The document provides information about the Industrial Development Bank of Pakistan (IDBP), including: 1) IDBP was established in 1961 as Pakistan's oldest development financing institution, with the primary objective of extending term finance to the manufacturing sector. Over time it has also supported small and medium enterprises. 2) It is wholly owned by Pakistani government entities, with paid up capital of 500 million Pakistani rupees. 3) IDBP's functions include development banking, commercial banking, merchant banking, bill collection, and equity investment. It provides various financing and deposit schemes.

1. Salman Akram
Hailey College of commerce
University of the Punjab.
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2. Industrial Development Bank of Pakistan
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3. Outline:
 Introduction
 History
 Objectives
 Core Values
 Functions
 Deposit Schemes
 SWOT analysis

4. Introduction:
Industrial Development Bank of Pakistan established in
August, 1, 1961 is one of Pakistan's oldest development
financing institution and was created with the primary
objective of extending term finance for investment in the
manufacturing sector of the economy. Over the years,
however, the Bank has become an institution fostering the
growth of Small and Medium Enterprises in the rural/less
developed regions of the country.
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5.  Extending term finance for investment in the manufacturing
sector of the economy.
 Facilitates transfer of technologies from developed countries
to industrial enterprises in Pakistan.
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6. Vision/ core value:
 To be recognized as the leading financial
institution of Pakistan and dynamic international
bank in the emerging markets, providing our
customers with a premium set of innovative
product and services, and granting superior
value to our stakeholders, shareholders,
customers and employees.

7. Paid-up-Capital:
Industrial Development Bank of Pakistan is wholly
owned by Pakistani government entities with total
paid up capital 500 Million, 57% of its shares held
by the Federal Government, 36% by the State Bank
of Pakistan and 7% by provincial governments and
other public sector corporations.
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8. Sources of funds:
 1) Borrowing from the Federal Government.
 2) Borrowing from the state bank of Pakistan.
 3) Re-discounting of bills.
 4) Time deposits.
 5) Issue and sale of bonds and debentures.
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9. Functions:
 Development banking business
 Commercial banking business
 Merchant banking business
 Collection of utility bills
 Administration of the equity participation fund
 Equity investment/trading
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10.  Development banking business
 Provides guarantee, loans
 Provides medium and long term finances
 Commercial banking business
 Bills
 Deposits
 Foreign exchange accounts
 Guarantees
 Letter of Credit
 Remittances
 Short term advances
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11.  Merchant banking business
 Bridge financing
 Leasing
 Underwriting of public issue of shares
 Collection of utility bills
 Gas bills at branches in Karachi
 Telephone bills at all branches
 Administers of the equity participation fund
 Equity investment/trading
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12. Sort of financing Assistant:
IDBP has the unique distinction of financing the first
ever projects for a diversified list of products Like;
o UHT milk pack
o three wheelers
o radio/wireless receiving sets
o marble processing
o Coal mining
o PVC deep sea fishing etc.
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13. Deposit schemes:
IDBP is carrying out sustained efforts to devise
customer-oriented banking services. Various deposit
instruments suiting the diversified customers’ needs
have been introduced by the Bank. The schemes
offered take care of both short and long term
requirements of the customers with varying
investment funds and have been positioned in such a
way that clients may enjoy the most competitive
returns on their investments
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14.  IDBP SPECIAL DEPOSIT CERTIFICATES
 IDBP MAHANAAMADNI SCHEME
 MAHANA MUNAFA CERTIFICATE (MMC)
 TERM DEPOSIT RECEIPT (TDR)
 BUSINES DEPOSIT ACCOUNT (BD A/c)
 PROFIT AND LOSS SAVING BANK ACCOUNT (PLS A/c)
 CURRENT ACCOUNT
Following are the Schemes offered by the industrial
development bank to its customers:
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15. Branch Network:
The Head Office of Industrial Development Bank of Pakistan
is situated at Karachi, Pakistan. The Bank currently operates
with following 13 branches:
In Capital Territory; Islamabad and Rawalpindi branch.
Sindh; Main branch Karachi, Hyderabad and Larkana branch
Punjab; Faisalabad, Lahore and Multan branch
Khyber Pakhtunkhwa; Abbottabad and Peshawar branch
Baluchistan; Quetta branch
Gilgit/Baltistan; Gilgit branch
In Azad Kashmir; Mirpur Azad Kashmir branch
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16. SWOT analysis:

17.  Goodwill & historical background.
 Professional and well trained staff.
 Largest customer base.
 20% share in financial market.
 Large Balance sheet size.
 Decentralized authority.
 Union and Conflicts
 Checking System
 Weak marketing policies.
 Nepotism & Favoritism.
 Infected portfolio still exists as bad debts.
 Centralized management in particular areas.
Strengths:
Weaknesses

18.  For growth and expansion in cash management.
 Faster market growth
 Restoration of investors’ confidence
 Large deposit base and funds flow
o Adverse & unstable government policies.
o Political instability.
o Advance technology.
o Competition from other banks.
Opportunities:
Threats:

19. Role of IDBP in Economy:
 The role of industrial development bank in economic
development is to remove the deficiency of capital by
stimulating savings and investment.
 Mobilizes the small and scattered savings of the
community, and makes them available for investment
in productive enterprises.
 No economic development of sizable magnitude is
possible unless there is an adequate degree of
capital formation

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