INTRODUCTION

1.1 GENERAL INTRODUCTION PHYSICAL CERTIFICATES - THE TRADITIONAL WAY

The Indian capital market has seen an unprecedented boom in its activity in the last decade. We can now boast of a very large investor population and substantial volumes of trade. However, this surge in activity has brought with it, numerous problems that threaten the very survival of the Capital market in the long run. A closer inspection of the problems would reveal that most of them arise due to the intrinsic nature of paper based trading and settlement. This century-old system of trading and settlement requires handling of huge volumes of paper leading to increased costs and inefficiencies. Simultaneously, they expose the investors to greater risks putting them at a disadvantage. Some of these areas are: Unwarranted delay in transfer of shares. It takes 30 to 60 days for the investors to get the shares lodged in their name; Possibility of forgery on various documents leading to bad deliveries, legal disputes etc; Theft of shares leading to defective title in shares purchased and subsequent litigation; Prevalence of fake certificates in the market; Mutilation or loss of share certificates in transit; Increased transaction costs due to stamp duty, fake shares, rejection by registrars, etc.

This has made the investors, both retail and institutional, wary of entering the Indian capital market. In this scenario, it was felt that the getting up of a depository and the introduction of scrip less trading and settlement is imperative for the efficient functioning of the market. The Indian capital market has witnessed numerous changes in the recent past. Historically stock market booms have always resulted in a number of problems for the lay investor. Sometimes, the problem may magnify them and threatens to engulf the entire capital market. A close introspection of these problems will reveal that most of them are due to intrinsic nature of paper based trading and settlement. All this may have driven away many potential investors and Foreign Institutional Investors. Dematerialization of shares is looked upon as the remedy for the paper based problems. With effect from august 19, 1998 SEBI has granted certificate of registration of Central Depository Services (I) Ltd. (CDSL). Yet even with demat, from the point of view of investors there are numerous problems. Here Wallet Watch introduces you to setting up of a demat account and introduction of scrip less trading and settlement. There are numerous benefits of this scrip less trading and settlement, which Wallet Watch has discussed in detail.

SECTOR OVERVIEW
Industrial Development bank of India (IDBI) was constituted under Industrial Development bank of India Act, 1964 as a Development Financial Institution and came into being as on July 01, 1964 vide GoI notification dated June 22, 1964. It was regarded as a Public Financial Institution in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank. Industrial Development Bank of India Limited In response to the felt need and on commercial prudence, it was decided to transform IDBI into a Bank. For the purpose, Industrial Development bank (transfer of undertaking and Repeal) Act, 2003 [Repeal Act] was passed repealing the Industrial Development Bank of India Act, 1964. In terms of the provisions of the Repeal Act, a new company under the name of Industrial Development Bank of India Limited (IDBI Ltd.) was incorporated as a Govt. Company under the Companies Act, 1956 on September 27, 2004. Thereafter, the undertaking of IDBI was transferred to and vested in IDBI Ltd. with effect from the effective date of October 01, 2004. In terms of the provisions of the Repeal Act, IDBI Ltd. has been functioning as a Bank in addition to its earlier role of a Financial Institution. Merger of IDBI bank Ltd. with IDBI Ltd. Towards achieving the faster inorganic growth of the Bank, IDBI Bank Ltd., a wholly owned subsidiary of IDBI Ltd. was amalgamated with IDBI Ltd. in terms of the provisions of Section 44A of the Banking Regulation Act, 1949 providing for voluntary amalgamation of two banking companies. The merger became effective from April 02, 2005. Merger of United Western bank with IDBI Ltd. The United Western bank Ltd. (UWB), a Satara based private sector bank was placed under moratorium by RBI. Upon IDBI Ltd. showing interest to take over the said bank towards its further inorganic growth, RBI and Govt. of India amalgamated UWB with IDBI Ltd. in terms of the provisions of Section 45 of the Banking Regulation Act, 1949. The merger came into effect on October 03, 2006.

Ltd. Change of name of IDBI Ltd. to IDBI Bank In order that the name of the Bank truly reflects the functions it is carrying on, the name of the Bank was changed to IDBI Bank Limited and the new name became effective from May 07, 2008 upon issue of the Fresh Certificate of Incorporation by Registrar of Companies, Maharashtra. The Bank has been accordingly functioning in its present name of IDBI Bank Limited. For over 40 years IDBI has essayed over a key nation building role. First as the apex Development financial Institution (DFI) in the realm of the industry and now as a full service commercial bank. Today IDBI as a new generation universal bank touches the lives of a millions of Indians through an array of corporate and retail products and services without diluting its mandated finance obligations. On April 2, 2005 IDBI merged its hitherto banking subsidiary (IDBI Bank Ltd.) with itself. The appointed date of merger was October 1, 2004. Boasting of a business size (deposit plus advances) of around 79000 crores, and a major Government shareholding (53%) the bank lays much store by its motto Technology redefines customer service . As of April 30, 2006 IDBI delivery channels comprised of 172 branches, 4 extension counters and 382 ATM s spread across 101 cities- clear evidence of its efforts to spread wings across the country. IDBI s financial strength has been recognized by international credit ratings agencies which reflects IDBI s strong market position as one of India s leading financial institutions, with its consistent profitability and sound capitalization. A strong capital base (capital adequacy ratio 14.80% well above the regulatory minimum of 9% ensures that it is well placed for growth of business and ready to adequately address the prospective enhanced Basel-II capital requirements. The bank which has consistently earned profits since its inception, has committed and competent human capital to power its aggressive growth plans.

What s more, professionals like accountants, engineers, economists and experts in IT, law, management, agriculture and treasury operations form part of its HR talent pool. IDBI is a board managed organization. The responsibility for the day to day management of operations of the bank is vested with the Chairman and the Managing Director and two Deputy Managing Directors, who draw upon the support and expertise of a cross disciplinary Top Management Team. As on March 31, 2006, IDBI has a combined employee base of 4548, including professionals from the field of accountancy,

management engineering, law, computer technology, banking and economics. The net NPA ratio on March 31, 2006 was 1.01, the Capital Adequacy Ratio was 14.80. The earning per share was Rs.7.75 and the P/E ratio was 10.10. The profit per employee was 0.12 crore and the business per employee was 17.32 crore. Today IDBI rides on the back of a robust business strategy, a highly competent and dedicated workforce and state of the art information technology platform, to structure and deliver personalized banking services and customized financial solutions to its clients. Services rendered by IDBI Bank under Corporate Banking cover debt syndication and specialized advisory services to the corporate in the infrastructure and allied sectors. The Bank offers Project Appraisal, Debt Syndication, Corporate advisory services and Securitization & Structured products as specialized services.

(A) Appraisal: IDBI Bank has cutting edge capabilities in the appraisal of large projects and has over the years earned reputation in appraisal of these projects, which are well accepted in the

banking industry. Project Appraisal Department has a dedicated team of qualified and experienced professionals with domain knowledge in the infrastructure and other major industry sectors, including technical, financial, legal and financial disciplines, to carry out appraisal of large infrastructure and non-infrastructure projects.

IDBI Banks appraisals have been used by the corporate, besides availing loan facilities for implementing projects, to finalise their decisions in bidding for new projects, assets

THEREOTICAL BACKGROUND
INVESTMENT OPTIONS:

Savings form an important part of the economy of any nation. With the savings invested in various options available to the people, the money acts as the driver for growth of the country. Indian financial scene too presents a plethora of avenues to the investors. Though certainly not the best or deepest of markets in the world, it has reasonable options for an ordinary man to invest his savings. Let us examine several of them: Banks Considered as the safest of all options, banks have been the roots of the financial systems in India. Promoted as the means to social development, banks in India have indeed played an important role in the rural upliftment. For an ordinary person though, they have acted as the safest investment avenue wherein a person deposits money and earns interest on it. The two main modes of investment in banks, savings accounts and Fixed deposits have been effectively used by one and all. However, today the interest rate structure in the country is headed southwards, keeping in line with global trends. With the banks offering little above 9percent in their fixed deposits for one year, the yields have come down substantially in recent times. Add to this, the inflationary pressures in economy and you have a position where the savings are not earning. The inflation is creeping up, to almost 8 percent at times, and this means that the value of money saved goes down instead of going up. This effectively mars any chance of gaining from the investments in banks.

Post Office schemes Just like banks, post offices in India have a wide network. Spread across the nation, they offer financial assistance as well as serving the basic requirements of communication. Among all saving options, Post office schemes have been offering the highest rates. Added to it is the fact that the investments are safe with the department being a Government of India entity. So the two basic and most sought for features, those of return safety and quantum of returns were being handsomely taken care of. Though certainly not the most efficient systems in terms of service standards and liquidity, these have still managed to attract the attention of small, retail investors. However, with the government announcing its intention of reducing the interest rates in small savings options, this avenue is expected to lose some of the investors. Public Provident Funds act as options to save for the post retirement period for most people and have been considered good option largely due to the fact that returns were higher than most other options and also helped people gain from tax benefits under various sections. This option too is likely to lose some of its sheen on account of reduction in the rates offered.

Company Fixed Deposits Another oft-used route to invest has been the fixed deposit schemes floated by companies. Companies have used fixed deposit schemes as a means of mobilizing funds for their operations and have paid interest on them. The safer a company is rated, the lesser the return offered has been the thumb rule. However, there are several potential roadblocks in these. First of all, the danger of financial position of the company not being understood by the investor lurks. The investors rely on intermediaries who more often than not, don t reveal the entire truth. Secondly, liquidity is a major problem with the amount being received months after the due dates. Premature redemption is generally not entertained without cuts in the returns offered and though they present a reasonable option to counter interest rate risk (especially when the economy is headed for a low interest regime), the safety of principal amount has been found lacking. Many cases like the Kuber Group and DCM Group fiascos have resulted in low confidence in this option. The options discussed above are essentially for the risk-averse, people who think of safety and then quantum of return, in that order. For the brave, it is dabbling in the stock market. Stock markets provide an option to invest in a high risk, high return game. While the potential return is much more than 10-11 percent any of the options discussed above can generally generate, the risk is undoubtedly of the highest order. But then, the general principle of encountering greater risks and uncertainty when one seeks higher returns holds true. However, as enticing as it might appear, people generally are clueless as to how the stock market functions and in the process can endanger the hard-earned money.

For those who are not adept at understanding the stock market, the task of generating superior returns at similar levels of risk is arduous to say the least. This is where Mutual Funds come into picture.

Mutual Funds:These are essentially investment vehicles where people with similar investment objective come together to pool their money and then invest accordingly. Each unit of any scheme represents the proportion of pool owned by the unit holder (investor). Appreciation or reduction in value of investments is reflected in net asset value (NAV) of the concerned scheme, which is declared by the fund from time to time. Mutual fund schemes are managed by respective Asset Management Companies (AMC). Different business groups/ financial institutions/ banks have sponsored these AMCs, either alone or in collaboration with reputed international firms. Several international funds like Alliance and Templeton are also operating independently in India. Many more international Mutual Fund giants are expected to come into Indian markets in the near future. The benefits on offer are many with good post-tax returns and reasonable safety being the hallmark that we normally associate with them. Some of the other major benefits of investing in them are: Number of available options Mutual funds invest according to the underlying investment objective as specified at the time of launching a scheme. So, we have equity funds, debt funds, gilt funds and many others that cater to the different needs of the investor. The availability of these options makes them a good option. While equity funds can be as risky as the stock markets themselves, debt funds offer the kind of security that is aimed for at the time of making investments. Money market funds offer the liquidity that is desired by big investors who wish to park surplus funds for very short-term periods. Balance Funds acter to the investors having an appetite for risk greater than the debt funds but less than the equity funds. The only pertinent factor here is that the fund has to be selected keeping the risk profile of the investor in mind because the products listed above have different risks associated with them. So, while equity funds are a good bet for a long term, they may not

find favour with corporate or High Net worth Individuals (HNIs) who have short-term needs. Diversification Investments are spread across a wide cross-section of industries and sectors and so the risk is reduced. Diversification reduces the risk because all stocks don t move in the same directional the same time. One can achieve this diversification through a Mutual Fund with far less money than one can on his own.

Professional Management Mutual Funds employ the services of skilled professionals who have years of experience to back them up. They use intensive research techniques to analyze each investment option for the potential of returns along with their risk levels to come up with the figures for performance that determine the suitability of any potential investment.

Potential of Returns Returns in the mutual funds are generally better than any other option in any other avenue over a reasonable period of time. People can pick their investment horizon and stay put in the chosen fund for the duration. Equity funds can outperform most other investments over long periods by placing long-term calls on fundamentally good stocks. The debt funds too will Outperform other options such as banks. Though they are affected by the interest rate risk in general, the returns generated are more as they pick securities with different duration that have different yields and so are able to increase the overall returns from the portfolio.

Liquidity:-

Fixed deposits with companies or in banks are usually not withdrawn premature because there is a penal clause attached to it. The investors can withdraw or redeem money at the Net Asset Value related prices in the open-end schemes. In closed-end schemes, the units can be transacted at the prevailing market price on a stock exchange. Mutual funds also provide the facility of direct repurchase at NAV related prices. The market prices of these schemes are dependent on the NAVs of funds and may trade at more than NAV (known as Premium) or less than NAV (known as Discount) depending on the expected future trend of NAV which in turn is linked to general market conditions. Bullish market may result in schemes trading at Premium while in bearish markets the funds usually trade at Discount. This means that the money can be withdrawn anytime, without much reduction in yield. Some mutual funds however, charge exit loads for withdrawal within a period. Besides these important features, mutual funds also offer several other key traits. Important among them are:

Well Regulated:-

Unlike the company fixed deposits, where there is little control with the investment being considered as unsecured debt from the legal point of view, the Mutual Fund industry is very well regulated. All investments have to be accounted for, decisions judiciously taken. SEBI acts as a true watchdog in this case and can impose penalties on the AMCs at fault. The regulations, designed to protect the investors interests are also implemented effectively.

Transparency:-

Being under a regulatory framework, mutual funds have to disclose their holdings, investment pattern and all the information that can be considered as material, before all investors. This means that the investment strategy, outlooks of the market and scheme related details are disclosed with reasonable frequency to ensure that transparency exists in the system. This is unlike any other investment option in India where the investor knows nothing as nothing is disclosed.

Flexible, Affordable and a Low Cost affair

Mutual Funds offer a relatively less expensive way to invest when compared to other avenues such as capital market operations. The fee in terms of brokerages, custodial fees and other management fees are substantially lower than other options and are directly linked to the performance of the scheme. Investment in mutual funds also offers a lot of flexibility with features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans enabling systematic investment or withdrawal of funds. Even the investors, who could otherwise not enter stock markets with low investible funds, can benefit from a portfolio comprising of high-priced stocks because they are purchased from pooled funds. As has been discussed, mutual funds offer several benefits that are unmatched by other investment options. Post liberalization, the industry has been growing at a rapid pace and has crossed Rs. 100000 crore size in terms of its assets under management. However, due to the low key investor awareness, the inflow under the industry is yet to overtake the inflows in banks. Rising inflation, falling interest rates and a volatile equity market make a deadly cocktail for the investor for whom mutual funds offer a route out of the impasse. The investments in mutual funds are not without risks because the same forces such as

regulatory frameworks, government policies, interest rate structures, performance of companies etc. That rattle the equity and debt markets, act on mutual funds too. But it is the skill of the managing risks that investment managers seek to implement in order to strive and generate superior returns than otherwise possible that makes them a better option than many other.

PRODUCTS

IDBI Bank Ltd. offers need-based products to eligible corporate in its Corporate Banking segments as under : (A) Fund Based assistance: Term Loans Working Capital / Short Term Loans Cash Credit Packing Credit to Exporters Vendor Financing Channel Financing/Dealer Financing Bill discounting (both Purchase and Sale Bill Discounting) Film Financing (B) Non-fund based Assistance: Guarantee Assistance Letters of Credit Cash Management Services - collection products (C)Liability and Transaction Banking Products Current Account Fixed Deposits Trade Finance Cash Management Services Tax Collection Treasury Products (D) Agency services: IDBI Bank believes in being the trusted partner in the progress of its esteemed clients and provides services to act as lenders agent, operate Trust and Retention accounts for the project developers to ensure timely infusion of funds as also monitor proper end use of funds.

TRADE FINANCE

If you are in the business of exports and imports, IDBI Bank can give you the leading edge in the global market place. You will have our cutting-edge technology and widespread local and international correspondent network on your side. With IDBI Banks Global Trade Services theres so much more you can expect: Global Connectivity (online) through SWIFT Instant Electronic Funds Transfer facility Extensive correspondent banking arrangements across the globe Anywhere banking facility at our entire network of branches Skilled staff with expertise on all matters of International Trade Trade advisory services a various matters including UCP, URC, ISP, FEMA FEDAI rules etc. and Trade Policy.

LOANS AND LINES OF CREDIT

Working capital facilities and long-term financing alternatives are necessary for business development. To grow, companies must be able to make improvements, expand production and adopt new technologies. Industrial Bank can help meet those needs with a full range of loans and credit lines. Our Loan Officers will work with you to structure the proper credit facility for your company.

Short and Long Term Financing

Industrial offers traditional loans and lines of credit to meet your seasonal cash needs, receivables and inventory financing, as well as long-term loans for equipment or facilities purchases, business acquisitions, and debt refinancing. This includes: Accounts Receivable Financing Business Expansion Government Financing Working Capital

Commercial Real Estate Financing

Industrial Bank has commercial loan programs available for real estate acquisition, development, rehabilitation, and construction. We cover both single and multi-family residential, commercial, institutional, and income producing properties.

Non profit and Faith-based Lending

Lending to non-profits and faith-based organizations has been a cornerstone of our banks 70-year tradition. We understand the unique services that these organizations require to maximize and enhance service and outreach to their constituents. Call us today for additional assistance.

IDBI Home Loan

IDBI-(Industrial Development Bank Of India Limited) Home Loan provides solution to all your worries regarding home financing by providing housing loans at attractive loan rates.

With IDBI Bank Home Loans you can avail the advantages like option between fixed & floating rate of interest, EMI, service at your doorstep along with easy to understand documentation as well as legal & technical assistance IDBI Home Loans also gives the balance transfer facility and housing loans at a very low interest rate.

Besides this, insurance on your loan amount is also offered by IDBI Bank.

IDBI Home Loan Rates

You can take IDBI Housing Loan for a period of 20 years if you are employed while selfemployed can avail the loan only for a period of 15 years and in case of NRI's it is only 10 years. 90% of the cost of home can be covered.

IDBI Home Loan offers two options of interest rate, 14% and 14.25% on Fixed Rate Home Loans for 3 years and 5 years respectively. The Floating Rate Home Loan for the tenure of 1-20 years is 11.25%.

Indiahousing.com provides the following link to find further detailed information about IDBI Home Loan and its different loan schemes with varied rate of interest while appreciating its services and contribution towards the growth of Real Estate industry in India.

Short term Loans Agri Business Group

India is a nation of villages. Agriculture and allied activities have been the main source of livelihood of our rural populace since times immemorial. The sector provides source of employment and livelihood to over 60% of the population. Its linkages with industry are growing with increasing stress on food and agri processing industry on account of changing demand patterns for processed food by consumers. With this background Corporate India has started finding new opportunities in Agriculture. IDBI Bank constantly emphasizes on lending to Agricultural sector. Bank has several Agri products viz. Warehouse receipt, Contract farming etc. to uplift the socioeconomic status of rural population.

Crop Loan with Kisan Credit Card Credit to Farmers/ Group of farmers for Crop Loan, working capital or investment credit for viable agriculture purpose.

Who is the eligible for the Loan? All Farmers/ Owner cultivators, tenant cultivators and Share croppers / Individual farmer having agreement with institution.

Extent of Exposure As per scale of finance specific to the crop and KCC norms.

Tenor The card would be valid for 5 years, of which crop loan and working capital components has to be renewed ann Warehouse Receipt Finance The bank extends financial assistance to farmers, partnership firms and limited companies against pledge of agricultural commodities. Farmers who want to store their produce in warehouses to avoid distress sale immediately after harvest, Processors/ Traders who want to procure large quantities of produce during the season and process / sell over a period of time and Large processors who wish to store required quantity of commodity for future processing by contracting with sellers can benefit from the scheme.

Who is the eligible for the Loan? Individual farmers, Partnerships, Limited Companies.

Eligible commodity Soya bean, Cotton (including bales), Mustard, Maize, Wheat, Sugar, Paddy, Cashew, Castor, Chilli and Turmeric only

Loan amount Farmer: Traders: Processor:

Min Rs. 25,000 and Max Rs. 10 lacs

Min Rs. 25,000 and Max Rs. 5 Crores Min Rs. 10 lacs, and Max Rs. 100 Crores

Tenor Maximum of 12 months from the date lodging commodities or shelf life of the product (Term Loans) Farm Mechanization

The product aims to give credit for purchase of Farm machinery/Irrigation equipments for agricultural operations. The scheme covers activities ranging from purchase of tractors and accessories, power tillers, combine harvesters, power sprayers, dusters, threshers etc.

Who is the eligible for the Loan? For pump set/ Irrigation equipments Farmer should own a minimum of 2 acres of irrigable land. For Farm machinery, following is the Minimum irrigated land For power tillers 2 acres For tractors with power upto 35 HP 4 acres For tractors with power above 35 HP 6 acres For combine harvesters 8 acres

Loan Amount Minimum: Rs.30, 000 /- and maximum: Rs. 30 lakh

Repayment schedule: Type of Investment Min. and Max. Repayment period in years (incl. Gestation period) Loan installment period Gestation/ grace period (months) Pump set 9 Yearly 11 11

Sprinkler/Drip Irrigation 10-15 Yearly Tractor/power tiller /Harvester 5-9

Half yearly/yearly Nil

Financing Wells

Dug well is one of the major sources for irrigation in India. Bank provides loan for various purposes, which include:Sinking of new wells Deepening / renovation of existing well Bore well / tube well

All categories of farmers including small, marginal and other farmers are eligible for finance. Unit cost recommended by NABARD will form the basis, for deciding loan amount Financing Minor Irrigation Schemes

Bank provides financial assistance for exploitation of ground water (sinking of well), water lifting devices and distribution arrangement also. The target group is all types of farmers (small / marginal / other farmer) either individually or alongwith co-owner of the land. Loan For Purchase of Land

Govt. is encouraging consolidation of land. As part of this, term loan is available to the tune of Rs. 50000/- to Rs. 10 lakhs to individual Small Farmers/Marginal Farmers/Share cropper/ Tenant farmers for purchase of land. Loans given to individual farmer to make

the small and marginal holding economically viable and to bring fallow and waste land under cultivation and to step up agricultural production and productivity. Loan will be in the form long term in nature with maximum period of 9 years including 2 years moratorium. Loan For Land Development

Land Development aims to convert fallow/ barren or uncultivable land into cultivable. This includes land leveling, land reclamation etc. Individual farmer with good repayment record is the eligibility criteria. Loan quantum will be considered on the basis of engineers estimate engineers certificate as per government-scheduled rate. Horticulture & Forestry Development Loans The bank extends financial assistance to individual farmer or group of farmer for the Activities relating to the establishment/ maintenance of the Nurseries of ornamental plants and trees, orchards and quick growing trees and shrubs. Indicative list of activities are Grafting, Layering, Budding, construction of fence, Purchase of planting materials, Preparation of land, seeds and seedlings, fertilizers, pesticides etc.

Who is the eligible for the Loan? Individuals and group of farmers

Extent of Exposure Min. Rs. 20,000. Max. Rs. 50 lacs.

Tenor Fixed based on the gestation period of different crops.

Loans For Bullock Pair & Bullock Cart

IDBI Bank grants term loan to farmer Small, Marginal and Other Farmers /Agricultural and landless labourers for purchases of Bullock pair with Bullock cart. Bullock pair with cart is beneficial for various farm operations, transportation and marketing of farm produce etc. Loan amount is sanctioned on the basis of NABARD Unit cost. Repayment period is 4 to 5 year including 3 months gestation period. Repayment will be half yearly / yearly installments. Rate of interest is below BPLR for loan upto 2 lacs.

Bio Gas

In view of the growing energy crisis, there is need for developing new as well as renewable sources of energy. National Programme for Bio-gas Development was implemented for this purpose by government. Expenses on construction of biogas chambers of steel gasholder and even construction of latrine, if attached are recommended for financing. Many agencies, such as Z.P. / State Govt./ Central Govt. are providing subsidy, which is treated as margin for the loan. Allied Activities Dairy Loans Credit for Individuals and group of farmers for Purchase of high yielding milch animals (Cattle: Indigenous breed like Gir, Tharparker, etc. and exotic breeds like Jersey, Holstein fresian, etc. and in case of Buffalows: Mehsana, Jafarbadi, etc.), Construction of cattle shed, Purchase of dairy equipments, chaff cutters, etc and expenditure incurred for transportation of animals where the animals are not purchased locally.

Who is the eligible for the Loan? Individuals and group of farmers experienced in Dairy farming and are actively engaged in such activity

Extent of Exposure Min. Rs. 20,000. Max. Rs. 10 lakh.

Repayment Period/ Schedule Type of investment Minimum - Maximum repayment period in years (including gestation period) Loan installment period Cross bred cow (s) 5 Buffaloes Monthly/ Quarterly

5 6 Monthly/ Quarterly

Poultry Farming

Poultry activity in India is graduated from backyard farming to Hi-tech, environmentally controlled poultry. The Bank is providing loans to all activities of poultry farming i.e. Layer farming, Broiler farming and Hatcheries. The entrepreneur should have thorough knowledge of poultry farming substantiated by training certificate/ experience certificate etc. The backward linkages like suitability of climates, availability of day old chicks, water and veterinary services will be the pre-requisite. Loan amount will be decided by unit cost recommended by NABARD.

Loans For Sheep & Goats Rearing

Sheep and goat rearing is supplementary activity to agriculture. However, independent activity is also commercially viable. IDBI Bank grants term loans of Rs. 50,000/- to Rs. 50 lakhs to individual / Group/ Shepard co-op society / Federation / Limited companies that are experienced and actively engaged in such activity. Bee Keeping Madhu Makshika Palan (Apiculture)

IDBI Bank offers term loans to individuals farmers / non-farmers, group of farmers, SHGs, NGO, Partnership / proprietary firm, co-op. Societies. Loan is granted for the purpose of setting up of units for production of Honey. Back ended subsidy is available from DRDA / KVIC / KVIB. Loan will be required to be repaid between 5 to 7 years by quarterly / half yearly installment inclusive of 11 months gestation period. Indirect Finance to aggriculture

Loan for construction & running storage finance The bank extends financial assistance to individual farmers, Public & private limited companies, APMCs, Dealers, Traders for construction and running of storage facilities (warehouse, market yards, godowns, and silos), including cold storage units designed to store agriculture produce/ products, irrespective of location

Who is the eligible for the Loan? Individual farmers, Group of farmers, NGO's, Association of Growers, Partnership/ Proprietary Firms, Private & Public Limited Companies, Corporations, Cooperative,APMCs, Marketing Boards/ Committees.

Loan Amount Minimum Rs.1 lac; Maximum Rs.20 Crore

Tenor Not to exceed 9 years including max. Moratorium of two years.

SCHEDULES OF LOANS AND MORTGAGE LOANS

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MSME Credit Policy 1. The Policy shall guide the Banks MSME Advances as defined by RBI from time to time. The Policy shall also be applicable to the Banks MSME Advances as defined by it from time to time. At present, the Advances to units with turnover upto Rs. 100 crore are treated as MSME Advances. Any parameter that is not detailed in this policy, shall be guided by Banks Credit Policy from time to time. 2. Bank is committed to the Code of Conduct given by The Banking Codes and Standards Board of India (BCSBI) for Micro & Small Enterprises, released on May 31,2008. The Code of Banks Commitment to Micro and Small Enterprises (MSE Code) is a voluntary code, which sets minimum standards of banking practices for banks to follow when they are dealing with Micro and Small Enterprises (MSEs) as defined in the Micro Small and Medium Enterprises Development (MSMED) Act, 2006. It explains norms that banks are expected to follow while dealing with MSEs for day-to-day operations and in times of financial difficulty. 3. The Bank would adopt cluster-based approach for financing MSME sector in line with RBI guidelines. 4. The cases under the Government Sponsored Schemes shall be processed, sanctioned, disbursed and monitored at the Branch level as per the extant Delegation of Powers and the processes/procedures defined by the Bank from time to time. 5. The Bank would comply with RBI guidelines issued from time to time in respect of Rehabilitation of Sick MSME units and Debt Restructuring. MSME Credit Policy 6. The Bank has been actively engaged in providing a major thrust to financing of MSMEs. With a view to improving the credit delivery mechanism and shorten the Turn Around Time (TAT), the Bank has set up City MSME Centers (CSCs) at major centers across the country. A number of products have been rolled out for the MSME sector, which considerably expanded the Banks offerings to its MSME borrowers. The sourcing of the business would primarily be at the designated MSME branches and the CSCs

(located in one of the identified branches in the city). A dedicated Sales Force will be put in place in all potential centers to market MSME products. Relationship Managers at the Branches would take care of the customer requirements and do up-sell/cross-sell at the identified Branches. 7. MSME Finance Products Asset Products: a) Dealer Finance b) Funding under Credit Gurantee Scheme for Mico & Small Enterprises c) Direct Credit Scheme SIDBI d) Preferred Customer Scheme- IDBI Bank/SIDBI e) Vendor Financing Program f) Lending against security of Future Credit Card Receivables g) Working capital Finance for IT & ITEs h) Finance to Medical Practitioner i) Loans to Small Road & Water Transport Operators j) IDBI Sulabh Vyapar Loan k) Laghu Udyami Credit Card Scheme Liability Products: a) SME Hosiery Special Current Account MSME Credit Policy 8. Loans applications from MSME units are to be disposed off within a reasonable time as per the below mentioned time norms, provided such applications are completed in all respects provided and accompanied by a 'check list'. i. Loans up to Rs.25000/- within two weeks from the date of receipt. ii. Loans upto Rs.5 lakh, within four weeks from the date of receipt. iii. Loans over Rs. 5 lakhs, within a maximum period of 8 weeks from the date of receipt. 9. Security No collateral security/ third party guarantee is insisted upon in respect of loans to

SEs (Erstwhile SSI) as under: a. Upto Rs.10 lakhs b. Upto Rs.25 lakhs in respect of units whose track record and financial positions are good as per Bank records; and c. Upto Rs.100 lakhs in respect of units whose borrowal accounts are covered under the Scheme of Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE). In respect of other SE and ME units, collateral security/ third party guarantee may be stipulated by the bank. 10. ROI on Loans/Advances under MSME advances shall be linked to Base Rate and priced at a spread, based upon: The internal risk rating of client. Tenor of loan Competitive market rates of interest for client Internal transfer pricing Overall value of client relationship MSME Credit Policy 11. Rejection of credit proposals i. Applications for credit facilities from SC/ ST customers shall not be rejected at the Branch / CSCs level and such applications shall be referred to the next higher authorities for their prior decisions/ permission; ii. Whenever applications for loans under Govt sponsored schemes are rejected by the CSCs/ Branches for valid reasons, a register is to be maintained to this effect, which shall be examined by the controlling authorities during their visits; iii. Rejection of MSME proposals shall be subject to concurrence of the next higher authority; iv. MSME proposals once rejected by a higher authority shall be placed before such higher authority even through the subsequent proposals say, for lesser

amount falls within the powers of a lower authority; v. Rejection of exports credit proposals under MSME shall be immediately reported to Head-MSME; and vi. Rejection of Credit proposals by the CSC level authorities shall be recorded in a register maintained for this purpose, which shall be reviewed by the controlling authorities visiting CSCs. 12. Bank is committed to address the Grievances of the Micro & Small Enterprises. The aggrieved borrowers can address their grievances to the CSC Head/Regional Head/Head MSME, whose address and telephone are provided with the branch/CSC or may approach to Banking Ombudsman as per Banking Ombudsman Scheme, 2006 of the Reserve Bank of India.

COMPARATIVE GRAPH BETWEEN IDBI AND OTHER BANKS

POPULATION OF THE BANKS AS PER AREA

General Code of Conduct and Ethics (COCE)

IDBI Bank Ltd. is committed to creating long term economic value for all its stakeholders, including shareholders, depositors, customers, employees and the society as a whole. IDBI Bank Ltd. is committed to maintaining high standards of ethical and professional conduct in all its corporate activities. This Code of Conduct and Ethics outlines the overall standards that shall guide the actions of IDBI Bank Ltd. and its Directors, officers and employees. National Interest: IDBI Bank Ltd. shall continue to be committed in all its actions to benefit the economic development of the nation and shall not engage in any activity that would adversely affect such objective. Financial Reporting and Records: IDBI Bank Ltd. shall continue to prepare and maintain its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of the country. Internal accounting and audit procedures shall fairly and accurately reflect all of IDBI Bank Ltd. business transactions and disposition of assets. Corporate Disclosure Practices: IDBI Bank Ltd. shall continue to abide by the corporate disclosure practices as specified by the appropriate external regulatory authorities. Competition: IDBI Bank Ltd. shall market its products and services on its own merits. Equal-Rights: IDBI Bank Ltd shall continue to provide equal opportunities to all its employees and all qualified applicants for employment without regard to their race, caste, religion, colour, ancestry, marital status, sex, age, nationality, disability etc. Applicable laws, rules, and guidelines of Government of India / any other Competent Authority in this regard shall also be observed for this purpose. Employees of IDBI Bank Ltd. shall be treated with dignity and in accordance with the IDBI Bank Ltd. policy to maintain a work environment free of sexual harassment, whether physical, verbal or psychological. Employee policies and practices shall be administered on a non-discriminatory basis in all matters relating to recruitment, training, compensation, benefits, promotion, transfers and all others terms and conditions of employment. Prohibited Business:

IDBI Bank Ltd. shall not enter into any kind of business with any company / organisation / entity, of which any of its director of is a proprietor, partner, director, a manager, employee or guarantor or in which one or more directors of IDBI Bank Ltd. together hold substantial interest. Substantial interest, in relation to any company / organisation / entity, means any beneficial interest held by one or more of the directors of IDBI Bank Ltd. or by any relative of such director, whether singly or taken together, in the shares of the company / organisation / entity, the aggregate amount paid up on which either exceeds five lakh of rupees or 5% of its paid-up share capital, whichever is lesser. Quality of Products and Services: IDBI Bank Ltd. shall continue to be committed to creating new industry standards of excellence in customer service. IDBI Bank Ltd. shall provide innovative and superior quality customer service consistent with the requirements of the customers for their satisfaction. Corporate Opportunity: A Director / Officer / Employee must not deprive IDBI Bank Ltd. of an opportunity that belongs to IDBI Bank Ltd., for his/ her own/other's advantage, if he / she is in a position of diverting the corporate opportunity for own benefit or to others to the detriment of IDBI Bank Ltd. A Director / Officer / Employee must not compete with IDBI Bank Ltd. in respect of any business transaction. Health, Safety and Environment: IDBI Bank Ltd. shall strive to provide a safe and healthy working environment at its work places and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the territories it operates in. Corporate Social Responsibility: IDBI Bank Ltd. shall continue to be committed to be a good corporate citizen not only in compliance with all relevant regulating laws and regulations but also by actively assisting in the improvement of the quality of life of the people in the communities in which it operates with the objective of making them self reliant. Public Representation of the Company & the Group: IDBI Bank Ltd. honours the information requirements of the public and its stakeholders. All its external communication will be only by officials / directors authorised for the purpose. The information for the public constituents and stakeholders, duly approved by the Compliance Officer or other authorised official, as the case may be, shall be disseminated through any of the following media:

- The accredited newspaper publications; - Web casting on the official web site; - Press handouts and press releases; - Audio and audio-visuals prepared for the specific purpose. Use of IDBI Bank Ltd. Name Logo/ Trademarks: A Director / Officer / Employee shall not use the name of IDBI Bank Ltd., its logo or trademark for personal benefit or for the benefit of persons / entities not forming part of the IDBI Group. Shareholders: IDBI Bank Ltd. is committed to enhance shareholder value and shall comply with all regulations and laws that govern shareholders' rights. The Board of Directors' of IDBI Bank Ltd. shall duly and fairly inform its shareholders about all relevant aspects of the organisation business and disclose such information in accordance with the respective regulations and agreements. Every employee shall also be responsible for implementation of and compliance with this code. Ethical Standards: A Director / Officer / Employee of IDBI Bank Ltd. shall conduct all the dealings on behalf of IDBI Bank Ltd. with professionalism, honesty, integrity and high moral and ethical standards. Every Director / Officer / Employee of IDBI Bank Ltd. shall be responsible for the implementation of and compliance with the Code in his / her professional environment, be fair and take action not to discriminate, honour confidentiality and strive to achieve more specific professional responsibilities. Insider Trading: Insider Trading involves the improper use of non - public price sensitive information when dealing in securities. Specified employees are prohibited from engaging in insider trading as detailed in the Code of Conduct for Prevention of Insider Trading. Conduct of Staff: To uphold the image and dignity of the institution, it is desirable that every director / officer / employee of IDBI Bank Ltd. should demonstrate a high degree of conduct and integrity, as under: a sense of fair play, impartiality and promptness in disposing of cases and show courtesy and consideration in public dealings; keeping in mind the objective of IDBI Bank Ltd., to contribute his / her mite through integrity, dedication and competence;

restrain from participating or assisting in any activity, which is detrimental to the interest of IDBI Bank Ltd. or is in competition to the interest of IDBI Bank Ltd.; not use or influence by virtue of the position held in the bank for obtaining favours ofany kind for himself / herself or any members of family or friends or equivalent person with any constituent / borrower / client / customer; be cost conscious and plug all wastes and leakages, to remain competitive; not to be negligent or show lack of devotion to duty any time and not to show any favouritism or commit any irregularity in inviting tenders an awarding contracts or cultivate too much friendship with the Bank's contractors / suppliers. Regulatory Compliance: A Director / officer / employee shall, in his business conduct, comply with all applicable laws and regulations. Securities Transactions and Confidential Information: A Director / officer / employee of IDBI Bank Ltd. and their family members shall not derive any benefit or assist others to derive any benefit from the access to and possession of information about IDBI Bank Ltd. which is not in the public domain and thus constitutes insider information. The Director / officer / employee of IDBI Bank Ltd. shall maintain confidentiality of all price sensitive information. Unpublished price sensitive information would be disclosed only to those within the company who need the information to discharge their duty. Conflict of Interest: The Directors / officers / employees of IDBI Bank Ltd. shall always conduct themselves in an honest and ethical manner and in the best interest of the Bank. Towards this, the directors, officers and employees of IDBI Bank Ltd. shall endeavour to avoid situations that may lead to an actual or potential conflict between person's private interest and the interest of the Bank, including its affiliates and subsidiaries. While it may be difficult to list all the situations of conflict of interest, the following are illustrative examples of some of the situations, which may constitute a Conflict of interest: - a Director/ officer/ employee engages in any business, relationship or activity which might detrimentally conflict with the business of IDBI Bank Ltd. - a Director / officer / employee receives improper personal benefits as a result of his official position in the Bank. - a Director / officer / employee is in a position to make, influence or benefit from the decisions relating to the transaction. If such and other instances of conflict of interest exist due to any historical reasons, adequate disclosures by the interested employees should be made to the management.

Gifts and Donations: The Director / officer / employee of IDBI Bank Ltd. shall not solicit or accept any gifts /donations of more than modest value from a constituent of IDBI Bank Ltd. or from any subordinate employee or from existing / potential clients or third parties having business dealings with IDBI Bank Ltd. Gender Friendly Workplace: As a good corporate citizen, IDBI Bank Ltd. is committed to a gender friendly workplace. IDBI Bank Ltd. demands, demonstrates and promotes professional behaviour and respectful treatment of all employees. Prohibition against participation in politics and standing for election: No employee shall take an active part in politics or in any political demonstration, or stand for election as member of a Municipal Council, district Board or any other Local Body or any Legislative Body. Protection of Bank's assets: The assets of IDBI Bank Ltd. shall not be misused but employed for conducting the business for which they are duly authorised. Ethics and Compliance Committee: The Ethics and Compliance Committee comprising few independent directors of the Board, an Executive Director, Chief Vigilance Officer of IDBI Bank Ltd. and the Compliance Officer and any other officer so nominated, will oversee the compliance of the Code of Conduct and Ethics.

RESEARCH METHODOLOGY

RESEARCH:a way of examining your practice Research is undertaken within most professions. More than a set of skills, it is a way of thinking: examining critically the various aspects of your professional work. It is a habit of questioning what you do, and a systematic examination of the observed information to find answers with a view to instituting appropriate changes for a more effective professional service.

DEFINITION OF RESEARCH

When you say that you are undertaking a research study to find answers to a question, you are implying that the process; 1. is being undertaken within a framework of a set of philosophies. 2. uses procedures, methods and techniques that have been tested for their validity and reliability; 3. is designed to be unbiased and objective . Philosophies means approaches e.g. qualitative, quantitative and the academic discipline in which you have been trained. Validity means that correct procedures have been applied to find answers to a question. Reliability refers to the quality of a measurement procedure that provides repeatability and accuracy. Unbiased and objective means that you have taken each step in an unbiased manner and drawn each conclusion to the best of your ability and without introducing your own vested interest. Adherence to the three criteria mentioned above enables the process to be called research. However, the degree to which these criteria are expected to be fulfilled varies from

discipline to discipline and so the meaning of research differs from one academic discipline to another. The difference between research and non-research activity is, in the way we find answers: the process must meet certain requirements to be called research. We can identify these requirements by examining some definitions of research. The word research is composed of two syllables, re and search. re is a prefix meaning again, anew or over again search is a verb meaning to examine closely and carefully, to test and try, or to probe. Together they form a noun describing a careful, systematic, patient study and investigation in some field of knowledge, undertaken to establish facts or principles. Research is a structured enquiry that utilizes acceptable scientific methodology to solve problems and create new knowledge that is generally applicable. Scientific methods consist of systematic observation, classification and interpretation of data. Although we engage in such process in our daily life, the difference between our casual day- to-day generalisation and the conclusions usually recognized as scientific method lies in the degree of formality, rigorousness, verifiability and general validity of latter.

CHARACTERISTICS OF RESEARCH:

Research is a process of collecting, analyzing and interpreting information to answer questions. But to qualify as research, the process must have certain characteristics: it must, as far as possible, be controlled, rigorous, systematic, valid and verifiable, empirical and critical.-Controlled- in real life there are many factors that affect an outcome. The concept of control implies that, in exploring causality in relation to two variables (factors), you set up your study in a way that minimizes the effects of other factors affecting the relationship. This can be achieved to a large extent in the physical sciences (cookery, bakery), as most of the research is done in a laboratory. However, in the social sciences

(Hospitality and Tourism) it is extremely difficult as research is carried out on issues related to human beings living in society, where such controls are not possible. Therefore in Hospitality and Tourism, as you cannot control external factors, you attempt to quantify their impact. -Rigorous-you must be scrupulous in ensuring that the procedures followed to find answers to questions are relevant, appropriate and justified. Again, the degree of rigor varies markedly between the physical and social sciences and within the social sciences. -Systematic-this implies that the procedure adopted to undertake an investigation follow a certain logical sequence. The different steps cannot be taken in a haphazard way. Some procedures must follow others.-Valid and verifiable-this concept implies that whatever you conclude on the basis of your findings is correct and can be verified by you and others. -Empirical-this means that any conclusion drawn are based upon hard evidence gathered from information collected from real life experiences or observations. -Critical-critical scrutiny of the procedures used and the methods employed is crucial to a research enquiry. The process of investigation must be foolproof and free from drawbacks. The process adopted and the procedures used must be able to withstand critical scrutiny.

TYPES OF RESEARCH

Research can be classified from three perspectives: 1. APPLICATION of research study 2. OBJECTIVES in undertaking the research 3. INQUIRY mode employed

Application: From the point of view of application, there are two broad categories of research: - pure research and - applied research. Pure research involves developing and testing theories and hypotheses that are intellectually challenging to the researcher but may or may not have practical application at the present time or in the future. The knowledge produced through pure research is sought in order to add to the existing body of research methods. Applied research is done to solve specific, practical questions; for policy formulation, administration and understanding of a phenomenon. It can be exploratory, but is usually descriptive. It is almost always done on the basis of basic research. Applied research can be carried out by academic or industrial institutions. Often, an academic institution such as a university will have a specific applied research program funded by an industrial partner interested in that program. Objectives: From the viewpoint of objectives, a research can be classified as -DESCRIPTIVE -CORRELATIONAL -EXPLANATORY -EXPLORATORY Descriptive research attempts to describe systematically a situation, problem, phenomenon, service or programme, or provides information about , say, living condition of a community, or describes attitudes towards an issue. Correlation research attempts to discover or establish the existence of a relationship/ interdependence between two or more aspects of a situation. Explanatory research attempts to clarify why and how there is a relationship between two or more aspects of a situation or phenomenon.

Inquiry Mode: From the process adopted to find answer to research questions the two approaches are: - Structured approach - Unstructured approach Structured approach: The structured approach to inquiry is usually classified as quantitative research. Here everything that forms the research process- objectives, design, sample, and the questions that you plan to ask of respondents- is predetermined. It is more appropriate to determine the extent of a problem, issue or phenomenon by quantifying the variation. e.g. how many people have a particular problem? How many people hold a particular attitude? Unstructured approach: The unstructured approach to inquiry is usually classified as qualitative research. This approach allows flexibility in all aspects of the research process. It is more appropriate to explore the nature of a problem, issue or phenomenon without quantifying it. Main objective is to describe the variation in a phenomenon, situation or attitude. e,g, description of an observed situation, the historical enumeration of events, an account of different opinions different people have about an issue, description of working condition in a particular industry. Both approaches have their place in research. Both have their strengths and weaknesses. In many studies you have to combine both qualitative and quantitative approaches. For example, suppose you have to find the types of cuisine / accommodation available in a city and the extent of their popularity. Types of cuisine is the qualitative aspect of the study as finding out about them entails description of the culture and cuisine

The extent of their popularity is the quantitative aspect as it involves estimating the number of people who visit restaurant serving such cuisine and calculating the other indicators that reflect the extent of popularity. THE RESEARCH PROCESS The research process is similar to undertaking a journey. For a research journey there are two important decisions to make1) What you want to find out about or what research questions (problems) you want to find answers to; 2) How to go about finding their answers. There are practical steps through which you must pass in your research journey in order to find answers to your research questions. The path to finding answers to your research questions constitutes research methodology. At each operational step in the research process you are required to choose from a multiplicity of methods, procedures and models of research methodology which will help you to best achieve your objectives. This is where your knowledge base of research methodology plays a crucial role. Steps in Research Process: 1. Formulating the Research Problem 2. Extensive Literature Review 3. Developing the objectives 4. Preparing the Research Design including Sample Design 5. Collecting the Data 6. Analysis of Data 7. Generalisation and Interpretation 8. Preparation of the Report or Presentation of Results-Formal write ups of conclusions reached. Step1. Formulating the research problem: It is the first and most crucial step in the research process

- Main function is to decide what you want to find out about. - The way you formulate a problem determines almost every step that follows. Sources of research problems Research in social sciences revolves around four Ps: People- a group of individuals Problems- examine the existence of certain issues or problems relating to their lives; to ascertain attitude of a group of people towards an issue Programs- to evaluate the effectiveness of an intervention Phenomena- to establish the existence of a regularity. In practice most research studies are based upon at least a combination of two Ps. Every research study has two aspects: 1. Study population People: individuals, organizations, groups, communities ( they provide you with the information or you collect information about them) 2. Subject area Problems: issues, situations, associations, needs, profiles Program : content, structure, outcomes, attributes, satisfactions, consumers, Service providers, etc. Phenomenon: cause-and-effect relationships, the study of a phenomenon itself (Information that you need to collect to find answers to your research questions) You can examine the professional field of your choice in the context of the four Ps in order to identify anything that looks interesting. Considerations in selecting a research problem: These help to ensure that your study will remain manageable and that you will remain motivated. 1. Interest: a research endeavour is usually time consuming, and involves

hard work and possibly unforeseen problems. One should select topic of great interest to sustain the required motivation. 2. Magnitude: It is extremely important to select a topic that you can manage within the time and resources at your disposal. Narrow the topic down to something manageable, specific and clear. 3. Measurement of concepts: Make sure that you are clear about the indicators and measurement of concepts (if used) in your study. 4. Level of expertise: Make sure that you have adequate level of expertise for the task you are proposing since you need to do the work yourself. 5. Relevance: Ensure that your study adds to the existing body of knowledge, bridges current gaps and is useful in policy formulation. This will help you to sustain interest in the study. 6. Availability of data: Before finalizing the topic, make sure that data are available. 7. Ethical issues: How ethical issues can affect the study population and how ethical problems can be overcome should be thoroughly examined at the problem formulating stage. Steps in formulation of a research problem : Working through these steps presupposes a reasonable level of knowledge in the broad subject area within which the study is to be undertaken. Without such knowledge it is difficult to clearly and adequately dissect a subject area. Step 1 Identify a broad field or subject area of interest to you. Step 2 Dissect the broad area into sub areas. Step 3 Select what is of most interest to you. Step 4 Raise research questions. Step 5 Formulate objectives. Step 6 Assess your objectives. Step 7 Double check. So far we have focused on the basis of your study, the research problem. But every study

in social sciences has a second element, the study population from whom the required information to find answers to your research questions is obtained. As you narrow the research problem, similarly you need to decide very specifically who constitutes your study population, in order to select the appropriate respondents. Step 2. Reviewing the literature: -Essential preliminary task in order to acquaint yourself with the available body of knowledge in your area of interest. -Literature review is integral part of entire research process and makes valuable contribution to every operational step. -Reviewing literature can be time-consuming, daunting and frustrating, but is also rewarding. Its functions are: a. Bring clarity and focus to your research problem; b. Improve your methodology; c. Broaden your knowledge; d. Contextualise your findings.

Bring clarity and focus to your research problem;

The process of reviewing the literature helps you to understand the subject area better and thus helps you to

GENERAL TERMS AND CONDITIONS FOR LOANS

Every

business needs a certain amount of money to start. The entrepreneur on the

threshold of starting a new venture, has to work out where and how he will get access to sufficient funds.

The first organization that he thinks of is his bank. Yes banks are almost always one of the first organizations to be approached for funds in the form of a loan. It is here that harsh realities hit the entrepreneur who soon learns how difficult it is to get a bank loan to finance his small business venture. A select fortunate few, do manage to fulfill all the prerequisites for a bank loan, and are successful in procuring them. But for every successful loan application there are many that get rejected. The tough regulations linked to bank loans are gradually undergoing a change with banks realizing the phenomenal potential of small businesses. This explains the special programs and additional services launched by big banks to woo small businesses.

Bank loans are just one of the various options available for small businesses to raise funds. The final decision about where to secure funds depends on the balance between the pros and cons of the source. Like all other funding sources, bank loans also come with their share of advantages and disadvantages. Advantages of Bank Loans for Small Business Convenient and accessible- Banks are always accessible since they are used regularly for depositing savings or withdrawing them. After being bank customers for years, the bank becomes convenient and familiar, and personalized service makes it the first place to consider for a loan.

Multiple Loan options- All banks advertise various types of schemes to woo entrepreneurs setting up or running a business. The real earnings for a bank come from the interest they charge on these loans. Options like term loans, standard business loans and others are available for the entrepreneur. Non profit sharing- Venture capitalists and angel investors agree to provide a loan in exchange for part ownership, the right to influence decision making and a share of the profits. Banks do not ask for any of these. If they do sanction a loan, they are only interested in getting their interest and partial loan payment installments. Lower rates of interest-Though tough to get, banks provide loans at lower rates of interest than other lending agencies and instruments like credit cards. Bank loans offer tax benefits- Small businesses taking loans from banks enjoy some relief from tax, since the percentage of profits used to repay the loan is exempted from tax.

It is these advantages that prompt entrepreneurs to approach banks for one of the various loans offered. Disadvantages

However, as mentioned before, getting a bank loan is not easy, and its disadvantages include: Lengthy application process- banks need to verify all the credentials and details about the business before sanctioning a loan. Therefore its application process is very long and its review etc. takes a long time.

Cumbersome- The prospect of getting into the detailing that banks require is really cumbersome, and from the entrepreneurs point of view, totally unnecessary. Preference given to existing, running businesses- banks prefer running businesses because they can gauge its profitability and credit history before sanctioning the loan. Long list of prerequisites to qualify for the loan- banks have long list of conditions that a business should fulfill before they clear the loan. It is sometimes not possible to meet all of them. Risk of losing Collateral- bank loans are generally sanctioned against some collateral, often the entrepreneurs house and property. This stands the risk of being lost to the bank should the business fail to take off. Entire amount not granted- banks are known to not agree to grant the whole amount requested for a loan. They may grant 70 or 80 % of the sum applied for. This makes it difficult for the entrepreneur to begin since he has to scout around for the remaining balance and find agencies to funs that before he can start.

Thus it is the balance between these advantages and disadvantages that prompt people to approach banks for small business loans.

SWOT ANALYSIS OF IDBI

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. Data monitors IDBI. - SWOT Analysis company profile is the essential source for top-level company data and information. SWOT Analysis, is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying SWOT

Swot Means

S: -

Strength.

W: - Weakness. O: - Opportunity . T: Threats.

INTERNAL FACTORS

Internal factors - The strengths and weaknesses internal to the organization. Positive work environment of the whole industry. Less labor turnover, skilled labor, and efficient management be the strengths of it. The turnover may greatly affect the industry because it may lead to slowdown in the industry. STRENGTH

Network. Universal. Goodwill. International Presence. Assets And Liabilities .

WEAKNESS

Operating Cost. Technology. Labor productivity. Govt. Policies. Trade unions .

EXTERNAL FACTORS

External factors - The opportunities and threats presented by the external environment. The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organizations objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

OPPORTUNITY

Private and foreign Banks Quality of the Services Pace with New Technology

THREATS

Country's Growth Story Recession Untapped International Markets Poor in new Assets

CONCLUSION

IDBI direct.com is performing very well in the field of online share trading business and having very good administration also.

Each departments doing their job very well comparing to the standard performance fixed by the management and it leads to overall good performance of the Bank.

There is existing a good relationship between employees and management.

The management is taking keen interest for finding their weakness and try their level best to overcome this weakness.

BIBLIOGRAPHY 1. From the following websites: http://www.mutualfundsindia.com http://www.google.com http://www.valueresearchonline.com http://www.amfiindia.com http://www.idbibank.com http://www.investmentz.com 2. From IDBI Bank IDBI fund Reckoner 3. Books and magazines INDIAN BANKERS

QUESTIONNAIRE

Dear Sir/Madam.

I am in way of improving services of IDBI. For this I sought to know what our customers idea is regarding the services which IDBI put forward. I value your prestigious time, knowing it we have designed a questionnaire, which also includes few instructions to fill it. I am sure that it wont take your much time, and I assure you that your answers will be a great help to us.

Thank you.

Name:-.. Contact number............................. Add. ...................................................

I.

How do you justify your preference for IDBI Securities Ltd. over other Depository Services?

Quality Service Safety Reach

II.

What are the different types of investors having. IDBI Direct.com?

Long term investors Small Investors

Traders

III.

How do you avail the services offered by. IDBI Direct.com?

IDBIDirect.com Settlement Mutual Fund

IV.

How do you Come to know about services offered by IDBI Securities?

Through IDBI Direct.Com Broker

News Paper/ Magazines Agents

V.

Are you satisfied with the services of IDBI Direct.Com?

Satisfied Neither Satisfied / Unsatisfied Unsatisfied

Mostly Satisfied Mostly Unsatisfied

VI.

Are you satisfied with the Demat services of IDBI Direct.Com?

Satisfied Neither Satisfied / Unsatisfied Unsatisfied

Mostly Satisfied Mostly Unsatisfied

VII.

Are you satisfied with the trading demos provided by IDBI Direct.com.?

Satisfied Neither Satisfied/Unsatisfied Unsatisfied

Mostly Satisfied Mostly Unsatisfied

VIII.

Are you satisfied with the periodic receipts and holding statements of IDBI Direct.Com?

Satisfied Neither

Mostly Satisfied

Mostly Unsatisfied Satisfied /Unsatisfied Unsatisfied

IX.

Are the customers satisfied with the telephonic enquiries of IDBI Direct.com? Mostly Satisfied Mostly Unsatisfied

Satisfied Neither Satisfied / Unsatisfied Unsatisfied