The Board of Directors of your Bank takes pleasure in presenting its
 Report on the business and operations of your Bank for the financial
 year ended March 31, 2012.
 
 During the financial year 2011-12, the performance of your Bank has
 shown considerable growth on different fronts driven by strategic
 policy initiatives; expansion in branch network, focus on improved
 customer service delivery, superior product characteristics, which has
 resulted in improvement in key profitability indicators. Your Bank was
 able to widen its customer base both by expanding its outreach, as also
 by providing a range of innovative products and services. As on March
 31, 2012 aggregate deposits and advances of your Bank touched Rs.
 2,10,493 crore and Rs. 1,81,158 crore reflecting a growth of 16.63% and
 15.32%. The Performance highlights of your Bank for the period under
 review are presented in Table 1.
 
 
 Table 1:  Financial Highlights 
 
 Particulars                                          (Rs. in Crore)
 
 As at year-end                         2010-11           2011-12
 
 Capital                                  984.6          1,278.4
 
 Reserves & Surplus                    13,582.0         18,148.7
 
 Deposits                            1,80,485.8       2,10,492.6
 
 Borrowings                            51,569.6         53,477.6
 
 Other Liabilities & Provisions         6,754.8          7,439.9
 
 Total Liabilities                   2,53,376.8       2,90,837.2
 
 Cash & Balances with RBI              19,559.0         15,090.2
 
 Balances with Banks and                1,207.0          2,967.4
 
 Money at Call & Short Notice
 
 Investments                           68,269.2         83,175.4
 
 Advances                            1,57,098.1       1,81,158.4
 
 Fixed & Other Assets                   7,243.5          8,445.8
 
 Total Assets                        2,53,376.8       2,90,837.2
 
 For the period                         2010-11          2011-12
 
 Total Income                          20,684.5         25,488.7
 
 Total Expenses (other than            16,526.6         21,432.5
 provisions)
 
 Provisions (other than tax)            1,876.9          1,426.5
 
 Profit Before Tax                      2,281.0          2,629.7
 
 Provision for Tax*                       630.7            598.1
 
 Profit After Tax                       1,650.3          2,031.6
 
 * Net of Current Income Tax and Deferred Income Tax
 
 Profit and Appropriations
 
 During the financial year April 2011 - March 2012, gross income of
 your Bank increased to Rs. 25,488.7 crore with contribution of interest
 income at Rs. 23,369.9 crore and other income at Rs. 2,118.8 crore. Interest
 expenses of Rs. 18,825.1 crore and operational expenses of Rs. 2,607.5
 crore, led to total expenditure, excluding provisions and
 contingencies, of Rs. 21,432.5 crore during FY 2011-12. Total provisions
 during the year were at Rs. 2,024.6 crore, which includes Rs. 591.9 crore
 towards provision for bad & doubtful debts and investments, Rs. 263.7
 crore towards restructured assets, Rs. 231.9 crore towards incremental
 prudential provisions for standard assets, and Rs. 598.1crore towards
 tax. The Profit before Tax (PBT) of your Bank during the FY 2011-12
 stood at Rs. 2,629.7 crore. After making a provision of Rs. 598.1 crore
 towards taxation, Profit after Tax (PAT) amounted to Rs.  2,031.6 crore.
 The appropriation of PAT as approved by the Board of Directors is given
 in Table 2.
 
 Table 2 :  Appropriation of profits 
 
 
 Particulars                                          (Rs. in Crore)
 
 As at year-end                          2010-11         2011-12
 
 Net Profit for the year                 1,650.3         2,031.6
 
 Profit brought forward                    479.1           615.0
 
 Profit available for                    2,129.4         2,646.6
 
 Appropriations
 
 Appropriations                          2010-11         2011-12
 
 Transferred to Statutory                  413.0           507.9
 
 Reserve
 
 Transferred to Capital Reserve              1.5            17.0
 
 Transferred to General                    600.0           750.0
 
 Reserve
 
 Transferred to Special Reserve            100.0           250.0
 created and maintained u/s
 36(1)(viii) of IT Act, 1961
 
 Dividend
 
 -  Equity Shares*                         344.6           388.7
 
 -  Tax on Dividend**                       55.3            60.3
 
 Balance of Profit carried to             615.0           672.6
 
 Balance Sheet
 
 *Dividend on equity shares includes interim dividend of Rs. 2/- per share
 paid during 2011-12.
 
 **Tax on dividend includes tax on interim dividend paid during 2011-12.
 
 For each share with face value of Rs. 10, Earning Per Share (EPS) during
 the year stood at Rs. 20.6 and Book Value Per Share stood at Rs. 137.24 as
 at end-March 2012. The Directors have pleasure in recommending dividend
 at 35% (including 20% paid on interim basis) on the fully paid-up
 equity share capital for the financial year 2011-12.
 
 Capital Adequacy
 
 Your Bank is Basel-II 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 Standardised Approach,
 Market Risk is measured by using Duration Standardised Approach and
 Operational Risk measure is Basic Indicator Approach.  During FY
 2011-12, the equity shareholding of Government of India has increased
 to 70.52% as at end-March 2012 through infusion of fresh equity capital
 to the extent of Rs. 810 crore and conversion of Tier I Bonds of Rs.
 2,130.5 crore into equity. Against the stipulated RBI norm of 9% for
 total CRAR and 6% for core CRAR, your Bank''s total CRAR worked out to
 14.58 % with Tier-I CRAR of 8.38 % as at end-March 2012.
 
 Vision and Mission Statement
 
 Over the years, your Bank has undergone a number of structural and
 organizational changes while transforming itself into a universal
 commercial bank. The journey of your Bank has always encompassed
 enhancing value for all its stakeholders. In order to reflect of the
 current ethos of your Bank, new Vision and Mission Statement have been
 crafted. The new vision statement of your Bank is To be the most
 preferred and trusted bank enhancing value for all stakeholders. With
 the new vision statement, your Bank has formalized a goal to share a
 common dream with all the stakeholders of the Bank.
 
 Previously, there was no separate Mission statement as the Vision
 statement itself incorporated the mission of the Bank. Also, in
 consonance with the change in the Vision Statement, a new Mission
 statement was crafted, in line with the organization''s long-term and
 short-term goals.  Accordingly, the mission statement of your Bank is:
 
 - Delighting customers with our excellent service and comprehensive
 suite of best-in-class financial solutions;
 
 - Touching more people''s lives with our expanding retail footprint
 while maintaining our excellence in corporate and infrastructure fi
 nancing;
 
 - Continuing to act in an ethical, transparent and responsible manner,
 becoming the role model for corporate governance;
 
 - Deploying world class technology, systems and processes to improve
 business efficiency and exceed customers'' expectations;
 
 - Encouraging a positive, dynamic and performance- driven work culture
 to nurture employees, grow them and build a passionate and committed
 work force;
 
 - Expanding our global presence;
 
 - Relentlessly striving to become a greener bank.
 
 The mission statement which charts the route map has seven key elements
 which will make the new vision come to reality. Your Bank will strive
 to provide best in class services and solutions, and maintain high
 standards of ethical values. Your Bank will be a responsible bank that
 contributes to social sustainability in all its activities. The focus
 of your Bank would be on continuous growth and it will continue to
 delight every customer by its unique and innovative products and
 services and pioneering efforts.
 
 Business Strategy
 
 Your Bank''s strategy during the year under review focused on aggressive
 growth in Retail lending and repositioning of delivery channels to
 realize higher CASA deposits. At the same time, your Bank sought to
 maintain its leadership position in the corporate banking and
 investment banking space, so as to meet the requirements of the
 corporate sector. Specific focus was laid on cross selling of your
 Bank''s entire product and service offerings across the entire range of
 customers, so as to build sustainable and stable relationships. Your
 Bank''s strategy during the year resulted in improvement in various
 profitability parameters and consolidated its business position across
 various benchmarks, so as to bring them more in line with the
 prevailing industry standards.
 
 Key Business Initiatives
 
 Your Bank continued to target a progressively larger retail business
 portfolio to facilitate a more balanced business mix, in keeping with
 its intended positioning as a full- service new generation commercial
 bank. Further, in order to build a strong foundation for sustainable
 growth on long term basis, as also ensure compliance with regulatory
 norms, your Bank took initiatives to build up its priority sector
 lending portfolio. Your Bank has been a pioneer in the field of
 Corporate Finance for the last nearly five decades. Your Bank has
 maintained its focus on corporate banking and laid Specific emphasis
 on cross-selling of your Bank''s diverse range of products and services.
 Your Bank increased substantially its presence in government business
 and enabled higher direct and indirect tax collections.
 
 Your Bank offers a bouquet of Liability, Asset, Capital Market and
 Third Party products aimed at meeting the customized needs of customers
 in the Retail Banking segment. Your Bank introduced a number of
 products in the pre-paid cards arena during the year under review.
 Your Bank has initiated a project on facilitating usage of ATM network
 to Co-operative Banks and RRBs on National Financial Switch (NFS)
 network in association with National Payments Corporation of India
 (NPCI). This would enable Co-operative Banks and RRBs to issue ATM
 cards to their account holders and get connected to the NFS network to
 have access to more than 84,000 ATMs across India.
 
 Your Bank entered into MOUs with several reputed educational
 institutions across India for granting educational loans to eligible
 students during the year. Your Bank is also offering additional
 concessions to girl students from SC/ST and Minority communities.
 
 Your Bank had launched its Internet Banking services way back in
 October 2001. Since then, the ambit of this channel has progressively
 broadened to include several value-added services. Keeping in view the
 need to secure online shopping/e-commerce based transactions initiated
 through the internet banking channel from phishing related frauds, an
 Online Shopping Password (OSP) security feature has been introduced by
 the Bank from December 2011.  Your Bank also introduced an online
 password-generation facility for the Retail Net Banking customer, to
 instantly create their own login and transaction password and also set
 their access profile.
 
 As part of a Financial Inclusion project in four Talukas of Gujarat,
 your Bank has, inter alia, launched a specially designed Co-branded
 Photo ATM Card on ''Rupay'' Platform.  The Card can be used for ATM
 transactions at your own as well as other Bank ATMs that are members of
 National Payment Corporation of India (NPCI).
 
 Your Bank has constantly endeavored to cater to the diverse needs of
 its MSE clients and has continuously been developing customized MSE
 products. During FY 2011-12, your Bank introduced a new product, viz.,
 Line of Credit to Vendors of Corporates that augments the liquidity
 position of MSE vendors. Considering the growing importance of credit
 rating for MSE clients, which enhances the confidence in MSEs while
 dealing with financial institutions, banks and corporates for their fi
 nancial needs and business opportunities, your Bank signed an MoU with
 Credit Analysis and Research Ltd. (CARE) for credit rating of the MSE
 customers at preferential rate.
 
 Your Bank has put in place a state-of-the-art Technology Platform which
 is supporting the Government''s dual objective of improvement of tax
 collection efficiency and e-governance. Your Bank had gone live in
 January 2012 in providing online duty payment services in respect of
 Customs Duty for all the 103 Electronic Data Interchange (EDI)
 locations across the country. With this development, taxpayers are now
 in a position to route all of their Central Taxes and Duties payments
 through IDBI Bank, making your Bank an important Agent in its pursuit
 of partnering the Government of India in enabling online tax payments
 and enhancing the tax contribution to the Exchequer.
 
 Your Bank became the first ever Bank in the country to launch an
 internet based portal dedicated to retail investors in Government
 Securities. The portal, named IDBI Samriddhi G-Sec has been received
 favourably by the investor class. This trend setting initiative by your
 Bank offers retail investors the opportunity to benefit from the
 safety, liquidity and risk free returns that Government Securities
 offer.
 
 Your Bank became the first entity from India as also other emerging
 markets to access foreign currency funds in the Dim Sum Market. In
 November 2011, your Bank raised Renminbi (RMB) 650 million 4.5% fixed
 rate Dim Sum Bonds for 3 year maturity. This issue provides testimony
 to the faith reposed by global fixed income investors in your Bank.
 
 Organizational Structure
 
 Your Bank has continued its thrust on improving organizational
 structure, which places customer relationship and service at the centre
 of all banking initiatives. 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 157 branches during FY 2011-12, including
 Specialized Corporate Branches, the total number of domestic branches
 went up to 972 as on March 31, 2012 in addition to one overseas branch
 at DIFC, Dubai. Of the domestic branch network, 264 are located in
 metropolitan centres, 377 in urban centres, 236 in semi-urban centres
 and 95 in rural centres.
 
 Board of Directors
 
 Your Bank''s Board of Directors is broad based and its constitution is
 governed by the provisions of the Banking Regulation Act, 1949, the
 Companies Act, 1956, the Articles of Association of the Bank and
 satisfies 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, 2012, the Board of Directors of your Bank comprised of
 six Directors with two Executive Directors (including the Chairman &
 Managing Director and the Deputy Managing Director), one Non Executive
 Director and three Independent Directors. 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 all eight committees, viz., Executive Committee, Audit
 Committee, Shareholders''/Investors'' Grievance Committee, Frauds
 Monitoring Committee, Risk Management Committee, Customer Service
 Committee, Information Technology Committee and Remuneration Committee,
 to oversee various functional aspects of the Bank''s business and
 operations.
 
 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 the 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, there were 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:
 
 a.  in the preparation of accounts, the applicable accounting standards
 had been followed along with proper explanation relating to material
 departure;
 
 b.  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;
 
 c.  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;
 
 d.  the Directors had prepared the accounts on a going concern basis.
 
 Acknowledgements
 
 The Board of Directors of your Bank expresses its sincere thanks to the
 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 for
 their valuable co-operation and guidance. The Board also acknowledges
 the co-operation and support rendered by various 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 of 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 21, 2012                 Chairman & Managing Director