W E L C O M E

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W E L C O M E
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Industrial Development Bank of India

• Premier financial institution in India.
• On the threshold of change to a more vibrant
  business model
• Presently 58 direct holding by Govt. of India
• Extended financial assistance for over three
  decades to major Indian industries/ companies
• Contributed to institution building in financial
  sector including capital market related
  institutions
• Strong Brand Equity

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Industrial Development Bank of India

• Strong financials
• Net worth - Rs.6978 crore (Rs.7155 cr end Sept)
• Capital adequacy - 18.7 (Tier I 14.1)
• PAT - Rs.401 crore (Rs.176 cr end Sept)
• DER - 7.9 1
• Consistent record of profit and dividend payment
  over nearly four decades
• Impeccable track record in debt servicing since
  1964
• Large corporate customer / wholesale retail
  investor base
• Over Rs.15000 crore mobilised from more than 5
  million retail investors

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IDBI Flexibonds 20

• Second tranche under IDBI Flexibond Umbrella
  Offer Document 2003-04 for Rs. 1500 crore with
  greenshoe option of Rs. 1500 crore
• Issue size Rs. 400 crore with greenshoe option
  for retaining additional amount of Rs.400 crore
• Ratings
• AA by CRISIL (Rating watch with developing
  implications),
• AA(ind) by FITCH (outlook is evolving) and
• LAA by ICRA
• Signifying high safety with regard to timely
  payment of interest repayment of principal

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IDBI Flexibonds 20

• Mix of popular investor-friendly instruments and
  innovative options
• IDBI Infrastructure (Tax Saving) Bond,
• IDBI Money Multiplier Bond,
• IDBI Floating Rate Bond, and
• IDBI Regular Income Bond
• Attractive returns to investors

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IDBI Infrastructure (Tax Saving) Bond
Subscribers to these Bonds will have priority
over subscribers to other Bonds for allotment
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IDBI Infrastructure (Tax Saving) Bond Tax
Benefits

• Investment upto Rs. 1 lakh eligible for benefits
  u/s 88 of the IT Act
• 30 of the qualifying amount
• Income (before standard deduction and salary
  income being 90of such income) upto Rs.1 lakh
  p.a
• 20 of the qualifying amount
• Gross total income upto Rs. 1.5 lakh p.a.
• 15 of the qualifying amount
• Gross total income above Rs. 1.5 lakh p.a. but
  below Rs. 5 lakh p.a.
• NIL Gross total income above Rs.5 lakh p.a.
• For tax benefits, Bonds to be held for a minimum
  period of three years

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IDBI Money Multiplier Bond
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IDBI Floating Rate Bond
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IDBI Regular Income Bond

• Face Value Rs 5,000

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Brokerage Structure

• Infrastructure (tax saving) Bond

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Brokerage Structure

• Money Multiplier Bond, Floating Rate Bond and
  Regular Income Bond

• In addition to the above incentive structure,
  IDBI may, at its sole discretion, pay
  kitty/incentives to the top performing lead team
  members / brokers / agents etc. based on the
  mobilisation / number of applications procured.

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Approvals

• Declared as public securities by
• Government of India u/s 20(f) of Indian Trusts
  Act
• Governments of Andhra Pradesh / Madhya Pradesh
• Applications made for declaration as public
  securities to
• Governments of Maharashtra, Gujarat and Rajasthan
  
• Approved Securities in terms of Section 882 of
  the Major Port Trusts Act
• Eligible Security under sec. 11(5) of IT Act
• Application made u/s 80L of IT Act for exemption
  of interest income (approval obtained till Flexi
  - 18)

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Facilities to Investors

• Bonds available in Demat form
• Bonds available in Consolidated Certificate /
  Market Lots (Market Lot 1 Bond)
• Interest on application money from the 3rd day
  after deposit of application till the deemed date
  of allotment _at_ 3.5 p.a. for successful
  applicants
• Electronic Clearing Services (ECS) facility
  available

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Facilities to Investors

• Banks (at their sole discretion) would consider
  providing loan against pledge of Bonds. IDBI
  will mark lien.
• No TDS on bonds, upto interest of Rs.2,500/- p.a.
  under Sec. 193(v)(b) of IT Act as bonds are
  considered as securities or on submission of Form
  15 G /H
• (For interest on Fixed Deposit the limit for TDS
  is interest upto Rs 5,000/-p.a. under section 194
  A (3)(i) of the IT Act as this interest is
  interest other than interest on securities)

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Application Forms Available and Accepted Through
a Wide Distribution Network
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Head Office - Mumbai
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Zonal Branch Office - 5
Jammu
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Ludhiana
Shimla
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Branch Office - 35
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Chandigarh
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Meerut
Training Institute
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NEW DELHI
Itanagar
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Patna
Jaipur
Kanpur
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Guwahati
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Shillong
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Varanasi
Agartala
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Aizawl
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Bhopal
Ahmedabad
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Ranchi
Rajkot
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CALCUTTA
Indore
Surat
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Nagpur
IDBI has appointed 18 banks to collect
applications at 559 centres throughout the country
Bhubaneswar
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MUMBAI
Arrangements made with 56 select post offices all
over India
Pune
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Training Institute
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Visakhapatnam
Hyderabad
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Vijayawada
Panaji
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Mangalore
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CHENNAI
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Bangalore
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Coimbatore
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Kochi
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Advantages of investing in IDBI - The SLR
principle

• Safety Presently 58 of share capital held by
  GOI
• AA rating from CRISIL/FITCH and AA by ICRA for
  domestic borrowing
• Ba1 by Moodys BB by SP and FITCH i.e.
  sovereign rating for FC Borrowings
• Liquidity - Bonds listed on National and Mumbai
  Stock Exchanges
• Return - Competitive rates of interest
• Trust - Trusted by over 5 million retail investors

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Transition to Commercial Banking

• The Industrial Development Bank (Transfer of
  Undertaking and Repeal) Bill, 2002 approved by
  both houses of Parliament in winter session 2003.
  Bill has also received Presidential assent
• It will come into force on an appointed date
  as may be notified by GOI.
• The Bill facilitates the new company viz IDBI
  Ltd., to become a banking company without the
  need to obtain a separate banking licence.

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Transition to Commercial Banking

• All assets and liabilities of IDBI will be taken
  over by IDBI Ltd.
• Contractual obligations to be fulfilled by IDBI
  Ltd.
• Would enable IDBI Ltd. to access funds at cheaper
  cost
• Envisages IDBI Ltd. becoming a commercial bank
  while continuing to be a development bank to
  extend term loan to industries
• IDBI Ltd. to be given certain regulatory
  forebearance including maintenance of Reserve
  requirements
• Plans for the conversion being finalised

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Dates to Remember

• Issue Opens
• January 19, 2004
• Issue Closes
• February 12, 2004
• Deemed date of allotment
• March 5, 2004

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Thank You