Overview of Banking and Financial Institutions

The banking system in India is significantly different from that of other Asian nations
because of the country’s unique geographic, social, and economic characteristics. India has a
large population and land size, a diverse culture, and extreme disparities in income, which are
marked among its regions. There are high levels of illiteracy among a large percentage of its
population but, at the same time, the country has a large reservoir of managerial and
technologically advanced talents. Between about 30 and 35 percent of the population resides
in metro and urban cities and the rest is spread in several semi-urban and rural centres. About
92 percent of the country’s banking segment is under State control while the balance
comprises private sector and foreign banks. Without a sound and effective banking system in
India it cannot have a healthy economy. The banking system of India should not only be
hassle free but it should be able to meet new challenges posed by the technology and any
other external and internal factors. For the past three decades India's banking system has
several outstanding achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country.

Financial Structure
The Indian financial system comprises the following institutions:
1. Commercial banks
a. Public sector
b. Private sector
c. Foreign banks
d. Cooperative institutions
(i) Urban cooperative banks
(ii) State cooperative banks
(iii) Central cooperative banks
2. Financial institutions
a. All-India financial institutions (AIFIs)
b. State financial corporations (SFCs)
c. State industrial development corporations (SIDCs)
3. Nonbanking financial companies (NBFCs)
4. Capital market intermediaries
IDBI PROFILE

The birth of IDBI bank took place after RBI issued guidelines for entry of new private
sector banks in January 1993. Subsequently, IDBI as promoters sought permission to
establish a commercial bank and retained KPMG a management consultant of international
repute to prepare the groundwork for establishing a commercial bank. The Reserve Bank of
India conveyed it's in principle approval to establish IDBI bank on February 11th, 1994.
Thereafter the bank was incorporated at Gwalior under Companies Act on 15th of September
with its registered office at Indore.

IDBI Bank Ltd. is a Universal Bank with its operations driven by a cutting edge core
Banking IT platform. IDBI Bank Ltd. is today one of India's largest commercial Banks. For
over 40 years, IDBI Bank has essayed a key nation-building role, first as the apex
Development Financial Institution (DFI) (July 1, 1964 to September 30, 2004) in the realm of
industry and thereafter as a full-service commercial Bank (October 1, 2004 onwards). The
Industrial Development Bank of India Limited, popularly known as IDBI Bank is one of the
leading public sector banks in India. Categorized as "other public sector bank" by Reserve
Bank of India (RBI), IDBI Bank is also the 4th largest Indian bank. Founded in 1964 to
provide credit and other facilities to its customers, IDBI Bank currently has 457 centres, 688
branches and 1020 ATMs across the nation. It is world's 10th largest development bank in
terms of reach. IDBI Bank also built several institutions including the National Stock
Exchange of India (NSE), the Stock Holding Corporation of India (SHCIL) and the National
Securities Depository Services Ltd. (NSDL) etc. The Bank offers personalized banking and
financial solutions to its clients in the retail and corporate banking arena through its large
network of Branches and ATMs, spread across length and breadth of India.  IDBI have also
set up an overseas branch at Dubai and have plans to open representative offices in various
other parts of the Globe, for encashing emerging global opportunities. IDBI Bank today rides
on the back of a robust business strategy, a highly competent and dedicated workforce and a
state-of-the-art information technology platform, to structure and deliver personalised and
innovative Banking services and customised financial solutions to its clients across delivery
channels.  As on March 31, 2010, the Bank had a network of 720 Branches and 1210 ATMs
and plans to roll out another 300 branches during FY 2010-11. 
Vision of IDBI

The vision for the Bank is for it to be the

trusted partner in progress, by leveraging
quality human capital and setting global
standards of excellence, to build the most
valued financial conglomerate.   Our
experience of financial markets helps us to
effectively cope with challenges and
capitalize on the emerging opportunities by
participating effectively in our country’s
growth process.

Management and Organisation

IDBI Bank is a Board-managed organisation. The responsibility for the day-to-day

management of operations of the Bank is vested with the Chairman & Managing Director and
two Deputy Managing Directors, who draw upon the support and expertise of a cross-
disciplinary Top Management Team. IDBI Bank Ltd employee base includes professionals
from the fields of accountancy, management, engineering, law, computer technology,
banking and economics. 

 R M Malla- Chairman and Managing director

 Yogesh Agarwal- Director
 G C Chaturvedi- Director
 Analjit Singh- Director
 K Narasimha Murthy- Director
 Subhash Tuli- Director R M Malla
 B P Singh- Deputy Managing Director
 R P Singh- Director
 Lila Firoz Poonawalla- Director
 H L Zutshi- Director
 Sailendra Narain- Director
  B S Bisht- Director

Branches/ATM

No. of Branches
 Metro 215
 Urban  285 
 Semiurban 150
 Rural 75

Products and Services

IDBI Bank offers a wide array of products and services to its customers. For different
customer groups and needs, there are different types of products and services including
Personal Banking, Corporate Banking, SME Finance and Agriculture Business etc.
Personal Banking

Following products and services are offered under Personal Banking:

 Deposits
 Savings Account
 Current Account
 Fixed Deposits
 Suvidha Tax Saving Fixed Deposit
 Pension Accounts
 Sabka Account
 Super Shakti Account for Women
 Jubilee Plus Account
 Loans
 Home Loans
 Loans Against Property
 Education Loans
 Personal Loan
 Loan Against Securities
 Reverse Mortgage Loan
 Auto Loan
 Payments
 Tax Payments
 Stamp Duty payments
 EasyFill
 Bill Payment
 Card to Card Money Transfer
 Online Payments
 PayMate
 Investments Advisory
 Smart Financial Planning
 Mutual Fund
  Insurance
 Fixed Income Securities
 Cards
 Gold Debit Card
 International Debit cum ATM Card
 Gift Card
 World Currency Card
 Cash Card
 KIDS Debit Card
 Foundation Day Cash Back Scheme 2009
 Platinum Card
 Institutional Banking
 Institutional Savings Account
 Corporate Payroll Account
 24 Hours Banking
 Phone Banking
 SMS Banking
 AccountAlerts
 Internet Banking
 Other products
 Lockers
 India Post
 Preferred Banking
 NRI Services
 Capital Market
 IPO
 Demat

Corporate Banking

Following products and services are offered by IDBI Bank for the corporates:

 Project Finance
 Infrastructure Finance
  Syndication, Underwriting & Advisory Services
 Carbon Credits Business
 Working Capital
 Cash Management Services
 Trade Finance
 Tax Payments
 Derivatives
 Technology Upgradation Fund Scheme (TUFS)
 Film Financing Scheme
 Direct Discounting Bills
 Rehabilitation Finance

SME Finance

Following SME Finance products are offered by the IDBI Bank:

 Sulabh Vyapar Loan

 Dealer Finance
 Funding under CGFMSE
 Direct Credit Scheme - SIDBI
 Preferred customer scheme - IDBI Bank / SIDBI
 Vendor financing (Pre - Sale)
 Vendor financing (Post - Sale)
 Lending Against the Security of Future Credit Card Receivables
 Working Capital Financing - Software Development Entities
 Finance to Medical Practitioners
 Loan to SRWTO
 SME Hosiery Special Current Account
IDBI is a pioneer Institute in Nation building. To cater to its ever-expanding needs, IDBI
formed subsidiaries & joint ventures across diverse areas of Banking & Financial System.

IDBI Capital Market Services

A wholly owned subsidiary, offers a full suite of financial products. Its business includes
stock broking, distribution of financial products, Portfolio management of Pension / PF funds
& Research services, etc.

IDBI Gilts Ltd

A wholly owned subsidiary commenced its operations as Primary Dealer. The company
presently focuses on Bond trading, underwriting in auctions of G-sec and T-bills.

IDBI Intech Ltd

A wholly owned subsidiary, deals in the Information Technology Services, Information

Security Practice, Knowledge Management Services, national contact centre and outbound
contact centre.

IDBI Home Finance

A wholly owned subsidiary, deals in the Home finance arena. It was acquired in September
2003 from Tata Home Finance Ltd

IDBI Fortis Life Insurance Company Ltd

A joint venture with Federal Bank and Fortis Insurance International. It primarily deals in
Life insurance space
IDBI – Corporate Governance

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.

Vigilance Department in IDBI Bank

A full-fledged Vigilance Department operates at the Bank's Head Office. The Department
operates as a channel for providing inputs to the Top Management for carrying out
investigation into vigilance related complaints and to suggest corrective measures for
improving the control systems and compliance of laid down procedures. The Department has
been implementing the guidelines laid down by the CVC from time to time for improving
Vigilance Administration and has put in place a system wherein complaints received, from
the public / any other sources, are attended to promptly.

Significant Developments from April 2010 till date

 Shri R.M. Malla took over as Chairman & Managing Director of IDBI Bank Ltd July
9, 2010. Prior to taking up his current assignment, Shri Malla was Chairman &
Managing Director of Small Industries Development Bank of India (SIDBI).
 IDBI Bank Ltd. switched over to the Base Rate system from the existing Benchmark
Prime Lending Rate (BPLR) system 01.07.2010. The Bank has decided to fix its Base
Rate at 8% p.a.
 IDBI Bank has opened its first overseas branch at the Dubai- International Financial
Centre.
 IDBI Bank Ltd. was awarded the coveted international certification ISO 9001:2008
for all its Currency Chests across the country in June 2010.
 IDBI Bank Ltd. opened its first overseas branch at The Dubai International Financial
Centre (DIFC). Honourable Union Minister of State for Finance, Shri Namo Narain
 Meena, in the presence of Shri B. P. Singh, Deputy Managing Director, IDBI Bank
Ltd, inaugurated the branch on June 2, 2010.

Government of India has communicated its intention to infuse Rs. 3119.04 crores as equity
capital on preferential basis. The Bank has initiated necessary steps to complete the Statutory/
Regulatory formalities for this purpose

Capital Markets 
IDBI Capital as an institutional player provides the entire gamut of Capital Market services
encompassing:

1. Public Offerings
2. Qualified Institutional Placements
3. Buyback
4. Takeover
5. Preferential Allotments
6. External Commercial Borrowings, FCCBs, etc.

The above activities entails liasioning with institutional investors such as treasury
departments of Domestic Institutions, Banks and corporates, fund managers of mutual funds,
private equity firms, FIIs, HNIs.

IPO / FPO / Right Issues

Initial Public Offerings / Follow on Public Offerings / Rights Issues

IDBI Capital Market Services Ltd. (ICMS), as a Securities and Exchange Board of India
(SEBI) registered Merchant Banker, provides the following services:

 Public issue of Equity and Debt Instruments in Indian markets through Initial Public
Offering (IPO), Follow on Public Offering (FPO) and Rights Issue
 Acts as a Book Running Lead Manager, a Lead Manager, a Co-Manager or an
Advisor to the Issue.
 Underwrites Issues of Equity and Debt Instruments.
 Markets various instruments with Qualified Institutional Buyers (QIBs), High
Networth Individuals (HNIs), Corporate and Retail investors.
  Prepares all documents like Prospectus / Letter of Offer and assists the Issuer in
complying with legal and statutory requirements of SEBI, Stock Exchanges, Registrar
of Companies (ROC) and authorities under various corporate laws and economic laws
for issue of securities.
 Advisory services on structuring of capital and debt, timing for raising the same,
choice of agencies to assist in the process of raising funds, etc.

TakeOver

IDBI Capital helps corporate and institutional clients to carry out successful takeovers on the
Exchange listed companies. IDBI Capital helps carry out the Due Diligence exercise in
accordance with relevant SEBI Rules / Regulations / Guidelines followed by the preparation
of legal documentation connected with Buybacks and Take-overs.

Buyback of Securities

IDBI Capital is active in assisting its clients in buy-back programmes. With the presence of a
strong Broking services, the Company is in a position to offer comprehensive solutions to
accomplish buy-back programmes.

Qualified Institutional Placement

IDBI Capital adds value to QIP issues which can be done only by listed Companies to raise
additional equity from Qualified Institutional Buyers (QIBs). The strong relationship of IDBI
Capital with the different categories of QIB, FIIs, Fis, Mutual Funds, Banks etc., makes a
difference to the QIP placement programmes of the Companies. This is backed by a strong
research support.

Private Equity

IDBI have developed strong expertise across different industries, which enable them to
structure the transaction in that context. In Private Equity (PE), IDBI focus on sectors ranging
from Infrastructure, Power, Telecom, Healthcare & Life Sciences, Pharmaceuticals,
Hospitality, Banking, Logistics, Media, Auto Ancillaries / Components, Cement, Steel, etc to
name a few. IDBI strength in Private Equity advisory is on account of:

 Strong relationships with PE funds and their key decision makers

  Strong execution team gives an edge on optimal structuring and efficient closure of
transactions
 Value addition on entire structure of activities

IDBI’s PE transaction doesn’t come to an end with the transfer of funds but also cater to
entire gamut of Investment Banking needs. IDBI Capital enables strong growth oriented
companies raise capital through;

 Preparation of Business and Financial Plans

 Preparation of the Information Memorandum
 Discussions and Negotiations with prospective investors
 Deal closure and Execution

Investment Banking

IDBI Clients

IDBI represent Government organizations, Public Sector Enterprises and Indian Corporates
covering sectors such as Steel and other metals, Mines, Minerals, Chemicals, Healthcare,
Hospitality, Financial Services and other Core Sectors. 

IDBI Team 

IDBI have a combination of professionals with varied background who shares our values of
truthfulness, objectivity, innovation and analytical accuracy. The professional qualification of
their team provide a rock solid foundation for giving consulting services and their depth of
experience ranges from young management graduates from premier business schools to
experienced finance professional and qualified chartered accountants as well

Financial Advisory

Financial Advisory has been considered as a strategic function requiring innovative and
distinct financial solutions both long and short term focused on delivering greater shareholder
value. IDBI Capital Market Services Limited occupies a leading position being a wholly
owned subsidiary of IDBI Bank in the Corporate Finance Market place. IDBI support their
clients by offering those creative ideas and solutions that facilitates in enhancing the value. 
IDBI broadly advise on the following on the Financial Advisory space:

 Business Valuation
 Financial & Commercial Due Diligence
 Merchant Financial Appraisal
 Joint Venture & Contract
 Bid Process Management
 Disinvestments
 Infrastructure Advisory
 Financial / Debt Restructuring
 Structured Finance & Securitisation

Project Advisory

IDBI Capital has considerable expertise in Project Advisory / Finance. They advise their
clients right from the project conception stage followed by preparation of the Project Report
and its Techno-Commercial Appraisal with the support of accredited institutions with optimal
financial structuring. These reports pave the way for contracting project loans for green-field
as well as expansion projects.  
Their Project Advisory would also include turnkey advisory services on financial structuring,
implementation and documentation aspects of Green-field Projects, Brown Field Projects and
Public Private Partnership Projects. The scope of work ranges from negotiations with Banks,
Financial Institutions and Multilateral agencies for obtaining the final loan sanctions. IDBI
Project Advisory Services broadly include:

 Overview of the promoting company / SPV

 Review of the Project Structure and Project Costs including various assumptions. 
 Capital Structuring
 Real Estate Advisory
 Identification and evaluation of various sources of finance
 Financial modeling
 Risk Analysis and Allocation
 Development of a Security Package
Corporate Advisory

IDBI Capital Market Services Limited support Promoters and Senior Management
professionals of Corporate to acquire new perspectives and dimensions on Competitive
Strategy that will give Competitive Advantage. Their deliverables and advice focuses on
delivering timely and researched information for the ultimate decision-making. IDBI
financial and strategic advisory and analysis will provide necessary inputs to key stake holder
(s) for taking decisions for enhancing shareholder value. Their key advisory areas are:

a. Mergers and Acquisitions

b. Strategic Advisory

Mergers & Acquistions

There are several means a Corporate adopt to improve shareholder value e.g. increased
revenue, market share, geographical expansion, diversification, economies of scale; or to
integrate through Merger & Acquisition. Broadly speaking, M&A drivers could be customer
acquisition and top line growth, new market entry or competence building. IDBI Capital’s
M&A Advisory services covers right from the initial negotiation stage to the final deal
conclusion. They address the following while taking up Mergers and Acquisitions;

 Business valuations and managing the entire merger process

 Assisting companies in acquisitions as sell off as joint ventures
 Assisting the Company in financing the deal
 Managing Open Offers
 Evaluating bids on the basis of the evaluation criteria set out
 Assisting in closing the deal
 Post Merger Integration

Strategic Advisory

Strategic Planning provides the framework for all the major business decisions of an
enterprises-decision on businesses, products & markets, manufacturing facilities, investments
& organizational structure. It is indeed act as a pathfinder to various business opportunities.

IDBI Capital assists clients in formulating strategy, developing solutions and successfully
managing results. They work with clients to define their business strategy and implement
interactive solutions that redefine relationships with customers, suppliers and employees.
IDBI help clients improve business performance by delivering a complete, business-focused
menu of end-to-end business solutions.

They broadly cover:

 Business and Strategic Planning

 Business Restructuring
 Entry Strategy
 Policy Advisory
 Organisation Restructuring
 Bid Process Management
 Process Consulting

Institutional Broking & Distribution

Institutions and Corporates have surplus funds to manage on daily basis as well as investible
surplus for a defined period. The risk differs for Institution and Corporates subject to their
preferences. The reward by way of return is always in proportion to the risk taken. IDBI
Capital define, advise and manage the same by blending caution with aggression in the
desired proportion to teach client. The range of services include from Equity Broking with
customised research, advisory and distribution services for investment in Mutual Funds,
Debt/Bonds, Equity IPOs to placement of Equities etc

Equity Sales & Dealing

The Institutional Broking Desk offers the Clients with a dealing platform for trading in NSE
and BSE. The parameters on market conditions with an astute technical analysis from the
Dealing Desk enable the clients to take an apt decision. The intra day analysis and reports are
also available to clients on customized basis.

 Further the Institutional Clients are provided with the Derivatives Trading desk for
Futures and Option. The Institutional Clients are updated with fresh research Ideas on
the happening Scrip and Sectors.
  Being well connected with the global market Via Bloomberg, the updates are shared
from time to time.
 The interpreted brief report on the Futures and Option positions before the Expiry is
published for Client’s Circulation.
 Daily market information is disseminated to the clients under ‘Heard on Street’ News
heads.

Equity Research

IDBI have research desks covering all aspects of the equities. Their equities research desk
publishes high quality research on all major sectors of the industry and covers a wide
spectrum of companies listed on the Indian stock exchanges. Their derivatives research team
publishes daily/monthly reports on the trends in the equity derivatives markets. 
Their objective, uncomplicated and reliable research reports on global markets and equity
empower institutional investors and make it possible for them to make informed investment
decisions. Their research teams have made a name for themselves in a very short time.

Mutual Fund Sales & Dealing

Several factors need to be taken into account when choosing an instrument for investment –
among these being safety, liquidity & return related to the risk undertaken. Coming to the
choice of instruments, we have equity, debt, money market, commodity based or even global
equities. Mutual funds provide all this and more.
Mutual funds offer an investment portfolio which can be either diversified in nature or
specific in category with risk skewed towards debt to equity in varying proportions, all in one
under one umbrella. Mutual Funds cater to the specific requirement of the Investor be it
Institutional or Individual.

IDBI Capital Market Services Ltd. is into Mutual Fund Distribution, Advisory and Fund
Management. They address the needs of any type of investor from corporate, banks, trusts,
firms, and societies to NRIs, HNIs and individual retail clients 
They have been recognized as among the best financial advisers in the country, and have
been conferred with the CNBC TV 18 Financial Advisor Awards as the Best Performing
National Financial Advisor –Institutional segment in India for the past two consecutive
years. 
As a distributor registered with almost all the SEBI Registered Mutual Funds in India, They
have also started offering Mutual funds to our retail customers, both off-line and on-line.
 
Mutual Fund Research

The degree of risk in a Mutual Fund varies with the diversity in portfolio and the combination
of assets. Add to this the different classes of instruments. Judging the best investments
avenues calls for astute incisive knowledge on markets and individual companies.
The research desk of IDBI Capital Market Ltd. publishes a number of detailed research
Reports on the Mutual Fund Industry viz.  

(i) Daily Report – detailing the NAV and growth of the schemes on various periods  
(ii) MF Monthly – with coverage on the Equity, Debt and Mutual Fund market 
(iii) Customised Sector Reports and 

(iv) Scheme Reports for Special Clients. 

Customized Reports are provided to specific institutional / corporate clients. The universe for
every category is selected from the entire industry and rigorous analysis undertaken including
peer comparison. Various tools and techniques are used, from studying the Alpha of every
scheme with Standard Deviation to Beta Analysis to Tryenor and Sortino. 

Bonds

 ICRA Rating Letter

 CARE Rating Letter
 Information Memorandum of IDBI Home Finance

Retail Broking & Distribution

In addition to offering corporate, institutional clients, IDBI Capital also offers a gamut of
financial products and services that cater to a varied cross section of investors. 
IDBI Capital also offers to financial planners, retail intermediaries and consumers to deliver
lasting, innovative solutions.

Looking at the opportunities in the market and the growth of our country, they believe it is
high time investors are educated about the nuances of investments. The knowledge and
awareness gained will empower investors and help them create wealth. They firmly believe
brokers, media and regulators have a pivotal role in assisting the individuals to become
wealthy. They will go extra mile to empower the investors in managing their wealth to ensure
a more rewarding future.

IDBI Capital aims to provide a single-point source for retail investors in their requirements
for trading and investment products.

Online Investing

Online investing provides investors with a convenient method to take part in today’s financial
markets. With their commitment to enhancing investor education and awareness as a
foundation stone, they have created an online investing website www.idbipaisabuilder.in for
trading and depository services. This platform enables easy and informed investing in Equity
shares, Futures & Options (F&O), IPO’s and Mutual Funds, for the retail investors with a
wealth of information, news, analysis and tools sourced from the best in the industry. It also
brings a large database of information about companies which will assist them in making an
informed investment decision.
They strive to empower you with information that helps you make informed decisions and
bank upon the right opportunity. They bring us lots of useful information by way of our
varied market research reports on equity, derivatives, and mutual funds

IDBI offer an integrated three-in-one account linking savings account, trading account and
the demat account.
 
IPO Distribution

Investment Banking Activities

IDBI have in the last financial year successfully lead managed public/rights issues mobilizing
more than Rs.900 crores. Some of the notable examples were the Central Bank of India ‘s
IPO and Varun Industries Ltd fixed price issue. The responses to our issues have been
heartening. 

Initial Public Offerings (IPO)

They are reaching out to the investors through

 10,000 sub-brokers/agents spread across the country.

  Our 40 thousands online investors.
 and our own 25 branches.

They market and distribute IPO’s of all lead investment bankers, including their owned lead
managed issues. In IPO distribution, the marketing effort is the key, which enables them to
carry out the vigorous exercise of

 Putting the banners of the IPO on our portal and all across our branches.
 Sending the emails to all our investors about the impending IPOs and the product
note.
 Sending SMS to all of them.
 Making available the IPO application forms, in all our branches.

All their branches are in marketing & distribution of IPO application forms, where they
accept and bid the application forms to the exchange.

Our Credentials 
IDBI are a leading full service securities house, offering a complete suite of financial
products and services to individual, institutional and corporate clients:

 Wholly owned subsidiary of IDBI Bank Ltd.

 A well-capitalized financial position - networth of over Rs.350 crores as on 31st
March 2008.
 A private equity fund of Rs.100 crores for investment in Mid Cap and SME Growth
Companies
 A leading player in Private Placement of Tier II bonds and debentures for institutions,
banks and corporates.
 They manage Provident and Pension Funds of more than Rs.8,250 crores

Fund Management

IDBI Capital Market Services Ltd. (ICMS) is a leading Fund Manager in the country
for Provident, Pension and Retirement Benefit Funds. The Company is a SEBI registered
Portfolio Manager and manage its Client’s assets under both discretionary and non-
discretionary mandates. These services are provided to various public and private sector
undertakings and their provident, pension, retirement benefit and surplus funds. The
Company’s client base includes leading pension and provident funds in the country. 
IDBI capital has been advising institutions, banks and corporates for their investment
in Debt, Mutual Funds and Equities over several years. Its services include managing Client
Assets--Pension & Provident Funds, Surplus fund Management, Equity Portfolio
Management and Mutual Fund Advisory. The funds have continuously yielded superior
returns, which are significantly higher than the benchmark. 

ISO Certification 9001:2000

Keeping in view the importance of standardized processes and service levels, the Company
has gone in for ISO Certification for Fund Management, and is the only company to have
done so in this sector. Being a public sector, the Company is also audited by Comptroller and
Auditor General (CAG) office and follows transparent practices.

Regulatory Approval

IDBI Capital is a registered Portfolio Manager with Securities and Exchange Board of India
(SEBI) since 1998 and is authorised to undertake Funds Management activities (Debt &
Equity) for clients. These activities would be governed by Securities and Exchange Board of
India (Portfolio Managers) Rules and Regulations, 1993. SEBI Regisration No. of IDBI
Capital is INP000000209, valid till the year 2010. 

The Key strengths of IDBI capital Market Services in the areas of Debt Fund
Management are:

1. Fund Management experience of 10 years

2. Expertise in managing large corpus
3. Expertise in both Debt & Equity Market
4. IDBI Capital is the only Portfolio Manager in the Country to achieve ISO 9001: 2000
Standard for Quality Management Systems in Fund Management operations, with
certification from TUV NORD an accredited German standards firm
5. Substantial Returns Over Benchmark
6. IDBI Capital is a SEBI registered Portfolio Manager
7. Minimum Idle Days
8. Our fund management skill covers Portfolio Analysis that includes ALM, Asset
Allocation, Risk Analysis, Maturity Analysis and Yield Analysis
 9. Transparency of Operations
10. Strict adherence to Compliance Procedures
11. Highly Rated Debt Research
12. Presence in All Segment/ Asset of the Financial Services: IDBI Capital deals in
Equity and Equity related products and is one of the highly rated Mutual Fund
Distributor (won two consecutive CNBC TV18 Institutional Financial Advisor
Award). In Investment Banking and Debt Capital Market- Rated in Top 15 by Prime
Database
13. Group Strength in Debt Market: IDBI Capital is one of the leading players in debt
market with presence in primary dealership since July 2007. The current operations of
primary dealership is conducted by a group company, IDBI Gilts

Infrastructure

 Experienced Fund Management Team: The Fund Management team comprises of

experienced professionals (experience ranges between 2 years to 15 years) in
Portfolio Management with requisite exposure in the fixed income and equity
segment and qualifications
 Experienced Back-Office: The Clearing and Settlement Operations are manned by
experienced personnel with requisite exposure to capital market and particularly debt
market. The process is standardized as per the regulatory and other specific norms and
mainly technology driven in most areas
 Accounting: Real time accounting of Remittances, Investments, Interest and
Redemption proceeds ensures accurate reconciliation
 Professional Custodian: Member of NSDL for demat services and offers Constituent
SGL Account facility for Government securities through IDBI Gilts Ltd.
 Functional Separation of Front and Back Office: Separate personnel handle the
front and back office functions to ensure transparency and complete regulatory
compliance
 Internal Controls: Adequate Risk Management systems in place to ensure complete
regulatory compliance
 Audit Systems: Audit of all transactions and reports by an independent firm of
chartered accountants. The accounts and transactions are also subject to CAG audit
and other regulators
 Belongs to IDBI Group: IDBI is a leading bank, classified under ‘Other Public
Sector Bank’. Established in 1964 by Government of India under an Act of
Parliament, IDBI has essayed a significant role in the country’s industrial and
economic progress for over 40 years – first as apex Development Financial Institution
(DFI) and now as a full service commercial bank