Industrial Development Bank of India

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The Industrial Development Bank of India is one of the well known public financial institutions in India. It is also known as IDBI and is the fourth largest bank in terms of the ratings. According to the Reserve Bank of India, the Industrial Development Bank of India is categorized as "other public sector bank". The main aim of the formation of the IDBI was to provide easy loans and financial support to the industrial sector in order to develop the industrial sector and also the Indian economy.

Growth of Industrial Development Bank of India

The Industrial Development Bank of India was established in the year 1964 by the Act of Parliament. The main aim was to provide more financial impetus to the industrial sector in order to add to the Gross Domestic Product. Since then, the bank has gradually grown itself to become one of the well known financial institutions in the country by providing high class facilities and services. Today, it has become the tenth largest development bank in the world in terms of reach and reception. The bank has 975 ATMs, 352 centers and 568 branches. The IBDI is also credited with the establishment of other renowned financial institutions such as the National Stock Exchange of India, the Stock Holding Corporation of India and the National Securities Depository Services Ltd. Some basic facts about the bank are:

TypePublic sector bank
Key personalitiesChairman, Yogesh Agarwal
ProductsFinancial services
EmployeesAround 8989

To keep pace with the changing trends, the Industrial Development Bank of India has come up with various reforms. The main aim of the new reforms is to emphasize on the financial and commercial aspect in addition to acting as a financial organization. In the year 2004, the bank was given the status of a public limited company and was renamed as Industrial Development Bank of India Limited (IDBIL). The Reserve Bank of India (RBI) also nominated IDBI as a scheduled bank under the RBI Act, 1934. Since then, the bank has entered into business transactions with the name of IDBIL.

In the year 2008, the IDBI went into a joint venture with Fortis Insurance International and the Federal Bank for making the IDBI Fortis Life Insurance program. The ownership of the bank in this program is around 48 %. According to the recent surveys, the premium of the bank amounts to around ` 300 Crores.

Services of Industrial Development Bank of India

In order to increase its customer base, the Industrial Development Bank of India offers a number of customized and innovative banking services. The services are meant to offer cent percent satisfaction to the customers. Some of the well known services offered by the bank are:

Wholesale Banking services: The wholesale banking services form a major part of the banking services of the bank. The services that are offered under the wholesale division are:
  • Cash Management
  • Transactional services
  • Finance of working capital
  • Agro based business transactions
  • Trade services
The wholesale banking services are an important source of income in a number of infrastructure projects such as power, transport, telecom, railways, roadways, and logistics and so on.

Retail Banking Services: The Industrial Development Bank of India is also a leader in the retail banking services. The Net Interest Income amounted to around ` 2166 Crores while the Net Profit amounted to around ` 187 Crores. The main objective of the retail services is to provide high quality financial products to the target market to give that one-stop-solution to the banking needs. The retail products offered by the bank include:

  • Housing loans
  • Personal loans
  • Securities loans
  • Mortgage loans
  • Educational loans
  • Merchant establishment overdrafts
  • Holiday travel plans
  • Commercial property loans
Treasury facilities and services: The net interest income of this sector amounts to around ` 1283 Crores while the net profit amounts to around ` 44.8 Crores. One can get an array of financial products such as cash management services, deposit, treasury products, trade finance services and so on. The three segments in this sector are:
  • Local Currency Money Market
  • Debt Securities and equities
  • Foreign Exchange and Derivatives

Other services of Industrial Development Bank of India

In addition to these, IDBI also offers some allied services and financial solutions to cater to the target audience. To cater to the capital market, the bank has floated the IDBI Capital Market Services Limited, also known as IDBI Capital. The various services offered in this section are:
  • Corporate Advisory Services
  • Financial product distribution
  • Pension fund management
  • Corporate and retail services
  • Debt management services
The IDBI Home Finance Limited is also a subsidiary of the Industrial Development Bank of India. It is used for the purpose of providing long term loans and other financial benefits to various companies of the industrial sector.

In addition to these, there is also the IDBI Intech Limited which is a trusted name in the field of system support and implementation, applications, server hosting, system integration and other related services. Another subsidiary of the Industrial Development Bank of India is the IDBI Gilts Limited. The main services of this segment is trading of bonds, offering insurance, auction underwriting and so on.

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