Dear Shareholders,
 
 On behalf of the Board of Directors and the Management Team of IDBI
 Bank, I am very happy to present the Bank''s Annual Report for the
 Financial Year 2011-12.
 
 The year just past has been a difficult year for the Indian Economy in
 general and for the banking sector in particular.  The turbulent global
 economic conditions, induced by the economic crisis and recessionary
 conditions in the European economy presented fresh challenges to the
 Indian economy. On the domestic front, India was confronted with rising
 inflationary pressures – to contain which the policy rate had to be
 hiked several times. To add to the woes, there was a marked slowdown in
 the industrial production driven by the subdued overseas demand for
 exports and slow growth in new orders. The investment climate, which
 directly impinges on the business of the banking sector, also remained
 subdued.
 
 Notwithstanding these concerns, your Bank continued to perform well in
 FY 2011-12. Your Bank witnessed healthy growth in all its business and
 profitability parameters during the last financial year including
 highest ever profit achieved in FY 2012. Our belief in Banking for
 All has seen us undertake various initiatives to expand our reach and
 presence across the expanse of this great country, as also across the
 entire range of banking products and services. The branch network of
 your Bank has significantly expanded allowing us to serve more
 customers.
 
 A number of awards and recognitions have been bestowed on your Bank in
 cognizance of its achievements. Your Bank is currently one of the
 largest banks in the country with a broad network of branches and ATMs.
 Even on the technological front, your Bank has continued to keep pace
 with the changing times and introduced several customer friendly
 initiatives in a bid to serve our customers better.
 
 Over the last few years, your Bank has undergone a number of structural
 and organizational changes in its transformation from an apex DFI into
 a universal commercial bank. A need for a new Vision and Mission
 Statement was felt which would reflect the Bank''s commitment towards
 enhancing value for all its stakeholders. The ethos is amply reflected
 by the new vision statement of your Bank To be the most preferred and
 trusted bank enhancing value for all stakeholders. Accordingly, a new
 Mission Statement has been crafted which delineates the strategic goals
 for translating the vision into reality.
 
 The credit for the growing business of your Bank goes to all my
 colleagues across various verticals and functions, who have committed
 themselves to deliver the best banking services to our customers, so
 that your Bank can achieve its vision of being a financial
 conglomerate that provides one-stop financial solutions and enhances
 value for all its stakeholders.
 
 The outlook for growth of the Indian economy is indeed challenging
 owing to the continued stress in advanced economies. However, India
 remains one of the fastest growing economies in the world. For FY
 2012-13, the main focus for India is to return to the high growth
 trajectory through appropriate policy changes to induce growth in
 various sectors of the economy, especially the industrial sector.
 
 In the coming year, your Bank aims to strategically optimise business
 growth & profitability parameters to reflect improvement on overall
 basis. The focus of the strategies would be on raising low cost
 deposits, boost credit growth, enhance fee based income and minimize
 costs to enhance profitability. Concerted efforts will be undertaken
 to achieve Priority Sector Lending targets & sub targets.  By enlarging
 our network and exploring various branch banking alternatives, we will
 continue to focus on financial inclusion. By exploring alternative
 sources and cross selling opportunities, your Bank would look towards
 enhancing its fee income. On the assets front, your Bank will adopt
 strategies to expand retail portfolio, while maintaining prominent
 position in corporate & infrastructure financing.  Further, the focus
 would continue on improving asset quality to control fresh slippages &
 higher recoveries. The operational strategies would be adequately
 backed by the policy strategies to ensure the objectives are met in a
 rapid and sustainable manner.
 
 It has been possible for your Bank to attain this stature owing to your
 continued support and loyalty. We look forward to continuing this
 treasured relationship with you in our journey towards a better
 tomorrow.
 
 With best wishes to you and your families,
 
                                                Yours sincerely,
 
 Mumbai                                              R.M. Malla
 
 April 21, 2012                    Chairman & Managing Director