About | Industrial Development Bank of India (IDBI) , MAHARASHTRA Check here latest notification

The Industrial Development Bank of India (IDBI) is a public sector bank in India, established to provide credit and other financial facilities for the development of industry in the country. Here's a comprehensive overview:

 History and Establishment

- Formation: IDBI was established in 1964 by an Act of Parliament to provide credit and other facilities for the development of industry. Initially, it operated as a subsidiary of the Reserve Bank of India (RBI).

- Autonomy: In 1976, the ownership of IDBI was transferred to the Government of India, making it an independent entity.

 Key Functions

1. Project Financing: IDBI provides medium to long-term project finance to large and medium-sized industrial enterprises.

2. Working Capital: It offers working capital finance to meet the short-term needs of businesses.

3. Direct Loans and Advances: The bank extends direct loans and advances to industrial enterprises.

4. Underwriting: It underwrites the issue of stocks, shares, bonds, and debentures.

5. Technical and Advisory Services: IDBI provides technical and advisory services for the promotion, management, and expansion of industries.

 Evolution and Reorganization

- Banking Business: In 2004, IDBI was converted into a banking company, thereby diversifying its functions to include banking services under the name IDBI Bank.

- Merger: In 2005, IDBI merged with its subsidiary IDBI Bank, combining their operations.

- Public Sector Bank: Although initially a development financial institution, IDBI Bank is now a full-service public sector bank.

 Ownership and Control

- Government Stake: Historically, the Government of India held a significant stake in IDBI. However, over time, the stake has been reduced.

- LIC's Stake: In January 2019, the Life Insurance Corporation of India (LIC) acquired a controlling stake of 51% in IDBI Bank, effectively making LIC the promoter of the bank.

 Services and Products

1. Retail Banking: IDBI Bank offers a range of retail banking services, including savings and current accounts, fixed deposits, and loans.

2. Corporate Banking: It provides various corporate banking products, including corporate loans, working capital finance, and trade finance.

3. Agriculture and Rural Banking: The bank supports agriculture and rural development through dedicated financial products.

4. Treasury Services: IDBI Bank offers treasury services, including foreign exchange, derivatives, and money market operations.

 Financial Performance

- Revenue and Profit: Like other banks, IDBI's financial performance is assessed based on revenue, profit, and key financial ratios. It publishes annual reports detailing its financial health and performance.

 Challenges and Reforms

- NPA Issues: IDBI Bank has faced challenges with non-performing assets (NPAs), which have impacted its financial stability.

- Recapitalization: The government and LIC have provided capital support to strengthen the bank's balance sheet.

- Strategic Reforms: Ongoing reforms and strategic measures aim to improve operational efficiency and financial health.

 Headquarters and Network

- Headquarters: IDBI Bank's headquarters is located in Mumbai, Maharashtra, India.

- Branch Network: The bank has an extensive network of branches and ATMs across India, serving millions of customers.

 Future Prospects

- Digital Transformation: IDBI Bank is focusing on digital banking services to enhance customer experience and operational efficiency.

- Expansion Plans: The bank aims to expand its footprint and diversify its product offerings to cater to a broader customer base.

In summary, the Industrial Development Bank of India (IDBI) has evolved from a development finance institution to a full-service public sector bank, playing a crucial role in the industrial and economic development of India.