History of IDBI
Industrial Development Bank of India was constituted under the Industrial Development Bank of India Act of 1964. It was started as a development financial institution and started operations on July 1st, 1964. It maintained it’s DFI status for over 40 years until it was transferred into a bank in 2004.
Commercial necessities prompted the elevation of IDBI into a bank. A new act of 2003 was passed to repeal the previous act of 1964. After that, the working of IDBI was transferred and vested on IDBI Ltd. So, it has been performing a dual role of both bank and financial institution.
The Mission of IDBI Bank
IDBI bank strives to uphold the best interests of its customers through superior customer service. Upgrading the existing corporate and retail framework and extend its footprint to significant towns and cities of India. Encouraging a positive and dynamic performance-driven workforce is one of the primary objectives of this bank. They wish to consistently reduce paperwork and move towards a greener and cleaner environment reducing carbon footprints.
Objectives and Functions of IDBI
The main objectives of IDBI encapsulate the following points:
Achieve a dynamic industrial growth by the proper deployment of resources through planning and promotion
Devise an industrial growth keeping in mind the national priorities of the country
Widening the ambit of financial lending through supplementation and reallocation of resources from other financial institutions
Supervising and regulating the working of other financial institutions like ICICI, IFCI, UTI, LIC, commercial banks and SFC’s
The chief functions of IDBI are as follows:
Granting loans and advances to scheduled banks and state cooperative banks through refinancing of loans which are repayable within 15 years
Granting loans to other industrial concerns
Provide advisory and consulting services to merchant banks
Underwriting shares of various industrial units
Planning and promoting Indian industries in line with the interests of the country
Products Offered by IDBI
There are numerous products offered by IDBI some of which are discussed below:
IDBI Personal Banking
Flexible Current A/C’s
Debit & Credit Cards
FD’s and lockers
IDBI Agriculture Banking
Term loans to agricultural sectors
Indirect financing to agricultural units
Apart from this IDBI also extends loans to corporate sectors and has an exclusive sector dedicated to the NRI banking sector. IDBI bank has own numerous awards and recognition for its services. It is charting a new course in excellent banking every day taking the Indian economy to new heights.
1. Is IDBI a Nationalized Bank?
Ans: Although IDBI is a public sector bank it is not nationalized. It was set up in 1964 as a wholly owned subsidiary of RBI. Later on, the shares were transferred to the Government of Indian in 1976.
2. What do You Know About IDBI Bank?
Ans:IDBI abbreviation means the Industrial Development Bank of India. It was established in 1964 by a separate banking act and was made a bank in 2004. The main objectives of IDBI are to advance credits to the agricultural sector and promote industrial growth in India.
3. Has the IDBI Bank Failed?
Ans: IDBI bank has seen his assets falling by around 7% during the March-June fiscal quarter. The losses have caused the capital ratios to also slip abnormally. This means that the bank is unable to check its bad loans.
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