Industrial Development Bank of India (IDBI)

IDBI stands for Industrial Development Bank of India. It was founded with the objective of financing and help develop small and medium scale industries in India.

IDBI was set up in July 1964 under an Act of Parliament as a wholly-owned subsidiary of Reserve Bank of India.

• In 1976 its ownership had been transferred to Government of India. After the transfer of its ownership, IDBI became the main institution, through which the institutes engaged in financing, promoting and developing industry were to be coordinated. International Finance Division of IDBI transferred to Export-Import Bank of India, established as a wholly-owned corporation of Government of India, under an Act of Parliament in the year 1982. 
• In January 1992, IDBI accessed domestic retail debt market for the first time, with innovative Deep Discount Bonds, and registered path-breaking success.The following year, it set up the IDBI Capital Market Services Ltd., as its wholly-owned subsidiary, to offer a broad range of financial services, including Bond Trading, Equity Broaking, Client Asset Management and Depository Services. 
• In September 1994, in response to RBI's policy of opening up domestic banking sector to private participation, IDBI set up IDBI Bank Ltd., in association with SIDBI.
• In July 1995, public issue of the bank was taken out, after which the Government's shareholding came down (though it still retains majority of the share holding in the bank).
• In September 2003, IDBI took over Tata Home Finance Ltd, renamed ‘IDBI Home finance Limited’, thus diversifying its business domain and entering the arena of retail finance sector.
• The year 2005 witnessed the merger of IDBI Bank with the Industrial Development Bank of India Ltd. The new entity continued to its development finance role, while providing an array of wholesale and retail banking products (and does so till date). The following year, IDBI Bank acquired United Western Bank (which, at that time, had 230 branches spread over 47 districts, in 9 states). In the financial year of 2008, IDBI Bank had a net income of Rs 9415.9 crores and total assets of Rs120,601 crores

Subsidiaries

The following are the subsidiaries of IDBI.

(1) Small Industries Development Bank of India (SIDBI)

(2) IDBI Bank Ltd.

(3) IDBI Capital Market Services Ltd.

(4) IDBI Investment Management Company