INTRODUCTION

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. 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. The Bank has one of the highest productivity per employee in Indian banking industry. 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.

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.

IDBI's Strengths

Internationally Trusted Bank Banking company with unique combination of strong development banking and modern commercial banking Expertise in banking field for over 4 decades One stop to meet all corporate needs

Strong Corporate Brand Mitigates the counter party risks to buyers and sellers Provides Complete Solution from Conceptualization to Commercialization Willing to perform role of Cluster Manager Long-term Business Partner Provides various structures for trading of CERs to suit client needs

SERVICES

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SERVICES FAILURES BY IDBI BANK:

Operational Risk ; IDBI Bank measures, monitors and controls operational risk through a software system 'ORBIT' (Operational Risk Business Intelligence Tool). Branches are rated for their operational risk profile through an embedded branch-rating model using Key Risk Indicators (KRIs) developed for various business lines. IDBI Bank has put in place a policy for 'Know IDBI Customer' (KYC) and 'AntiMoney Laundering' (AML) requirements. As a measure of Operational Risk Management, IDBI Bank also conducts appropriate training programmes to sensitize line managers across IDBI Bank on operational risk inherent in each function. As a part of implementation of Basel-II guidelines, IDBI Bank has commenced computation of the capital requirements for operational risk under the Basic Indicator Approach (BIA). Also, steps have been initiated, as a part of Integrated Risk Management Architecture (IRMA), to upgrade the existing system

and practices to migrate to Advanced Measurement Approach. Recognizing the importance of Business Continuity Planning (BCP) for minimizing the adverse effects of business disruption and system failure, IDBI Bank has put in place a Board approved broad framework of BCP. In addition, in order to provide continued and uninterrupted customer service even during natural disasters, a Disaster Recovery Site has been installed and Disaster Recovery (DR) drill exercises are conducted periodically to test the DR Plan.

Risk management: Globalization, deregulation, and liberalization, the world over, are creating opportunities as also threats. The forces unleashed by globalization have intensified competition from within and outside the country.

Business units are thus facing a multitude of risks, some familiar but also some quite unfamiliar ones, and higher volatility in cash flows. The significant influence that these events have on the financial system, strongly indicates the imperative for a move towards a comprehensive risk management system to keep in tune with volatilities in an ever changing uncertain business environment. This would enable IDBI Bank to take advantage of the upside, while managing the downside. IDBI Bank in the

course of its operations is exposed to various risks like Credit Risk (mainly on account of the borrowers and other counterparties inability to meet their repayment commitments), Market Risk (arising out of movement of market values/interest rates impacting earning potential, fair valuation or realizable value of the portfolio), Liquidity Risk (impacts capacity to raise necessary funds to meet debt servicing requirements and disbursements), Exchange Risk (arising from movement of exchange rates of foreign currency) and

Operational Risk (includes risks arising from operational processes including technology, manpower, procedures, etc.). Risk management is a key element of IDBI Banks business strategy. Awareness, identification, measurement, monitoring and controlling risk, efficiently and effectively, in a manner geared towards yielding sustained economic value, is among the highest priorities of IDBI Bank. The objective of Risk Management is to move IDBI Bank up the

value chain by ensuring sustained quality growth in and off the balance sheet items along with optimizing the bottom-line compensation to adequately cover the various risks embraced by IDBI Bank and provide accretion to its capital. In the process, Risk Management aims to create value tangible and intangible for its stakeholders (investors, customers, employees, regulators) in the form of a superior balance sheet, adequate liquidity, healthy return on capital, trust and confidence, etc. In this direction, Basel-

II guidelines, which will facilitate upgradation of risk management functions, assume a critical role. While the Risk Group is entrusted with the key responsibility in risk management function, in pursuit of this enterprise-wide objective, IDBI Bank considers every employee of the Bank a Risk Manager. Credit risk:

The Credit Risk is primarily assessed as a part of appraisal process, which considers various parameters. Management, track record of the promoters and the company, technology, overall capacity, demand and supply scenario, competitors, industry environment etc are assessed to evaluate the credit risk which will in turn decide the level of banking facilities and the spread chargeable (credit spread) over the bench mark interest rate. While the appraisal process assesses the Credit Risk quality, exposure limits set for individual companies, groups and industries facilitate limiting credit risk quantity. Besides, specific

risk mitigation covenants are incorporated in the terms and conditions of credit facilities. The risk perception also gets reflected in pricing, within the constraints of competition. All major sanctions are committee based to ensure better discussion / evaluation. Recognizing the significance of credit risk in banking operations, IDBI Bank has put in place a Credit Risk Management Framework with appropriate risk management skill sets, which provides not only a competitive advantage in the market place, but also positions IDBI Bank to capitalize on the opportunities for growth. IDBI Bank follows a proactive Credit Policy, which is regularly reviewed and updated to take into account the developments in the credit scenario. Best practices are employed through appropriate credit delivery processes and portfolio & account monitoring. IDBI Bank has adopted the Standardised Approach for credit risk as per RBI guidelines and is in the process of further upgrading and strengthening its Credit Risk Management System, to migrate to the advanced Market risk: IDBI Bank addresses all forms of market risks, viz., liquidity risk, interest rate risk and foreign exchange risk through a well-defined set of policies and processes. Separate treatment is given to management of risks in trading book and banking book recognising their differential impact on the balance sheet. The trading book risks, which are more susceptible to market movements, are continuously measured and managed by marking the positions to the prevalent market rates. In order to assess the likely impact of market movements, periodic analysis of the trading book is carried out on the basis of positions based on changes in market rates, past trends, stress tests through rate shocks, scenario analysis, etc. The overall positions and functions of market risks are run under the policy framework defined in Asset-Liability Management (ALM) Policy, Market Risk Policy and Investment Policy. Information Technology (IT) Risk: IDBI Bank has been in the forefront in leveraging Information Technology (IT) to extend better service / products to the customers and other stakeholders, it recognizes the need for

effective IT risk management. Apart from Information Security aspects, IDBI Bank's IT risk mitigation strategy includes aspects of compliance & privacy also. IDBI Bank has put in place an Information Security Policy (ISP) to ensure that information is protected from unauthorized access and confidentiality & integrity of the information are maintained along with timely availability of IT resources to legitimate users. A high-level Information Security Steering Committee (ISSC) of IDBI Bank ensures that provisions are in place for continued protection of IT resources of IDBI Bank. Apart from conducting regular information security awareness programs for the employees, IDBI Bank also communicates with the customers on various Information Security precautions through E-Mail / Mail / SMS. IDBI Banks IT infrastructure and systems have been implemented within a robust information security framework. The centralized Data Center of IDBI Bank has been accredited with ISO 27001. Defense in depth is achieved by multi-level information security implementations such as Firewalls, Gateway filters, De-militarized zone (DMZ), etc. Access to the information of IDBI Bank is on need to know basis and internal controls & processes are in place to achieve the same. A dedicated team monitors the information security infrastructure of IDBI Bank on a 24X7 basis.

Complaint about opening accounts Complaint about loans

IDBI Bank stands out amongst its banking sector peers when it comes to customer care. While IDBI Bank would not compare favorably with some of the front line banks like PNB and HDFC Bank besides the big brothers SBI and ICICI Bank in terms of (assets) size and reach, it can definitely give them a run for their money when it comes to customer service, a critical though mostly ignored aspect where most banks falter to deliver. In fact, IDBI Bank is too good for other banks to come even close to it when it comes to customer care. To cite one example, just a couple of weeks ago, one of my friends told me that he was pleasantly surprised when he received his

cheque book even before he could apply for the one! His earlier cheque book had almost exhausted, however, he was too lazy to apply in time for a new one. But the bank was not! Its robust customer care infrastructure knew when to send the cheque book. My friend had not expected his bank (IDBI) to be so caring! Surprisingly, not many people know that IDBI Bank is a stateowned (and not a private sector) bank! And it is just one example. Even the branch banking experience at an IDBI Bank branch would put its competitors to shame. The ambience at IDBI Banks branches is so good that a customer may wonder whether he or she is visiting a top quality car show room! But the biggest surprise is the quality of staff. The staff is courteous and caring. They are also very forthcoming and are always ready to assist you. They also lend an ear to your suggestions as well as grievances with equal ease. They also have the patience to listen to their banks customers small chit-chats. Though all this may sound unbelievable, it is true. Indeed, the top quality customer service of IDBI Bank comes as a fresh breath of air to customers (at least for small customers like me) tired of facing apathy of staff at majority of the home-grown banks, including the fast-growing private sector banks. Its a remarkable turnaround for the yesteryears DFI (Development Financial Institution) behemoth which had been trying hard to find its footing in Indias banking landscape that underwent a sea change post-1991. While the sector ushered into universal banking, IDBI found itself sorely lagging behind peers like ICICI and HDFC, which leapt ahead by morphing themselves into a sort of financial supermarkets, riding high on new and innovative models such as bankassurance and universal banking, in tune with the changing global banking environment.

The transformation that IDBI has undergone in the last few years is, however, now beginning to show the results. As its 2010 financial results showed, it pays to be customer-friendly. According to an analysis by The Analyst magazine (October 2010 issue), IDBI Bank outperformed its banking sector peers (in the state-owned banks category), by notching up highest Business Per Employee and stood second in terms of Profit Per Employee (after Corporation Bank), during FY 2009-10. And if it continues its good efforts in the hitherto ignored areas like customer care and product innovation (even its passbook looks sleek and is elegantly designed), it would be tougher for rivals to stop its march to the top of the banking league table. Surely, IDBI Bank stands out as a shining example in an industry which is notorious for poor customer service. Maybe they can take a leaf out of the retailing industrys book - the best industry when it comes to customer care.

Good work, IDBI Bank. On the lighter vein, I would like to put the disclaimer that its neither a sponsored ad nor an advertorial. Its the personal experience of the author. Hence experiences of other customers might vary. Amit

CONCLUSION

IDBI Bank is one the most popular banks in the banking sector working with a vision to keep all its customers satisfied in every phase of life by providing all sought of benefits besides providing loans for individuals and also for different sectors, making all its customers delighted by issuing credit cards, auto loans, education loans etc, and dealing with the customers with all responsibilities. While in the actual business with the IDBI bank some of the customers have faced problem such problems are Big and lengthy process for loans, lot of negotiation involved for the loan, lengthy process to open an account, need lot of patience required to deposit amount, lacking in updated the customers, customer services do not respond properly. All your complaints can be registered at the head office of IDBI bank situated at IDBI Tower WTC Complex Cuffe, Parade Colaba, Mumbai 400005, Maharashtra, India. You will be delighted by calling customer care services at most customer satisfaction is taken care at these numbers 022 66553355 and 22189111. Home page of IDBI bank is full of required options helpful for the customer to understand the bank in actual sense just log on to the website www. idbi.com