Introduction of IDBI Bank:

The Industrial Development Bank of India Limited, now more

popularly known as IDBI Bank, was established as a wholly-owned
subsidiary of Reserve Bank of India. The foundation of the bank was
laid down under an Act of Parliament, in July 1964. The main aim
behind the setting up of IDBI was to provide credit and other facilities
for the Indian industry, which was still in the initial stages of growth
and development. In February 1976, the ownership of IDBI was
transferred to Government of India.
After the transfer of its ownership, IDBI became the main
institution, through which the institutes engaged in financing,
promoting and developing industry were to be coordinated. In
January 1992, IDBI accessed domestic retail debt market for the first
time, with innovative Deep Discount Bonds, and registered path-
breaking success.
The following year, it set up the IDBI Capital Market Services Ltd., as
its
wholly-owned
subsidiary, to offer a broad range of financial services, including
Bond Trading, Equity Broking, Client Asset Management and
Depository Services.
In September 1994, in response to RBI's policy of
opening up domestic banking sector to private participation, IDBI set
up IDBI Bank Ltd., in association with SIDBI. In July 1995, public
issue of the bank was taken out, after which the Government's
shareholding came down (though it still retains majority of the
shareholding in the bank). In September 2003, IDBI took over Tata
Home Finance Ltd, renamed ‘IDBI Home finance Limited’, thus
diversifying its business domain and entering the arena of retail
finance sector
The year 2005 witnessed the merger of IDBI Bank with
the Industrial Development Bank of India Ltd. The new entity
continued to its development finance role, while providing an array of
wholesale and retail banking products (and does so till date). The
following year, IDBI Bank acquired United Western Bank (which, at
that time, had 230 branches spread over 47 districts, in 9 states). In
the financial year of 2008, IDBI Bank had a net income of Rs 9415.9
crores and total assets of Rs 120,601 crores.

The Present
Today, IDBI Bank is counted amongst the leading public sector
banks of India, apart from claiming the distinction of being the 4th
largest bank, in overall ratings. It is presently regarded as the tenth
largest development bank in the world, mainly in terms of reach. This
is because of its wide network of 509 branches, 900 ATMs and 319
centers. Apart from being involved in banking services, IDBI has set
up

Introduction
1.1 One of the important functions of the Bank is to accept deposits from the
public for the purpose of lending. In fact, depositors are the major
stakeholders of
the Banking System. The depositors and their interests form the key area of
the
regulatory framework for banking in India and this has been enshrined in the
Banking Regulation Act, 1949. The Reserve Bank of India is empowered to
issue
directives / advices on interest rates on deposits and other aspects regarding
conduct of deposit accounts from time to time. With liberalization in the
financial
system and deregulation of interest rates, banks are now free to formulate
deposit
products within the broad guidelines issued by RBI.
1.2 This policy document on deposits outlines the guiding principles in
respect
of formulation of various deposit products offered by the Bank and terms
and
conditions governing the conduct of the account. The document recognizes
the
rights of depositors and aims at dissemination of information with regard to
various aspects of acceptance of deposits from the members of the public,
conduct
and operations of various deposits accounts, payment of interest on various
deposit
accounts, closure of deposit accounts, method of disposal of deposits of
deceased
depositors, etc., for the benefit of customers. It is expected that this
document will
impart greater transparency in dealing with the individual customers and
create
awareness among customers of their rights. The ultimate objective is that the
customer will get services they are rightfully entitled to receive without
demand.
Deposit Policy
2
1.3 While adopting this policy, the bank reiterates its commitment to
individual
customers outlined in .Code of Banks Commitment to Customers. issued by
Banking Codes and Standards Board of India and Bankers' Fair Practice
Code of
Indian Banks' Association. This document is a broad framework under
which the
rights of common depositors are recognized. Detailed operational
instructions on
various deposit schemes and related services will be issued from time to
time.
2 Types of Deposit Accounts
2.1 While various deposit products offered by the Bank are assigned
different
names, the deposit products can be categorized broadly into the following
types.
(i) "Demand deposits" means a deposit received by the Bank which can be
withdrawn on demand by the depositor.
(ii) .Savings deposit. means a form of demand deposit designated as
.Savings
Account., .Savings Bank Account., .Savings Deposit Account. etc which is
subject to restrictions as to the number of withdrawals as also the amounts of
withdrawals permitted by the bank during any specified period. Currently
the bank
does not restrict the number of withdrawals and amounts of withdrawals
during
any specified period. The bank will give the notice to the depositor, if such
restrictions are introduced in future.
(iii) "Term deposit" means a deposit received by the Bank for a fixed period
withdrawable only after the expiry of the fixed period and includes deposits
such
as Recurring / Short Deposits / Fixed Deposits /Monthly Income / Quarterly
Income/Sweep-in deposits (held in units) or any other form of Fixed
deposits.
Deposit Policy
3
(iv) .Notice Deposit. means term deposit for specific period but
withdrawable on
giving at least one complete banking day's notice.
(v) "Current Account" means a form of demand deposit wherefrom
withdrawals
are allowed any number of times depending upon the balance in the account
or up
to a particular agreed amount and also includes other deposit accounts which
are
neither Savings Deposit nor Term Deposit.
3 Account Opening and Operation of Deposit Accounts
3.1 The Bank, before opening any deposit account, will carry out due
diligence
as required under "Know Your Customer" (KYC) guidelines issued by RBI
and or
other norms or procedures adopted by the Bank. If the decision to open an
account
of a prospective depositor requires clearance at a higher level, reasons for
any
delay in opening of the account will be informed to him and the final
decision of
the Bank will be conveyed at the earliest to him.
3.2 The account opening forms and other material would be provided to the
prospective depositor by the Bank. The same will contain details of
information to
be furnished and documents to be produced for verification and / or for
record. It
is expected of the Bank official opening the account to explain the
procedural
formalities and provide necessary clarifications sought by the prospective
depositor when he approaches for opening a deposit account.
3.3 For deposit products like Savings Bank Account and Current Deposit
Account, the Bank will normally stipulate certain minimum balances to be
maintained as part of terms and conditions governing operation of such
accounts.
Failure to maintain minimum balance in the account will attract levy of
charges as
specified by the Bank from time to time. For Savings Bank Account the
Bank may
Deposit Policy
4
also place restrictions on number of transactions, cash withdrawals, etc., for
given
period. Similarly, the Bank may specify charges for issue of cheques books,
additional statement of accounts, duplicate passbook, folio charges, etc. All
such
details, regarding terms and conditions for operation of the accounts and
schedule
of charges for various services provided will be communicated to the
prospective
depositor while opening the account. Any changes in the schedule of charges
or
the terms and conditions will be communicated to the customers 30 days in
advance.
3.4 Savings Bank Accounts can be opened for eligible person / persons and
certain organizations / agencies (as advised by Reserve Bank of India (RBI)
from
time to time).
Current Accounts can be opened by individuals / partnership firms / Private
and
Public Limited Companies / HUFs / Specified Associates / Societies / Trusts
/
Limited Liability Partnerships (LLPs) etc.
Term Deposits Accounts can be opened by individuals / partnership firms /
Private
and Public Limited Companies / HUFs/ Specified Associates / Societies /
Trusts,
etc.
3.5 The due diligence process, while opening a deposit account will involve
satisfying about the identity of the person and verification of address.
Obtaining
introduction of the prospective depositor from a person acceptable to the
Bank and
obtaining recent photograph of the person/s opening / operating the account
are
part of the due diligence process.
3.6 In addition to the due diligence requirements under KYC norms, the
Bank
is required by law to obtain Permanent Account Number (PAN) or General
Index

Problem with IDBI recruitment

Dear SIr/Madam,

I had applied for post of Asst Manager in IDBI Bank, advertised in the
month of January 2009,
I Submit form accordingly with the Chalan of Rs. 350 & Rs.50 due to OBC
Category, my form was selected & got a Hall ticket for written Exam
.written Examination Center was Chennai. I qualifed in the written
examination & recieved an interview call letter dated 4th May 2009 at IDBI
bank, Bhopal Schedueled time 9.30 am, When I reach at particular center of
Interviewat 9.30 am they make me to wait till 1'O clock, at the last moment
during varification of my documents the bank people said, " you are not
eligible for this interview, you don't have experience of any bank or
Finanacial institue", I had submitted my form with my experience in a
particular company, that time they accepted all the conditions.No false
presentataion from my side during filling the form regarding experience.

If according to Bank people I am not eligible for the post so, WHY they
selected my form, WHY they send a INTERVIEW call letter, I am very
disappointed BY IDBI bank.They had not even give permission to attend
interview, they reject my form after such a long process(qualifiing in the
written exam, getting call for interview)

I spend money for travelling( for written exam & interview) & wasted my
valuable time, for this interview i had taken leave which will consider as
Leave without pay for the month of May 2009,

I suffered alot because of IDBI people mistake, being a lady I travelled alone
from Hyd to Bhopal Only for this interview, its kind a mental harrashment
that i got from IDBI bank recruitment.
Problem with IDBI paisabuilder
April 1, 2010
By soundari

I am using IDBI paisabuilder. for the past 6 months i am not

able to login. I raised the complain by mail and by call also. It says
that “Invalid connection parameters. Please contact the system
administrator. “.

Whenever i called the customercare they are telling that pls try
after 24 hrs. I am doing the same for so many time. I am paying the
yearly charge but they are not allowing me to use. I dont know to
whom to contact and how to solve it. Please help me to solve this

Objectives
IDBI Properties Corporation aims at the optimal
utilization of systems technology to support the
people's various initiatives relative to specific aspects
of its operations. At present, there is a maximum
utilization of systems support in the ongoing
enhancements in loan processing, collecting and
accounting procedures.

All measures have been undertaken not only to maintain IDBI's

status as one of the top consumer lending companies in the World,
but also to demonstrate to its stockholders, investors, employees,
clients and the general public the magnitude of its commitment to
do business in the most professional and efficient manner.

All of this is in line with the Company's vision of becoming, in

the near future, a transnational and publicly listed provider of fully
automated, world-class consumer lending products and services.
Client Snapshot

IDBI Ltd is one of the top ten Development Banking Institutions in the
world. Over the years since its inception, it has proven itself as a strategic
investor and successfully promoted several world-class institutions within
India, which have revolutionized the Indian financial markets.

Following the merger, the combined entity is known as IDBI Ltd,

undertakes activities ranging from project finance to retail banking, and
shortly expects to enter the insurance market as well. IDBI has an asset base
of Rs 81,000 crore (as in March 2005) and employee strength of about
4000+.

IDBI Ltd' Approach

IDBI Ltd was prompt to respond & adept to emerging scenario by

understanding the impact of changes in distribution of services, customer
profiles & preferences, industry trends and acted upon the same to convert
the change to its advantage. IDBI Ltd has devised a customer centric service
delivery strategy, focusing on simple & value added services by utilizing the
most convenient and commonly used delivery channels. This required
enhancing the existing technology base to meet the varied and diverse
customer requirements.

IT Team @ IDBI Ltd

IT Team at IDBI Ltd under the strong management leadership has

successfully aligned business objectives with the smart technological
implementations to the optimum utilization for the organizational advantage.

The concept of any time, any where banking has been made possible by
offering uniform services across various alternate channels such as ATM,
Phone banking, Mobile banking, Internet banking, etc. All the channels are
integrated to the core banking system in a secure and real time basis.

In the last 12 months our Bank has launched several technologically

innovative and customer-centric key initiatives, providing effective alternate
channels of payment to the customers. This has also resulted in weaning
away a number of customers from the traditional banking channels to the
more cost-effective alternate channels. Furthermore, there has been a
substantial improvement in the staff productivity, since the employees now
focus on business development rather than mundane operations.

IDBI Ltd has set the examples in product & services deliveries leveraging
the technology platforms available to its efficiency & reliability to overall
boost the customer confidence & perspective.

IDBI Ltd believes in the principle of keeping the tech-team trim and utilize
their services optimally to deliver cutting-edge; rather bleeding-edge
technological solutions. We have very judiciously decided on the
outsourcing strategy. This enables our internal team to focus on new
initiatives and enhancements to existing products. We also endeavor to
ensure that the technological solutions that we provide are scalable and cost-
effective.

Technology and Tech Initiatives

In IDBI Ltd, expenditure on technology is considered to be an investment

and not a cost. Investment in technology is part of the plan to put in place
building blocks for creating the right organizational infrastructure. Large
investments have been made in back-end technology to strengthen
processes, systems and control. This, in the long run, propelled by a top
quality management team has clearly set IDBI Ltd apart from its
competitors.

Keeping in line with the policy of leveraging technology to drive its

business, IDBI Ltd constantly endeavors to implement and deploy new &
emerging technology to drive the business needs to the extent of not just
meeting, but exceeding customer expectations. IDBI Ltd has always
endeavored to use its high-technology platform to provide cutting-edge
services to its customers.

IDBI Ltd offers its clients, fully secured and real time electronic delivery
channels, providing convenient and secure access to the banking
information. It also provides its customers centralized multi-branch
connectivity integrated to a heterogeneous Core Banking System across
branches in India. This integration provides a seamless access point for
clients for all the banking products and services across the channels.
IDBI Ltd believes in a better-integrated customer relationship channel for
superior customer service. The bottom line is to make all services available
through all channels as listed below.

• Branch banking
• Internet Banking
• Mobile banking
• Tele-banking
• ATM Network
• Multi- Functional Kiosk Network
• Point of Sale transactions

IDBI Ltd is the only bank that allows its customers to pay all their bills
across any channel i.e. Branch, ATM, Phone Banking, Mobile banking and
Internet banking with Auto pay facility. For example, a customer may
register for his mobile bill payment through Internet banking. He can pay the
bill through ATM or Phone banking or Mobile banking, when the bill is
presented.

Keeping pace with the ever-rising demands of our modern day clients, it has
been our endeavor to provide value added service with cutting edge
technologies to our clients. In this direction our Bank has launched many
payment initiatives. The capabilities of Internet banking and web-enabled
talking ATMs have been fully exploited in most of these initiatives.

Using a single access to IDBI Ltd's Internet Banking, a customer can query
& transact a variety of information related to different applications /
products, access the Demat particulars, access the details with respect to
GOI bonds, make a Card-to-Card transfer, effect an online tax payment,
purchase National Savings Certificate, Cash Management, etc.

IDBI Ltd was also the frontrunner with respect to secured electronic
transmission of tax collection data through the usage of Digital Signature
Certificates.

IDBI Ltd launched a strategic Internet Banking platform to facilitate on line

payments to & from corporate customers & its dealers /agents, thereby
enhancing corporate business through new-age technology and offering
supply chain financing solutions.

Overall IT spending for year 2005-2006

Overall IT Spending for year 2005-2006 was approximately 50 Crores
approximately. Major spending this year has contributed to the branch
automation initiative and the data center set up catering to computing
requirements of the growing organization. In tangible benefits derived from
smart implementations of IT initiatives are summarized as follows:

• The Returns on Investment (ROI) for implementing IT in

organizational processes in the range of 50-75%. Organizational
processes have improved and tasks get completed with great
efficiency, speed and accuracy.
• Customer centric initiatives improved the customer satisfaction as
measured in terms of Number of Positive responses by customers.
• Improved performance levels measured interms of TAT through State
of the art computing infrastructure and technology platform
Integration for centralized Monitoring, Control and Reporting.

In the Post merger scenario, the very important activity was completed that
is to seamlessly integrate the IT team at both the units of IDBI Ltd. The
major IT initiatives were focused towards centralization and
Application/system integration of both the units i.e. the erstwhile IDBI and
IDBI Bank to consolidate and bring it to the common technology platform.
Also there was a pressing urgency to set up the state- of-the-art IT
Infrastructure to cater to the ambitious growth needs of the merged entity.

Some of the specific Initiatives are showcased below:

Customer Centric Innovative Value Added Service Delivery

Airline ticketing through ATM Network

IDBI Ltd. is the First Bank In The World To Launch Airline Ticketing
Through ATM. We launched a first of its kind retail innovation in the world
by incorporating the convenience of booking airline tickets on our ATMs.
We have tied up with Indian Airlines to provide this service for booking
domestic air tickets through our ATMs. IDBI customers can now use their
Debit cum ATM card at the nearest IDBI ATM and key in the travel details
to buy an airline ticket 24 x 7. The transaction slip generated by the ATM
can be exchanged for a boarding pass at the airport upon showing proper
identification proof. This utility allows customers to choose the best possible
travel option at the best prices.
Internet Banking Enabled Multi-Functional KIOSK

The bank has enabled Internet Banking on Multi-functional Kiosk, which

will fulfill the banking, needs of our customer base spread including remote
locations through out the country. Customer can access their account
summary, clearing details and statement details through their Debit / ATM
card, which can be viewed or printed. All services available to Internet
Banking customers are available through Kiosk. Non-customers can view
the products offered by the Bank and also request for additional information
on various products. Website Integration of Both SBUs

IDBI website is the "Single Window" facility for accessing various services
offered by the bank ranging from Project finance to Retail banking.
Customers can access the Corporate as well as Retail I-Net banking facility
through the corporate website. Customers can also access their World
Currency & Cash CARD Accounts through Website.

Post merger the Corporate web site was revamped totally by merging the
two websites i.e. of IDBI Ltd & erstwhile IDBI Bank into a single website
representing truly the IDBI Ltd as a homogeneous entity and accommodated
the entire products & services portfolio from both the entities.

Website provides other utilities like EMI calculators, Real time Stock
market updates, latest news updates to make the customers feel comfortable.

Corporate Internet Banking

We have migrated our Corporate Internet Banking to Finacle eCorporate, a

more robust & functionality rich java based platform. Finacle eCorporate
offers a host of additional features and functionalities to our clients, some of
which are highlighted below.

1. Multi level workflow rules for financial transactions based on

corporate specific needs.
2. Corporate role mapping, where the hierarchy of the corporate users
can be mapped and financial transactions can be based on the
organizational matrix.
3. Creation of Division wise / Zone wise / Region wise account
classification, giving clients the flexibility to decide who views which
account within the company.
4. Maker checker facility for online tax payments.
 5. Corporate level administrator, who can do user maintenance related
activities at the corporate end.
6. Transaction copy feature to save time while entering similar
transactions.
7. Multi record entry/approval/ rejection of transactions.

National Electronic Funds Transfer (NEFT)

IDBI has setup a structure to initiate electronic communication with the

IDRBT and the other banks. The structure of this system is more tuned
towards the decentralized scenario keeping in view the non-networked PSU
banks.

We have leveraged the existing setup of fully networked branches and

devised an end to end solution which blends seamlessly with our core
banking system viz Finacle. This system requires bare minimum data
capture on part of branches. The central processing unit can then, at per
stipulated times, generate data uploads to-n-fro the NEFT system. This way,
outward debit and inward credit transactions through NEFT has become
almost an extension of our core banking system. The system is built using
the J2EE Architecture and can be ported / scaled up on any other platform
should the need be.

Insta Online Account Facility

Insta Online Account is yet another customer friendly initiative from IDBI
Bank. It is a web-based account opening facility, which is accessible to the
NRI clients through our site. Insta Online Account helps convert a casual
NRI browsing our site into our esteemed client - on real-time basis. The
facility offers convenience of opening account from anywhere, at anytime to
the NRI Customers and it is a Zero cost of high quality customer acquisition
with no direct sales effort / cost.

Setting up The Srate-of-The-Aat IT Infrastructure

Setup of Data Center and Disaster Recovery Center

With a view to ensure better customer service and in order to cater to the
future computing requirements of the growing organization, we built a new
Data Center (DC) at Industrial Development Bank of India Ltd., IDBI
Building, Plot No 39/40/41, Sector 11, CBD - Belapur, Navi Mumbai - 400
614

It may be added, this is a LEVEL-3 Data Center with state-of-the-art

systems and solutions to provide very high uptimes with no single point of
failure. The development of a Disaster Recovery Center (DRC) is also
completed at Chennai to take care of Business continuity in case of disaster.
Both the centers have state-of-the-art systems and solutions to provide for
very high uptimes with no single point of failures. Unique feature about this
DRC is that it is a 100% replica of DC with online DRC backup system.

Branch Automation

IDBI Branch network automation is one of the important technology driven

initiative that has been kicked off this year. The first phase will automate
around 100 branches across country leveraging WAN/LAN/Leased line
based network connectivity with the high quality IT softwares, hardwares
and network equipments.

Technology Platform Integration

We have successfully integrated following DFI products into the

organizational Technology platform Finacle to provide a common
technology platform for centralized Monitoring, Control and Reporting.

• Suvidha Accounts Centralization

IDBI Ltd has a term deposit product called SUVIDHA offered as

Fixed Deposit from DFI. These accounts were managed in
decentralized branch level system and there was no centralized set up
for monitoring, parameterization and MIS generation at the entire
bank level. This centralization initiative aimed at consolidating Bank's
Bank's entire customer accounts into single & centralized system and
provide a common technology platform for generating MIS centrally.

• NCAS (New Centralized Accounting System) Migration into Finacle

NCAS (New Centralized Accounting System) is one of the

subsystems used by DFI unit at IDBI Ltd for managing all their GL
level entries. All Asset Liability Management MIS are managed by
this system. This particular initiative aimed at migrating the existing
 NCAS system into common technology platform i.e. Finacle for
providing online browser based centralized GL system for entire bank
and facilitating online centralized MIS for decision support.

• Corporate Finance System Migration to Finacle

IDBI has decided to move from Informix based disparate systems at

various locations to an Oracle based centralized and on-line system of
Finacle Core Banking Solution, with a view to move to a single
centralized database for the entire bank and single unified GL for
better MIS and supervision. The requisite system was developed in-
house, with the help of external expertise, which will seamlessly
integrate with our Core Banking solution without any manual
intervention.

• Common Exposure Reporting System

The initiative aimed at providing the centralized, online and consolidated

MIS Generation system for the entire bank's exposure reporting. The system
integrates the centralized core-banking system from commercial banking
unit and the distributed branch level systems from DFI unit seamlessly to
provide common platform for compliance reporting and managing entire
bank's exposures effectively. Functions of IDBI are as follow:

Functions of idbi bank

The responsibility of co-cordinating the working of institutions

engaged in financing, promoting and developing industries was seen as
major aspect of the bank and it was vested with all the duties stated
above.
Suitable plan, procedure, mechanism was adopted to achieve the targets.
Undertakes promotional activities
Entrepreneurship development programmers can be seen in this bank
Consultancy services for small and medium enterprises are provided.
Up gradation of technology is given importance and the technology is well
used.
Programmers for economic up liftmen of the underprivileged is taken as
the main aspect and all the necessary steps to achieve its aim were
successfully implemented.
Industrial development has been made faster due to the moves of the
IDBI .It finances all the industries that are under its cover all
extends its support to all the industrial concerns. The size of
operations performed by IDBI were spectacular and the bank bought up a
revolution in the industrial field.
Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating the

working of institutions engaged in financing, promoting
and developing industries. It has evolved an appropriate
mechanism for this purpose. IDBI also
undertakes/supports wide-ranging promotional activities
including entrepreneurship development programmes for
new entrepreneurs, provision of consultancy services for
small and medium enterprises, upgradation of technology
and programmes for economic upliftment of the
underprivileged.

IDBI's role as a catalyst

IDBI's role as a catalyst to industrial development

encompasses a wide spectrum of activities. IDBI can
finance all types of industrial concerns covered under the
provisions of the IDBI Act. With over three decades of
service to the Indian industry, IDBI has grown substantially
in terms of size of operations and portfolio.

Developmental Activities of IDBI

Promotional activities

In fulfilment of its developmental role, the Bank continues

to perform a wide range of promotional activities relating to
developmental programmes for new entrepreneurs,
consultancy services for small and medium enterprises
and programmes designed for accredited voluntary
agencies for the economic upliftment of the
underprivileged. These include entrepreneurship
development, self-employment and wage employment in
the industrial sector for the weaker sections of society
through voluntary agencies, support to Science and
Technology Entrepreneurs' Parks, Energy Conservation,
Common Quality Testing Centres for small industries.

Technical Consultancy Organisations

 With a view to making available at a reasonable cost,
consultancy and advisory services to entrepreneurs,
particularly to new and small entrepreneurs, IDBI, in
collaboration with other All-India Financial Institutions, has
set up a network of Technical Consultancy Organisations
(TCOs) covering the entire country. TCOs offer diversified
services to small and medium enterprises in the selection,
formulation and appraisal of projects, their implementation
and review.

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to

industrial development, IDBI played a prime role in setting
up of the Entrepreneurship Development Institute of India
for fostering entrepreneurship in the country. It has also
established similar institutes in Bihar, Orissa, Madhya
Pradesh and Uttar Pradesh. IDBI also extends financial
support to various organisations in conducting studies or
surveys of relevance

Deconstructing Delhi Land and Finance: DLF

With the DLF IPL craze reaching a crescendo, the surfeit of cricket
scores and statistics drove me to delve deeper into the acronym for
the phenomenon. And I’m not talking about IPL, but DLF. Delhi
Land and Finance or DLF is arguably India’s leading real estate
Development Company, with revenues of about $35 Billion, and in
2007 a market capitalization greater than $30 Billion. K.P.Singh,
the head of the group has really transformed fragmented holdings
of agricultural land into a modern metropolis. He is now one of the
world’s wealthiest men (8th in the Forbes list). The transformation
of vast acres of undeveloped land into one of India’s most modern
places, Gurgaon, with sleek office towers, shopping malls,
multiplexes, upscale homes and condominiums, has been an
extraordinary feat. The question is how was this feat possible in
India’s Paralytic political climate? What came as an even bigger
surprise was that DLF has been around from 1946, before partition
(Whoaa!!). Most of the posh South Delhi area has been developed
by DLF.
K.P.Singh married DLF founder: Raghuvendra Singh’s daughter
and inherited the company and thus began his association with
DLF and his tryst with destiny. His entry into the family business
coincided with India’s changing land policies. In 1957 the Delhi
Development Act (DDA) was passed which made the land
development a concern of the state. This would have made DLF
and similar operators crestfallen, and situation became even grim
with the socialist shift in 1961 with a total elimination of private
sector in urban development. This was also the time when a
plethora of fly-by-night developers started operating under the
state patronage. During the sixties, DLF totally went in the
background.
During Prime minister Rajiv Gandhi’s (wish he could have still
been alive..) regime things started to look up. He saw the potential
to business, when the state got out of the business of being in
business. In Mr. Singh’s words “You know these three and a half
thousand acres on which DLF sits? The government did not just
hand it to me and say :”Go Build””.The process of acquiring land
had been a slow, painful and laborious activity. Mr. Singh
negotiated with 700 familes each having 4 to 5 acres. Dealing with
such a heterogeneous society was no mean task. Pacifying hostile
family members, dealing with various stake-holders , some even
living miles away from the land was a torrid time. According to
him, assemblage of land remains the biggest problem in
developing it. Unlike in other countries (read China), a bull-dozer
couldn’t have been run over the occupants. Even if one of them
went to court, the litigation that would have followed would have
kept Mr. Singh busy for all his life.
The modus operandi was pretty simple. Take a loan from one
farmer, and then promptly use it to buy additional land. The
farmers became the bankers and DLF became the bank for them. It
was literally all about trust. The interest was delivered to the
farmers personally, something which cannot be imagined
nowadays. The business model followed the contemporary U.S.
Businesses that consolidate so-called fragmented industries. The
farmers were brought together to accomplish with the large
properties, what individual farmers could never have imagined.
DLF still operates in much the same way. Brokers, sometimes
represent unknown buyers and sellers, and often brokers don’t
known one another’s identity (reminds me of a scene from “Khosla
ka Ghosla”, where Navin Nischol mouths “Aap broker hain ya
party?”). The identity crisis helps DLF to buy the land at less than
its actual worth due to government distortions that constrict
effective land supply: Urban Land ceiling and Regulation
Act.DLF’s success story has definitely been a massive
entrepreneurial feat. Though it is a part of India’s big developers
which do profit unduly from the opacity of the land market and are
complicit in perpetuating such opacity. The widespread suspicion
of a nexus made of the mafia, the media, builder and politicians is
also rife. But it is definitely compensating for a state that resists
development for fear of treading on individual property rights and
also doing its popularity no harm by sponsoring Mano-Ranjan ka
Baap:IPL.

bfls

ABSTRACT

Location-based routing intends to send packets toward geographic

direction of destination. For this, source nodes needs to known
about destination position via a location service. Whereas the main
concept of ad hoc networking is being independent from an
infrastructure, applying a distribution algorithm has been a key
design principle for a location service. Destruction of single nodes
shouldn't lead to disruption of location service. Moreover,
scalability is a desirable characteristic for large networks. So, we
offered a distributed and fault tolerant location service method
(DFLS) for ad hoc networks in this paper. This method is a
hierarchical and explicit Quorum-based location service method. In
this method, location servers in each cluster have abstract
information about other clusters. So, this method will have
response time similar to flat methods. But, it is similar to
hierarchical methods in terms of implementation complexity.
Evaluation show that this method (DFLS), compared to the
previous methods, decreased the response time to location queries
and control overheads, also it increased fault tolerance and packet
delivery rate.
DISADVANTAGES IN UNIVERSAL BANKING :-

1. To meet with the increasing demands of customers.

The establishment of new private sector banks and foreign banks have rapidly changed
the competitive landscape in the Indian consumer banking industry and placed greater
demands on banks to gear themselves up to meet the increasing needs of customers. For
the dissatisfied current day bank customers, it is not only relevant to offer a wide menu of
services but also provide these in an increasingly efficient manner in terms of cost, time
and convenience.

E.g.: Today there is a lot of burden on staff members, they are given no or less number of
bank holidays, the time limit is 8-8.

2. Merger with DFI {Biggest Challenge}.

Development Financial Institutions (DFIs) opting for conversion into Universal Banks by
merger/reverse merger routes may also face certain difficult situations on account of
Asset Liability Mismatches, burden of mounting NPAs and differences in regulatory
prescriptions applicable to FIs and banks such as CRR and SLR requirements and priority
sector lending. The asset profile of DFIs in India is predominately of long-term nature,
which also includes a very high level of non-performing assets.

E.g.: NPAs of ICICI and IDBI were transferred to ICICI Bank and IDBI Bank
respectively after their merger.

3. Statutory Liquid Ratio {SLR} and Cash Reserve Ratio {CRR} requirements of
DFI.

In case DFIs are converted into banks they would also be subject to the reserve
requirement like banks. CRR and SLR burden that wasn't there for DFI will be applied
after its merger with any bank. This would mean that all liabilities issued by the DFIs in
the past would also be subject to reserve requirements and since the assets structure of
DFIs are largely of long term nature it would be very difficult for them to maintain the
required level of SLR/CRR.

4. High cost of funds for DFI.

Cost of deposits is high as the only source of funds is Fixed Deposits having higher Rate
Of Interest. Costs of funds for Fixed Deposit are higher than CASA {Current account
Savings account}. CASA has low cost, as the Rate Of Interest is low. Further, the cost at
which DFIs have been raising resources in the past has generally remained high as
compared to banks and maintenance of CRR/SLR of such liabilities, which may earn
lower returns, would adversely affect the profitability of Universal Banks. Compliance of
priority sector lending norms, which earn lower returns, may also create difficult
situations for such bank. Risk Management is one of the major challenges, where in the
financial activity carries with it various risks, which would need to be identified,
measured, monitored and controlled by Universal Banks. The nature of risks and
mitigating techniques for different financial product/services will be different and
therefore, Universal Banks will be required to develop comprehensive system of each
product/service and each kind of risk.

5. Improving risk management systems

With the increasing degree of deregulation and exposure of banks to various types of
risks, efficient risk management systems have become essential. For enhancing the risk
management system in banks, Reserve Bank has issued guidelines on asset liability
management and risk management systems in banks in 1999 and Guidelines Notes on
Credit Risk Management and Market Risk Management in October 2002 and the
Guidance Note on Operational risk management in 2005.

E.g.: Today most banks have stopped personal loans because there is no guarantee, no
loans are granted for travel and tourism, i.e. holiday loans too are stopped.

1. Supervisory and regulatory infrastructure

Another aspect is related to building up of supervisory infrastructure. The regulatory

framework would need to be strengthened so as to cover all aspects of Universal Banking
either under control of one regulator or a co-coordinating mechanism would have to be
developed among different regulators like the Reserve Bank of India, SEBI, Insurance
Regulatory, Authority etc. The regulators will have to frame sound mechanism to protect
the interest of all concerned including the customer, the Universal Banking Institution
and the financial system of the country.

1. Supervisory of financial conglomerates

In view of increased focus on empowering supervisors to undertake consolidated

supervision of bank groups and since the Core Principle for Banking Supervisory issued
by the BASEL committee on Banking Supervision have underscored consolidated
supervision as an independent principle, the Reserve Bank of India had introduced, as an
initial step, consolidated accounting and other quantitative methods to facilitate
consolidated supervision. The components of consolidated supervision include,
consolidated financial statements intended for public disclosure, consolidated prudential
reports intended or supervisory assessment of risk and application of certain prudential
regulations on group basis. In due course, consolidated supervision as introduced above
would evolve to cover.

1. Technology improvement and compensation and incentive systems for

employees

It is likely that Universal Banks of roughly the same size and providing roughly the same
range of services may have very different cost levels per unit of output on account of
efficiency differences in the use of labour and capital, effectiveness in the sourcing and
application of available technology, and perhaps effectiveness in the acquisition of
productive inputs, organization designs, compensation and incentive system-and just
plain better management.

1. Conflict of interest between commercial and investment banking

Larger the banks, the greater will be the effects of the failure on the system. Also there is
the fear that such institutions, by virtue of their sheer size would gain monopoly power in
the market, which can have undesirable consequences for economic efficiency. Further
combining commercial and investment banking can give rise to conflict of interest.

10. Sharpening skills

The far-reaching changes in the banking and financial sector entail a fundamental shift in
the set of skills required in banking. To meet increased competition and manage risk, the
demand for specialized banking functions, using IT, as a competitive tool has to go up.
Special skills in retail banking, treasury, risk management, foreign exchange,
development banking, etc, will need to be carefully nurtured and built. Thus, the twin
pillars of the banking sector i.e. human resource and IT will have to be strengthened.
Thus the need of the day is a combination of improved technology and quality human
resources.

11. Competition

Monopolistic competition among universal banks will decrease their profit margin.

12. Government interferences

Interferences by government in public sector banks through RBI are hampering progress
of universal banks.

13. Present economic recession

Recession is affecting universal banks in a big way as their investment in infrastructure as

well as the establishment expenses is much higher as compared to public sector banks.
IDBI bank home loan india
73
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By rudejohn

IDBI looking to expand it's retail credit foray

Even as the amalgamation of Industrial Development Bank of India Ltd (IDBI) and
United Western Bank Ltd (UWB) gets close to completion, IDBI has chalked out an
aggressive retail strategy with its partner in major loans like: home loan, education loan,
mutual funds and credit cards.

IDBI took over the weak, old private sector bank, headquartered in western Maharashtra,
in October 2006. UWB is the second bank that has been taken over by IDBI, a
development financial institution that became a bank by merging with IDBI Bank, its
own listed subsidiary.
Now IDBI wants to transform itself from a wholesale bank to a financial intermediary
that seeks to service the masses. Currently, corporate loans account for 77% of IDBI's
Rs62,353 crore advance portfolio. IDBI wants to go the whole nine yards in the retail
segment over the next three-five years. The lender plans to target small- and medium-
sized enterprises (SME) and agricultural businesses.

IDBI home loan news....

• Festive cheer: Some banks to cut home, augo rates - Business Standard

Business Standard Festive cheer: Some banks to cut home, augo rates Business
Standard Another state-run lender, Bank of Baroda, is also planning to give
“better rates” on home and auto loan products. According to an IDBI Bank
official, ... and more » - 19 hours ago

• Short term plans good for risk averse investors - Myiris.com

Myiris.com Short term plans good for risk averse investors Myiris.com Home
loan rates would typically follow the movement in the deposit rates,unless the
 housing loan segment sees a slowdown wherein higher resources cost may ... and
more » - 3 hours ago

• Fixed rate home loans are history - mydigitalfc.com

Fixed rate home loans are history mydigitalfc.com Out of the total home loan
providers including all banks and housing finance companies, the four largest
players — HDFC, SBI, ICICI Bank and LIC Housing ... and more » - 9 days ago

Garware Polyester to issue pref shares to IDBI

Garware Polyester Ltd (GPL) plans to issue cumulative redeemable preference shares
aggregating Rs 49.54 crore to Industrial Development Bank of India Ltd(IDBI).

The company is also issuing 10,19,022 equity shares of Rs 10 each at a premium of Rs

48.88 per equity share aggregating to Rs 6 crore, a company statement said here today.
The company has received shareholders approval at an extra-ordinary general body
meeting (EGM) held here.
This is a part of the financial re-structuring undertaken by the company. Its balance sheet
ratios have substantially improved, thereby strengthening the financial health of the
company, it said.

IDBI reduces fixed home loan rates

IDBI Ltd cut the interest rates on fixed home loans by about 100 basis points with
effect from September 1. However, the floating interest rate continues to remain
unchanged. The bank has also increased rates on fixed deposits for some maturities.

For fixed loans the revised rate for loans up to three years is 12.5 per cent (13.5-14 per
cent) and for loans up to five years it is 12.75 per cent (13.75-14.25 per cent). The
floating rate remains unchanged at 11.25 per cent, said a press release from the bank.
IDBI also raised deposit rates on fixed deposits up to Rs 15 lakh for a period of nine
months to one year to 7.75 per cent (7.25 per cent); from one year to one year six months
- 8.5 per cent (8 per cent); one year six months to two years - 8.5 per cent (8 per cent);
two years to three years - 8.5 per cent (8 per cent); three years to five years - 8.75 per cent
(8.25 per cent); five years to less than 10 years - 8.75 per cent (8.25 per cent) and for 10
years 8.75 per cent (8.25 per cent).

IDBI Bank home loan folio swells to Rs 1040 cr

IDBI Bank's home loan portfolio has grown by 360 per cent to Rs 1040 crore by mid-
March in the current fiscal, according to its Managing Director and Chief Executive
Gunit Chadha.
"The home loan portfolio, a fastest growing retail segment at the beginning of the current
fiscal was at Rs 227 crore and has touched Rs 1040 crore by mid March", he told
reporters at the launch of new ATM-based information service here today.
The retail asset base was expected to touch Rs 1500 crore and contribute 30 per cent to
the total bank business by end of this fiscal, he added.

Don't get burdened from home loan

Are you burdened by the increased rate of EMIs on housing loans? Are you finding it
difficult to manage the increased EMIs? Will it be right to buy a house now?

If you want to buy a second house, is it the right time to go for one?
I HAVE TWO YEARS OLD HOME LOAN FROM IDBI BANK OF 20 YEARS .. AS
THE PRICES OF FLAT HAVE NOW DOUBLED CAN I SELL OFF & WHAT IS THE
PROCEDURE???
Harsh Roongta CEO Apnaloan.com answers, Off course you can sell of the flat. You will
need to clear off the loan before you do so. Read the detailed process for selling a
property with an existing loan.

Advantages of IDBI Home Loans

>Flexibility of choosing between Floating or Fixed interest rate

->EMI on monthly reducing balance

->Personalised doorstep service

->Simple documentation

->Legal and technical assistance

->Balance transfer facility

->Reassessment and adjustment of applicant's loan eligibility in case of change of income

and residence status

Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating the working of institutions

engaged in financing, promoting and developing industries. It has evolved an appropriate
mechanism for this purpose. IDBI also undertakes/supports wide-ranging promotional
activities including entrepreneurship development programmes for new entrepreneurs,
provision of consultancy services for small and medium enterprises, upgradation of
technology and programmes for economic upliftment of the underprivileged.

IDBI's role as a catalyst

IDBI's role as a catalyst to industrial development encompasses a wide spectrum of
activities. IDBI can finance all types of industrial concerns covered under the provisions of
the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown
substantially in terms of size of operations and portfolio.

Developmental Activities of IDBI

Promotional activities

In fulfilment of its developmental role, the Bank continues to perform a wide range of
promotional activities relating to developmental programmes for new entrepreneurs,
consultancy services for small and medium enterprises and programmes designed for
accredited voluntary agencies for the economic upliftment of the underprivileged. These
include entrepreneurship development, self-employment and wage employment in the
industrial sector for the weaker sections of society through voluntary agencies, support to
Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality
Testing Centres for small industries.

Technical Consultancy Organisations

With a view to making available at a reasonable cost, consultancy and advisory services
to entrepreneurs, particularly to new and small entrepreneurs, IDBI, in collaboration with
other All-India Financial Institutions, has set up a network of Technical Consultancy
Organisations (TCOs) covering the entire country. TCOs offer diversified services to
small and medium enterprises in the selection, formulation and appraisal of projects, their
implementation and review.

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to industrial development, IDBI

played a prime role in setting up of the Entrepreneurship Development Institute of India
for fostering entrepreneurship in the country. It has also established similar institutes in
Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends financial support to
various organisations in conducting studies or surveys of relevance to ind Citizens'
Charter of IDBI Bank for Investors:
Responsive and Responsible Preamble IDBI Bank, in its continued and
committed endeavour to provide prompt and quality service to its valued clients, has
introduced this Citizens' Charter. The Citizens' Charter is intended to provide information
in respect of IDBI Bank's various activities relating to customer service, for the benefit of
its customers. It is not a legal document creating rights and obligations.
Introduction IDBI Bank provides financial assistance to industrial concerns by way of
a variety of products and services which include project finance, equipment finance, asset
credit, equipment lease, technology upgradation fund scheme, refinance for medium scale
industries and bills finance. It provides project-related finance for the establishment of
the new industrial projects as well as for expansion, diversification and modernisation of
existing industrial enterprises. In response to the changing financial needs of industries,
IDBI Bank has also designed other products to meet the short term funding, core working
capital and other short term requirements of industrial units. It also offers fee-based
services in the areas of merchant banking, corporate advisory services, forex services, etc.
IDBI Bank has also set up subsidiaries and associates to offer banking products &
services, capital market and trusteeship services, as also registrar and transfer services
structured to meet customised client requirements.

For meeting the fund requirements thereof as well as towards its various other business
operations, IDBI Bank raises resources directly from the market (at market - related
interest rates) from retail as well as institutional investors - both within India and abroad,
through a variety of investor-friendly instruments. IDBI Bank's resource raising efforts
have brought it closer to all sections of society. Resource Raising IDBI Bank has
been mobilising resources through a combination of debt and equity. It made a public
issue of equity shares in 1995 in terms of the Offer Document approved by SEBI. IDBI
Bank's shares are listed on National Stock Exchange and Mumbai Stock Exchange. The
shares can be held in dematerialised (demat) form in National Securities Depository Ltd.
(NSDL) or Central Depository Services (India) Ltd. (CDSL). NSDL/CDSL are
depositories where the securities of an investor are held in electronic form through the
medium of Depository Participants (DPs). This facility obviates the difficulties of loss,
signing of transfer deeds, delay in transfer, etc. and offers scope for paperless trading.

IDBI Bank also raises funds from the public through public issues of unsecured bonds.
The objective of various bond issues is to part finance funding requirement of IDBI Bank
and at the same time provide appropriate investment opportunities for the retail investors.
The three Registrars appointed by IDBI Bank for various public issues have also been
retained for servicing the public issues of IDBI Bank. The addresses of these
Registrars are:
M/s. Karvy Computershare Private Ltd., Tel.No. (040) 23312454, 23320251/ 751/752
Karvy House,Avenue 4, Street No.1, Fax No. (040) 2331 9434 / 1968, 23323049
Banjara Hills, E-mail :mailmanager@karvy.com
Hyderabad - 500 034.
Investor Services of India Ltd. Tel No. (022) 27579636-44
IDBI Bldg.,2nd Floor, "A" Wing, Fax No. (022) 27579650
Plot Nos.39, 40 & 41, E-mail :series1@isilindia.com
Sector 11, CBD Belapur, flexi21@isilindia.com
Navi Mumbai - 400 614.
M/s. DATAMATICS Financial Software & Tel No. (022) 28200540/538 / 28375519 /
Services Ltd. 28213383-92
Plot No.A-16 & A-17, Part-B, Fax No. (022) 28369408
Cross Lane, MIDC, Marol, Andheri (E), E-mail : idbiflexi@dfssl.com
Mumbai - 400093.
Investor Relations IDBI Bank has designed a customer-friendly website
(www.idbi.com) which contains complete information about the organisation, its
products and services, investment opportunities and various deposit schemes. It also has a
contact system for the convenience of posting investors' queries which are responded to
on a real-time basis.

In order to create the requisite awareness among investors, a booklet containing

guidelines to its shareholders is brought out by IDBI Bank and made available to
investors on a complimentary basis.

IDBI Bank has an exclusive team of officers to attend to post-issue complaints /

suggestions of equity holders and bond holders.

Besides, IDBI Bank has set up an Customer Relations Management Cell at its Head
Office to attend to grievances of investors. The Cell is managed by experienced and
trained personnel from IDBI Bank and assisted by representatives of the three Registrars,
namely, Investor Services of India Ltd., Karvy Computershare Private Ltd. and
Datamatics Financial Software & Services Ltd. Orientation of Staff for Investor
Service IDBI Bank makes significant efforts to motivate its staff and inculcate in them
the spirit of prompt and diligent servicing, aimed at securing investor satisfaction. Over
the years, IDBI Bank has put in every effort to bring about excellence in the service
provided and to meet the increasing / changing training needs of the employees, in the
evolving business scenario. Grievance Redressal Procedure The following
avenues are open to the investors for redressal of their grievances:

• Oral representations to IDBI Bank officials at HO/Branch Office convenient to

the investor;
• Written representation to the Officer-in-charge of the Branch Office nearest to
his/her station or to Head Office.
• Complaints/Suggestion boxes are also placed at the main entrance/gate of each
office for the convenience of investors.
• Written complaint can be sent to SEBI/RBI/DOCA for redressal.
• Complaint proforma has been made available on IDBI Bank website (copy
appended for ready reference).
• Investors' feedback form is attached which may be filled and dropped in the
suggestion box at the IDBI Bank, Head Office / Branch or mailed to the General
Manager, DOMESTIC RESOURCES DEPT.(Customer Relations Management
Cell), IDBI, IDBI Tower, 7TH FLOOR, Cuffe Parade, Mumbai 400 005. TEL.
NO.(022) - 2216 4385 / 2215 1051; FAX NO. (022) – 2218 0930; EMAIL ID:
ird@idbi.co.in.

Time Frame for Various Investor Services It is the endeavour of IDBI Bank to
provide prompt and efficient service to its investing public. An indicative time frame for
attending to various investor grievances is given below.
Job Description Time-frame
Allotment of Securities/bonds Within 30 days of closure of the public issue
Refund of application money Within 30 days of closure of the public issue and with
in case of non-allotment interest for the period of delay beyond 30 days, if any.
 On due dates (Investors are requested to refer to the
Payment of interest/dividend
instrument for ascertaining the due date)
Redemption payment of On maturity dates as pre-determined and notified in the
securities Offer Document.
In case of early redemption of Within 30 days after surrender of the instrument duly
securities discharged by the holder(s)
Within 6 weeks of receipt of request along with all relevant
Duplicate issue of Bonds
documents such as indemnity bond/surety and undertaking.
Only after necessary notification regarding the loss/non-
Postal loss of certificate(s) receipt of the original share certificate is given in the
newspapers.
Within 20 days after the expiry of the currency of the
Duplicate issue of interest warrant and on receipt of relevant documents such as
warrants/dividend warrants indemnity bond/surety, subject to receipt of reconciliation
from Bankers.
Immediately over the counter if the request has come within
Revalidation of interest
six months from the date of issue of the warrant; otherwise
warrants
duplicate warrant will be issued within 20 days.
Revalidation of dividend On expiry of the validity period, subject to receipt of
warrants reconciliation from Banks.
Change of address Immediately on receipt of information
Change in Bank Mandate Immediately on receipt of information
Transmission will be effected within 30 days after receipt of
Request for transmission of securities alongwith all relevant documents such as attested
securities in case of death of copy of the will, attested copy of the death certificate,
single holder attested copy of court order/succession certificate /Letter of
administration for effecting the transmission.
Request for transmission of Within 30 days of the receipt of original securities and an
securities in case of death of attested copy of the death certificate.
one of the holders in a joint
holding
Request for transfer of share Within 30 days of lodgment of securities.
certificate
Request for consolidation of Within 30 days of lodgment of securities.
share certificates
Within 30 days of receipt of original certificates along with
Request for change in name
attested copy of marriage certificate or decree of divorce
consequent upon change in
issued by competent authority, old specimen signature and
marital status
new specimen signature duly attested by the banker.
Nodal Officer for Investor Grievances Mrs. Kiran S. Balwani
Head - Customer Care Center
IDBI Bank Ltd
Central Road, MIDC Plot No. 82/83,
Road No. 7, Street No. 15,
MIDC, Andheri (E), Mumbai - 400 093.
Tel No. (022) 66977800 extn 7510
Email id: ird@idbi.co.in Code of Business Principles Business Partners IDBI
Bank is committed to establishing mutually beneficial relations with its customers and
business partners. It also expects its partners to adhere to business principles consistent
with its own, in all its business dealings. Business Integrity IDBI Bank shall not
give or receive, whether directly or indirectly, bribes or other improper advantages for
business or financial gain. No employee may offer, give or receive any gift or payment,
which is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must
be rejected immediately and reported to management. Community Involvement
IDBI Bank strives to be a trusted corporate citizen and, as an integral part of society, to
fulfil its responsibilities to the societies and communities in which it operates.
All the services and commitments are honoured without the citizen having to pay any
bribe

ustrial development. Question

i want to prepay my home loan taken from HDFC .what are the advantages and
disadvantages ?

Answer

If you have surplus funds and you can also pre-pay a part of the home loan as it will
reduce the monthly EMI burden. Quite a few banks do not charge pre-payment penalty if
the loan is prepaid partially. The definition of what constitutes partial pre-payment varies
from bank to bank. This will ensure savings in pre-payment penalty and at the same time
help you to save on high interest costs on a substantial portion of the loan. However,
before you decide to pre-pay a home loan, it is in your interest to first clear off all
unsecured dues like credit card dues and personal loans. Also, make sure that you have
some money set aside to meet emergency expenses. Tax calculation can change the view
on pre-payment. You can also check the Should I PrePay my loan calculator.

cici Bank Home Loan

Features: The bank offers home loans to Indians and NRIs for purchase of new and
resale properties as well as plots. The loan tenure is available up to 25 years. A Free
Personal Accident Insurance is also offered. The loan is available at fixed and floating
interest rates. Loan transfer option is also available.
< << <<< INTRODUCTION >>> >> >

ICICI Bank is the largest private sector bank in India. No doubt about it. It was the
confluence of one of
 the biggest financial corporation and a once great bank known for its service
and promptness. Is it still so? No way. I don’t think so. At least, in my opinion. If you
asked me an opinion about ICICI Bank in 1998 or earlier, I would have given it a 5 star
rating. No doubt about it. Will I give it the same, as I have been a customer for 5+ years?
No. Not a chance. In the due course of this review, I shall analyze the pros and cons of
this bank and compare it against other banks that I have known. What happened to a once
an excellent bank these days? We shall see.

< << <<< HISTORY >>> >> >

To understand about this big bank, we need to understand how it became so big a
force to reckon with. ICICI (Industrial Credit Investment Corporation of India) promoted
the ICICI bank in 1994 with its stake reducing to 46% after the IPO in 1998. ICICI is a
well-known name in India along with IDBI and was formed in 1955 at the initiative of the
World Bank, Indian Government and Indian Industries. Both of these institutions have an
exceptional brand-image and one of the highest possible ratings from CRISIL and other
rating organizations. ICICI can be considered an oligopolistic corporation along with
IDBI (please M2M me, if you want to discuss this!). ICIC listed in NYSE in 2000. In
2001 it underwent a tight marriage with Bank of Madura in a stock-only amalgamation.
This was a tough marriage and I guess they are still suffering from this hiccup, which
kind of substantiates their mediocre performance today, in my perspective. This and the
merger with the ICICI Corporation have caused some management strain and some tough
merger time. I could only wish they come over this and serve the customers in a better
manner.

< << <<< MY ASSOCIATION >>> >> >

I first became an ICICI bank customer in 1998 when I became an NRI customer.
Things were rather mundane and normal. Compared to the other big nationalized banks
and Citibank, I felt ICICI Bank was the best and got some great feedback from friends
and relatives alike. My initial relationship was excellent. This continued till 2001. All the
facilities were of the highest grade. Their email follow-ups, request resolution, customer
service and everything they served were of the highest grade. They also baffled me by
calling me overseas with regard to certain transactions and request. So, I would have
given a 5 star rating in 1998.

What changed since then?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This bank grew leaps and bounds ever since the IPO in 1998 as well as the NYSE
listing in 2000. The numbers of customers were huge and the merger with Bank Of
Madura added to the woes of the service. As there is a saying “Quality is inversely
proportional to Quantity”, ICICI bank yielded to this very true philosophy. I am attaching
an email I sent to their NRI center regarding a change of address for my NRI account that
was taking more than 2 months as it involved a written mail, which they lost twice and
didn’t do it right first time. A password reset for the infinity (infinitely, infinitesimally,
infuriating, inferior information system) that took considerable amount of time and two
couriers from them. They sent one to the wrong address, and the other one, to the right
address with the wrong password. The Industrial Development Bank of India Limited
(IDBI) (BSE: 500116) is one of India's leading public sector banks and 4th largest Bank in
overall ratings. RBI categorised IDBI as an "other public sector bank". It was established
in 1964 by an Act of Parliament to provide credit and other facilities for the development of
the fledgling Indian industry.[1] It is currently 10th largest development bank in the world
in terms of reach with 1228 ATMs, 725 branches and 486 centers.[2] Some of the
institutions built by IDBI are the National Stock Exchange of India (NSE), the National Securities
Depository Services Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit Analysis &
Research Ltd, the Export-Import Bank of India(Exim Bank), the Small Industries Development bank of
India(SIDBI), the Entrepreneurship Development Institute of India, and IDBI BANK, which today is
owned by the Indian Government, though for a brief period it was a private scheduled
bank.

Contents
[hide]

• 1 Recent developments
• 2 Overview of development banking in India
• 3 Industrial Development Bank of India (IDBI)
• 4 Industrial Investment Bank of India Ltd.
• 5 Acquisition of United Western Bank
• 6 See also
• 7 References

• 8 External links

[edit] Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI has
taken steps to reshape its role from a development finance institution to a commercial
institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal)
Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development
Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of India (RBI) issued the
requisite notification on 30 September 2004 incorporating IDBI as a 'scheduled bank'
under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking
business as IDBIL from 1 October 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBI
Bank entered into a joint venture with Federal Bank and Fortis Insurance International to
form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended the
year with over 300 Cr in premiums as on 31 March 2009.
[edit] Overview of development banking in India

The concept of development banking rose only after Second World War, after the Great
Depression in 1930s. The demand for reconstruction funds for the affected nations
compelled in setting up a worldwide institution for reconstruction. As a result the IBRD
was set up in 1945 as a worldwide institution for development and reconstruction. This
concept has been widened all over the world and resulted in setting up of large number of
banks around the world which coordinating the developmental activities of different
nations with different objectives among the world. The Narashimam committee had
recommended to give up its direct financing functions and to perform only the
promotional and refinancing role. However, the S.H.Khan committee, appointed by the
RBI, recommended its transformation into a universal bank.[3]

The course of development of financial institutions and markets during the post-
Independence period was largely guided by the process of planned development pursued
in India with emphasis on mobilisation of savings and channeling investment to meet
Plan priorities. At the time of Independence in 1947, India had a fairly well-developed
banking system. The adoption of bank dominated financial development strategy was
aimed at meeting the sectoral credit needs, particularly of agriculture and industry.
Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms
for institution building. The commercial banking network was expanded to cater to the
requirements of general banking and for meeting the short-term working capital
requirements of industry and agriculture. Specialised development financial institutions
(DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of
the Reserve Bank were set up to meet the long-term financing requirements of industry
and agriculture. To facilitate the growth of these institutions, a mechanism to provide
concessional finance to these institutions was also put in place by the Reserve Bank.

The first development bank In India incorporated immediately after independence in

1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer
institutional credit to medium and large-scale. Then after in regular intervals the
government started new and different development financial institutions to attain the
different objectives and helpful to five-year plans.

The early history of Indian banking and finance was marked by strong governmental
regulation and control. The roots of the national system were in the State Bank of India
Act of 1955, which nationalized the former Imperial Bank of India and its seven associate
banks. In the early days, this national system operated alongside of a large private
banking system. Banks were limited in their operational flexibility by the government’s
desire to maintain employment in the banking system and were often drawn into
troublesome loans in order to further the government’s social goals.

The financial institutions in India were set up under the strong control of both central and
state Governments, and the Government utilized these institutions for the achievements in
planning and development of the nation as a whole. The all India financial institutions
can be classified under four heads according to their economic importance that are:
 • All-India Development Banks
• Specialized Financial Institutions
• Investment Institutions
• State-level institutions
• Other institutions

[edit] Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under
an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16
February 1976, the ownership of IDBI was transferred to the Government of India and it
was made the principal financial institution for coordinating the activities of institutions
engaged in financing, promoting and developing industry in the country. Although
Government shareholding in the Bank came down below 100% following IDBI’s public
issue in July 1995, the former continues to be the major shareholder (current
shareholding: 52.3%). During the four decades of its existence, IDBI has been
instrumental not only in establishing a well-developed, diversified and efficient industrial
and institutional structure but also adding a qualitative dimension to the process of
industrial development in the country. IDBI has played a pioneering role in fulfilling its
mission of promoting industrial growth through financing of medium and long-term
projects, in consonance with national plans and priorities. Over the years, IDBI has
enlarged its basket of products and services, covering almost the entire spectrum of
industrial activities, including manufacturing and services. IDBI provides financial
assistance, both in rupee and foreign currencies, for green-field projects as also for
expansion, modernisation and diversification purposes. In the wake of financial sector
reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-
based services with a view to providing an integrated solution to meet the entire demand
of financial and corporate advisory requirements of its clients. IDBI also provides
indirect financial assistance by way of refinancing of loans extended by State-level
financial institutions and banks and by way of rediscounting of bills of exchange arising
out of sale of indigenous machinery on deferred payment terms.

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.

recommends that IDBI should give up its direct financing functions

Narasimam committee[4]
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 2 July 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 1 October 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 29 July 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 31 March 2005.

The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of
idbi bank. The cultures in the two organizations have taken its toll. The IDBI BANK now
is in a growing fold. With its retail banking arm expanding further after the merger of
United western Bank.
IDBI would continue to provide the extant products and services as part of its
development finance role even after its conversion into a banking company. In addition,
the new entity would also provide an array of wholesale and retail banking products,
designed to suit the specific needs cash flow requirements of corporates and individuals.
In particular, IDBI would leverage the strong corporate relationships built up over the
years to offer customised and total financial solutions for all corporate business needs,
single-window appraisal for term loans and working capital finance, strategic advisory
and “hand-holding” support at the implementation phase of projects, among others.

IDBI’s transformation into a commercial bank would provide a gateway to low-cost

deposits like Current and Savings Bank Deposits. This would have a positive impact on
the Bank’s overall cost of funds and facilitate lending at more competitive rates to its
clients. The new entity would offer various retail products, leveraging upon its existing
relationship with retail investors under its existing Suvidha Flexi-bond schemes. In the
emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one
stop super-shop and most preferred brand for providing total financial and banking
solutions to corporates and individuals, capitalising on its intimate knowledge of the
Indian industry and client requirements and large retail base on the liability side.

IDBI upholds the highest standards of corporate governance in its operations. The
responsibility for maintaining these high standards of governance lies with its Board of
Directors. Two Committees of the Board viz. the Executive Committee and the Audit
Committee are adequately empowered to monitor implementation of good corporate
governance practices and making necessary disclosures within the framework of legal
provisions and banking conventions.

[edit] Industrial Investment Bank of India Ltd.

The industrial investment bank of India is one of oldest banks in India.[5] The Industrial
Reconstruction Corporation of India Ltd., set up in 1971 for rehabilitation of sick
industrial companies, was reconstituted as Industrial Reconstruction Bank of India in
1985 under the IRBI Act, 1984. With a view to converting the institution into a full-
fledged development financial institution, IRBI was incorporated under the Companies
Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a
wide range of products and services, including term loan assistance for project finance,
short duration non-project asset-backed financing, working capital/ other short-term loans
to companies, equity subscription, asset credit, equipment finance as also investments in
capital market and money market instruments.

In view of certain structural and financial problems adversely impacting its long-term
viability, IIBI submitted a financial restructuring proposal to the Government of India on
25 July 2003. IIBI has since received certain directives from the Government of India,
which, inter alias, include restricting fresh lending to existing clients approved cases rated
corporates, restrictions on fresh borrowings, an action plan to reduce the overhead
expenditure, disposal of fixed assets and a time-bound plan for asset
recovery/reconstruction. The Government of India had also given its approval for the
merger of IIBI with IDBI and the latter had already started the due diligence process.[6]

But on 17 December 2005 the IDBI rejected any such merger.[7]

[edit] Acquisition of United Western Bank

In 2006, IDBI Bank acquired United Western Bank in a rescue.[8] Annasaheb Chirmule, who
worked for the cause of Swadeshi movement, founded Satara Swadeshi Commercial
Bank in 1907, and some three decades later founded United Western Bank. The bank
was incorporated in 1936, and commenced operations the next year, with its head office
in Satara, in Maharashtra State. It became a Scheduled Bank in 1951. In 1956 it merged with
Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial Bank.[9] At
the time of the merger with IDBI, United Western had some 230 branches spread over 47
districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and
Nagpur.

[edit] See also

• IDBI Fortis Life Insurance
• IDBI Intech Ltd.

[edit] References

1. ^ "List of Top 5 India's Public Sector Banks". Articlesbase.com.

http://www.articlesbase.com/banking-articles/list-of-top-5-indias-public-sector-banks-2472445.html.
Retrieved 2010-07-26.
2. ^ "IDBI Bank". Business.mapsofindia.com. http://business.mapsofindia.com/banks-in-india/idbi-
bank-ltd.html. Retrieved 2010-07-26.
3. ^ "Narasimham panel moots IDBI corporatisation". Expressindia.com. 1998-05-05.
http://www.expressindia.com/fe/daily/19980505/12555134.html. Retrieved 2010-07-26.
4. ^ Our Banking Bureau / Mumbai 26 October 2004 (2004-10-26). "IDBI aims at Rs 1
lakh cr assets by year-end". Business-standard.com. http://www.business-
standard.com/india/news/idbi-aims-at-rs-1-lakh-cr-assets-by-year-end/191939/. Retrieved 2010-07-
26.
5. ^ Keith, Kelley. "Banks in India – Web Listings". Business.com.
http://www.business.com/directory/financial_services/banking/banking_institutions/commercial_banks/india/
weblistings.asp. Retrieved 2010-07-26.
6. ^ "Mega Merger Of IDBI, IFCI And IIBI Under Consideration".
Financialexpress.com. 2003-04-
05. http://www.financialexpress.com/news/mega-merger-of-idbi-ifci-and-iibi-under-consideration/71999/1.
Retrieved 2010-07-26.
7. ^ Press Trust Of India / New Delhi 17 December 2005 (2005-12-17). "IDBI rules out
IFCI, IIBI acquisition". Business-standard.com. http://www.business-standard.com/india/news/idbi-
rules-out-ifci-iibi-acquisition/227152/. Retrieved 2010-07-26.
8. ^ "IDBI chairman to the rescue". Rediff.com. http://www.rediff.com/money/2006/sep/15idbi.htm.
Retrieved 2010-07-26.
 9. ^Webdeveloper. "The Fall of United Western Bank | Finance Case Studies | Business Finance
Management Cases | Case Study". Icmrindia.org.
http://www.icmrindia.org/casestudies/catalogue/Finance/The%20Fall%20of%20United%20Western
%20Bank-Finance%20Management%20Case%20Study.htm. Retrieved 2010-07-26.

[edit] External links

• IDBI Bank official website
• http://www.idbicapital.com / IDBI Capital Market Services Website
• BITS Pilani Rajasthan Alumnus takes over as IDBI Chairman
• Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003
• Finacle Success Story on IDBI Bank
• IDBI Fortis - Life Insurance Company

Advantages of Investing in Mutual Funds

Professional Money Management & Research

Mutual funds are managed by professional fund managers who regularly monitor market
trends and economic trends for taking investment decisions. They also have dedicated
research professionals working with them who make an in depth study of the investment
option to take an informed decision.

Risk Diversification

Diversification reduces risk contained in a portfolio by spreading it. It is about not putting
all your eggs in one basket. As mutual funds have huge corpuses to invest in, one can be
part of a large and well-diversified portfolio with very little investment.

Convenience

With features like dematerialized account statements, easy subscription and redemption
processes, availability of NAVs and performance details through journals, newspapers
and updates and lot more; Mutual Funds are sure a convenient way of investing.

Liquidity

One of the greatest advantages of Mutual Fund investment is liquidity. Open-ended funds
provide option to redeem on demand, which is extremely beneficial especially during
rising or falling Markets.
Reduction in Costs

Mutual funds have a pool of money that they have to invest. So they are often involved in
buying and selling of large amounts of securities that will cost much lower than when
you invest on your own

Tax Advantages

Investment in mutual funds also enjoys several tax advantages. Dividends from Mutual
Funds are tax-free in the hands of the investor (This however depends upon changes in
Finance Act). Also Capital Gain accrued from Mutual Fund investment for a period of
over one year is treated as long term capital appreciation and is tax free.

Other Advantages

Indian Mutual fund industry also presents several other benefits to the investor like:
transparency - as funds have to make full disclosure of investments on a periodic basis,
flexibility in terms of needs based choices, very well regulated by SEBI with very strict
compliance requirements to investor friendly norms.

ICICI bank provides wide variety of home loans. They provide variety of loans in order
to meet people's need. Different people have different interest and needs. So, different
people can choose different type of loan according to their requirement. ICICI bank NRI
loans are famous. This bank provides many services to NRI's. ICICI bank NRI services
are listed here.

• Part-prepayment facility for zero fees.

• Door step service in India till disbursement.
• Free personal accident insurance to the extent of loan outstanding.
• Facility for Online application for India Home Loans.
• Online tracking of the status of your India Home loan application.
• Attractive interest rates on a monthly reducing basis.
• Option of choosing from fixed and floating interest rates.

These are the various benefits provided by this bank. ICICI bank NRI home loans are not
easy to get. They have certain eligibility criteria to sanction NRI loans. According to
his/her need, the applicant can purchase land, build new house and buy new home.
Various eligibility criteria are age, residential status and income. The applicant should
have a minimum age of 23 years. The maximum age limit allowed is 60 years for salaried
applicant and 65 years for self employed applicant.
This maximum age limit is the maximum age allowed at the time of loan maturity.
Residential status should be a minimum period of 1 year for salaried applicant and 3 year
for self employed applicant. ICICI bank NRI interest rates are denoted by Floating
Reference Rate (FRR) and PLR. Recently FRR has changed from 13.25% to 12.75% and
PLR has changed from15.25% to 14.75%.

6. Introduction
Banking
6.1 Business of banking

Banking, in a traditional sense is the business of accepting deposits of money from the public for the

purpose of lending and investment. These deposits can have a distinct feature of being withdraw able

by cheques, which no other financial institution can offer. In addition to this banks also offer various

other financial services also which include:

Issuing Demand drafts and travellers cheques

•

Collection of cheques, bills of exchange

•

Safe deposit lockers

•

Issuing letters of credit and letters of guarantee

•

Sale and purchase of foreign exchange

•

Custodial services
•

Investment services
•

The business of banking is highly regulated since banks deal with money offered to them by the public

and public and ensuring the safety of this public money is one of the prime responsibilities of the

bank. That is why banks are expected to be prudent in their lending and investment activities. The

major regulations and acts that govern the banking business are:

Banking Regulations Act

•

Reserve Bank of India Act

•

Foreign Exchange Regulation (Amendment) Act, 1993

•
Indian Contract Act
•

Instruments Act

Banks lend money either for productive purposes to individuals, firms, corporate etc or for buying

house property, cars and other consumer durable and for investment purposes to individuals and

others. However, SCB banks do not finance any speculative activity. Lending is risk taking. The risk

should be covered by having prudent norms for lending.

8. History of Standard Chartered Bank

The Standard Chartered Group was formed in 1969 through a merger of two banks: The Standard

Bank of British South Africa founded in 1863, and the Chartered Bank of India, Australia and China,

founded in 1853. Both companies were keen to capitalize on the huge expansion of trade and to earn

the handsome profits to be made from financing the movement of goods from Europe to the East and

to Africa.

8.1 The chartered Bank

Funded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by

Hong Kong and Singapore in 1859. Traditional business was in cotton from Mumbai (Bombay),

indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila

and silk from Yokohama. Played a major role in the development of trade with the East which

followed the opening of the Suez Canal in 1869, and the extension of the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank’s Cyprus
Branches. This established a presence in the Gulf.
8.2 The Standard Bank

Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port

Elizabeth, South Africa, in January 1863. Was prominent in financing the development of the

diamond fields of Kimberley from 1867 and later extended its network further north to the new town

of Johannesburg when gold was discovered there in 1885. Expanded in Southern, Central and Eastern

Africa and by 1953 had 600 offices.

In 1965, it merged with the Bank of West Africa expanding its operations into Cameroon, Gambia,

Ghana, Nigeria and Sierra Leone. In 1969, the decision was made by Chartered and by Standard to

undergo a friendly merger. All was going well until 1986, when Lloyds Bank of the United Kingdom

made a hostile takeover bid for the Group. When the bid was defeated,
Standard Chartered entered a period of change. Provisions had to be made against third world debt

exposure and loans to corporations and entrepreneurs who could not meet their commitments.

Standard Chartered began a series of divestments notably in the United States and South Africa, and

also entered into a number of asset sales. From the early 90’s, Standard Chartered has focused on

developing its strong franchises in Asia, the Middle East and Africa using its operations in the United

Kingdom and North America to provide customers with a bridge between these markets. Secondly, it

would focus on consumer, corporate and institutional banking, and on the provision of treasury

services – areas in which the Group had particular strength and expertise. In the new millennium it

acquired Grind lays Bank from the ANZ Group and

the
Chase
Consumer
banking
operations
in
Hong
Kon

9. Recent Alliances & acquisitions

In 2000, Standard Chartered acquired Grind lays Bank from ANZ Bank, increasing its presence in

private banking and further expanding its operations in India and Pakistan. Standard Chartered

retained Grind lays private banking operations inLondon andLuxe mbourg and the subsidiary in

Jersey, all of which it integrated into its own private bank. This now serves high net worth

customers in Hong Kong,Duba i, andJohannesburg under the name Standard Chartered Grind lays

Offshore Financial Services. InIndia, Standard Chartered integrated most of Grind lays' operations,

making Standard Chartered the largest foreign bank in the country, despite Standard Chartered having

cut some branches and having reduced the staff from 5500 to 3500 people. On 15th April2005, the

bank acquired Korea First Bank, beatingHSBC in the bid. Since then the bank has rebranded the

branches as SC First Bank. Standard Chartered completed the integration of itsBangkok branch and

Standard Chartered Nakornthon Bank in October, renaming the new entity Standard Chartered Bank

(Thailand).

Standard Chartered also formed strategic alliances with Fleming Family & Partners to expand
private wealth management in Asia and the Middle East, and acquired stakes inACB Vietnam,
Travelex, American Express Bankin Bangladeshand Bohai Bankin China. On 9th August 2006

Standard Chartered announced that it had acquired an 81% shareholding in the Union Bankof Pakistan

in a deal ultimately worth $511 million. This deal represented the first acquisition by a

foreign firm of a Pakistani bank and the merged bank, Standard Chartered Bank (Pakistan), is now

Pakistan's sixth largest bank. On 22 October, 2006 Standard Chartered announced that it has received

tenders for more than 51 per cent of the issued share capital of Hsinchu International Bank

(“Hsinchu”), established in 1948 inHsinchu province in Taiwan. Standard Chartered, which had first

enteredTaiw an in 1985, acquired majority ownership of the bank, Taiwan’s

seventh largest private sector bank by loans and deposits as at 30 June, 2006. Prior to the merger,

Hsinchu had suffered extensive losses on defaulted credit card debt. In 2006, Standard Chartered in

Bangladesh announced an alliance with Dutch Bangla Bank to share their respective ATM operations.

On 23 August, 2007 Standard Chartered entered into an agreement to buy a 49 percent of an Indian

brokerage firm (UTI Securities) for $36 million in cash from Securities Trading Corporation of India

Ltd., with the option to raise its stake to 75 percent in 2008 and, if both partners agree, to 100 percent

by 2010. UTI Securities offers broking, wealth management and investment banking services across

60 Indian cities.

On 29th February 2008, Standard Chartered PLC announced it has received all the required approvals

leading to the completion of its acquisition of American Express Bank Ltd (AEB) from the American

Express Company (AXP). The total cash consideration for the acquisition is US$ 823 million. The

acquisition of AEB provides Standard Chartered with an opportunity to add capability, scale and
momentum in the strategically important Financial Institutions and Private Banking businesses. It will

add 19 more markets to the Standard Chartered footprint, while deepening presence in some core

markets and providing access to several new growth markets.

 Taiwan
 Thailand
 Vietnam
11. Standard Chartered Bank – Vision and Strategy
Standard Chartered Bank has been established for over 150 years. It spans the developed and
emerging economics of the world with a network of over 500 offices in more than 40 countries.
With a mission to build a world-class bank, Standard Chartered has adopted the strategies of:
Building a world class business: Focus on core business, provide superior customer service,
and generate maximum returns and benefits for shareholders.
Staying lean and focused: Is vest in core business optimal usage of resource, and manage
performance by balancing cost and risks.
Recognized as a winning organization: Develop capability to the fullest, instill global

thinking, inject of pride in to people to get connected to Standard Chartered Bank. The Standard

Chartered Group is an unusual banking business. Although its roots are clearly British, its area of

operations, its network and indeed its profit stream are overwhelmingly India.. The name Standard

Chartered comes from the two original banks from which it was founded – The Chartered Bank of

South Africa Australia and China, and the Standard Bank of British International

Principles & ValuesAt Standard Chartered our success is built on teamwork, partnership and the
diversity of our people. At the heart of our values lie diversity and inclusion. They are a fundamental

part of our culture, and constitute a long-term priority in our aim to become the world's best

international bank. Today they employ 73,000 people, representing 115 nationalities, and you'll find

61 nationalities among our 500 most senior leaders. We believe this diversity helps to fuel creativity

and innovation, supporting the development of exciting new products and services for our customers

worldwide.

11.2 Business & Strategy

Standard Chartered operates in many of the world's fastest growing markets, and derives over 90
per cent of its profits from the emerging trade corridors of Asia, Africa and the Middle East.
We want to be recognized across Asia, Africa and the Middle East for delivering a sustainable
business and to lead by example in our markets."
11.3 Indian Operations
 The Chartered Bank opened its first overseas branch in India, at Kolkata, on 12 April 1858. Eight

years later the Kolkata agent described the Bank's credit locally as splendid and its business as

flourishing, particularly the substantial turnover in rice bills with the leading Arab firms. When The

Chartered Bank first established itself in India, Kolkata was the most important commercial city, and

was the centre of the jute and indigo trades. With the growth of the cotton trade and the opening of the

Suez Canal in 1869, Bombay took over from Kolkata as India's main trade centre. Today the Bank's

branches and sub-branches in India are directed and administered from Mumbai (Bombay) with

Kolkata remaining an important trading and banking centre. Standard Chartered Bank is the largest

international banking Group in India Standard Chartered offers a range of premium retail banking

services through its network of 83 branches in 33 cities across the country, including Ahmedabad,

Mumbai, Delhi, Chennai, Calcutta, Pune, Bangalore and Kanpur. As their privileged customer, you

can always be assured of a banking service flexible enough to take care of your banking needs. These

are in addition to their Savings account, depot account, current account and depository services

facilities, which are also available. What’s more many of their services are backed by a unique service

guarantee – a reflection of their commitment to provide you with effective and reliable banking

services. Standard Chartered was

the first to issue global credit card in India, the first to issue Photo card, the first Picture Card and
was the first credit card issuer to be awarded the ISO 9002 certification.
11.4 Future Plans

After 150 years of services to India, Standard Chartered Bank continues to be committed to the

country and optimistic of positively contributing to the Indian Financial Sector. The Standard

Chartered Group considers being one of the greatest economic opportunities of the 21st century and is

proud to be so strongly positioned here. The Bank has ambitious plans to transform its business in the

country and to further expand operations across the country.

12. Objective of the Study

The Research project has been carried out to aid the Standard Chartered bank in offering services
that the customer needs and also to improve on some of the existing services of the bank.

The objective of this project was to find out:

1. To study Service Account potential in today’s market scenario as a whole.

2. To Analyze Market Potential of Standard Chartered Bank’s Services Account.

3. Comparing other banks with Standard Chartered on various banking parameters.

4. To find out the various factors on which the bank lags/leads.

5. Finally to find the requirement of the customer by segmenting them on the basis of:

Age
•

Profession
•

Monthly Income
Analyzing the data as per the given objectives, reaching a conclusion and finally the factors that
the bank should consider in case of improving the service accounts
13. Purpose of the Study

To maintain and enhance the position further, the bank decided to have a thorough insight into the

comparison with different banks. As it is a part of the service industry, which depends upon the

customer perception of the product conception and their views towards the service provider, thus the

feedback from the customers becomes important.

The purpose of the undergone study was to study the Current/Saving Accounts services and its rates of

different banks and evaluate the competitive position of Standard chartered so as to suggest ways to

increase its market share.

14. Problems Definition

The main problem faced by the company was that it had a small customer base .The bank’s own

products had a lesser market as compared to its third party selling. The bank does a third party selling

for all the investment products.

The study thus focused on the following dimensions:

1.To identify critical factors that influences the buying behavior of individuals.
2.To know the customer acceptance of the services of Standard chartered bank in Delhi and

NCR regions.

3.To asses the problem volume of future sales.

4.To find the position of Standard Chartered bank vis-à-vis its competitors.
The Bank wants to strengthen its customer base by gathering information about the market scenario

for Current/Savings Accounts. Standard Chartered Bank needs to know about the competitor’s moves

and the customer’s preference in this sector.

http://htmlimg3.scribdassets.com/ch3ae6pyvzdsaps/images/14-18580ad492/000.jpg

Fig 2
16. Savings Accounts Product Offering
16.1
•

AXcessPlus Savings Account

•

SuperValue Savings Account

•

Parivaar Savings Account

•

2-in-1 Account

Aasaan Account
•

No Frills Account
•

Debit Card
The main product of the bank is the Savings Accounts and its Insurance products.
Fig 3
1) Axcessplus Account
Benefits of an aXcessPlus savings account are:
•

Free Unlimited Visa ATM transactions

•

Free Standard Chartered Bank branch access across the country

•

Free Doorstep Banking

•

Free Demand Drafts/Pay Orders