Set up by an IDBI Act IDBI Repeal Act Act of

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Godwin Owen
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1 Presentation to Analysts October 2010

2 Genesis Set up by an IDBI Act IDBI Repeal Act Act of amended to passed in Parliament in permit private December as a ownership upto for conversion subsidiary of the Central Bank (RBI) Ownership transferred to Govt. in 1976 IDBI had been a policy bank in the area of industrial financing and 49%. Domestic IPO in 1995, reduces Govt. stake to 72%. Post capital restructuring in 2000, Govt. stake reduced to 58.5% to a banking company. Govt. ownership to be not below 51% Amalgamation of IDBI Bank Ltd. With IDBI Ltd. W.e.f. April 2, 2005 Oct amalgamated development erstwhile UWB. Aspiring to become the 5 th largest Bank by 2012 in terms of assets and market capitalization Complete Networking (100% Core Banking) Organization structure redesigned on Customer Segmentation basis Name changed to IDBI Bank Ltd Achieved regulatory norms of SLR, CME

3 Status as Leading DFI Leading provider of long term finance o Played an apex role in helping create the industrial and infrastructural base in the country o Total Investments generated ` 4000 billion (approx.) (over USD 80 bn) o Significant player in domestic debt syndication. Played a pivotal role in developing institutions that shaped the country s financial architecture o NSE - Electronic Stock Exchange, o NSDL - Securities Depository, o CARE - Rating Agency, o SHCIL - Depository Participant, e-stamping etc. o SIDBI - Funding institution for SSI and ME o Exim Bank- A bank to finance export Import o ARCIL - Asset reconstruction company o NeDFI - For development of North-East Region 3

4 Systemic Importance Minimum 51% shareholding by Govt. at all times as specified in the Memorandum & Articles of Association Large size and retail base Large investments by PF / Superannuation funds Continued Govt. support - Infusion of ` crore as preferential allotment of equity leading to boost in Tier I to 8.88% and overall Capital Adequacy to 14.17% Designated as the lead DFI Large and continuing i investments t in strategic t sectors o In-house expertise in project appraisal / syndication 4

5 Transition from DFI to a full-service bank In September 2004, IDBI moved from itserstwhile DFI status t into a full-service commercial bank offering the entire suite of banking products Today, IDBI has positioned itself as a bank of choice with corporate and retail customers alike o Created a niche for itself as a nimble, swift and sure footed, technologically driven bank offering the added benefit of security on account of its majority Government ownership o Undertaken extensive organisational restructuring post-conversion and post-merger ege of two banks with wt itself o Operates off a customer-centric vertical structure to ensure lowest TATs and total customer satisfaction 5

Distribution Network Reach 759 branches; 1295 ATMs 1- Overseas, 218-Metro, 290-Urban, 168-Semi

SME Centres o 15 Agri Processing Centres o 4 Regional Processing Units o 21 Central Clearing

College Corporate customers:3000+ Retail customer base:5 million+ Global expansion plans

6 Distribution Network Reach 759 branches; 1295 ATMs 1- Overseas, 218-Metro, 290-Urban, 168-Semi Urban & 82-Rural Presence in 514 locations Network of : o 56 Retail Asset Centres o 31 City SME Centres o 15 Agri Processing Centres o 4 Regional Processing Units o 21 Central Clearing Units 5 Currency Chests across the country Internet banking 4 Regional & 1 Central Training College Corporate customers:3000+ Retail customer base:5 million+ Global expansion plans Initiated the process for setting up Branch Offices at Singapore and Representative Office at Shanghai 6

7 Operating Profile Range of products for its Retail and Corporate customers o Retail Suite of value added asset & liability products leveraging off a strong technology platform o SME & Agri business o Corporate Infrastructure financing, Project loans, Working Capital loans, Loan Syndication & Advisory, financial assistance and advisory for Carbon Credit business o Treasury related products o Fee based products Operates off an integrated core banking system with all the branches networked o Put in place a state of the art data center and disaster recovery center o Reduction in EOD processing time; ensures 100% data availability o Complete infrastructure available on demand ensuring scalability 7

8 Distinctive strengths Description Business strengths Nimble in size Privileged corporate banking relationships and unparalleled reputation in project finance and infrastructure lending Sophisticated retail banking operations and capability Amongst lowest staff strength (with about employees) Good branch network without t any legacy constraints t Distinctive technology State-of-the-art technology and fully integrated core banking solution rolled out across 100% of branches Best-in-class ATM and alternate channel technology Centralized, automated and lean operating architecture for back-office operations, Lean operations cheque equeclearing and loan sanctions s Competitive cost structure Integration capability Institutionalised ability to rapidly integrate and extract value / synergies from acquisition iti based on experience of two integrations ti 8

9 Highlights (Q2 FY 11 over Q2 FY 10) S ADVANCE A % DEPOSITS S D % NII % 464 FEE INCO OME F % 389 IT OP PROF O 61% 69% 637 PAT 254 MAT tax credit of ` Crore has been considered for tax provision NIM CASA ROA ROE Q2 11 Q2 10 Q2 11 Q2 10 Q2 11 Q2 10 Q2 11 Q2 10 9

10 Profit & Loss (` in Crore) Particulars Q2-11 Q2-10 HY - 11 HY - 10 Interest income Interest expenses Net Interest income Other Income Total income Operating Expenses Employee Cost Other Operating Expenses Operating Profit Provisions & contingencies NPAs / Write offs Restructured Assets Others (Invt., Std Asset, etc) Tax Profit After Tax

11 Details of Other Income (` in Crore) Particulars Q2-11 Q2-10 HY - 11 HY - 10 FY - 10 Commission, Excg & Brkg Profit on sale of investments Profit/(Loss) on revaluation of investment Profit on sale of Fixed Assets Profit on forex/derivatives Dividend from subsidiaries Recovery from written off cases Other misc income Total Fee Based Income

12 Details of Operating Expenses (` in Crore) Particulars Q2-11 Q2-10 Staff Cost Rent, taxes & lighting Printing & stationery 5 7 Advertisement & Publicity 20 7 Depreciation i Postage, Telegram, Teleph., etc Repairs and maintenance Insurance Banking expenses Expenses for recovery of write off cases 1 1 Outsourcing expenses Fee and other expenses for borrowing 12 6 Other expenditure TOTAL

13 Key Profitability Indicators Q2-11 Q2-10 HY - 11 HY - 10 FY - 10 Net Interest Margin 2.27% 1.05% 1.96% 0.94% 1.27% Return on Assets 0.77% 0.54% 0.61% 0.47% 0.53% Return on Equity 17.43% 13.15% 13.81% 11.21% 13.14% Cost of all liabilities 6.10% 6.85% 6.12% 7.09% 6.69% 69% Yield on Total Assets 9.07% 9.03% 8.78% 9.42% 9.03% Margin 2.97% 2.18% 2.66% 2.33% 2.34% Cost of Funds 6.65% 7.45% 6.67% 7.63% 7.35% Return on Earning Assets 9.33% 9.40% 9.04% 9.83% 9.38% Spread 2.69% 1.94% 2.37% 2.19% 2.03% Low cost funds to Total Funds 15.26% 14.76% 15.26% 14.76% 14.59% Net NPA Ratio 1.19% 1.19% 1.19% 1.19% 1.02% 13

14 Key Operating Indicators Q2-11 Q2-10 HY - 11 HY - 10 FY - 10 Non-interest income to Total Income 9.71% 13.37% 9.75% 15.62% 13.11% Efficiency [Cost- Net Income] Ratio 38.22% 38.47% 37.64% 33.89% 40.18% Staff Expenses to total income 6.75% 4.00% 5.86% 3.34% 4.31% Staff Expenses to total expenses 8.47% 4.69% 7.23% 3.99% 5.10% Overhead efficiency ratio 77.56% % 85.51% % % 14 14

15 Balance Sheet (` in Crore) As at 30-Sep Sep-09 LIABILITIES Capital Reserve & Surplus [Net Worth] Deposits Borrowings Other Liabilities & Provisions Total ASSETS Cash & balance with RBI Bal. with banks & money at call Investments Advances Fixed Assets [incl leased assets] Other Assets Total

16 NPAs (` in Crore) As at 30-Sept-2010 Gross Advances Gross NPAs 2472 Gross NPAs as % of Gross Advances Total Provisions held 923 Net Advances Net NPAs 1549 Net NPAs as % of Net Advances 1.19 Provision Coverage Ratio (%) Provision i Coverage Ratio as per RBI Guidelines (%) Sectoral Net NPAs % Agri & Allied activities Industry (Micro, Small, Medium & Large 1.42 Services 0.62 Personal Loans

17 Advances (` in Crore) Vertical 30-Sep Sep-09 Nature 30-Sep Sep-09 Corporate Bills SME CC, OD, WCDL etc Agri Term Loans Retail Total Total Top 20 Borrowers Maturity profile Amount Upto 6 Months Months-1Year Years Years > 5 Years Total

18 Advances (` in Crore) Industry Outstanding Committed Exposure (FB+NFB) Power Iron & Steel Construction Telecom Services NBFC Textiles Electrical Machinery Engineering Food & Beverages Fertilizers Commercial Real Estate Roads / Bridges Sugar Oil & Gas Extraction Refined Petroleum Products Trading Chemical & Chemical Products Electronics/Communication Cement Metal Products

19 Restructuring (` in Crore) Industry Sep 10 Jun 10 Financial Services Infrastructure Diamond Industry Other Services Electricity Electronics Agro Industries Information Technology Health Care Metal Industry Chemical & Fertilizers Electical Machinery Motor Vehicles Paper Textiles Food & Beverages Printing Telecommunications Real Estate Others Mining and quarrying Retail Stores Total

20 Investments (` in Crore) Category HTM AFS HFT TOTAL Government securities SASF Securities Shares Debentures/ Bonds Subsidiaries/ Joint Ventures Others (CPs/CD/MF)etc Total

21 List of some strategic investments Entity % IDBI ASSET MANAGEMENT LTD IDBI CAPITAL MARKET SERVICES LIMITED IDBI GILTS LTD IDBI HOMEFINANCE LIMITED IDBI INTECH LIMITED IDBI MF TRUSTEE COMPANY LTD IDBI FORTIS LIFE INSURANCE COMPANY LIMITED IDBI TRUSTEESHIP SERVICES LIMITED NATIONAL SECURITIES DEPOSITORY LIMITED BIOTECH CONSORTIUM INDIA LIMITED CREDIT ANALYSIS AND RESEARCH LIMITED NORTH EASTERN DEVELOPMENT FINANCE CORPORATION LIMITED INVESTORS SERVICES OF INDIA LIMITED SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA ASSET RECONSTRUCTION COMPANY (INDIA) LIMITED STOCK HOLDING CORPORATION OF INDIA LIMITED OTC EXCHANGE OF INDIA LIMITED NEPAL DEVELOPMENT BANK LIMITED SECURITIES TRADING CORPORATION OF INDIA LIMITED 6.60 CLEARING CORPORATION OF INDIA LIMITED 6.50 NATIONAL STOCK EXCHANGE OF INDIA LIMITED 5.00 UNITED STOCK EXCHANGE OF INDIA LIMITED

22 Liabilities (` in Crore) Deposits 30-Sep Sep-09 Current Savings Term Total Borrowings 30-Sep Sep-09 Tier I Upper Tier II Lower Tier II Senior Bonds etc Flexibonds SLR Bonds Outside India Total

23 23 Thank You

Set up by an IDBI Act IDBI Repeal Act Act of

Presentation to Analysts April 2011 Genesis 1964-1976 1994-00 2003-06 2007-10 Set up by an IDBI Act IDBI Repeal Act Act of amended to passed in Parliament in permit private December 2003 1964 as a ownership