SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 6-K

                        REPORT OF FOREIGN PRIVATE ISSUER
    PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
                   FILING NO. 2 FOR THE MONTH OF OCTOBER 2007

                  INDUSTRIAL DEVELOPMENT BANK OF ISRAEL LIMITED
                  (Translation of Registrant's name in English)

                     82 MENAHEM BEGIN ROAD, TEL AVIV, ISRAEL
                    (Address of principal executive offices)

     Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:

                         Form 20-F [X]     Form 40-F [_]

     Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): ____

     Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): ____

     Indicate by check mark whether the registrant by furnishing the information
contained in this Form, the registrant is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of 1934.

                               Yes [_]     No [X]

     If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-________




                  INDUSTRIAL DEVELOPMENT BANK OF ISRAEL LIMITED

On October 15, 2007, the Industrial Development Bank of Israel Limited
("Registrant") issued an Immediate Report giving notice to all holders of the
Registrant's 7 1/2% Registered Subordinated Capital Notes that the extension of
the maturity date for the Notes will expire on December 31, 2007, and that
written demands for payment of the Notes must be received not less than 30 days
prior to the maturity date.

A similar notice was sent to the registered Note holders in the United States, a
copy of which is included as Exhibit 1 to this Form 6-K.

The Immediate Report also informed the Note holders that semi-annual interest in
the amount of 3.75% would also be paid on December 31, 2007.




                           FORWARD-LOOKING STATEMENTS

This report on Form 6-K, including the notice issued by the Registrant (a copy
of which is included in this report on Form 6-K as Exhibit 1), contains both
historical and forward-looking statements within the meaning of Section 27A of
the U.S. Securities Act of 1933, as amended (the "Securities Act") and Section
21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
These forward-looking statements are not historical facts, but only predictions,
and generally can be identified by the use of statements that include phrases
such as "believe," "expect," "anticipate," "intend," "plan," "foresee" or other
words or phrases of similar import. Similarly, statements that describe our
objectives, plans or goals also are forward-looking statements. These
forward-looking statements are based on our current expectations and are subject
to risks and uncertainties that could cause actual results to differ materially
from those currently anticipated. The forward-looking statements included in
this report on Form 6-K and the notice are made only as of the date hereof and
we undertake no obligation to publicly update these forward-looking statements
to reflect new information, future events or otherwise.

Our actual results, performance and achievements could differ materially from
any future results, performance or achievements expressly predicted or implied
by these forward looking statements. The important factors which may cause
actual results to differ from the forward-looking statements contained herein
and in the notice include, but are not limited to, the following: general
economic and business conditions; the continued availability of our line of
credit from the Bank of Israel; the government's and/or the Bank of Israel's
resolutions regarding our future operations and the government's resolutions
regarding the future disposal of our assets and liabilities; the impact of our
run-off plan on our operations; our ability to collect on existing loans;
operating costs for our remaining business activities; and the ability to retain
employees during the run-off period. Although we believe that the assumptions
underlying the forward-looking statements contained herein and in the notice are
reasonable, any of the assumptions could be inaccurate, and therefore, there can
be no assurance that the forward-looking statements will prove to be accurate.
In light of the significant uncertainties inherent in the forward-looking
statements included herein and in the 2006 annual financial report, the
inclusion of such information should not be regarded as a representation by us
or any other person that our objectives and expectations will be achieved.

Potential investors and other readers are urged to consider these factors
carefully in evaluating the forward-looking statements and are cautioned not to
place undue reliance on these forward-looking statements. In light of these
risks, uncertainties and assumptions, the forward-looking events might or might
not occur. We cannot assure you that projected results or events will be
achieved.




                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.



                                                     INDUSTRIAL DEVELOPMENT BANK
                                                     OF ISRAEL LIMITED

Date: October 15, 2007                               By: /s/ Michael Warzager
                                                     ------------------------
                                                     Michael Warzager
                                                     General Counsel

                                                     By: /s/ Natan Atlas
                                                     -------------------
                                                     Natan Atlas
                                                     General Secretary