Post on 08-Apr-2015
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INDUSTRIAL DEVELOPMENT BANK OF INDIA
"We are envisaging the new Industrial Development Bank of India as a
central coordinating agency, which ultimately will be concerned,
directly or indirectly, with all the problems or questions relating to the
long and medium term financing of industry, and will be in a position, if
necessary, to adopt and enforce a system of priorities, in promoting
future industrial growth"
MILESTONES
Set up in July 1964 by an Act of Parliament as a wholly-owned
subsidiary of Reserve Bank of India.
In 1976, ownership transferred to Government of India.
Played a dominant role in balanced industrial development.
Set up SIDBI as a wholly owned subsidiary. In 2001, IDBI's
shareholding in SIDBI reduced to 49%.
In 1992, introduced Deep Discount Bonds; registered path-
breaking success.
In 1993, set up IDBI Capital Market Services Limited as wholly-
owned primary dealership company.
In 1994, set up IDBI Bank Limited.
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In 1994, IDBI Act amended to permit public ownership upto 49%.
In July 1995, Initial Public Offer of Equity raised over Rs.20 billion,
reducing Government stake to 72.14%
In 1999, entered into a JV agreement with Principal Financial
Group, USA for participation in equity and management of IDBI
Investment Management Company Ltd., erstwhile a 100%
subsidiary of IDBI.
In March 2000, set up IDBI Intech Limited as a subsidiary to
undertake captive IT- related activities.
In June 2000, part of Government share-holding converted to
preference capital, since redeemed in March 2001; Government
stake currently 58.47%.
In August 2000, IDBI became first All India Financial Institution to
obtain ISO 9002:1994 Certification for its treasury operations.
Also became the first organisation in Indian financial sector to
obtain ISO 9001:2000 Certification for its forex services.
In March 2001, set up IDBI Trusteeship Services Limited under
Companies Act 1956 to provide technology-driven information
and professional services to subscribers and issuers of
debentures.
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In April 2001, IDBI appointed Boston Consulting Group India
Private Limited (BCG) as consultant to draw up a road map for
conversion into a universal bank.
In March 2002, Government of India announced proximate
corporatisation of IDBI.
IDBI is currently undertaking calibrated measures to move
towards Universal Banking.
The Industrial Development Bank of India (IDBI) was established in
1964 under an Act of Parliament. It was initially set up as a wholly
owned subsidiary of the RBI with a mandate of providing credit and
other facilities for balanced industrial development. In 1976, the
ownership of IDBI was transferred to the Government of India and it
was accorded the status of principal financial institution in the country
for co-ordinating the working of institutions, engaged in financing,
promoting and developing industry, and also assisting in the
development of such institutions to a great extent.
Following amendment to IDBI Act in October 1994 to permit
public ownership up to 49% of its issued capital, IDBI went in for a
public issue in July 1995. The shareholding of Government of India in
IDBI currently stands at 58.47%.
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MANAGEMENT AND ORGANIZATION
MANAGEMENT TEAM
BOARD OF DIRECTORS
Mr. P.P. Vora Chairman & Managing Director, IDBI
Mr. V. Govindarajan Director (Government Nominee)
Mr. D.C.Gupta Secretary(Financial Sector)
Dr. K.S. Parikh Director (Shareholders' Nominee)
Mr. R.N. Dhoot Director (Government Nominee)
Mr. S. Datta Director (Government Nominee)
Mr. K.N. Murthy Director (Government Nominee)
Shri R.V. Gupta Shareholders' Representative
Shri M.G. Bhide Shareholders' Representative
Dr. J.J. Irani Shareholders' Representative
EXECUTIVE DIRECTORS
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Shri J.N.Godbole
Shri R.S.Agarwal
Shri A.K.Doda
Shri R. Jayaraman Iyer
Shri S.G.Gulati
Shri V. Venkateswarlu
PRODUCTS & SERVICES
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 to industrial concerns.
An ‘industrial concern’ as defined in the IDBI Act is very
comprehensive, covering almost the entire spectrum of industrial
activities, including manufacturing and services. IDBI provides financial
assistance both in rupee and foreign currency for greenfield projects,
expansion, modernization and diversification purposes.
Further, in order to cater to the diverse needs of corporate
clients, IDBI has structured various products like:
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EQUIPMENT FINANCE
ASSET CREDIT
CORPORATE LOANS
DIRECT DISCOUNTING
WORKING CAPITAL LOANS
FILM FINANCING
EQUIPMENT LEASE
VENTURE CAPITAL FUND
PROJECT FINANCE
BILLS REDISCOUNTING
FINANCING RECEIVABLES
REHABILITATION FINANCE
LINES OF CREDIT FOR EXECUTION OF TURNKEY
CONTRACTS.
IDBI also provides indirect financial assistance through
refinancing of loans extended by primary financial institutions and by
way of rediscounting of bills of exchange arising out of sale of
indigenous machinery on deferred payment terms.
IDBI has also been providing merchant banking and a wide array
of corporate advisory services as part of its fee-based activities. These
include professional advice and services for issue management,
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private placement of equity/debt instruments, project evaluation,
credit syndication, share valuation, corporate restructuring, including
mergers and acquisitions, and divestment of equity. The Bank also
offers a number of forex-related services on a commission basis,
including opening of Letters of Credit and remittances of Foreign
Currency on behalf of its assisted companies for import of its goods
and services.
TO PROVIDE LONG TERM FINANCE FOR NEW PROJECTS AND
EXPANSION, DIVERSIFICATION AND MODERNISATION OF EXISTING
PROJECTS.
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PROJECT FINANCE BY IDBI
OBJECTIVE
TYPES OF ASSISTANCE
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TERM LOAN, UNDERWRITING, DIRECT SUBSCRIPTION TO EQUITY
CAPITAL AND DEFERRED PAYMENT GUARANTEE.
ANY INDUSTRIAL CONCERN CONFORMING TO THE DEFINITION IN
SECTION 2(C) OF IDBI ACT.
RUPEE AND FOREIGN CURRENCY LOAN
25% OF THE PROJECT COST - MINIMUM - NORMALLY EXPECTED.
1.5:1
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ELIGIBILITY
PROMOTERS' CONTRIBUTION
NATURE OF ASSISTANCEELIGIBILITY
DEBT EQUITY RATIO
INTEREST RATE RUPEE LOAN
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BASED ON MINIMUM TERM LENDING RATE FIXED FROM TIME TO TIME.
ACTUAL RATE WITHIN THE PREVAILING RATE BAND DEPENDS UPON
CREDITWORTHINESS OF BORROWER AND RISK PERCEPTION. ALSO,
THERE IS AN OPTION OF FLOATING RATE OF INTEREST LINKED TO
LONG TERM PRIME RATE (LTPR) + RISK SPREAD. INTEREST IS PAYABLE
QUARTERLY
FLOATING RATE BASED ON LIBOR DEPENDING UPON THE SOURCE OF
THE CURRENCY PLUS A FIXED SPREAD ACCORDING TO THE RISK
PERCEPTION AND MATURITY OF THE LOAN.
1% OF LOAN AMOUNT.
FIRST CHARGE ON MOVABLE AND IMMOVABLE FIXED ASSETS.
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INTEREST RATE FOREIGN CURRENCY LOAN
UP-FRONT FEE
SECURITY
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IN QUARTERLY INSTALMENTS TO BE FIXED ON CASE TO CASE BASIS
DEPENDING ON PROJECTED CASH FLOW OF THE BORROWER.
LOAN AGREEMENT
DEED OF HYPOTHECATION
PERSONAL GUARANTEE FROM MAIN PROMOTERS
UNDERTAKINGS FROM PROMOTERS FOR:
MEETING SHORTFALL IN PROJECT COST
NON-DISPOSAL OF SHARE HOLDINGS BY PROMOTERS
UNDERTAKING FROM MD FOR NON-RECEIPT OF COMMISSION, IF
COMPANY IS IN DEFAULT TO IDBI
NO OBJECTION CERTIFICATE FROM IT DEPT. UNDER SECTION
281(I)(II) OF IT ACT
RESOLUTION UNDER SECTION 293 (1) (A) AND 293(1)(D) OF
COMPANY'S ACT
PROJECT FINANCE
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DOCUMENTATION
REPAYMENT
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OPERATIONAL PERFORMANCE OF IDBI DURING
JULY-SEPTEMBER 2002
Aggregate sanctions and disbursements under all schemes of
assistance during April-September 2002 stood at Rs.754 crore and
Rs.1257 crore respectively. Infrastructure sector constituents
accounted for 27% and 26% of total sanctions and disbursements
respectively during this period. The Bank continued to be deliberately
selective with regard to fresh assistance, keeping overall asset quality
of portfolio in view.
Sanctions and drawals under project finance during the year
2001-02 were at Rs. 4993 crore and Rs.3201 Crore respectively as
against Rs. 10443 crore and Rs. 5466 crore during the previous year.
The decline was on account of deceleration in demand for Project
finance, particularly from the manufacturing sector. Assistance by way
of guarantees, too came down from Rs. 1362 crore in 2000-01 to Rs.
353 srore in 2001-2002, a decline of 74.1%. underwriting and direct
subscription to euity/debt instruments increased by 5.2% to Rs.539
crore from Rs. 513 crore. During the year 2001-02, twenty units were
sanctioned assistance under Technology Upgradation Fund Scheme
(TUFS) aggregating Rs. 162.6 crore, while disbursements stood at Rs.
381.8 crore.
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SANCTIONS BY IDBI
(AMOUNT IN CRORES)
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DISBURSEMENTS BY IDBI
(AMOUNT IN CRORES)
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LOANS AND ADVANCES
Scheduled bank, state co-operative bank & other Financial institutions
Scheduled bank, state co-operative bank & other
Financial institutions
24109528330
To industrial concerns 470341935717
Call money 2359500000
Total 496810964048
Amount in Lacks.
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OPERATIONAL HIGHLIGHTS
1997-98 1998-99 1999-00 2000-01 2001-02Total Sanctions 20632.2 20842.4 23712.5 25417.6 16034.1Direct Finance
19293.7 19981.2 21745.1 23994 15206.9% of Total 93.5 95.9 91.7 94.4 94.8
Refinance 372.9 91.6 241.6 363 187.3% of Total 1.8 0.4 1.0 1.4 12
Bills Finance 906.6 674.6 723.3 285.7 122.9% of Total 4.4 3.2 3.1 1.1 0.8
others 59 95 1002.5 774.9 517% of Total 0.3 0.5 4.2 3.1 3.2
Total Disbursement 15368.8 14473.4 17062.8 17473.5 11157.9Direct Finance
14350.4 13800.8 15447.9 16168.8 10333.6% of Total 93.4 95.4 90.5 92.5 92.6
Refinance 334.9 102.1 229.5 331.7 158.8% of Total 2.2 0.7 1.4 1.9 1.4
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Bills Finance 624.5 475.5 527.9 201.8 84.9% of Total 4 3.3 3.1 1.2 0.8
others 59 95 857.5 771.2 580.6% of Total 0.4 0.6 5 4.4 5.2
Outstanding Assistance 51568.9 57057.9 60580.5 59420.9 58036.2
Industry wise classification of NPA’s (Direct Loans) As on 31 March
INDUSTRY 2001 2002
Amount % of Total Amount % of Total
Iron and Steel 720.9 9.9 838.5 15.5
Cotton Textile 973 13.3 738.2 13.7
Food 563.6 7.7 482.1 8.9
Chemicals 538.7 7.4 363.7 6.7
Metal products 472.2 6.5 356.7 6.6
Plastic & Plastic
products 291.5 4 269.9
5.0
Drugs &
Pharmaceuticals 378.0 5.2 265.9
4.9
Paper & Paper
Products 255.5 3.5 196.6
3.6
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Other textiles 178.6 2.5 173.9 3.2
Manmade fibre 312.6 4.3 158.3 2.9
Electronics 243.2 3.3 141.4 2.6
Electrical
machinery 201.8 2.8 129.8 2.4
Sugar 139.7 1.9 128.1 2.4
Services 71.3 0.9 111.6 2.1
INDUSTRY WISE CLASSIFICATION OF NPA’S (DIRECT LOANS)
As on 31 March 2001
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Industry wise classification of NPA’s (Direct Loans) As on 31 March 2002
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