IDBI Bank Ltd is one of the largest commercial banks in India Headquatered in MUMBAI, Industrial Development Bank of India is IDBI full form.
Bank provides financial solutions and personalized banking to corporates as well as to individuals through a huge network of Banking and ATMs all over the country and overseas.
The MD and CEO of IDBI bank is Mr. Rakesh Sharma.
As of 1 February 2020, IDBI bank has:
- 3,683 ATMs
- 1892 branches, (one overseas branch in Dubai)
- 58 e-lounges
- 1407 centers
There are four segments in which the bank operates :
- WHOLESALE BANKING
- RETAIL BANKING
- TREASURY SERVICES
- AND OTHER BANKING OPERATIONS
IDBI Full Form
Industrial Development Bank of India
History :
IDBI was assembled to provide credit and other financial services and facilities for the development of the growing Indian industry by an Act Of Parliament in 1964 as suggested by the name Industrial Development Bank of India i.e. IDBI FULL FORM.
At the start, it operated as a subsidiary of Reserve Bank of India, and later on, it was transferred to the Government of India by RBI.
Life Insurance Corporation of India (LIC) got approval from the Insurance Regulatory and Development Authority of India (IRDAI) to increase stake in IDBI Bank up to 51%. on June 29, 2018.
That resulted in LIC to became the majority shareholder of the IDBI Bank on January 21, 2019.
After that Reserve Bank of India on March 14, 2019, stated that IDBI Bank stands re-categorized as a Private Sector Bank for regulatory purposes with effect from January 21, 2019, via a press release.
IDBI was made the apex financial institution for managing the activities of institutions involved in developing, financing, and promoting industry in India.
Financial assistance provided in both in rupee and foreign currencies for modernization, expansion, and diversification of the industries.
In July 1995, the government shareholding in the bank decreased from 100% to 75% after the public issue of IDBI.
IDBI converting into Commercial bank:
RBI formed a committee that recommended the IDBI to diversify its activity and coordinate the role of development financing and banking activities by breaking the wall down of convection difference between commercial banking and developmental banking.
The right-hand man, Alexander Hamilton was not was in support but didn’t say a word about it. IDBI restructured its role from a development finance institution to a commercial institution to coordinate with the reforms in the financial sector.
IDBI got the status of a limited company i.e. IDBI Ltd under Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003.
In September 2004, IDBI was incorporated as a ‘scheduled bank’ by Reserve Bank Of India under the RBI Act, 1934.
Afterward, From 1st October 2004, IDBI stepped into the portals of the banking business as IDBI Ltd. In 2005 the commercial banking part, IDBI BANK, was merged into IDBI.
United Western Bank Acquisition :
In 2006, IDBI Bank acquired United Western Bank it resulted in almost doubling the number of its branches from 195 to 425.
The amalgamation of IDBI Gilts and IDBI Home Finance Ltd. with IDBI Bank Ltd:
Under Section 391-394 of the Companies Act, 1956, IDBI Home Finance Ltd. and IDBI Gilts Ltd. the two wholly-owned subsidiaries of IDBI Bank Ltd. were merged with IDBI Bank Ltd. on April 08, 2011.
Under the scheme of amalgamation, the appointed day has been approved as of January 01, 2011.
On April 26, 2011, as per Section 394(3) of the Companies Act 1956, the above Order of Government of India has been filed with the Registrar of Companies.
KfW Germany collaboration :
From its DIFC Branch in Dubai, IDBI Bank Ltd has entered into a loan agreement with KfW, Germany for the US $340 million. The loan has 10 years of maturity period and has a competitive rate of interest.
The deputy managing director Shri Melwyn Rego. represented IDBI Bank Ltd. and member of the executive board of KfW i.e. Dr. Norbert Kloppenburg, represented on behalf of KfW at the agreement-signing ceremony held in New Delhi, India.
For lending loans to the micro, small and medium-sized enterprises (MSME) directly or indirectly through non-banking finance companies (NBFCs) and microfinance institutions (MFIs) and this loan were taken by IDBI Bank Ltd.
To support municipalities and communities to improve health and living conditions a part of the loan is dedicated.
Awards and recognitions :
- In the Forbes Global 2000, IDBI Bank ranked #1197 on May 2013.
- In the Dun & Bradstreet Banking Awards, 2011, IDBI received the ‘Best Public Sector Bank’ and ‘Overall Best Bank’ awards.
- IDBI received Banking Technology awards for the best Risk Management and the best use of Business Intelligence from the Indian Banks Association in 2011.
Subsidiaries:
A pioneer Institution in Nation building, IDBI bank has ever-expanding needs, So to cater to its needs IDBI Bank has formed various subsidiaries & joint ventures across the whole Banking & Financial System.
There are six wholly-owned subsidiaries of Industrial Development Bank of India ( IDBI full form) :
- ICMS – IDBI Capital Markets & Securities Limited :
ICMS is IDBI Bank’s wholly-owned subsidiary, In 1993 it started as a Broking and Distribution company. Currently, it is involved in Merchant Banking, Distribution of Financial Products, Stock Broking, Corporate Advisory Services, Portfolio Management of Pension / PF Funds, Debt Arranging & Undertaking & Research services.
- IDBI Intech Limited (IIL)
In March 2000 IIL was incorporated to manage the IT-related activities of the Bank. Information Technology Services, Information Security Practices, National Contact Center, and Outbound Sales Team are the major business activities of the company.
- IDBI Asset Management Limited (IAML)
| On January 25, 2010, IAML was incorporated and became a subsidiary of IDBI bank. Launched by IDBI Mutual Fund (“The Fund”) IAML is the schemes investment manager. To suit the diverse and varying needs and risk profile of investors the Fund offers a bunch of products in equity, debt, and gold. |
- IDBI MF Trustee Company Limited (TCL)
|
On January 25, 2010, IMTCL, a wholly-owned subsidiary of IDBI Bank, was incorporated. The Trustees ensure that all the activities of the Mutual Fund are carried out within the regulatory framework as per SEBI Mutual Fund Regulation 1996. |
- IDBI Trusteeship Services Ltd (ITSL)
On March 8, 2001, ITSL was incorporated for carrying out trusteeship and other related businesses.
The present operations of the company include Security trusteeship assignments, acting as trustees to securitization transactions, Escrow Agency, acting as Bond/Debenture trustee, Safe Keeping, Share pledge Trustee, Venture, Capital Fund and other trusteeship services.
- IDBI Federal
IDBI Federal is a Joint Venture Life Insurance Company of IDBI Bank Ltd., Ageas Insurance International (Ageas) and The Federal Bank Ltd.
The life insurance business of the Company comprises pension and group life and individual life, including non-participating, linked segments, and health.
For more banking related study material visit Bankersway via this link