EXHIBIT 1

                                 [TRANSLATION]

                                                                    July 6, 2008

                   INDUSTRIAL DEVELOPMENT BANK OF ISRAEL LTD.

SECURITIES AUTHORITY                TEL AVIV STOCK EXCHANGE
www.isa.gov.il                      www.tase.co.il

            IMMEDIATE REPORT CONCERNING THE FILING OF AN APPLICATION
                TO COURT TO APPROVE A COMPROMISE OR ARRANGEMENT

     1.   On July 6, 2008, an application for a compromise or arrangement
          pursuant to Section 350 of the Companies Law-1999 was filed with the
          Tel Aviv District Court.

     2.   Details of the applicant: Industrial Development Bank of Israel Ltd.

     3.   The principals of the application: To grant an ex parte order to
          convene class meetings to approve the compromise and arrangement
          within the framework of the proposed scheme.

     4.   The principals of the scheme: The proposed scheme includes the return
          to the Bank of its perpetual deposit with the Ministry of Finance, the
          sale of most of the Bank's shares (all of the shares except D and DD
          shares not held by the government of Israel), both those held by the
          government of Israel and also those held by the public, within the
          framework of a sale process which will be managed by the Government
          Companies Authority, and the formulas by which the consideration from
          the sale shall be distributed among the various shareholders, and also
          the redemption of the D and DD shares of the Bank not held by the
          government of Israel, according to their full value and in addition to
          their accumulated dividend (and regarding the D shares, also including
          a premium). The scheme continues and establishes that in the event
          that despite the approval of the scheme, the sale of the Bank's shares
          is not completed by December 31, 2009, then the sale and the
          redemption aforementioned shall not be implemented and in its place
          the holders of C, CC and CC1 shares of the Bank shall be paid a
          dividend at the rate of 50% of the preferred dividend at the annual
          rate of 6% that accumulated for their shares in the period from July
          1, 2002 until July 31, 2008. Along with the filing of the application
          for the approval of the compromise and arrangement scheme, the Bank
          also filed with the above court an application to approve a
          distribution which does not fulfill the profit test pursuant to the
          Companies Law-1999, this regarding the redemption of the Bank's D and
          DD shares within the abovementioned scheme, or alternatively, the
          payment of half of the preferred dividend for the C, CC and CC1 shares
          of the Bank within the framework of the abovementioned scheme.




     5.   Was a stay of proceedings or transfer of assets order granted: No.

     6.   Was an officer appointed by the court: No.

     7.   Was a shareholder meeting summoned: No.

     8.   Were creditors meetings summoned: No.

     9.   Attached is the text of the newspaper notice.

     10.  The time and place at which documents subject of this report may be
          reviewed: 82 Menachem Begin Road, Tel Aviv, with the Corporate
          Secretary, Adv. N. Atlas, from Sunday to Thursday between the hours of
          10:00-16:00.

     11.  The date and time when the Company was made aware of the subject
          event: July 6, 2008 at 11:00 A.M.