IDBI_Ltd

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1 February 2006

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2 This presentation does not constitute a prospectus or other offering document in whole or in part. This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results,are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. Industrial Development Bank of India Limited cannot guarantee that these assumptions and expectations are accurate or will be realised. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. Industrial Development Bank of India Limited assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise. Disclaimer

Contents : 

3 Contents IDBI Ltd. - Background Performance & Financial Summary Strategy The India Story

India – The new Asian Powerhouse : 

4 India – The new Asian Powerhouse Changing composition of GDP Reduced dependence on agriculture and growing industrial and services sector Strong outsourcing growth momentum – IT services, financial services, healthcare & manufacturing Growing Infrastructure investments and corporate Capex Strong improvement in external sector and phased fiscal deficit correction Attracting large foreign investments Strong GDP Growth (1) India is currently the world’s fastest growing economy after China Changing GDP Composition Source : RBI

India – Among the strongest growing economies : 

5 India – Among the strongest growing economies Indian stock index outperformed international indices: High growth prospects Control in inflation, Strong Rupee, Strong FII Inflow, Improved corporate earnings 8.1% 7.5% 4.7% 5.1% 5.3% 3.8% Source: EIU Source: World Bank Real GDP Growth(1) BSE Sensex vis a vis International Stock Markets Second fastest growing economy Fourth largest economy in the world in terms of PPP (2)

Strong Macro Economic Fundamentals : 

6 Strong Macro Economic Fundamentals Expanding Foreign Exchange Reserves Decreasing Fiscal Deficit Booming exports Increasing FDI Inflows

Strengthened Banking Sector : 

7 Strengthened Banking Sector Outstanding Bank Credit (1) Growth and Performance drivers Robust retail demand Low consumer-finance penetration Positive age demographics, rising disposable incomes Favorable interest rates and easier availability Recovery in key commodity sectors – steel, textiles Improvement in corporate financial performance and business outlook Strengthening regulatory regime RBI aligning prudential banking norms in tune with international standards Consolidation to improve intrinsic strength of the sector Strong revaluation of banking stocks Source : RBI, Ministry of Finance, CSO Savings Deposits with Scheduled Commercial Banks

Contents : 

8 Contents IDBI Ltd. - Background Performance & Financial Summary Strategy The India Story

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9 Our Vision “To be the trusted partner in progress by leveraging quality human capital and setting global standards of excellence to build the most valued financial conglomerate”

IDBI Ltd.- The Journey so far : 

10 IDBI Ltd.- The Journey so far Genesis 1964 - Established as a wholly owned subsidiary of the Reserve Bank of India (RBI), the Central Bank of India 1976 - 100% ownership transferred to Government of India (GoI) 1995 - Domestic IPO reduced GoI stake to 72% Largest DFI in India Played an apex role in providing project financing Catalysed cumulative investments of nearly US$ 41 bn Profitable operations for last forty years Among largest debt issuers in domestic markets Strong brands created with over 5 mln. investors Pioneered capital market development By setting up National Stock Exchange – an electronic Stock Exchange, NSDL – a Securities Depository, CARE – a Rating Agency, SHCIL – a Depository, etc.

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11 Oct 1, 2004, converted into a banking company Mandated to continue playing a Development Financing role, with expansion into commercial banking space April 2, 2005, merged its Banking arm (IDBI Bank) with itself; effective date of merger October 1, 2004 Post merger - GoI holding at around 53% Total assets of over Rs.82,000 crore (US $ 18.2 billion) Access to low cost funds Proven technology platform (Finacle from Infosys) Wider branch network Broader range of products; cross selling opportunities Large pool of professionally qualified employees to cater to both wholesale as well as retail segment Conversion to a Banking Company

Contents : 

12 Contents IDBI Ltd. - Background Performance & Financial Summary Strategy The India Story

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13 Growth in Business (Rs.crore) Deposits grew by 60% on annualised basis; Share of outstanding low cost deposits to total deposits is over 31%. Advances grew by 14% on annualised basis (despite reduction in outstanding amount due to the utilisation of floating provision of Rs.2029 crore in Sept 2005).

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14 Financial Highlights – December 2005 Balance sheet size at Rs.82,009 cr. (US$ 18 bln) Total business at Rs.1,38,044 crore (US$ 31 bln) PAT Rs.360 cr. (US$ 80 mln) during Apr- Dec 05 Net NPAs down 1.36% of net advances Utilised floating provisions to the extent of Rs.2029 crore (US $ 0.5 bln) in Sept 2005 CRAR – 15.9% Tier I – 12.0% Taken steps to Launch M-Cheques, the first of this kind in India, in association with Visa. Recently launched airline ticketing through ATM, thus becoming the first Bank in the world to offer such a facility

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15 Financial Highlights – Balance Sheet

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16 Financial Highlights – Profit & Loss A/c

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17 Key profitability and operating indicators

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18 Key profitability and operating indicators # - Business is taken as deposits + borrowings + advances + investments (excl liquid assets) #

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19 Quarterly Profit & Loss A/c

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20 Qtly profitability & operating indicators

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21 Qtly profitability & operating indicators # - Business is taken as deposits + borrowings + advances + investments (excl liquid assets) #

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22 Key stock indicators Shareholding Pattern (06.01.’06) GoI to retain at least 51% stake at all times IDBI stock has shown strong performance over the last few months Increased FII interest; holding at nearly 16% as on Jan. 6, ‘06 compared to around 8% as on Sept 30, ‘04 Scope for re-rating on successful conversion to a full fledged Banking Company @ - Jan 23, 2006 @ @

High Quality Asset Profile : 

23 High Quality Asset Profile Non Performing Assets Credit Exposure # Asset Composition * NPAs lower at 1.36% A well diversified loan portfolio * Gross Loans & Advances # Exposure as of Sept 30, 2005 % % Rs.crore

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24 Strong Capital Position & Credit Rating Capital considerably higher than the current RBI requirement of 9% Capital Adequacy Financial Strength of IDBI Strong GoI support to IDBI Credit Strength Credit Rating at par with the Sovereign by Moody’s and FITCH

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25 Network & delivery channels 158 branches, 8 extension counters 365 ATMs Presence in 95 cities Internet banking Retail customer base: 5 million + Corporate customers: 3000 +

Contents : 

26 Contents IDBI Ltd. - Background Performance & Financial Summary Strategy The India Story

Operational Strategy : 

27 Operational Strategy Business Integration Business operated as separate Retail Banking and Corporate Financing SBUs A common Treasury, Risk Management, Audit, IT and other support operations Integrated and Rationalized branch network Steps Initiated Experienced professionals in top management – facilitates smooth integration Functional integration through top level management committees Process of migrating data systems to a common technology platform – viz. Finacle - underway HR consultants in the process of reviewing and re-designing HR architecture including training Trimmer workforce post Voluntary Retirement Scheme

Business Strategy : 

28 Business Strategy Pursue organic growth opportunities Leverage core competency in project financing while creating additional business opportunities in retail & commercial banking Inorganic growth domestically through bank acquisitions/mergers Foray into Insurance, Asset Management Optimize mix of corporate and retail banking Increase product offering by leveraging corporate relationships Rationalisation of human resources and reorientation through continuous training Improvement in technology infrastructure Enhance & implement enterprise-wide risk management systems Focus on fee based income to boost profitability Strengthen brand equity Enhance market share Short to Medium Term Strategy Long Term Strategy

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29 Plans for 2005-06 Increase in customer assets by 18% Corporate assets to increase by 14% Retail assets to increase by 55% Deposits to grow by 60% Total business size – Rs.1,45,000 crore Wider distribution network – branch network to go up to around 200, ATM network to around 550 Strengthen IT Infrastructure Migration of retail based products to Finacle Migration of all systems to be accomplished by 2006 Complete and operationalise state-of-the-art Data Center and Disaster Recovery Center

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30 Indian Banking Sector - Offering High Growth Opportunities Unique Opportunity to participate in IDBI’s new growth story India’s healthy economic outlook - On the threshold of a high growth path Conclusions IDBI Limited - A new, revitalized and vibrant organization with strong business prospects

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31 Thank You Please visit our website www.idbi.com