MIRA INFORM REPORT

Report Date :

16.01.2014

IDENTIFICATION DETAILS

Name :	IDBI BANK LIMITED
Registered Office :	IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400005, Maharashtra
Country :	India
Financials (as on) :	31.03.2013
Date of Incorporation :	27.09.2004
Com. Reg. No.:	11-148838
Capital Investment / Paid-up Capital :	Rs. 13327.483 Millions
CIN No.: [Company Identification No.]	L65190MH2004GOI148838
Legal Form :	It is a Public Limited Liability Bank. The Bank's shares are listed on the Stock Exchanges.
Line of Business :	Providing Banking Services.
No. of Employees :	Information declined by the management

RATING & COMMENTS

MIRA’s Rating :

A (65)

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 849000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a well-established and reputed bank having fine track record. Financial position of the company appears to be strong. Over all fundamentals of the company appears to be sound and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The Company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

INDIAN ECONOMIC OVERVIEW

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

India was ranked 94^th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	Omni bonds: AA+
Rating Explanation	High degree of safety and low credit risk.
Date	19 December 2012

Rating Agency Name	CRISIL
Rating	Certificate of deposits: A1+
Rating Explanation	Strong degree of safety and lowest credit risk
Date	19 December 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

INFORMATION DECLINED

Management Non-Cooperative (91-22-66553355)

LOCATIONS

Registered Office / Head Office :	IDBI Tower, WTC Complex, Cuffe Parade, Mumbai - 400 005, Maharashtra, India
Tel. No.:	91-22-22189111/ 66553355
Fax No.:	91-22-22181294 / 5179/8137
E-Mail :	pro@idbi.co.in sn.baheti@idbi.co.in corporate_office@idbi-bank.com pawan.agarwal@idbi.co.in
Website :	http://www.idbi.com
ZONAL OFFICES :	Located At · Delhi · West Bengal · Tamilnadu · Gujarat · Maharashtra

DIRECTORS

As on 31.03.2013

Name :	Mr. M.S. Raghavan
Designation :	Chairman and Managing Director
Name :	Mr. B.K. Batra
Designation :	Deputy Managing Director
Name :	Mrs. Snehlata Shrivastava
Designation :	Govt. Director
Name :	Mr. Subhash Tuli
Designation :	Independent Director
Name :	Mr. P.S. Shenoy
Designation :	Independent Director
Name :	Mr. S. Ravi
Designation :	Independent Director
Name :	Mr. Ninad Karpe
Designation :	Independent Director
Name :	Mr. B. Ravindranath
Designation :	Executive Director
Name :	Mr. R.K. Bansal
Designation :	Executive Director
Name :	Mr. Viney Kumar
Designation :	Executive Director
Name :	Mr. K.C. Jani
Designation :	Executive Director
Name :	Mr. Melwyn Rego
Designation :	Executive Director
Name :	Mr. S.K.V. Srinivasan
Designation :	Executive Director

KEY EXECUTIVES

Name :	Mr. Pawan Agrawal
Designation :	Company Secretary

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 31.12.2013

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Central Government / State Government(s)	1227018622	76.50
Sub Total	1227018622	76.50
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	1227018622	76.50
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	789556	0.05
Financial Institutions / Banks	16903074	1.05
Insurance Companies	162970272	10.16
Foreign Institutional Investors	44554269	2.78
Any Others (Specify)	35680	0.00
State Finance Corporation	35680	0.00
Sub Total	225252851	14.04
(2) Non-Institutions
Bodies Corporate	20335107	1.27
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	103595739	6.46
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	21205094	1.32
Any Others (Specify)	6531847	0.41
Trusts	624289	0.04
Non Resident Indians	5520111	0.34
Societies	28960	0.00
NSDL Transit	358487	0.02
Sub Total	151667787	9.46
Total Public shareholding (B)	376920638	23.50
Total (A)+(B)	1603939260	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	0	0.00
Sub Total	0	0.00
Total (A)+(B)+(C)	1603939260	0.00

Shareholding belonging to the category "Promoter and Promoter Group"

Sl.No.	Name of the Shareholder	Details of Shares held		Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
		No. of Shares held	As a % of grand total (A)+(B)+(C)
1	Government of India	95,58,52,609	59.59	59.59
2	Government of India	27,11,66,013	16.91	16.91
	Total	1,22,70,18,622	76.50	76.50

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

Sl. No.	Name of the Shareholder	No. of Shares held	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India	96780960	6.03	6.03
2	LIC of India Market Plus Growth Find	18261855	1.14	1.14
	Total	115042815	7.17	7.17

Shareholding belonging to the category "Public" and holding more than 5% of the Total No. of Shares

Sl. No.	Name(s) of the shareholder(s) and the Persons Acting in Concert (PAC) with them	No. of Shares	Shares as % of Total No. of Shares	Total shares (including underlying shares assuming full conversion of warrants and convertible securities) as a % of diluted share capital
1	Life Insurance Corporation of India and Various Sechemes	145356403	9.06	9.06
	Total	145356403	9.06	9.06

Details of Locked-in Shares

Sl. No.	Name of the Shareholder	No. of Shares	Locked-in Shares as % of Total No. of Shares
1	Government of India	95,58,52,609	59.59
	Total	95,58,52,609	59.59

BUSINESS DETAILS

Line of Business :

Providing Banking Services

GENERAL INFORMATION

No. of Employees :

Information declined by the management

Bankers :

Reserve Bank of India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2013	As on 31.03.2012
I Borrowings in India
Reserve Bank of India	--	--
Other banks	8141.000	1705.500
Other institutions and agencies	--	--
Tier l (Innovative Perpetual Debt Instrument)	25588.000	17088.000
Upper Tier II Bonds	42862.000	42862.000
Unsecured, Redeemable Bonds (Subordinated for Tier II Capital)	102957.000	90320.452
Others	254365.723	279159.543
II Borrowings outside India	224174.987	103640.918
Total	658088.710	534776.413

Banking Relations :	---
Auditors :
Name 1 :	Khimji Kunverji and Company Chartered Accountants
Name 1 :	G. D. Apte and Company Chartered Accountants
Subsidiaries :	· IDBI Capital Market Services Limited · IDBI Intech Limited · IDBI MF Trustee Company Limited · IDBI Asset Management Company Limited · IDBI Trusteeship Services Limited
Jointly controlled entity :	IDBI Federal Life Insurance Company Limited

CAPITAL STRUCTURE

As on 31.03.2013

Authorised Capital :

No. of Shares	Type	Value	Amount
3000000000	Equity Shares	Rs.10/- each	Rs.30000.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1332748347	Equity Shares	Rs.10/- each	Rs.13327.483 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars	31.03.2013	31.03.2012	31.03.2011
Capital	13327.483	12783.817	9845.681
Reserve and Surplus	199025.062	181486.812	135820.247
Employees’ Stock Options (Grants) Outstanding	7.689	8.536	9.858
Deposits	2271164.745	2104925.606	1804857.885
Borrowings	658088.710	534776.413	515696.525
Other Liabilities and Provisions	86071.417	69182.160	67537.732
TOTAL	3227685.106	2903163.344	2533767.928
ASSETS
Cash and Bank Balances with Reserve Bank of India	105439.499	150902.113	195590.467
Balances with Banks and money at call and short notice	73805.736	29674.405	12070.265
Investments	988009.268	831753.635	682691.778
Advances	1963064.479	1805722.972	1570980.664
Fixed Assets	29252.877	30188.081	30373.414
Other Assets	68113.247	54922.138	42061.340
TOTAL	3227685.106	2903163.344	2533767.928
Contingent Liabilities	1806619.557	1489200.932	1342420.115
Bills for collection	71570.503	52773.347	40327.681

PROFIT & LOSS ACCOUNT

Particulars	31.03.2013	31.03.2012	31.03.2011
INCOME
Interest earned	250643.004	233699.299	185412.396
Other Income	32195.058	21121.840	21432.301
TOTAL	282838.062	254821.139	206844.697
EXPENDITURE
Interest expended	196911.888	188250.823	142719.265
Operating Expenses	31343.639	26074.532	22546.934
Provision and contingencies	35761.698	20179.672	25075.304
TOTAL	264017.225	234505.027	190341.503
Net profit for the year	18820.837	20316.112	16503.194
Profit brought forward	6726.450	6150.179	4791.213
TOTAL	25547.287	26466.291	21294.407
APPROPRIATIONS
Less:
Transfer to statutory reserve	4708.293	5079.028	4130.000
Transfer to Capital Reserve	1918.186	170.472	15.500
Transfer to General Reserve	1500.000	750.000	6000.000
Transfer to Special Reserve under section 36(1)(viii) of the Income Tax Act, 1961	3000.000	250.000	100.000
Proposed dividend	4664.619	1917.572	3445.988
Tax on proposed dividend	0.000	0.000	552.740
Interim Dividend paid	0.000	1969.241	0.000
Tax on Interim dividend	0.000	0.000	0.000
Dividend on ESOPs	0.064	0.189	0.000
Dividend distribution tax	717.517	603.339	0.000
Balance carried over to balance sheet	9038.608	6726.450	6150.179
TOTAL	25547.287	17466.291	20394.407
Earnings per share
· Basic	14.70	20.58	18.37
· Diluted	14.70	20.58	18.36

LOCAL AGENCY FURTHER INFORMATION

CURRENT MATURITIES OF LONG-TERM DEBT: NOT AVAILABLE

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	No
6]	Line of Business	No
7]	Promoter's background	No
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	No
12]	Profitability for last three years	No
13]	Reasons for variation <> 20%	No
14]	Estimation for coming financial year	No
15]	Capital in the business	No
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	----------------------
22]	Litigations that the firm / promoter involved in	Yes
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	----------------------
26]	Buyer visit details	----------------------
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	Yes
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	No
32]	PAN of Proprietor/Partner/Director, if available	No
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

LITIGATION DETAILS
Bench:- Bombay
Lodging No. :	ARBPL/2183/2013	Failing Date:-	12/12/2013
Petitioner:-	KEC INTERNATIONAL LIMITED		Respondent:-	SMC INFRASTRUCTURES PRIVATE LIMITED
Petn.Adv:-	MESSERS LEGASIS PARTNERS (0)		Resp. Adv.:	MDP AND PARTNERS FOR (0)
District:-	MUMBAI
Bench:-	SINGLE		Category:-	ARBITRATION ACT.
Status:-	Pre- Admitted		Stage:-	FOR SPEAKING TO THE MINUTES (ORIGINAL SIDE MATTERS)
Last Date:-	24/12/2013
Last Coram:-	HON’BLE SHRI JUSTICE R.D. DHANUKA
Act. :	Arbitration and conciliation Act 1996			Under Section 9

PROFIT AND APPROPRIATIONS

During FY 2012-13, the Bank’s gross income amounted to Rs.282838.062 Millions, comprising interest income at Rs.250643.004 Millions and other income at Rs.32195.058 Millions. Interest expenses of Rs.196911.888 Millions and operational expenses of Rs.31343.639 Millions led to total expenditure, excluding provisions and contingencies, of Rs.228260.000 Millions. Total provisions during the year were at Rs.35761.698 Millions, which mainly includes Rs.17580.000 Millions towards provision for bad and doubtful debts and investments, Rs.3830.000 Millions towards bad debts written off, Rs.4930.000 Millions towards restructured assets, Rs.1720.000 Millions towards incremental prudential provisions for standard assets, and Rs.7400.000 Millions towards tax. The Bank’s working during FY 2012-13 resulted in a Profit Before Tax (PBT) of Rs.26220.000 Millions. After making a provision of Rs.7400.000 Millions towards taxation, Profit After Tax (PAT) amounted to Rs.18820.837 Millions. The appropriation of PAT, as approved by the Board of Directors.

For each share with a face value of Rs.10, Earning Per Share (EPS) during the year stood at Rs.14.70, while Book Value per Share stood at Rs.145.89 as at the end of March 2013. The Directors have the pleasure in recommending dividend at 35% on the fully paid-up equity share capital for the FY 2012-13.

KEY BUSINESS INITIATIVES

Pursuant to its aim of targeting a progressively larger retail business portfolio to facilitate a balanced business-mix as also to increase the complement of low-cost funds, the Bank currently offers a bouquet of Liability, Asset, Capital Market and Third Party products, primarily aimed at meeting the customised needs of customers in the Retail Banking segment. The products are periodically reviewed and modifications/ innovations/ customisation of existing products as well as introduction of new products are carried out on a regular basis. This is done in sync with observed and latent customer preferences, both as part of customer-centric service as well as for facilitating growth in business volumes.

Business initiatives in the retail banking space are skilfully driven by enabling expansion in branch network and skilled manpower. The Bank added 104 new brick and mortar branches during the current financial year. The Bank, as a part of its customer convenience initiatives, continued to strengthen its alternate delivery channels by expanding its ATM network from 1,542, as on March 31, 2012, to 1,702 on March 31, 2013.

In the retail liability product segment, the Bank continued to design new products aligned to emerging customer needs. The Bank rationalised existing products and also unveiled other customer-friendly initiatives to, inter alia, increase the complement of low-cost funds. As a techsavvy, customer-friendly initiative for customers, who prefer to transact over the internet, the Bank enabled on-line opening of Savings Bank accounts in certain categories. The Bank also successfully launched Online PPF Subscription Facility for its customers in February 2013. A customer maintaining PPF account with the Bank can now view his/ her PPF account details, print the account statement and also transfer funds from Savings Bank account to PPF account through Net Banking.

With a view to promote transactions through electronic mode, the Bank has made NEFT transactions up to Rs.1 lakh free of charge for all Retail Savings and Current Account customers with effect from June 20, 2012. Further, the Bank has extended NEFT facility to walk-in customers for cash deposits up to Rs.50,000. A Floating Rate Interest on Retail Term Deposit (FRTD) product was launched in August 2012 to enable the Bank’s customers to leverage the upside of an increase in interest rates and also hedge floating rate advances. The Bank has been authorised to accept deposits under the Capital Gains Accounts Scheme (CGAS), 1988. Four more currencies have been added to help the Bank’s NRI customers choose from a total basket of nine currencies for booking their FCNR (B) Deposits.

In the retail lending space, a bouquet of initiatives and business enablers were put in place during the year. The objective was to ramp up business volumes in all constituents of the retail lending area in an otherwise difficult year. The Bank proceeded with missionary zeal to bring about business growth in the socially important Education Loan segment. Towards this end, attractive and bespoke schemes were put out for various constituencies of this segment. In the Auto Loan segment, apart from attractive pricing, special festive campaigns, payout policy regarding Auto Dealers and their functionaries have been made conducive for enhanced sourcing of Auto Loan business and mutually gainful tie-ups with auto dealers/ manufacturers.

The Bank introduced online loan application facility with tracking system during FY 2012-13, beginning with Home Loans, which was subsequently extended to Auto Loans, Personal Loans and Education Loans. It is expected that the cost-effective, fast and transparent facility will provide an additional and more convenient option to the Bank’s customers to apply for its Loan products. Simultaneously, with a view to improve the turnaround time, transparency and accuracy in loan processing as well as decision making, the Bank has launched an automated Loan Originating System (LOS). LOS is an endto-end solution for retail loan products, which automates the loan process from login of the proposal till opening of loan account in Finacle Core.

To augment the Bank’s Priority Sector Loans (PSL) business and develop a PSL portfolio, all the personal banking branches of the Bank have been tasked with the responsibility of sourcing and processing Agri and MSME loans, along with Home Loans and Education Loans, qualifying as PSL, from the current financial year.

The Bank continued to strengthen its Alternate Banking channels like ATMs, internet banking, mobile banking and others to provide customers with enabling options to reduce their dependence on the branch channel, while simultaneously offering 24x7 capabilities. From the Bank’s perspective, they are also cost-effective as the transaction cost is less compared to the branch channel. The Alternate Channels and Merchant Acquisition Business also provided avenues to the Bank for augmenting fee-based income, apart from helping acquire/ deepen existing relationships. Share of Alternate Banking transactions total Branch Banking (Financial) transactions increased by 5% during the year to around 49% by March 2013. It helped reduce the Bank’s transaction costs, apart from freeing up soft resources at the Branch for redeployment in product sales.

The Bank was ranked among the Top 10 Banks having initiated more than 10,000 M-remit (IMPS) mobile- based transactions during the National Payment Corporation of India (NPCI) campaign conducted in August 2012. The Bank is in the process of launching a comprehensive Mobile Banking solution, which would enable customers to have access to their accounts 24x7 on the move.

Several initiatives were also undertaken by the Bank in the internet banking area during the year. To further enhance security of the internet banking channel from phishing and various other online frauds, the Bank took the lead to expeditiously implement a Digital Signature Certificate (DSC) based authentication solution to strengthen and further secure its Corporate I-net Banking channel. To drive awareness on cyber frauds and its prevention, customers are being educated about security measures taken by the Bank through E-mails and SMS. Inserts are sent in statements on a periodic basis. A pre-Login caution page explaining safe Internet banking practices is also being displayed. A series of Safety measures (Do’s and Don’ts) to use Net Banking is also displayed on the Bank’s website. In addition to channel alerts (ATM, Net Banking and Point of Sale transactions), SMS alerts for all channel transactions, including stop payment confirmation/ cheque(s) deposited and returned are being sent to all Personal Banking Group (PBG)-tagged customers, irrespective of registration for the service, to keep them informed and avoid possible misuse.

The Bank has constantly endeavoured to cater to the diverse needs of its MSME clients. The Bank has also developed innovative and user-friendly products and services for the MSME sector to promote their growth in the sphere of industry and services. Considering the importance of credit rating, the Bank has signed Memorandums of Understanding (MoUs) with CRISIL and SME Rating Agency of India (SMERA) to provide credit rating-related services to the MSME clients. The Bank has also entered into a MoU with Small Industries Development Bank of India (SIDBI) – the apex financial institution for MSME Sector – to offer Loan syndication services to the Sector. The Bank has also entered into a Memorandum of Co-operation (MoC) with the Export Import Bank of India (Exim Bank) to co-finance, coarrange and syndicate Rupee and Foreign Currency loans to eligible export-oriented companies, particularly in the MSME sector.

Consequent upon the reclassification of direct agriculture exposure by the Reserve Bank of India in July 2012, the Bank’s focus has veered towards catering to direct retail lending to farmers involved in crop cultivation and allied activities. To reach out to the remotest part of the country, the Bank appointed 35 Business Correspondents/ Business Facilitators (BC/BF). The Bank continued to encourage formation of farmers’ clubs in the villages covered by rural branches for garnering higher Agri Business. The Bank’s engagement with farmers and other agriculture intermediaries was also enhanced through participation in various ‘Agri Expos’ and ‘Loan Melas’ conducted at different locations in the country.

The Bank’s Corporate Banking Group (CBG) has a strong focus on multi-product sales – both assets and liabilities – to maximise yield. With the reorganisation of Large and Mid-Corporate Group, a unified Corporate Banking Group was formed in June 2012 to cater to all corporate clients with funding requirement of more than Rs.5 crore. To effectively operationalise the business, CBG has been reorganised into seven regions and operates through 29 Specialised Corporate Branches (SCBs) present across 25 cities.

During FY 2012-13, the Bank opened two new Nostro Accounts in AUD and SGD currencies, with Australia and New Zealand Banking Group Limited. (ANZ), Melbourne, Australia and United Overseas Bank, Singapore, respectively, for DIFC, Dubai Branch operations. A new Nostro account was also opened in Korean Won (KRW) currency with Standard Chartered First Bank, Seoul, South Korea, for Indian operations. During the year, the Bank opened one new Trade Finance (TF) Centre at Bandra-Kurla Complex (BKC), Mumbai, thereby increasing the total number of TF locations to 40. The Bank has been establishing inland Letters of Credit (LCs) through Structured Financial Messaging System (SFMS) developed by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad. The Bank implemented the SFMS system in all its 40 Specialised Trade Finance Branches for issuance of LCs according to the directive of the Ministry of Finance, with effect from January 1, 2013. SFMS is a highly secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. The Bank is also fully ready for issuance of Bank Guarantees using this highly efficient platform. The Bank is also among the first few institutions to issue Electronic Bank Realisation Certificate of Export Realisation (e-BRC). The process envisages direct uploading of digitally signed e-BRC covering export realisation details to Directorate General of Foreign Trade’s (DGFT) site, thereby making the process of settlement of export-related benefits/ incentives faster and hassle-free for the exporters.

Strengthening relationship with Foreign Banks continued to be the Bank’s priority to enhance Trade Finance Business, which has contributed to the augmentation of fee income.

The Singapore Dollar Bond issue by the Bank was the first benchmark public bond transaction by any Indian entity in the Singapore Dollar bond market, opening up a new source of funding and investor diversification for Indian issuers.

The Bank became the first in the country to launch an internet-based portal dedicated to retail investors in Government Securities, christened as “IDBI Samriddhi GSEC”. To popularise Certificate of Deposit (CD) as a mode of investment among retail investors, the Bank, in August 2012, launched the first online CD portal in the country, called IDBI Samriddhi CD portal. This CD portal helps retail investors subscribe online to CDs issued by the Bank with a minimum of Rs.1 lakh and in multiples of Rs.1 lakh thereafter. The Bank also entered into Global Master Repurchase Agreements (GMRA) with various market participants and was the first Public Sector Bank in the country to undertake Repo deal in corporate bonds.

ORGANISATION STRUCTURE

To execute its strategy of building a robust customer base, facilitate CASA growth, improve customer service and further the cause of inclusive banking, the Bank embarked on a calibrated branch-category wise expansion drive. The Bank added 104 domestic branches during FY 2012-13. Of the domestic network of 1,076 branches, as on March 31, 2013, as many as 274 are located in metropolitan centres, 388 in urban centres, 282 in semi-urban centres and 132 in rural centres, including 21 branches at hitherto unbanked areas; besides, the Bank has one fully operational overseas branch at DIFC, Dubai. Branches at a few locations were relocated and renovated to have a uniform décor across all branches.

Customer relationship and service forms the core of the Bank’s initiatives. Accordingly, the Bank is currently organized on the lines of ‘Customer Focused Vertical’ model, capable of delivering improved services. The model has achieved significant success in enhancing customer relationship management. Besides, it has improved credit delivery and brought sharper focus to business lines, which are sustainable and remunerative. Both the retail and corporate business segments of the Bank were further reorganised to enhance business delivery and reduce turnaround time.

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS ENVIRONMENT

Global Economic Scenario

The subdued pace of economic activity, persisting at subpar levels across the advanced economies, led to heightened concerns of underlying vulnerability in these economies, impinging upon the recovery process. Despite concerns over the impact of budget sequestration in the US economy, economic indicators, led by GDP growth, rebound in employment and increased consumer spending shows a degree of resilience to the fiscal austerity in the economy. Japan’s economy rebounded mildly towards the end of 2012 on the back of monetary and fiscal stimulus, popularly known as ‘Abenomics’, which has led to an improvement in consumer confidence. Further, the weak Yen abetted a pick-up in the external demand, lending the much needed boost to the economy. The inimical economic conditions continued to prevail in the Euro– zone countries as is evidenced by the weak growth momentum reported by most member countries as also the number of member countries opting for bailouts. The recessionary conditions in the European economies were characterised by declining industrial production, weak domestic demand and declining exports.

The sluggish pace of economic recovery in advanced economies also weighed down heavily on the performance of the emerging market economies, especially the BRICS economies. Despite being the fastest growing economy in the world, China witnessed a slowdown in its growth momentum, predominantly led by the sluggish external demand for its exports. With a slowdown in economic activity across major economies, there have been heightened downside risks to global economic recovery.

However, the monetary stimulus and liquidity support extended by major advanced economies boosted investor sentiments towards the end of 2012. The accommodative policy measures adopted by the European Central Bank (ECB), namely, the bailout of Greece, the introduction of roadmap for the Euro area banking union, the bond buying programme and so on, were instrumental in restricting the extent of downturn in the European economies.

The Federal Reserve provided the necessary monetary stimulus to the US economy by announcing a third round of quantitative easing involving open-ended, bond purchase programme of agency mortgage-backed securities. ‘Abenomics’, envisaging huge monetary base expansion in Japan also was instrumental in reviving the economic growth of the country. Even with an improvement in the country’s financial condition, a sustained recovery in economic activity is yet to be witnessed. Further, there are increasing concerns over the impact of a massive monetary influx in the global financial system on the back of monetary easing by the central banks of advanced economies and its impact on the emerging economies.

Domestic Economic Environment

The Indian economy registered a muted performance in FY 2012-13, with GDP growth decelerating to a low of 5.0%. While the persistent economic upheaval across the major economies contributed to the slowdown, the weak domestic fundamentals compounded the economic problems. The slowdown in the economic growth momentum was broad-based, reflected by a subdued performance of all the three sectors – agriculture, industry and services. However, industry sector performance and particularly the Manufacturing Sector component therein, was markedly disappointing.

The saving and investment levels in the economy remained subdued, posing a major macroeconomic challenge to the economy. Inflationary concerns, that had put the Indian economy under pressure for the past couple of years, resulted in a hardening of interest rates consequent to a phased monetary policy tightening by the RBI. However, macroeconomic concerns, along with easing WPI inflation, allowed the central bank to recalibrate its policy stance towards a more accommodative position by reducing the key policy rates by 100 basis points during FY 2012-13. Nevertheless, the elevated levels, albeit decelerating, of CPI inflation continued to be an area of concern, impeding a more aggressive policy intervention towards reinvigorating growth numbers. The slowing economy impacted the financial health of the Government, prompting the adoption of the objective of fiscal consolidation as evidenced in the Union Budget 2013-14. The Government succeeded in restricting its fiscal deficit to 4.9% of the GDP in FY 2012-13 (lower than the revised estimate of 5.2%). The unacceptably high Current Account Deficit (CAD) of 4.8% of GDP, up from 4.2% a year ago, and a rise in External Debt, valued at US$ 390.0 billion, as at end-March 2013, up 12.9% from end-March 2012, particularly the short-term debt component, further circumscribed the already restricted domain for growth and investment friendly policy manoeuvre

REAL SECTOR

Gross Domestic Product (GDP)

The Annual National Income estimates for FY 2012-13, released by the Central Statistical Office (CSO), reflected a marked slowdown in the Indian economy. The Gross Domestic Product (GDP) at factor cost for FY 2012-13 was estimated at Rs.55,05,437 crore compared to Rs.52,43,582 crore in FY 2011-12, implying a growth rate of 5.0% visà- vis a growth of 6.2% in FY 2011- 12. The deceleration was observed across sectors, with agriculture, industry and services sectors registering growth rates of 1.9%, 2.1% and 7.1%, respectively, in FY 2012-13. The deceleration in the pace of growth stemmed from the sluggish pace of global economic recovery and subdued domestic macroeconomic fundamentals. The sectoral dynamics of the Indian economy has undergone a metamorphic change over the years. From being predominantly an agrarian economy, the Indian economy is now a pronounced services-led economy. The contribution of Services Sector to the overall GDP ascended further from 58.4% in FY 2011-12 to 59.6% in FY 2012-13. The share of Industry Sector, in contrast, fell marginally to 26.7% in FY 2012-13 from 27.5% in FY 2011-12 and that of Agriculture Sector dropped further to 13.7% in FY 2012-13 from 14.1% in FY 2011-12. Though the Services Sector continued to remain the key growth driver of the Indian economy, the sector’s performance has been on the decline since the last three fiscal years.

Industrial Scenario

Industrial activity in the economy exhibited a sluggish trend throughout FY 2012-13 due to the tumultuous global economic conditions and prevailing subdued investor sentiment. The pace of industrial activity, gauged by the Index of Industrial Production (IIP), remained depressed due to the tepid performance by the Manufacturing Sector, which constitutes more than 75.0% of the overall index and persistent negative performance by the Mining

Sector. The overall Industrial Sector growth during FY 2012-13 was at 1.1% as compared to 2.9% during FY 2011-12. In the use-based category, the sluggish performance of the Capital Goods segment highlighted the muted business sentiments, while depressed Consumer Goods indices epitomised the flaccid domestic consumption demand. The Index of Eight Core Industries, with a combined weight of 37.9% in the overall IIP, grew by merely 2.6% in FY 2012-13 as compared to 5.0% in FY 2011-12. With both infrastructure and manufacturing registering pronounced sub-optimal performance, the Indian economy recorded a low GDP growth.

Inflation

Escalating price levels, partly resulting from the structural impediments in the economy, has emerged as a major concern in the Indian macroeconomic landscape for the past couple of years. There was a moderation in the price levels towards the end of FY 2012-13, due to Government initiatives, as evidenced by the sharp decline in the WPI-based inflation to sub- 6.0% level, as also in core inflation. However, upside risks to inflation persevered with food inflation remaining sticky at elevated levels. For FY 2012-13, average headline WPI inflation clocked 5.65%, whereas CPI inflation stood much higher, at 10.39%.

Foreign Exchange Reserves and Exchange Rates

As on March 31, 2013, India’s foreign exchange reserves stood at USD 292.0 billion, which was lower by USD 2.4 billion compared to March end 2012. The decline in foreign exchange reserves can be attributed to a steep depreciation of the Rupee along with pressure on the Balance of Payments (BoP) due to the widening of the Current Account Deficit (CAD) and decline in capital inflows. In FY 2012-13, the Indian Rupee depreciated by 6.3% vis-à-vis the US Dollar as compared to 14.6% depreciation witnessed in FY 2011- 12. The average value of the Indian Rupee against the US Dollar was Rs.54.45 in FY 2012-13 as compared to Rs.47.95 per US Dollar in FY 2011- 12. Except for few intermittent gains, the Indian Rupee was under pressure for a major part of the year. The widening trade deficit, occasioned by declining exports, exerted a downward pressure on the Rupee. In the latter part of the fiscal FY 2012-13, there was an improvement in the capital inflows in the economy, resulting in a marginal appreciation in the Rupee valuation.

Future Outlook

The growth momentum of the Indian economy stuttered in FY 2012-13 due to a combination of factors, such as uncertain and geographically uneven pace of global economic recovery, lower domestic demand, muted investment activity, stalled projects, weak monetary policy transmission, burgeoning CAD and adverse external sector developments. Global economy grew only marginally from an annualized rate of 2.5% in the second half of 2012 to 2.75% in the first quarter of 2013. Global growth continues to be patchy and uneven across countries as well as geographic zones. Downside risks to global growth prospects still dominate: while old risks remain, new risks have emerged, including the possibility of a longer growth slowdown in Emerging Market Economies (EMEs), especially given risks of lower potential growth, slowing credit and possibly tighter financial conditions if the anticipated unwinding of monetary policy stimulus in the United States leads to sustained capital flow reversals. The IMF has warned of non-trivial risks of the global economy encountering a soft patch in the months ahead, while projecting a growth of 3.10% for CY 2013.

On the domestic front, macroeconomic conditions, including industrial production, continue to be subdued, hamstrung by infrastructure bottlenecks, supply constraints, lackluster domestic demand and subdued investor sentiment. Inflation indices have witnessed a recent surge, after a few months of moderation, on the back of higher food inflation and pass-through of pronounced rupee depreciation in the first quarter of FY 2013-14. This is despite subdued core and non-food manufactured inflation resulting from flaccid investment and consumption demand. The policy intervention to restore stability in the foreign exchange market and to purge it of undue volatility have temporarily sucked out liquidity in the system and imparted an upward bias to short-term interest rates. However, these are expected to be temporary developments, with prospects of reversal at an opportune time when the par value of the rupee stabilises. Softer global commodity prices and recent measures to dampen gold imports are expected to moderate the CAD in 2013-14 from its level last year. The glad tidings on the fiscal deficit front in 2012-13 and determined policy initiatives instill confidence that the fiscal deficit for 2013-14 would be contained at targeted levels. Consolidation in this regard is expected to mitigate the twin deficit risks to the outlook. The normal monsoons to date are another comforting feature. If the exchange rate volatility is brought under control soon, inflation stays range-bound through the latter half of the financial year and global market conditions, particularly those in EMEs (Emerging Market Economies), do not turn inimical to growth, the room for policy manoeuvre would open up sufficiently to stimulate investment and overall economic growth. Despite a plethora of uncertainties currently weighing down on the growth momentum in the economy, there is cautious optimism that the Indian economy would register an improved performance in respect of GDP growth and associated macroeconomic parameters during 2013- 14 compared to the immediately preceding financial year.

BUSINESS REVIEW

IDBI Bank has the unique advantage of being the youngest commercial bank in India’s public sector with a four-decade heritage. As the erstwhile Industrial Development Bank of India and the country’s apex Development Financial Institution (DFI), it played a pioneering role in India's industrial and economic progress. Today, IDBI Bank’s youth, dynamism and josh are the inherent qualities which define what the Bank stands for and aspires towards. The Bank endeavours to not only permeate these qualities in its operations, but also in the construct of its products and service offerings.

Retail Finance

At IDBI Bank, in order to maintain its position as a full-service new generation commercial bank, it pursues a calibrated accretion to its retail business portfolio to moderate the skew of corporate business in the Bank’s total business. At present, the Bank offers a bouquet of Liability, Asset, Capital Market and Third Party products primarily aimed at meeting the specific needs of customers in the Retail Banking segment. The Bank’s liability products include Savings Accounts, Current Accounts, Retail Term Deposits, Recurring Deposits, etc. Retail Structured Asset products on offer include Housing Loans, Loan against Property, Personal Loans, Education Loans and Auto Loans. The Bank also offers various genres of card products such as Debit-cum- ATM Cards and Prepaid Cards, Capital Market and Third Party products etc. The Bank also offers exclusive products for NRIs like NRE/ NRO/ FCNR Bank Accounts, Remittance Services, Portfolio Investment Scheme (PIS) and Investment Related Products. The Bank’s product portfolio is periodically reviewed to modify, innovate and customise existing products and introduce new products in line with the ever-changing banking needs of its customers. These upgradations are carried out on a regular basis in sync with observed and latent customer preferences, both as part of the Bank’s customer-centric service and to facilitate growth in business volumes.

Business initiatives in the retail banking space are skillfully driven through an enabling expansion in branch network and skilled manpower. At the end of March 2013, the Bank’s domestic footprint stood at 1,076 branches, comprising 274 at various metropolis locations, 388 at urban centres, 282 at semiurban centres and 132 at rural centres, including 21 branches at hitherto unbanked centres. Additionally, IDBI Bank has one fully operational overseas Branch at DIFC, Dubai. During the year, the Bank added 104 new brick and mortar branches.

In order to enhance the customers’ convenience, the Bank strengthened its Alternate Delivery Channels by expanding the ATM network from 1,542 as on March 31, 2012 to 1,702 as on March 31, 2013.

Agriculture and Rural Development

At IDBI Bank, a dedicated team of officers in Agri Business Group extend knowledge-based credit to the farming community to improve farm productivity and quality of life of rural population. It operates from 22 Agri Processing Centres and 7 Regional Offices in the country for speedy disposal and quick decisions. The Bank’s Agri Business Group owns branches only in agriculture intensive areas, but supports other branches for the growth of agribusiness.

Agricultural lending comprises direct lending to the farmers or a group of farmers, assistance to corporates or cooperatives engaged in processing agriculture produce and entities supporting agriculture sectors. During FY 2012-13, the Bank further streamlined sanction, documentation and disbursement processes. The Bank also enhanced the control mechanism to monitor performance and provide early warning signals for any weakness in the account.

Consequent to the reclassification of exposure to ‘direct agriculture’ by the RBI in July 2012, the Bank’s focus has shifted to direct retail lending to farmers engaged in crop cultivation and allied activities in lieu of tie-ups with corporate and co-operatives engaged in such activities. To reach out to the remotest part of the country and to increase business to a threshold level, the Bank appointed 35 BC/ Business Facilitators (BCBF).

The Bank encourages the formation of Farmers’ Clubs in the villages covered by rural branches. The Bank consider the members of these clubs true grassroot level agriculture extension workers and supports them in all activities that involve knowledge-sharing among peers. The Bank’s engagement with farmers and other agriculture intermediaries was also enhanced through participation in various ‘Agri Expo’ and ‘Loan mela’ conducted at different locations of the country.

IDBI Rural Self Employment Training Institute, Satara

Set up under the guidelines issued by Ministry of Rural Development, Government of India, the IDBI Rural Self Employment Training Institute (IDBI-RSETI) at Satara District, Maharashtra, conducts free residential training programmes for rural unemployed youth in the district. In its first full year of operations, IDBI-RSETI conducted 27 training programmes, in which 674 candidates participated. A large number of the trained candidates from the institute have subsequently started their own ventures, which are running successfully. The Bank established the “IDBI Agriculture and Rural Development Trust” to anage IDBI-RSETI, as required under the guidelines issued by the Ministry of Rural Development, Government of India. Apart from this, the Trust also undertakes development and research activities in rural and agriculture sectors. The Trust helps the Bank discharge duties under its CSR programme.

Corporate Finance

During FY 2012-13, as part of the Bank’s organisational restructuring measure, the Large Corporate and Mid-Corporate Groups have been unified into a Corporate Banking Group (CBG) in June 2012. This Group is catering to all corporate clients with funding requirements of more than Rs.5 crore. The CBG focuses not only on maintaining and deepening business relationships with existing corporate clients but also explores various opportunities for meeting the financial needs of corporates who are currently not in our fold. The Group has a strong focus on multi-product sales, both in assets and liabilities, in order to offer a comprehensive portfolio of financial products and services and maximize yield.

To effectively operationalize the business, the CBG has been structured into seven regions and operates through 29 Specialised Corporate Branches (SCBs) with a presence in 25 cities. The CBG offers tailor-made structured products, both assets as well as liabilities, depending on the specific needs of the Bank’s corporate clientele. The CBG’s asset product menu includes Term Loans, Working Capital, packing Credit to Exporters, Receivables Buyout, Bill Discounting, Finance against Carbon Credit Receivables, Lending to NBFC, Channel financing and Vendor financing for corporate clientele.

To provide personalised services to the Bank’s clients, Client Service Teams (CSTs) have been formed at regional as well as branch levels comprising members from various product verticals. This initiative will allow the Bank to boost its overall business and fee income.

Trade Finance

The Bank’s domestic and international Trade Finance Business registered high growth rates during the year. The non-fund based (NFB) business viz. LCs and BGs grew by 11%, crossing outstanding business of `77,900 crore during 2012-13. The Bank also witnessed robust growth of about 31% in Trade Fee Income.

During FY 2012-13, the Bank opened two new Nostro Accounts for AUD and SGD currencies with the Australia and New Zealand Banking Group Limited. (ANZ), Melbourne, Australia and United Overseas Bank, Singapore, respectively, for DIFC, Dubai Branch operations. A new Nostro account was opened in Korean Won (KRW) currency with Standard Chartered First Bank, Seoul, Korea, for the Bank’s Indian operations. During the year, the Bank opened a new Trade Finance (TF) Centre at Bandra Kurla Complex (BKC), Mumbai, increasing the total number of TF locations to 40. Structured Financial Messaging System (SFMS) developed by the Institute for Development and Research in Banking Technology (IDRBT), Hyderabad has been implemented by the Bank implemented the SFMS system at all its 40 Specialised Trade Finance Branches for the issuance of LCs as per the directive of the Ministry of Finance, with effect from January 1, 2013. SFMS is a highly secured messaging standard developed to serve as a platform for intra-bank and inter-bank applications. The Bank is prepared for the issuance of Bank Guarantees using the SFMS platform.

The Bank is one of the first few banks to introduce the issuance of Electronic Bank Realisation Certificate of Export Realisation (e-BRC). The process envisages direct uploading of digitally signed e-BRC, covering export realization details to DGFT’s site thereby making the process of export-related benefits / incentives settlement faster and hassle free.

The Bank continued to focus on strengthening collaborative relationships with foreign banks while increasing its fee income in its Trade Finance Business.

Government Business

The Bank’s Government Business is engaged in the collection of Direct and Indirect Taxes of the Central Government and various State Governments. The Bank made an aggregate collection of Rs.1.59 lakh crore in Central and State Taxes during FY 2012 – 13, posting a 28% growth over the previous year. The Bank crossed a major milestone in tax collection, by collecting more than Rs.1.40 lakh crore in Central Taxes. With respect to State-level taxes, the Bank operationalized the collection of commercial taxes in Karnataka, Sikkim, Jharkhand and West Bengal. The Bank is now authorised to collect commercial taxes in 14 States and UTs that include Assam, Andhra Pradesh, Bihar, Jharkhand, Karnataka, Gujarat, Maharashtra, Punjab, Rajasthan, Sikkim, Uttarakhand, West Bengal, Delhi and Puducherry. The Bank also received clearance from Tamilnadu and Madhya Pradesh for commercial tax collection which is expected to commence from the first half of FY 2013-14.

The Bank provides online duty payment services for Customs Duty for all 103 Electronic Data Interchange (EDI) locations across the country. Considering the increased volume of Customs Duty, the Bank moved to a multiple challan mode of payment. Under this new mode, the customer is able to pay 25 challans at one go pertaining to one port. It has not only reduced the time for processing challans but also made payment through net banking hassle free for our customers. With this development, taxpayers are now in a position to route payment of their Central Taxes and Duties payments through IDBI Bank. This helps us partner the Government of India in enabling online payments and enhancing the tax contribution to the Exchequer. Buoyed by this development, the Bank registered an over 200% growth in the collection of customs duty during FY 2012-13.

Awards and Accolades during FY 2012-13

During the period, the Bank received various awards for its achievements in the banking space. Shri R.M. Malla, the former Chairman and Managing Director, was conferred the ‘Microfinance India Contribution to the Sector 2012’ Award by ‘ACCESS Development Services’. The Bank was awarded the Best Retail Bank in the Public Sector by Dun and Bradstreet, 2012.

The Bank was adjudged a winner in Development Finance-Led Poverty Reduction in the Association for Development Finance Institutions in Asia and the Pacific (ADFIAP) Awards 2012. The Bank also received the ‘Greentech CSR Award’ for demonstrating the highest level of commitment to CSR activities, particularly for its Rural Transformation Fellowship Programme (RTFP). Further, the Bank’s corporate communications initiatives were lauded at the PRCI Annual Corporate Collateral Awards and won two awards.

The Bank earned appropriate recognition for its technology orientation and won two highly coveted awards during the year. These include the Best Technology Bank of the year (Second Runner Up) and the Best Risk Management Security Initiative (First Runner Up) conferred by IBA.

Finally, in the year gone by, the Bank’s House Journal Shree Vayam bagged two prestigious ABCI Awards, in an all India Competition.

CONTINGENT LIABILITIES:

(Rs. in millions)

PARTICULARS	31.03.2013	31.03.2012
Claims against the Bank not acknowledged as debts	1031.368	1074.130
Liability on account of outstanding forward exchange contracts	360889.725	363946.378
Guarantees given on behalf of constituents
in India	589175.580	538365.763
outside India	47460.238	38453.744
Acceptances, endorsements and other obligations	260278.113	259549.645
Liability in respect of interest rate and currency swaps and credit default swaps	526983.224	251186.250
Liability in respect of other derivative contracts	952.772	25920.993
On account of disputed Income tax, Interest tax, penalty and interest demands	11211.570	10700.998
Others	46.967	3.031
Total	1806619.557	1489200.932

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER/ HALF YEAR ENDED SEPTEMBER 30, 2013

Rs. In Millions

			Quarter Ended		Half Year Ended
Sr. No.		Particulars	September 30, 2013	June 30, 2013	September 30, 2013
			(Reviewed)	(Reviewed)	(Reviewed)
1			65357.100	67283.900	132641.000
	(a)	Interest/discount on advances/bills	50658.700	50969.900	101628.600
	(b)	Income on investments	14429.200	15851.700	30280.900
	(c)	Interest on balances with Reserve Bank of India and other inter bank funds	266.000	385.200	651.200
	(d)	Others	3.200	77.100	80.300
2		Other Income	5787.300	7170.300	12957.600
3		Total Income (1+2)	71144.400	74454.200	145598.600
4		Interest Expended	50521.100	52533.500	103054.600
5		Operating Expenses (i)+(ii)	7875.000	8754.500	16629.500
	(i)	Employees cost	3604.900	4900.600	8505.500
	(ii)	Other operating expenses	4270.100	3853.900	8124.000
6		Total Expenditure ((4)+(5) excluding provisions and contingencies)	58396.100	61288.000	119684.100
7		Operating profit(3-6) before Provisions and Contingencies	12748.300	13166.200	25914.500
8		Provisions (other than tax) and Contingencies	8787.200	8296.700	17083.900
9		Exceptional items	-	-	-
10		Profit (+)/Loss(-) from Ordinary Activities before tax (7-89)	3961.100	4869.500	8830.600
11		Tax expense	2038.400	1800.000	3838.400
12		Net Profit (+) /Loss(-) from ordinary activities after tax for the period (10-11)	1922.700	3069.500	4992.200
13		Extraordinary items (net of tax expense)	-	-	-
14		Net Profit(+)/Loss(-) for the period (12-13)	1922.700	3069.500	4992.200
15		Paid-up equity share capital (Face Value Rs.10)	13327.700	13327.700	13327.700
16		Reserves excluding Revaluation Reserves	-	-	-
17		Analytical Ratios
	(i)	Percentage of shares held by Government of India	71.72	71.72	71.72
	(ii)	Capital Adequacy Ratio (%)
		Basel II	12.96	13.35	12.96
		Basel III (refer Note 2)	12.38	12.58	12.38
	(iii)	Earning Per Share (EPS) (Rupees) (not annualised)
		Before and After Extraordinary items
		Basic	1.44	2.30	3.75
		Diluted	1.44	2.30	3.75
	(iv)	NPA Ratios
	(a)	Amount of gross NPA	9370 10	7959 23	9370 10
	(b)	Amount of net NPA	5174 06	3871 79	5174 06
	(c)	% of gross NPAs	4.98	4.34	4.98
	(d)	% of net NPAs	2.82	2.16	2.82
	(v)	Return on assets (annualised)	0.27%	0.41%	0.34%
18		Public Shareholding
		No. of shares	376920638	376919908	376920638
		Percentage of Shareholding	28.28	28.28	28.28
19		Promoters and Promoter Group Shareholding
	(a)	Pledged / Encumbered
		Number of Shares	Nil	Nil	Nil
		Percentage of Shares (as a % of the total shareholding of promoter and promoter group)	Nil	Nil	Nil
		Percentage of Shares (as a % of the total share capital of the Bank)	Nil	Nil	Nil
	(b)	Non-encumbered
		Number of Shares	955852609	955852609	955852609
		Percentage of Shares (as a % of the total shareholding of the Promoter and Promoter group)	100.00	100.00	100.00
		Percentage of Shares (as a % of the total share capital of the Bank)	71.72	71.72	71.72

SEGMENT INFORMATION REVIEWED FOR THE QUARTER/HALF YEAR ENDED SEPTEMBER 30, 2013

Rs. In Millions

		Quarter Ended		Half Year Ended
Sr. No.	Particulars	September 30, 2013	June 30, 2013	September 30, 2013
		(Reviewed)	(Reviewed)	(Reviewed)
a.	Segment Revenue
	Corporate/Wholesale banking	61930.400	60824.100	122754.500
	Retail banking	46641.200	50227.300	96868.500
	Treasury	323.300	1561.200	1884.500
	Other banking operations	-	-	-
	TOTAL	108894.900	112612.600	221507.500
	Less :- Inter-segment revenue	(37750.500)	(38158.400)	(75908.900)
	Net sales / income from operations	71144.400	74454.200	145598.600
b.	Segment Results -Profit/(loss) before tax
	Corporate/Wholesale banking	3313.800	6769.800	10083.600
	Retail banking	808.000	(2392.900)	(1584.900)
	Treasury	(160.700)	492.6000	331.900
	Other banking operations
	TOTAL	3961.100	4869.500	8830.600
	Unallocable expenditure	-	-	-
	Unallocable income	-	-	-
	Less: Other unallocable expenditure net of unallocable income	-	-	-
	Total profit before tax	3961.100	4869.500	8830.600
	Income taxes	(2038.400)	(1800.000)	(3838.400)
	Net profit	1922.700	3069.500	4992.200
c.	Capital employed (Segment assets-Segment liabilities)
	Corporate/Wholesale banking	596254.000	536880.000	596254.000
	Retail banking	(427364.700)	(268765.200)	(427364.700)
	Treasury	14724.900	(83902.900)	14724.900
	Other banking operations	15769.900	13295.000	15769.900
	Total	199384.100	197506.900	199384.100

Notes on Segment Reporting:

1. As per RBI guidelines and in compliance with the applicable Accounting Standard (AS)- 17 on Segment Reporting issued by ICAI, the Bank has classified “Corporate/Wholesale Banking”, “Retail Banking”, “Treasury” and “Other Banking Operations” as Primary Business Segments.

2. These segments have been identified in line with the said Accounting Standard (AS) after considering the nature and risk profile of the products and services, the target customer profile, the organization structure and the internal reporting system of the Bank.

3. In determining ‘Segment Results’, the funds transfer price mechanism adopted by the Bank has been used.

4. Results, Revenue and Capital Employed of International operations are included in Corporate/Wholesale Banking segment.

Notes forming part of the Unaudited Financial Results for the quarter/half year ended September 30, 2013

1. The above results have been approved by the Board of Directors of IDBI Bank Limited at its meeting held on October 30, 2013 and are subjected to Limited Review by the Statutory Auditors.

2. In the RBI circular DBOD.No.BP.BC.88/21.06.201/2012-13 dated March 28, 2013, the Banks are required to disclose capital adequacy ratio computed under Basel III capital regulations from the quarter ended June 30, 2013. Accordingly corresponding details for previous periods are not applicable.

3. In the RBI circular DBOD.No.BP.BC.2/21.06.201/2013-14 dated July 01, 2013, the Banks are required to make half yearly Pillar 3 disclosure under Basel III capital requirements with effect from September 30, 2013. The Bank has made the disclosures which are available on its website at the following path: www.idbi.com>>Regulatory Disclosure Section>>September 2013. The disclosures have not been subjected to audit/limited review.

4. Number of Investors’ complaints (i) Pending at the beginning of the quarter-3 (ii) Received during the quarter-24 (iii) Disposed off during the quarter-22 (iv) Lying unresolved at the end of the quarter-5.

5. In terms of RBI circular DBOD.BP.BC.No.41/21.04.141/2013-14 dated August 23, 2013 on “Investment portfolio of Banks Classification, Valuation and provisioning”, the bank has opted to amortise the depreciation on the entire Available For Sale (AFS) and Held For Trading (HFT) portfolios on each of the valuation dates in the current financial year in equal instalments during the financial year 2013-14. Accordingly, out of the total depreciation of Rs.1863.500 Millions as at September 30, 2013, the Bank has recognised ` 93.18 crore in its Profit and Loss Account for current quarter.

Further, vide the same circular, as a one-time measure, RBI permitted the Banks to transfer SLR securities from AFS/HFT category to HTM category. Accordingly, during the quarter ended September 30, 2013, the Bank has transferred SLR securities with face value of Rs.8493.100 Millions from AFS category to HTM category and has recognised a resulting loss from the said transfer of Rs.168.400 Millions in the Profit and Loss Account for the quarter.

6. During the quarter ended September 30, 2013, the Bank has allotted 730 equity shares of Rs.10/- each pursuant to exercise of employee stock options.

7. Statement of Assets and Liabilities is as under:

IDBI BANK LIMITED

SUMMARISED BALANCE SHEET

Rs. In Millions

Particulars	As at September 30, 2013
	(Reviewed)
CAPITAL AND LIABILITIES
Capital	13327.700
Reserves and surplus	203724.100
Employees' Stock Options (Grants) Outstanding	4.500
Deposits	2025589.000
Borrowings	639193.700
Other liabilities and provisions	92675.300
TOTAL	2974514.300
ASSETS
Cash and balances with Reserve Bank of India	107174.400
Balances with banks and money at call and short notice	17142.300
Investments	913075.700
Advances	1835864.900
Fixed assets	29351.200
Other assets	71905.800
TOTAL	2974514.300

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.59
UK Pound	1	Rs.101.09
Euro	1	Rs.83.99

INFORMATION DETAILS

Information Gathered by :	HET
Report Prepared by :	NTH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	8
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
DEFAULTER
--RBI	YES/NO	NO
--EPF	YES/NO	NO
TOTAL		65

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.