The significant strides made by your Bank in the last six decades of
its existence, amidst a dynamic and evolving economic landscape, fills me with optimism
about its future growth trajectory.
Dear Shareholders,
On behalf of the Board of Directors, I am pleased to present to you the
Bank's Annual Report for FY 2024 25 a milestone year that marked completion of 60
years of the Bank's journey. The Bank's journey so far reflects its enduring
commitment to the objective of nation-building by serving millions of customers across the
length and breadth of the country and financially empowering them to achieve their dreams.
Economic Scenario
The global economic growth remained modest but steady in the year 2024
in the backdrop of protracted geopolitical tensions and volatile capital flows across the
global financial market. In this backdrop, the Indian economy remained a key driver of
global growth as one of the fastest-growing major economies in the world. Factors such as
concerted and consistent policy efforts, abating inflationary pressures, strengthening
domestic consumption, pickup in investment demand and higher public expenditure on
infrastructure effectively countered the external risks and ensured a conducive
macroeconomic environment for stable growth.
The steady pace of economic activity was also aided by the improved
health of the banking sector in India. Primarily driven by various Government initiatives
and regulatory reforms, the banking sector has emerged stronger, more agile, and
well-capitalised, with improved asset quality and profitability. Further, the increasing
digital penetration has contributed significantly to greater accessibility to the banking
services, fuelling financial inclusion in an unprecedented way. The strong reciprocal
relationship between banks and the economy saw the banks supporting the growth momentum by
channelising the savings and facilitating credit flow to key sectors such as MSMEs,
infrastructure etc.
Celebrating 60 Years of Nation-Building
Your Bank's legacy is deeply rooted in nation-building as its
predecessor entity Industrial Development Bank of India (IDBI) - was a catalytic force in
industrialisation of the economy as the apex Development Financial Institution (DFI) in
the industrial and infrastructural financing space. In the six decades of its existence,
the Bank has played a pivotal role in shaping India's economic landscape by
supporting people and businesses across the country through its products and services. The
changes in India's economic structures also led to change in the Bank as well, which
saw it transform from a DFI to a full-fledged commercial bank. However, what has remained
unchanged is your Bank's ethos and commitment to serve the people of this nation with
integrity and dedication.
The Bank's past is a testament to its capability to evolve in
tandem with the evolving operating environment.
Embracing adaptability, your Bank has positioned itself strategically
to ensure a robust foundation based on quality business, stringent risk management
framework and strong governance and compliance culture for sustained growth and
stakeholder value creation over the long-term.
Growth and Profitability
I am happy to state that the Bank's 60th year, a milestone in the
annals of the Bank, was remarkable even in terms of its business performance. Your Bank
registered all-time high net profit of 7,515 crore in FY 2024-25, progressively improving
upon its profitability in the last five years. The Bank's business size crossed the
milestone ofRs.5 lakh crore, fuelled by steady growth in both its deposits and advances.
The Bank's focus on enhancing low-cost deposit base yielded positive results with a
notable increase in the CASA (Current Account Savings Account) Deposits. The Bank's
loan book registered healthy growth, supported by a prudent underwriting approach and
diversification across segments, with emphasis on retail and priority sector lending. Your
Bank invested in upscaling its digital offerings to deliver seamless and secure customer
experience.
As your Bank continued to grow its business and to expand its
operations, robust risk management and meticulous compliance culture remained at the core
of its business strategy.
I am pleased to share that the collective efforts of the Bank's
Board of Directors, management and employees have led to a significant and broad-based
improvement in its operational and financial performance. These achievements are detailed
in the message from the MD &
CEO, as well as in the other sections of this Annual Report. It gives
me great satisfaction to inform you that, in recognition of this strong performance, the
Board of Directors has recommended a dividend of 2.10 per equity share of face value 10
each for the financial year ended March 31, 2025. This recommendation is subject to the
approval of shareholders at the Bank's upcoming Annual General Meeting.
Progress with Sustainability
The banking sector continues to evolve at an unprecedented pace, shaped
by technological innovation, shifting customer expectations and focus on sustainability.
The significant strides made by your Bank in the last six decades of its existence, amidst
a dynamic and evolving economic landscape, fills me with optimism about its future growth
trajectory. Moving forward, your Bank will continue to focus on stable and sustainable
business growth and risk resilience to ensure value creation for all its stakeholders.
Collaborating with the policymakers and regulatory/ statutory authorities, your Bank will
continue to invest in designing products and services to cater to the financial needs of
various segments of the population and contribute towards inclusive development of the
country. Being a responsible corporate entity with a rich legacy of nation building, the
Bank will strive to incorporate Environmental, Social and Governance (ESG) considerations
in its operations as part of its long-term business as the nation moves progressively
towards a more sustainable way of life. Your Bank's future growth path is rooted in
the belief that banking is not just about transactions, but about transformation. Through
its offerings and initiatives, the Bank will endeavour to create value that transcends
balance sheets so as to uplift lives, empower vast segments of the society, contribute to
the nation's progress and protect the planet - to make this world a better place to
live.
Expression of Gratitude
On behalf of the Board of Directors of IDBI Bank, I extend heartfelt
gratitude to the Government of India, the Reserve Bank of India, and all other statutory
and regulatory authorities for their steadfast support and guidance which has been
instrumental in enabling the Bank to navigate challenges and pursue its strategic
objectives. I would also like to express my sincere appreciation for the continued
patronage and enduring faith of your Bank's valued shareholders and customers that
has been the cornerstone of its progress. I place on record gratitude to my esteemed
colleagues on the Board for their leadership that has been pivotal in guiding the
Bank's growth journey. Last but not the least, I would like to convey my appreciation
for the efforts and unwavering commitment of the Top Management and every employee of IDBI
Bank that have enabled the Bank to meet its objectives and scale new heights, in the
dynamic business environment.
As your Bank embarks on a path of sustainable growth and long-term
value creation, I invite all our stakeholders to continue extending their support and
actively engage with us for creating a lasting and laudable legacy.
| With best wishes, |
| T. N. Manoharan |
| Chairman |