IDBI Bank

Dear Shareholders,
 
 It is with a sense of satisfaction that I present to you IDBI Banks
 Annual Report for the financial year 2008-09. It is indeed heartening
 to note that in a year when the global economic meltdown affected banks
 across the world, your Bank not only withstood the storm, but showed a
 surge in overall business performance.
 
 Esteemed shareholders would recall that at the last AGM your Bank had
 expressed confidence to achieve higher pace of business growth. I am
 happy to share with you that in spite of difficult market conditions,
 your Bank could not only achieve considerable increase in the overall
 business, but more importantly, there was significant improvement in
 the quality of business and earnings. Your Bank spared no efforts to
 transform into a cross-functional, forward-looking and proactive
 organization. Today, it is my pleasure to say that your Bank has indeed
 completed the process of re-organisation into customer- focused
 business verticals and stabilized the internal systems.
 
 The financial year 2009-10 is an extremely crucial year for your Bank
 as it aspires to decidedly emerge as one of the major players in the
 intensely competitive banking domain both in terms of perception and
 performance.
 
 In the coming year, the emphasis on growth in retail business would
 continue, without compromising your Banks pre- eminent position in the
 corporate banking business. I am confident that your Bank will achieve
 still higher growth and improve its market share, besides enhancing the
 shareholder value.
 
 The increasingly competitive market environment throws open both
 challenges and opportunities. Your Bank, with deep understanding of the
 financial markets, will adopt appropriate strategies to assess and
 mitigate key risks, cope with emerging challenges and capitalise on the
 opportunities by participating effectively in the growth process of
 India. In order to take advantage of global opportunities, your Bank
 will make foray into international markets by setting up overseas
 branches and representative offices. Considering the rapidly changing
 global environment together with increased emphasis on the role of
 technology in banks operations, your Bank would continually provide
 newer products and services required by customers.  Accordingly, your
 Bank would continuously reinvent and reposition itself through
 strategic choices and by imbibing and adopting best global practices.
 As part of our endeavour to provide a bouquet of financial products and
 services under IDBI brand, we would be setting up a Mutual Fund
 shortly.
 
 I must emphasise that in the coming year, your Bank would strive to
 achieve even better business performance based on various strategic
 initiatives already underway aimed at enhancing the stakeholders value.
 To us, you all are our partners in progress. We look forward to your
 continued support in strengthening your Banks position in the Indian
 banking firmament.
 
 With warm regards,
                                             Yogesh Agarwal
 April 24, 2009                      Chairman & Managing Director