Industry profile: The banking industry is different from other industries. No other industries come into direct contact with the general public. Banking is a business where the Raw material and Final product are the Same. Money. The assets in banking are far different from other businesses. No other business is as essential as banking in the economy. That is why they called it the equivalent of the economy. The health of the economy is often analyzed from the health of Banking. Banking comes into contact with the general public and industrial customers. It is essential for Govt also. No other businesses hold this level of importance. Naturally, it attracts the highest amount of regulation.

Banking is a Good industry where you can earn money. But for that, you need to do the right things. The reason is that Banking is not Manufacturing, where you buy Raw material, process it, and then manufacture something else. Banking is simply the process of earning money from the money you have. If you do it right, you are a winner. The most crucial thing in this is pretty simple. Make successful Formula and keep repeating it until you succeed. In the language of Saurabh Mukherjee, Ambit Capital, The word repeatedly mentioned in the context of HDFC BANK is execution. For Axis Bank, you may realize that it is Consumer satisfaction and Technology.

As India is emerging economy, the healthy banking is more and more important for Indian economy.

Running a bank is as tricky as analyzing a BANK and its Fundamentals. Many Small, Check and Uncheck, many small things, Many parameters to check. But there is a reason that Bank business comes into contact with Public money, making it an essential player in the Country’s economy. If handled by the wrong person, you are inviting disaster. For running the Bank, Management and how they run it is crucial. The parent Institution is also critical for the bank as it can use a brand name or develop one. If they are strong, the bank will eventually follow it.

Company Profile: Headquarter in Mumbai, the bank is more than a Regular bank. IDBI bank is in the business of lending money and taking deposits like any other bank. IDBI Bank (Industrial Development Bank of India) was established in 1964 by an Act of Parliament to provide credit and other financial facilities for developing the fledgling Indian industry. Erstwhile, IDBI was a development finance company. As a DFI, the Company was the leader while NSE, NSDL, CARE, SHCIL, SIDBI, EXIM Bank, ARCIL, and NEDFI. IN 2006 IDBI was merged with United western bank.

IDBI Bank Limited offers monetary intermediation for commercial banks, savings, postal savings, and discount houses. In addition, the Company provides personalized banking and financial solutions to its clients. Its segments include wholesale banking, retail banking, and treasury services.

Like other banks, The corporate/wholesale banking segment includes corporate relationships covering deposit and credit activities other than retail. The retail banking segment includes credit and deposit activities oriented toward individuals and small businesses, including Priority sector lending. The Retail Banking segment also encompasses payment and alternate channels, such as automated teller machines (ATMs), point of sale (POS) machines, Internet Banking, Mobile Banking, third-party distribution, and transaction banking services. Its treasury services segment includes a trading portfolio of investments, money market operations, derivatives trading, and foreign exchange operations on the account and for customers. In addition, it provides corporate project finance, film finance, foreign currency loan, working capital finance, treasury products, etc.

Shareholding pattern: BSE Data

Financial and ratio : [table id=147 /]

Future prospectus:

LIC was not interested, and the government forced them to recapitalize as the NPA issue was big. Now, as a 90%+ stake is on the block, which includes government and LIC, it is clear that this was a Loss-making deal for LIC.

For IDBI, it was good. They get capital. Now they can raise funds at any cost.