Dear Members,
 
 The Board of Directors of your Bank takes pleasure in presenting its
 Report, reflecting the business and operations of your Bank for the
 financial year ended March 31, 2011.
 
 During the financial year 2010-11, the operations of your Bank
 witnessed considerable progress driven by strategic policy
 realignments, focus on customer delight, superior product
 characteristics, service delivery among others, which consequentially
 led to improvement in business and key profitability indicators. The
 approach per se reflects a paradigm shift in banking space, enabling
 your Bank to expand its products and services range, availed by
 increased number of customers which we value the most.  As on March 31,
 2011 aggregate deposits and advances of your Bank reached Rs 1,80,485.8
 crore and Rs 1,57,098.1 crore respectively. Performance highlights of
 your Bank for the period under review are presented in Table 1.
 
 Table 1 : Financial Highlights
 
 Particulars                                            (Rs crore)
 
 As at year-end                                 2009-10     2010-11
 
 Capital                                         724.9        984.6
 
 Reserves & Surplus                            9,438.4     13,582.0
 
 Deposits                                   1,67,667.1   1,80,485.8
 
 Borrowings                                   47,709.5     51,569.6
 
 Other Liabilities & Provisions                8,032.9      6,754.8
 
 Total liabilities                          2,33,572.8   2,53,376.8
 
 Cash & Balances with RBI                     13,903.5     19,559.0
 
 Balances with Banks and Money                   679.4      1,207.0 
 at Call & Short Notice
 
 Investments                                  73,345.5     68,269.2
 
 Advances1,                                   38,201.8   1,57,098.1
 
 Fixed & Other Assets                          7,442.6      7,243.5
 
 Total Assets                               2,33,572.8   2,53,376.8
 
 For the Period                               2009-10       2010-11  
 
 Total income                                 17,563.0     20,684,5 
 
 Total Expenses(other than provoisions)       14,836.6     16,526.6
 
 Provisions (other than tax)                   1,681.7      1,876.9
 
 Profit Before Tax                             1,044.7      2,281.0
 
 Provision for tax *                              13.6        630.7
 
 Profit after Tax                              1,031.1      1,650.3
 
 
 Profit and Appropriations
 
 During the financial year April 2010 - March 2011, total income of your
 Bank increased to Rs 20,684.5 crore with the contribution of interest
 income at Rs 18,600.8 crore and other income at Rs 2,083.7 crore.
 Interest expenses of Rs 14,271.9 crore and operational expenses of Rs
 2,254.7 crore, led to total expenditure, excluding provisions and
 contingencies, ofRs 16,526.6 crore during FY 2010-11. Total provisions
 during the period remained at Rs 2,507.6 crore, comprising Rs 1650.1
 crore towards bad & doubtful debts and investments, Rs 122.6 crore
 towards restructured assets, Rs 104.2 crore towards incremental
 prudential provisions for standard assets, and Rs 630.7 crore towards
 tax.
 
 Profit Before Tax (PBT) of your Bank during the FY 2010-11 came toRs
 2281.0 crore. After making a provision ofRs 630.7 crore towards
 taxation, Profit After Tax (PAT) amounted to Rs 1650.3 crore.
 Appropriation of PAT as approved by the Board of Directors is given in
 Table 2.
 
 Table 2 : Appropriation of Profits
 
                                                        Rs Crore
 
 Parlitulars                                2009-10         2010-11
 
 Net Profit(Loss) for the year              1,031.1        1,650.3
 
 Profit (Loss) brought forward                 71.2          470.4
 
 Profit available for                       1,102.3        2,120.7 
 appropriations
 
 Appropriations
 
 Transferred to Statutory Reserve             258.0          413.0
 
 Transferred to Capital Reserve                  -             1.5
 
 Transferred to General Reserve               100.0          600.0
 
 Transferred to Special Reserve                25.0          100.0 
 created and maintained u/s
 36(1)(viii)of IT Act, 1961
 
 Dividend
 
 - Equity Shares                              217.4          344.6
 
 - Tax on Dividend                             31.5           55.3
 
 Balance of Profit carried to                 470.4          606.3 
 Balance Sheet
 
 
 For each share with face value of Rs 10, Earning Per Share (EPS) during
 the year stood at Rs 18.4 and Book Value Per Share stood at Rs 128.4 as
 at end-March 2011. The Directors have pleasure in recommending dividend
 at 35% on the fully paid-up equity capital for the financial year
 2010-11.
 
 Capital Adequacy
 
 Your Bank is Basel-ll compliant and the Capital to Risk- weighted
 Assets Ratio (CRAR) is computed in adherence to norms prescribed by RBI
 in this regard. Credit Risk is computed using the Standardized
 Approach, Market Risk is arrived by using Duration Method of
 Standardized Approach and Operational Risk exposure is based on Basic
 Indicator Approach. During FY 2010-11, Government of India infused
 fresh equity capital to the extent of Rs 3119.04 crore, thereby
 increasing its equity holding to 65.13% as at end-March 2011. Against
 the stipulated RBI norm of 9% for total CRAR and 6% for core CRAR, your
 Bank''s total CRAR worked out to 13.64% with Tier-I CRAR of 8.03% as at
 end-March 2011.
 
 Business Strategy
 
 The Bank''s strategy covered a very aggressive scale up of relationship
 base and product offerings with elevated features. Suitable measures
 have been undertaken along with infrastructure repositioning, so as to
 realize more amounts of CASA and other retail deposits. The Bank, in
 its quest to granularize its loan book, plans to build priority sector
 lending and rfnprove upon composition of corporate- retail loans.
 Investment Banking continued to be a focus area which contributed
 significantly to growth in fee based income. Your Bank''s strategy
 during the year resulted in improving its profitability parameters and
 consolidating its business parameters so as to bring them more in line
 with the prevailing industry benchmarks.
 
 New Business Initiatives
 
 Fresh business efforts undertaken during the fiscal principally aim to
 impart value and comfort to our increasing clientele, derive associated
 benefits and realize the strategic vision of escalating your Bank to a
 sustainable growth path. The financial year 2010-11, would be
 remembered in the Indian Banking space wherein your Bank, in its quest
 delight for its customers freed all charges on CASA and retail
 deposit accounts. This shows improved product characteristics of the
 Bank''s deposit products over its competitors. The measure empowers your
 Bank to optimize its risk-return matrices associated with its business
 portfolio.
 
 The Bank has also provided facility of making on-line payments for
 e-commerce transactions though its debit card. A new variant debit card
 was launched exclusively for women customers. In order to encourage
 customers with regard to usage of debit card, a cash back scheme for
 debit card usage was also offered. Within the regulatory framework,
 cash withdrawal was allowed on debit card at various merchant
 establishments.
 
 The Bank is increasingly committed to support government initiatives
 offering financial services to Economically Weaker Sections (EWSs) and
 Lower Income Groups (LIG) of society and accordingly offered, along
 with others, Interest Subsidy Scheme for Housing the Urban Poor
 (ISHUP). In its efforts to ensure improved financial inclusion, your
 Bank has signed MOU with Tribal Development Department, Government of
 Gujarat and is exploring similar partnership with other State
 Governments. The Bank has also signed MOU with Unique Identification
 Authority of India (UIDA!) for acting as a registrar.
 
 Your Bank understands various needs of the MSME clients and is always
 on the lookout to offer new products that are customized to take care
 of such needs. During FY2010-11, your Bank launched ''Loan Against
 Property'' for the MSMEs to unlock value of their assets/properties.
 ''SME Smart Line of Credit was also introduced so that MSMEs could take
 advantage of emerging business opportunities. In addition, your Bank
 implemented the ''Artisan Credit Card'' scheme of Indian Banks''
 Association (IBA) to take care of the credit needs of the artisan
 community of the nation. With a view to move towards cleaner and green
 energy sources, your Bank joined hands with World Resource Institute
 (WRI), USA, one of the top international research institutes on a
 non-exclusive basis in developing a loan product for implementation of
 Energy Saving projects.
 
 Apart from these, your Bank has taken steps to offer tailor- made,
 faster solutions to the MSME clients. In this spirit, and to further
 enrich the MSME loan basket, your Bank has tied-up with SIDBl in an
 exclusive arrangement to jointly finance MSME units, initially in 10
 centres viz., Ahmedabad, Bangalore, Chennai, Coimbatore, Delhi, Indore,
 Jaipur, Lucknow, Ludhiana and Rajkot, subsequently to be rolled out
 across the country.
 
 A series of new initiatives / projects were implemented during the year
 in order to improve Turn Around Time (TAT), soften cost and provide
 error free services in various facets of our operations. A new locker
 management system was launched linked to Core Banking software of the
 Bank. It helps the Bank to have online position of locker availability
 and rentals at any given point of time.
 
 Your Bank has also launched a software for Complaint Resolution
 Management (CRM) at branches. An escalation mechanism has been built in
 the CRM module whereby if the complaint is not resolved within the
 stipulated time, the same is forwarded to the Customer Care Centre at
 Corporate Office for further action.
 
 The Bank has introduced a new system of electronic registers in
 bilingual form at branches which is linked to Core Banking Software.
 This module was launched in order to achieve significant reduction in
 the cost as well as paper work.
 
 Your Bank has received ISO 9001:2008 certification for all its Currency
 Chests. A new Currency Chest was opened at Kochi taking the number of
 Currency Chests of your Bank to six.
 
 The Bank has also received ISO 9001:2008 certification for all its
 Centralised Clearing Units (CCUs). Equipped with ISO 9001:2008
 Certification for its Centralised Operations, Currency Chests and CCUs,
 IDBI Bank is in the unique position to have its entire operations for
 retail banking as ISO 9001:2008 certified. This apart, IDBI Bank has
 also implemented Lean Six Sigma Project for its Centralised Operations,
 another feather in its cap, to provide error-free and timely services
 to its customers.
 
 Keeping pace with the ever increasing work load in retail assets
 portfolio and also to take care of the additional volumes arising out
 of merger of IDBI Home Finance Ltd.  with IDBI Bank, your Bank has
 installed a state-of-the- art software for management of post-dated
 cheques. The system will facilitate the Bank to handle more number of
 instruments with reduced Turn Around Time.
 
 Organizational Structure
 
 Your Bank has continued thrust on improving organizational structure,
 which values customer relations as the epitome of banking. Accordingly,
 your Bank is currently organized on the lines of customer focused
 vertical model, capable of delivering improved services. The model has
 achieved significant success in enhancing customer relationship
 management, improving credit delivery and bringing sharper focus to
 business lines which are sustainable and remunerative.
 
 With the addition of 107 branches during FY2010-11, including
 Specialized Corporate Branches, total number of domestic branches went
 up to 815 as on March 31, 2011 in addition to an overseas branch at
 DIFC, Dubai. Of the domestic branch network, 238 are located in
 metropolitan centres, 307 in urban centres, 184 in semi-urban centres
 and 86 in rural centres. In order to ensure improved operating domain,
 branches at a few locations were relocated and renovated to provide
 fresh look and feel, similar to other branches of the Bank. The Bank
 constantly endeavours to expand its branch network to execute its
 strategy of building sufficiently larger customer base, improved
 customer service and improved CASA contribution. Your Bank also has
 plans to increase the number of Specialized Corporate Branches and Loan
 Processing Centers in retail segments.
 
 Board of Directors
 
 Your Bank''s Board of Directors is broad based and constitution thereof
 is governed by the provisions of the Banking Regulation Act, 1949, the
 Companies Act, 1956, the Articles of Association of the Bank and
 satisfy the requirements of good corporate governance as envisaged in
 the Listing Agreement with the Stock Exchanges. The Board functions
 directly as well as through various Board Committees constituted to
 provide focussed governance in important functional areas of the Bank.
 
 As on March 31, 2011, the Board comprised of 10 Directors with two
 Executive Directors (including Chairman), two Non Executive Directors
 and six Independent Directors. Shri R.M. Malla, Chairman & Managing
 Director as Executive Chairman, Shri B.P. Singh, Dy. Managing Director
 as Whole Time Director, Shri Rakesh Singh and Shri R.P.  Singh, Central
 Government Officials as Non Executive Directors, Shri Analjit Singh,
 Smt. Lila Firoz Poonawalla, Shri K. Narasimha Murthy, Shri H.L. Zutshi,
 Shri Subhash Tuli and Dr. B.S. Bisht as Independent Directors
 constitute the Board.
 
 No Director on the Board of your Bank is in any way related to any
 other Director on the Board of the Bank.
 
 Apex Committees
 
 The Board has in total eight committees, namely, Executive Committee,
 Audit Committee, Shareholders''/Investors'' Grievance Committee, Frauds
 Monitoring Committee, Risk Management Committee, Customer Service
 Committee, Information Technology Committee and Remuneration Committee.
 
 Corporate Governance
 
 Your Bank is committed to adopting the best practices in the area of
 corporate governance. Your Bank believes that proper corporate
 governance is not just a requirement for regulatory compliance, but
 also a facilitator for enhancement of stakeholders'' value. The details
 of corporate governance practices followed in your Bank are given in
 this Annual Report as a separate section under Management Discussion
 and Analysis.
 
 Statement under Section 217(2A) of the Companies Act, 1956
 
 There were no personnel in the services of the Bank for the whole year,
 who were in receipt of remuneration of over Rs 60 lakh per annum.
 Further, no personnel, who were in the service of the Bank for part of
 the year, received remuneration in excess of Rs 5 lakh per month for the
 period they were in the service of the Bank.
 
 The provisions of Section 217(1)(e) of the Act relating to conservation
 of energy and technology absorption do not apply to your Bank.
 
 
 Directors'' Responsibility Statement
 
 The Board of Directors hereby declares and confirms that:
 
 i. in the preparation of accounts, the applicable accounting standards
 had been followed along with proper explanation relating to material
 departure.
 
 ii. the Directors had adopted such accounting policies and applied them
 consistently and made judgments and estimates that are reasonable and
 prudent so as to give a true and fair view of the state of affairs of
 your Bank at the end of accounting year and of the profit or loss of
 your Bank for that year.
 
 iii. the Directors had taken proper and sufficient care for the
 maintenance of adequate accounting records, in accordance with the
 regulatory provisions, for safeguarding the assets of your Bank and for
 preventing and detecting fraud and other irregularities.
 
 iv. the Directors had prepared the accounts on a going concern basis.
 
 Acknowledgements
 
 The Board of Directors of your Bank accords immense value to the
 direction, co-operation and guidance extended by Government of India,
 Reserve Bank of India (RBI), Securities and Exchange Board of India
 (SEBI), Insurance Regulatory and Development Authority (IRDA) and all
 other Statutory/ Regulatory Authorities. The Board also acknowledges
 the co- operation and support rendered by the State Governments and
 other banking/financial institutions. The Board thanks various
 multilateral institutions and international banks/ institutions for
 their periodic support. The Board takes this opportunity to thank all
 its shareholders and customers for extending their support during the
 year and looks forward to their continued association in the years
 ahead. During the financial year, the Bank has received various
 recognitions and accolades for its excellence in banking domain. The
 Board indeed is thankful to all such organizations/agencies for their
 appreciation to the Bank''s efforts. The Board appreciates the sincere
 and devoted services displayed by its entire staff and highly values
 their commitment in improving your Bank''s performance.
 
 
 
 Place : Mumbai                                       R. M. Malla
 
 Date : April 19, 2011               Chairman & Managing Director