IDBI

INTRODUCTION
 Industrial development bank of India (IDBI) was
established in 1964 by an Act to provide credit and
other financial facilities for the development of the
fledging Indian Industry.
 Initially it operated as a subsidiary of Reserve bank of
India later RBI transferred it to Government of India.
 It currently has 3700 ATMs, 1892 branches, including
one overseas branch in Dubai, and 12, 122 centers.
Objectives of IDBI
 The main objectives of IDBI is to serve as the apex
institution for term finance for industry in India. Its
objectives include:
 Co-ordination, regulation and supervision of the working
of other financial institutions such as IFCI , ICICI, UTI,
LIC, Commercial Banks and SFCs.
 Supplementing the resources of other financial institutions
and there by widening the scope of their assistance.
 Planning, promotion and development of key industries
and diversification of industrial growth.
 Devising and enforcing a system of industrial growth that
conforms to national priorities.
Functions of IDBI
 To grant loans and advances to IFCI, SFCs or any other
financial institution by way of refinancing of loans granted
by such institutions which are repayable within 25 year.
 To grant loans and advances to scheduled banks or state co-
operative banks by way of refinancing of loans granted by
such institutions which are repayable in 15 years.
 To grant loans and advances to IFCI, SFCs, other
institutions, scheduled banks, state co-operative banks by
way of refinancing of loans granted by such institution to
industrial concerns for exports.
 To grant loans to any industrial concern.
 To guarantee loans raised by industrial concerns in the
market or from institutions.
 To provide consultancy and merchant banking services
in or outside India
IDBI LENDING PROCEDURES
 The current procedure for lending at IDBI includes:
 Inquiry stage
 Application stage
 Site visits
 Preparation of an appraisal note
 Evaluation by IDBI committee
 The issuance of a Letter of Intent
 Preparation of a legal agreement for lending for
suitable projects.
Awards and recognitions
 IDBI Bank was ranked #1197 in the Forbes Global 2000
in May 2013.
 It received the Overall Best Bank and Best Public
Sector Bank awards in the Dun & Bradstreet Banking
Awards 2011.
 In 2011, it received Banking Technology awards for best
use of business intelligence and the best risk
management from Indian Banks Association.
Conclusion
To conclude it can be said that IDBI is one of the
development finance institution that helped not only in
long term activities but also the societal and short term
activities. It has opened variety of institutions for
promoting and developing the industries and economy
as a whole. It has been approved by the government to
invest 100% by foreign investors that helped in more
financial assistance for the industries.
At the end it can be said that IDBI has
contributed its huge part for developing the economy as
a whole.