Industrial Development Bank of India Limited

1

• Industrial Development Bank of India Limited
• June 2007

2
Our Vision
To be the trusted partner in progress by
leveraging quality human capital and setting
global standards of excellence to build the most
valued financial conglomerate
3
IDBI A Brief
Performance Financials
4
The Journey so far

• Genesis
• 1964 - Established as a wholly-owned subsidiary
  of the Reserve Bank of India (RBI)
• 1976 - 100 ownership transferred to Government
  of India (GoI)
• 1995 - Domestic IPO reduced GoI stake to 72
• 2004 Converted into a Banking Company
• Largest DFI in India
• Played an apex role in providing project
  financing
• Catalysed cumulative investments of over US 41
  bn
• Profitable operations for more than forty years
• Institutional Capital Market development
• By setting up the Small Industries Development
  Bank of India (SIDBI), Export Import Bank of
  India (EXIM Bank), National Stock Exchange an
  electronic Stock Exchange, NSDL a Securities
  Depository, CARE a Rating Agency, SHCIL a
  Depository, etc.

5

Conversion into a Banking Company

• Oct 1, 2004, converted into a banking company
• Mandated to continue playing the Development
  Financing role, with expansion into commercial
  banking space
• April 2, 2005, merged its Banking arm (IDBI Bank)
  with itself effective date of merger October 1,
  04
• Post-merger -
• GoI holding at around 53
• Wider branch network and access to low-cost funds
• Proven technology platform (Finacle from Infosys)
• Broader range of products cross selling
  opportunities
• Large pool of professionally qualified employees
  to cater to both wholesale as well as retail
  segment
• Oct 3,2006, amalgamated the erstwhile
  United Western Bank (UWB) with itself

IDBI has successfully integrated the erstwhile
IDBI Bank and is in the process of integrating UWB
6

Distribution Network

• Reach (as on 10-06-2007)
• 434 branches
• 18 extension counters
• 529 ATMs
• Presence in 255 centres
• Internet banking
• Corporate customers3000
• Retail customer base5 mln
• Expansion plans
• IDBI has approvals and licences for growing the
  domestic network
• IDBI has recently received domestic /GoI
  regulatory approvals for setting up Offshore
  Banking Units/Representative Offices.

7
Strong Capital Position

• Capital considerably higher than the current RBI
  requirement of 9
• Scope for raising further capital by way of
  Perpetual Tier I and Upper Tier II capital of
  around Rs.1200 crore (USD 277 mln) and Rs.2766
  crore (USD 636 mln) respectively

8
IDBI - Background
Performance Financials
9
Financial Highlights FY 2006-07

• IDBI
• Balance sheet at Rs.1,03,839 crore (USD 24.14
  bln)
• Total business including deposits, borrowings and
  advances at Rs.1,48,229 crore (USD 34.46 bln)
• Total business(excl. borr.) Rs.1,05,825 Cr. (USD
  24.60 bln)
• Total Income Rs.7373 crore (USD 1.71 bln)
• PAT at Rs.630 crore (USD 146.48 mln)
• Net NPAs at 1.12 of net advances
• CRAR 13.73 Tier-I 9.11
• RoA 0.67 RoE 9.69
• IDBI Group
• Total Income Rs.7517 crore (USD 1.75 bln)
• PAT Rs.588 crore (USD 136.71 mln)
• (Conversions based on March 31,2007 exchange
  rates of 1 USDRs.43.01)

10
Profit Loss Account
11
Details of Other Income
12
Balance Sheet
13
Growth in Business
(Rs.crore)

• Deposits at Rs.43,354 Cr growth of 67
• Retail Deposits grow by 27
• CASA at 25.4 of total deposits
• Advances at Rs.62,471 Cr growth of 18.5
• Retail Advances constitute 15.7 of total
  advances (Previous Year 16.2)

14
Strong retail growth
15
Key Profitability Indicators
16
Strong Investment Portfolio
The cost of these strategic investments is about
Rs.600 crore.
17
Asset Quality
18
High Quality Asset Profile
Non Performing Assets
Asset Composition Rs. Crore
Credit Exposure


A well-diversified loan portfolio
19
IT Initiatives

• Operating on core banking system
• Reduction in EOD processing time ensures 100
  data availability
• Complete infrastructure available on demand
  ensuring scalability
• Put in place a state-of-the-art Data Center and
  Disaster Recovery Center
• Suite of value-added products
• Card to Card transfer first bank in
  Asia-Pacific Region to launch the product
• Income Tax payments through the Internet first
  bank in India to launch Online payment of Direct
  taxes
• Automated payment gateway to port users
• International Travel Card - First bank in India
  to launch the card in six foreign currencies
• ATM Next First and only bank in India to
  introduce web-enabled ATM with audio capabilities
  
• Value Chain Management System, Cash Management
  Services on the Internet, Real Time Gross
  Settlement on Finacle, National Financial Switch
  for ATMs, among other initiatives

20
Credit Rating
Strong GoI Support to IDBI
Long Term Foreign Currency Rating
Credit Rating above Sovereign ratings by Moodys
At par with Sovereign ratings from SP and FITCH
21
Corporate Governance

• Listed at the NSE and BSE
• Board-managed company with 3 Whole Time Directors
  (CMD and 2 DMDs) and 9
  Independent Directors
• Meetings held monthly
• Audit, Risk Shareholder Grievances
  Committees of the Board comprise of Independent
  Directors
• Credit Committee, ALCO, Risk Management
  Committees set up as separate independent
  committees with relevant DoP
• Compliant with regulations of RBI, SEBI and Stock
  Exchanges

22
Key stock indicators
Shareholding Pattern March 31, 2007
_at_
_at_ -May 31, 2007
GoI to retain at least 51 stake at all times
IDBI is ranked 6th among Public Sector banks in
terms of Market Capitalisation
23
Business Strategy

• Optimize mix of corporate and retail banking
• Increase product offering by leveraging corporate
  relationships and maximise cross-selling
• Rationalize and reorient human resources through
  on-going training
• Improve technology infrastructure
• Enhance implement enterprise-wide risk
  management systems
• Focus on fee-based income to boost profitability
• Strengthen brand equity and enhance market share
• Establish and expand overseas presence with aim
  to offer suite of products

Short to Medium Term Strategy

• Pursue organic growth opportunities
• Leverage core competency in project financing
  while creating additional business opportunities
  in retail commercial banking
• Inorganic growth domestically through bank
  acquisitions/mergers
• Foray into Insurance, Asset Management, Private
  Equity

Long Term Strategy
24
Conclusions
Indias healthy economic outlook - On the
threshold of a high growth path
Indian Banking Sector - Offering High Growth
Opportunities
IDBI Limited - A new, revitalized and vibrant
organization with strong business prospects
Aspiring to be among Indias most trusted and
valued Financial Conglomerates
25
Thank You
Please visit our website www.idbi.com