Prepared by, Aiswarya Prasad

INTRODUCTIONIDBI stands for Industrial Development Bank Of India .Primarily set up to render monetary services to Indian industries.IDBI was found in the year 1964.It is an undertaking of the public sector.

THE WORKING OF IDBI

Input Process Output

INPUTS Every financial institute requires inputs.The main input for a bank is money in any form.For different banks, the sources of funds are different.

For IDBI, the main sources of income or inputs are :

1. FIXED DEPOSITS.

2. CURRENT DEPOSITS.

3. SAVINGS DEPOSITS.

Apart from these, the other sources are:

1. Interests on loans and borrowings.2. Charges on services rendered.3. Overdrafts.

THE TANGIBLE INPUTSThe other inputs which are required in a financial institute are :

1. Manpower.2. Office and appliances.3. Machines and technology.

PROCESSThe intermediate processes of a financial institute includes:

1. Check clearance.2. Allocation of funds.3. Confirmation of accounts.4. Advertising.5. Negotiating instruments, etc.

OUTPUTSThe outputs of a financial institution are as follows : 1. Loans.2. Financial services.3. Security of savings.4. Instruments of negotiation, etc.

LIMITATIONS

Low on marketing and advertising strategies.Competition from Private banks.

The technology are not as developed.Lack of efficient human resources.Governed by rules and regulations.

RECOMMENDATIONSNecessary to open more branches.More resources should be allocated in the Indian market.Short advertising campaign to gain long term benefits with more intensity.

The bank should alter the rates of interest.Pay more attention towards its FDs.Make full use of technology.Improve its production downtime.

CONCLUSIONIDBI has played an important role, particularly in the pre-reform era in catalyzing broad based industrial development in the country in keeping with its government oriented development banking charter.

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