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For Immediate Publication / Broadcast / Telecast

PR / 1228

IDBI Bank & KfW, Germany Join Hands for Financing the MSME & Infrastructure Sector

Mumbai, November 11, 2013: IDBI Bank Ltd, through its DIFC Branch in Dubai, has

signed a loan agreement for USD 340 million with KfW, Germany. The loan has a

maturity of 10 years and carries a competitive rate of interest. Shri Melwyn Rego, Deputy

Managing Director of IDBI Bank Ltd. represented IDBI Bank Ltd. and Dr. Norbert

Kloppenburg, Member of the Executive Board of KfW represented KfW at the signing

ceremony held in New Delhi.

The loan would be availed by IDBI Bank Ltd. for funding loans to the micro-, small-

and medium-sized enterprises (MSME) directly or indirectly through Microfinance

Institutions (MFI’s) and Non Banking Finance Companies (NBFC’s). Part of the loan is

dedicated for selected infrastructure projects to support municipalities and communities to

improve health and living conditions.

Commenting on the occasion, Shri Melwyn Rego, Deputy Managing Director, IDBI

Bank Ltd. stated that the Bank is committed to provide financial support to the MSME

sector which is one of the thrust areas of the Bank. This loan from KfW would provide

further impetus in our endeavor of meeting the growing financial needs of this sector

which plays a vital role in the country’s economic growth.

Shri N.S. Venkatesh, Chief General Manager, IDBI Bank Ltd., while speaking at

the event, said this transaction with KfW is the testimony to the long standing relationship

between IDBI Bank Ltd. and KfW which goes back to more than two decades.

"With this credit line, KfW is providing the IDBI with an important and broadly

effective contribution towards creating income and fighting poverty in India. Growth

among small companies triggers local demand and consumption, secures employment

and is a key factor in the creation of new jobs", said Dr Norbert Kloppenburg, member of

the Executive Board of the KfW Group.

About IDBI Bank

IDBI Bank is the youngest, new generation public sector universal bank that rides

on a cutting edge Core Banking Information Technology platform. This enables the Bank

to offer personalized banking and financial solutions to its clients through its 1163

branches and 1991 ATMs. The Bank has an aggregate balance sheet size of Rs.2,97,451

crore and total business of Rs.3,86,145 crore as on September 30, 2013. IDBI Bank's

operations during the Quarter ended September 30, 2013 resulted in a net profit of

Rs.192 crore. IDBI Bank earned a net profit of Rs.1882 crore during the financial year

ended March 31, 2013.

About KfW

KfW is one of the world´s leading and most experienced promotional banks. Its

balance sheet amounts to 476 billion Euro. Established in 1948 as a public law institution,

KfW is owned 80 per cent by the Federal Republic of Germany and 20 per cent by the

federal states (“Länder”).

KfW Development Bank is Germany’s leading development bank and an integral

part of KfW. It carries out Germany´s Financial Cooperation (FC) with developing

countries on behalf of the Federal Government. The 600 personnel at headquarters and

about 200 specialists in its 66 local offices cooperate with partners all over the world. Its

goal is to combat poverty, secure the peace, protect the environment and the climate and

make globalisation fair. KfW is a competent and strategic advisor on current development

issues.

Germany and KfW are longstanding partners of India. Since the 1950s, more than

EURO 11 billion has been sanctioned by the German Government through KfW under the

rubric of Indo-German Financial Cooperation, mainly in the fields of Energy, Financial

Sector Development, Health, and Protection of the Environment and Natural Resources.

Under a new financing window, KfW can now also extend “Promotional loans” to select

institutions like IDBI to promote infrastructure financing, SME finance, and microfinance.

Shri Melwyn Rego, Deputy Managing Director, IDBI Bank exchanging the

agreement with Dr. Norbert Kloppenburg, Member of the Executive Board of KfW,

Germany

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