHONE BANKING 10% 40% 5% 5% 30% 10%
INVESTMENT SCHEME 5% 25% 50% 10% 5% 5%
NETWORK 2% 40% 40% 5% 3% 10%
CREDIBILITY 20% 10% 40% 20% 5% 5%
TABLE 7: THE EFFECTIVENESS OF COMMERCIALS OF IDBI

BANK

DAYS AFTER THE AD IS

SEEN POSITIVE RESPONSE
0-5 days 100
6-10 days 67
11-15 days 43
more than 15 days 40
FINDINGS

1. The credibility of IDBI bank is good in comparison to its competitors

as GOI (Government Of India) is a major share holder in the
company.
2. IDBI bank has potential a tapped market in SAKET in region and
hence has an opportunities for growth.
 3. The products of IDBI bank has good credibility in the region compare
to its competitors.
4. The advertisement of the bank was very effective from the first day of
its airing till the fifth day and there after it starts declining.

5. The initial balance for A/C opening is Rs, 5000/- and that’s why
people are reluctant in opening the same.

FINANCIAL ANALYSIS

------------------- in Rs. Cr. -------------------

Balance Sheet
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 1,332.75 1,278.38 984.57 724.86 724.78
Equity Share Capital 1,332.75 1,278.38 984.57 724.86 724.78
Share Application Money 0.77 0.00 0.99 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 19,902.51 16,295.61 11,686.25 7,502.26 6,719.52
Revaluation Reserves 0.00 1,853.93 1,895.77 1,937.72 1,979.56
Net Worth 21,236.03 19,427.92 14,567.58 10,164.84 9,423.86
Deposits 227,116.47210,492.56180,485.79167,667.08112,401.01
Borrowings 65,808.87 53,477.64 51,569.65 47,709.48 44,417.04
Total Debt 292,925.34263,970.20232,055.44215,376.56156,818.05
Other Liabilities & Provisions 8,607.14 7,439.12 6,753.77 8,030.62 6,160.40
Total Liabilities 322,768.51290,837.24253,376.79233,572.02172,402.31
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 10,543.95 15,090.21 19,559.05 13,903.47 8,590.82
Balance with Banks, Money at
7,380.57 2,967.44 1,207.03 679.36 2,628.50
Call
Advances 196,306.45181,158.43157,098.07138,201.85103,428.34
Investments 98,800.93 83,175.36 68,269.18 73,345.46 50,047.60
Gross Block 2,908.56 4,548.74 4,375.10 4,085.27 3,873.95
Accumulated Depreciation 0.00 1,554.43 1,405.82 1,250.35 1,127.40
Net Block 2,908.56 2,994.31 2,969.28 2,834.92 2,746.55
Capital Work In Progress 16.72 24.50 68.06 162.04 77.56
Other Assets 6,811.32 5,426.98 4,206.13 4,444.91 4,882.96
Total Assets 322,768.50290,837.23253,376.80233,572.01172,402.33

Contingent Liabilities 187,819.01122,965.13108,278.85101,597.45 96,523.34

Bills for collection 0.00 31,232.30 29,995.93 26,695.59 20,053.80
Book Value (Rs) 159.33 137.47 128.69 113.50 102.71
Key Financial Ratios of IDBI
Bank

Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 3.50 3.50 3.50 3.00 2.50
Operating Profit Per Share (Rs) 17.73 23.65 24.23 28.72 12.88
Net Operating Profit Per Share
188.06 197.91 203.54 235.40 174.79
(Rs)
Free Reserves Per Share (Rs) -- 102.29 93.88 77.72 70.83
Bonus in Equity Capital -- 19.15 24.86 33.77 33.77
Profitability Ratios
Interest Spread -- 3.03 2.77 2.14 2.88
Adjusted Cash Margin(%) 7.09 7.92 8.76 6.48 7.02
Net Profit Margin 6.65 7.99 8.12 5.95 6.71
Return on Long Term Fund(%) 108.74 124.19 131.48 174.83 151.49
Return on Net Worth(%) 8.86 11.56 13.02 12.53 11.53
Adjusted Return on Net Worth(%) 8.86 10.78 13.04 12.55 11.35
Return on Assets Excluding
159.33 137.47 128.69 113.50 102.71
Revaluations
Return on Assets Including
159.33 151.97 147.95 140.23 130.02
Revaluations
Management Efficiency Ratios
Interest Income / Total Funds 8.19 9.36 8.30 8.49 8.47
Net Interest Income / Total Funds 1.76 2.40 2.39 2.02 1.58
Non Interest Income / Total Funds 1.05 0.04 0.11 0.13 0.08
Interest Expended / Total Funds 6.44 6.97 5.91 6.47 6.89
Operating Expense / Total Funds 0.98 1.28 1.40 0.98 0.96
Profit Before Provisions / Total
1.78 1.11 1.05 1.12 0.67
Funds
Net Profit / Total Funds 0.62 0.70 0.68 0.51 0.57
Loans Turnover 0.28 0.15 0.14 0.14 0.14
Total Income / Capital
9.25 9.40 8.41 8.61 8.55
Employed(%)
Interest Expended / Capital
6.44 6.97 5.91 6.47 6.89
Employed(%)
Total Assets Turnover Ratios 0.08 0.09 0.08 0.08 0.08
Asset Turnover Ratio 0.08 0.10 0.08 0.09 0.09
Profit And Loss Account Ratios
Interest Expended / Interest Earned 78.56 80.55 76.73 85.15 88.60
Other Income / Total Income 11.38 0.40 1.33 1.46 0.89
Operating Expense / Total Income 10.64 13.59 16.66 11.42 11.18
Selling Distribution Cost
-- 0.10 0.23 0.26 0.38
Composition
Balance Sheet Ratios
Capital Adequacy Ratio 13.13 14.58 13.64 11.31 11.57
Advances / Loans Funds(%) -- 73.04 70.22 74.26 77.06
Debt Coverage Ratios
Credit Deposit Ratio 41.40 86.52 84.82 86.28 100.13
Investment Deposit Ratio 41.58 38.73 40.68 44.06 44.69
Cash Deposit Ratio 5.86 8.86 9.61 8.03 8.24
Total Debt to Owners Fund 10.70 11.98 14.24 20.38 15.10
Financial Charges Coverage Ratio 0.28 0.17 0.19 1.18 1.10
Financial Charges Coverage Ratio
1.10 1.11 1.12 1.09 1.09
Post Tax
Leverage Ratios
Current Ratio 0.86 0.02 0.02 0.03 0.04
Quick Ratio 24.82 27.11 26.78 19.49 18.98
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 24.78 19.13 20.88 24.14 24.69
Dividend Payout Ratio Cash Profit 23.25 18.09 19.38 22.18 23.26
Earning Retention Ratio 75.22 79.50 79.16 75.90 74.93
Cash Earning Retention Ratio 76.75 80.69 80.65 77.85 76.40
AdjustedCash Flow Times 113.21 104.62 101.39 149.23 125.17

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Earnings Per Share 14.12 14.82 16.76 14.23 11.85

Book Value 159.33 137.47 128.69 113.50 102.71

Standalone Profit & Loss

------------------- in Rs. Cr. -------------------
account
Mar '17 Mar '16 Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 25,064.30 23,369.93 18,600.82 15,272.63 11,631.63
Other Income 3,219.51 2,009.54 2,103.56 2,341.96 1,475.72
Total Income 28,283.81 25,379.47 20,704.38 17,614.59 13,107.35
Expenditure
Interest expended 19,691.19 18,825.08 14,271.93 13,005.22 10,305.72
Employee Cost 1,538.50 1,160.44 1,026.50 756.99 569.24
Selling and Admin Expenses 0.00 1,598.62 1,830.00 720.90 504.21
Depreciation 124.12 116.06 127.04 90.98 52.70
Miscellaneous Expenses 5,047.92 1,784.92 1,798.60 2,009.37 816.93
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
Operating Expenses 3,134.37 3,567.82 3,509.84 2,067.76 1,481.66
Provisions & Contingencies 3,576.17 1,092.22 1,272.30 1,510.48 461.42
Total Expenses 26,401.73 23,485.12 19,054.07 16,583.46 12,248.80
Mar '16 Mar '15 Mar '14 Mar '13 Mar '12

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit for the Year 1,882.08 1,894.34 1,650.32 1,031.13 858.54
Extraordionary Items 0.00 137.25 0.00 0.00 0.00
Profit brought forward 672.65 615.02 470.40 71.20 21.04
Total 2,554.73 2,646.61 2,120.72 1,102.33 879.58
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 466.47 388.68 344.60 217.46 181.20
Corporate Dividend Tax 71.75 60.33 55.27 31.47 30.79
Per share data (annualised)
Earning Per Share (Rs) 14.12 14.82 16.76 14.23 11.85
Equity Dividend (%) 35.00 35.00 35.00 30.00 25.00
Book Value (Rs) 159.33 137.47 128.69 113.50 102.71
Appropriations
Transfer to Statutory Reserves 962.65 774.95 514.55 283.00 346.39
Transfer to Other Reserves 150.00 750.01 600.00 100.00 250.00
Proposed Dividend/Transfer to
538.22 449.01 399.87 248.93 211.99
Govt
Balance c/f to Balance Sheet 903.86 672.65 606.30 470.40 71.20
Total 2,554.73 2,646.62 2,120.72 1,102.33 879.58

Source : Dion Global Solutions Limited

 RECOMMANDATION

1. Since there is only two branch of IDBI bank and only three atms in
Saket, so it is necessary for IDBI bank to open more branches and
install more atms to serve the vast market of saket especially.

2. More resources should be allocated in the market of Saket as there is

big untapped market in saket, so it becomes necessary for IDBI bank
for taking an edge over the competitors.

3. A short advertising campaign in Saket has produced good results in a

short span of times, so to gain long term benefits is very necessary for
IDBI bank to carry on this campaign with more intensity
.
4. Besides opening more branches it should also look for opening some
extension counter in Kutub near meherauli and one in Khanpur.
5. As Government is the majority share holder in the shares of IDBI
bank, which makes this bank more reliable than other private banks,
this thing can be used in the favour of IDBI bank by making people
aware about this fact and winning their faith.
 CONCLUSION

1. Consumers of Saket have good awareness level about IDBI bank as

well as about its services and products.

2. The advertising campaign has successfully been able to increase the

market share of IDBI in Saket

3. The modern days technology like internet banking, phone banking,

used by IDBI bank for providing banking services has sent positive

signals in the mind of consumes

4. The network of IDBI in Saket is lagging behind a little than its

competitors like ICICI bank and HDFC bank.

5. It can be distilled from data that IDBI bank has good market share as

compared to its competitors considering the amount of resources

deployed by them in the market.

 BIBIOLIOGRAPHY

www.idbibank.com

www2.idbibank.com

www.google.com

R.S. Sharma, Business statistics, First India Print, India, 2004,

Aaker Kumar and Day, Marketing research, 6th Ed.,john willy & sons,1997.

ICFAI Journal of Banking

The Economics times

The Times of India