New Delhi: With the Indian economy witnessing a tremendous boom, banks are gearing up to face the challenges and increase their market presence. Industrial Development Bank of India (IDBI), one of the leading public sector banks has also decided to diversify and offer innovative products to cater to the fast growing demands of the Indian consumer. IDBI, is all set to transform it's image from a wholesale banking institution to a bank for the masses.

IDBI's current portfolio is dominated by corporate loans, which account for as much as 77 percent of its business. The bank is planning to make retail loans play a dominating role. Despite the recent slowdown in retail loan segment, IDBI plans to fortify its home loan and personal loan portfolio. Innovation is the key if one wants to grab a new stream of customers and IDBI has fully realized it. Loan against travel, is one such product, which the bank expects to become an instant hit with Indian consumers. This travel loan comes at interest rates 1.5 - 2 percent lower than personal loan and can be availed by producing a ticket to the holiday destination.

O.V. Bundellu, deputy managing director of IDBI, while explaining the bank's priorities said "the topmost priority for the bank is to replace the high-cost funds with low-cost deposits, we hope to achieve this by opening new branches." The bank’s Current Account Savings Account (CASA) level stands at 25%. During the period 2008-2009 the bank expects to grow its CASA levels to 32%. “To increase CASA, we require more branches, and as a part of its retail expansion strategy, IDBI plans to open 45 new branches in the next month,” he added.

IDBI was established in 1964 by an Act of Parliament to provide credit and other facilities for the growth of Indian industry. In 2003, IDBI attained the status of a limited company called the Industrial Development Bank of India Limited (IDBIL). Until recently IDBI had been playing a big role in long-term lending to industry and worked extensively towards the development of backward areas, entrepreneurship development, employment generation and modernization of specific industries. With the recent efforts towards diversification and growth into retail banking segment, IDBI is hoping to emerge as a major player in India.