IDBI Bank

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Industrial Development Bank of India Ltd.

Type Public sector bank

Industry Banking

Financial services

Founded July 1964

Headquarters Mumbai,India

Key people Shri R. M. Malla, CMD

Products Finance and insurance

Employees 8,989

Website www.idbi.com

The Industrial Development Bank of India Limited commonly known by its acronym IDBI is one

of India's leading public sector banks and 4th largest Bank in overall ratings. RBI categorised IDBI as an
"other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other
facilities for the development of the fledgling Indian industry. [1] It is currently 10th largest development bank
in the world in terms of reach with 1228 ATMs, 725 branches and 486 centers. [2] Some of the institutions
built by IDBI are the National Stock Exchange of India (NSE), the National Securities Depository Services
Ltd (NSDL), the Stock Holding Corporation of India (SHCIL), the Credit Analysis & Research Ltd,
the Export-Import Bank of India(Exim Bank), the Small Industries Development bank of India(SIDBI),
the Entrepreneurship Development Institute of India, and IDBI BANK, which today is owned by the Indian
Government, though for a brief period it was a private scheduled bank.

Contents
 [hide]

1 Recent developments

2 Overview of development banking in

India

3 Industrial Development Bank of India

(IDBI)

4 Industrial Investment Bank of India Ltd.

5 Acquisition of United Western Bank

6 See also

7 References

8 External links

[edit]Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to
reshape its role from a development finance institution to a commercial institution. With theIndustrial
Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited
company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the Reserve Bank of
India (RBI) issued the requisite notification on 30 September 2004 incorporating IDBI as a 'scheduled bank'
under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBIL
from 1 October 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI. In March 2008, IDBI Bank entered into a
joint venture with Federal Bank and Fortis Insurance International to form IDBI Fortis Life Insurance, of
which IDBI Bank owns 48 percent. The company ended the year with over 300 Cr in premiums as on 31
March 2009.

[edit]Overview of development banking in India

The concept of development banking rose only after Second World War, after the Great Depression in
1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide
institution for reconstruction. As a result the IBRD was set up in 1945 as a worldwide institution for
development and reconstruction. This concept has been widened all over the world and resulted in setting
up of large number of banks around the world which coordinating the developmental activities of different
nations with different objectives among the world. The Narashimam committee had recommended to give
up its direct financing functions and to perform only the promotional and refinancing role. However, the
S.H.Khan committee, appointed by the RBI, recommended its transformation into a universal bank. [3]

The course of development of financial institutions and markets during the post-Independence period was
largely guided by the process of planned development pursued in India with emphasis on mobilisation of
savings and channeling investment to meet Plan priorities. At the time of Independence in 1947, India had
a fairly well-developed banking system. The adoption of bank dominated financial development strategy
was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end,
the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The
commercial banking network was expanded to cater to the requirements of general banking and for
meeting the short-term working capital requirements of industry and agriculture. Specialised development
financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the
Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture. To
facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions
was also put in place by the Reserve Bank.

The first development bank In India incorporated immediately after independence in 1948 under the
Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and
large-scale. Then after in regular intervals the government started new and different development financial
institutions to attain the different objectives and helpful to five-year plans.

The early history of Indian banking and finance was marked by strong governmental regulation and control.
The roots of the national system were in the State Bank of India Act of 1955, which nationalized the former
Imperial Bank of India and its seven associate banks. In the early days, this national system operated
alongside of a large private banking system. Banks were limited in their operational flexibility by the
government’s desire to maintain employment in the banking system and were often drawn into troublesome
loans in order to further the government’s social goals.

The financial institutions in India were set up under the strong control of both central and state
Governments, and the Government utilized these institutions for the achievements in planning and
development of the nation as a whole. The all India financial institutions can be classified under four heads
according to their economic importance that are:

 All-India Development Banks

 Specialized Financial Institutions

 Investment Institutions

 State-level institutions

 Other institutions
[edit]Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of
Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership
of IDBI was transferred to the Government of India and it was made the principal financial institution for
coordinating the activities of institutions engaged in financing, promoting and developing industry in the
country. Although Government shareholding in the Bank came down below 100% following IDBI’s public
issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During
the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed,
diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the
process of industrial development in the country. IDBI has played a pioneering role in fulfilling its mission of
promoting industrial growth through financing of medium and long-term projects, in consonance with
national plans and priorities. Over the years, IDBI has enlarged its basket of products and services,
covering almost the entire spectrum of industrial activities, including manufacturing and services. IDBI
provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for
expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by
the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing
an integrated solution to meet the entire demand of financial and corporate advisory requirements of its
clients. IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-
level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of
indigenous machinery on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (1964–91),in catalyzing broad based
industrial development in the country in keeping with its Government-ordained ‘development banking’
charter. In pursuance of this mandate, IDBI’s activities transcended the confines of pure long-term lending
to industry and encompassed, among others, balanced industrial growth through development of backward
areas, modernisation of specific industries, employment generation, entrepreneurship development along
with support services for creating a deep and vibrant domestic capital market, including development of
apposite institutional framework.

Narasimam committee[4] recommends that IDBI should give up its direct financing functions and
concentrate only in promotional and refinancing role. But this recommendation was rejected by the
government. Latter RBI constituted a committee under the chairmanship of S.H.Khan to examine the
concept of development financing in the changed global challenges. This committee is the first to
recommend the concept of universal banking. The committee wanted to the development financial
institution to diversify its activity. It recommended to harmonise the role of development financing and
banking activities by getting away from the conventional distinction between commercial banking and
developmental banking.

In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of
Tata Finance Limited in Tata Home finance Ltd., signaling IDBI’s foray into the retail finance sector. The
fully-owned housing finance subsidiary has since been renamed ‘IDBI Home finance Limited’. In view of the
signal changes in the operating environment, following initiation of reforms since the early nineties,
Government of India has decided to transform IDBI into a commercial bank without eschewing its secular
development finance obligations. The migration to the new business model of commercial banking, with its
gateway to low-cost current, savings bank deposits, would help overcome most of the limitations of the
current business model of development finance while simultaneously enabling it to diversify its client/ asset
base. Towards this end, the IDB (Transfer of Undertaking and Repeal) Act 2003 was passed by Parliament
in December 2003. The Act provides for repeal of IDBI Act, corporatisation of IDBI (with majority
Government holding; current share: 58.47%) and transformation into a commercial bank. The provisions of
the Act have come into force from 2 July 2004 in terms of a Government Notification to this effect. The
Notification facilitated formation, incorporation and registration of Industrial Development Bank of India Ltd.
as a company under theCompanies Act, 1956 and a deemed Banking Company under the Banking
Regulation Act 1949 and helped in obtaining requisite regulatory and statutory clearances, including those
from RBI. IDBI would commence banking business in accordance with the provisions of the new Act in
addition to the business being transacted under IDBI Act, 1964 from 1 October 2004, the ‘Appointed Date’
notified by the Central Government. IDBI has firmed up the infrastructure, technology platform and
reorientation of its human capital to achieve a smooth transition.

IDBI Bank, with which the parent IDBI was merged, was a vibrant new generation Bank. The Pvt Bank was
the fastest growing banking company in India. The bank was pioneer in adapting to policy of first mover in
tier 2 cities. The Bank also had the least NPA and the highest productivity per employee in the banking
industry.

On 29 July 2004, the Board of Directors of IDBI and IDBI Bank accorded in principle approval to the merger
of IDBI Bank with the Industrial Development Bank of India Ltd. to be formed incorporated under
the Companies Act, 1956 pursuant to the IDB (Transfer of Undertaking and Repeal) Act, 2003 (53 of 2003),
subject to the approval of shareholders and other regulatory and statutory approvals. A mutually gainful
proposition with positive implications for all stakeholders and clients, the merger process is expected to be
completed during the current financial year ending 31 March 2005.

The immediate fall out of the merger of IDBI and idbi bank was the exit of employees of idbi bank. The
cultures in the two organizations have taken its toll. The IDBI BANK now is in a growing fold. With its retail
banking arm expanding further after the merger of United western Bank.

IDBI would continue to provide the extant products and services as part of its development finance role
even after its conversion into a banking company. In addition, the new entity would also provide an array of
wholesale and retail banking products, designed to suit the specific needs cash flow requirements of
corporates and individuals. In particular, IDBI would leverage the strong corporate relationships built up
over the years to offer customised and total financial solutions for all corporate business needs, single-
window appraisal for term loans and working capital finance, strategic advisory and “hand-holding” support
at the implementation phase of projects, among others.
IDBI’s transformation into a commercial bank would provide a gateway to low-cost deposits like Current
and Savings Bank Deposits. This would have a positive impact on the Bank’s overall cost of funds and
facilitate lending at more competitive rates to its clients. The new entity would offer various retail products,
leveraging upon its existing relationship with retail investors under its existing Suvidha Flexi-bond schemes.
In the emerging scenario, the new IDBI hopes to realize its mission of positioning itself as a one stop super-
shop and most preferred brand for providing total financial and banking solutions to corporates and
individuals, capitalising on its intimate knowledge of the Indian industry and client requirements and large
retail base on the liability side.

IDBI upholds the highest standards of corporate governance in its operations. The responsibility for
maintaining these high standards of governance lies with its Board of Directors. Two Committees of the
Board viz. the Executive Committee and the Audit Committee are adequately empowered to monitor
implementation of good corporate governance practices and making necessary disclosures within the
framework of legal provisions and banking conventions.

[edit]Industrial Investment Bank of India Ltd.

The industrial investment bank of India is one of oldest banks in India. [5] The Industrial Reconstruction
Corporation of India Ltd., set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as
Industrial Reconstruction Bank of India in 1985 under the IRBI Act, 1984. With a view to converting the
institution into a full-fledged development financial institution, IRBI was incorporated under the Companies
Act, 1956, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. IIBI offers a wide range of
products and services, including term loan assistance for project finance, short duration non-project asset-
backed financing, working capital/ other short-term loans to companies, equity subscription, asset credit,
equipment finance as also investments in capital market and money market instruments.

In view of certain structural and financial problems adversely impacting its long-term viability, IIBI submitted
a financial restructuring proposal to the Government of India on 25 July 2003. IIBI has since received
certain directives from the Government of India, which, inter alias, include restricting fresh lending to
existing clients approved cases rated corporates, restrictions on fresh borrowings, an action plan to reduce
the overhead expenditure, disposal of fixed assets and a time-bound plan for asset
recovery/reconstruction. The Government of India had also given its approval for the merger of IIBI with
IDBI and the latter had already started the due diligence process. [6]

But on 17 December 2005 the IDBI rejected any such merger. [7]

[edit]Acquisition of United Western Bank

In 2006, IDBI Bank acquired United Western Bank in a rescue.[8] Annasaheb Chirmule, who worked for
the cause of Swadeshi movement, founded Satara Swadeshi Commercial Bank in 1907, and some three
decades later founded United Western Bank. The bank was incorporated in 1936, and commenced
operations the next year, with its head office in Satara, in Maharashtra State. It became a Scheduled Bank
in 1951. In 1956 it merged with Union Bank of Kolhapur, and in 1961 with Satara Swadeshi Commercial
 Bank.[9] At the time of the merger with IDBI, United Western had some 230 branches spread over 47
districts in 9 states, controlled by five Zonal Offices at Mumbai, Pune, Kolhapur, Jalgaon and Nagpur.

Establishment
The Industrial Development Bank of India or IDBI was established on 1st July, 1964 as an apex bank (the
counterpart of Reserve Bank) in the field of industrial finance and capital market. However, it was de-linked from
Reserve Bank on 16th February, 1976 and was given a separate independent entity under Central Government.
It has completed 35 years on 30th June, 1999.

Objectives
It is the apex institution to co-ordinate, supplement, and integrate the activities of all existing
specialized financial institutions. It is a re-financing and re-discounting institution operating in thecapital market to
re-finance term loans and export credits. It is in charge of conducting lechno-economic studies. It offers loans on
purpose and not merely on the security of property as mortgage or pledge.

In the beginning it was a subsidiary of the Reserve Bank of India and both had common board of directors. But
since 1976 (Feb.) it has been de-linked from RBI. It has now its independent board representing the Government,
Commercial Banks, Financial Institutions and industries. As an independent institution, it can now play much
more effective role in rendering financial assistance. Thus, now we have evolved an integrated capital
market structure for industrial finance functions. The IDBI undertakes:

 Refinancing of loans granted by other special financial institutions, banks and cooperatives.

 Granting of loans to industrial units.
 Rediscounting of bills of exchange.
 Guaranteeing of loans and deferred payments.
 Planning and promoting industries.
 Investment in other financial corporations.
 Underwriting the issue of shares and debentures of industrial units.

Financial Resources, (i) Share Capital. The Present authorized capital of IDBI is Rs. 1,000 crores (Increased
from Rs. 500 crores to Rs. 1,000 crores). It can be increased up to Rs. 2,000 crores.

 The paid-up capital in 1998-99 stood at Rs. 660 crores as against Rs. 659 crores in 1977-78.
 Bonds: The IDBI is authorized to issue bonds.
 Loan from Central Government: The IDBI is empowered to take loan from the central government.
 Loan from Reserve Bank: The IDBI is authorized to take loan from the Reserve Bank on its securities for
a period of 90 days.
 Loan in Foreign Currency: The IDBI is empowered to take loan in foreign currency.
 Reserve Fund: The reserve fund during 1998-99 stood at Rs. 8,033 crores as against Rs. 8003 crores in
1997-98.
 Other Sources: Other financial sources of IDBI includes public deposits, grants etc.
Management
The IDBI is managed by a board of directors. The maximum number of directors in the board is twenty two only.
At present there are in all eighteen directors in the board of directors. The head-office of IDBI is situated in
Mumbai. It has five regional offices situated in New Delhi, Kolkata, Chennai and Guwahati. Besides
the regional office, the IDBI has 20 branch offices situated in different parts of the country.
Review of Progress (Operations)
IDBI has given special attention to better regional development and innovational and promotional activities. It has
conducted surveys of backward regions. It has given special help to backward regions on concessional terms.
IDBI is playing a more dynamic role in promoting growth of industries as an innovator in the area
of industrial finance. The financial resources are being diverted into socially more desirable channels. Emphasis
is being placed on assistance to small and new entrepreneurs and units located in underdeveloped regions in the
country.

IDBI is the major source of industrial finance. Its sanctioned and disbursed amount is 37% and 40% respectively
of the total sectioned and disbursed amount of all the term-lending institutions. In the field of company promotion,
IDBI has set up technical consultancy organisation which helps in the preparation of feasibility studies, project
reports, guidance in the economic, financial and managerial aspects of the new prospect.

Refinance of export credit is offered at a lower rate of interest. In the field of export financing, it was acting as an
export bank. It is due to the fact that IDBI is the apex  bank in the world of industrial finance and it must act
primarily as a residual lender of last resort and fill up the gaps in industrial finance which are left out by
other financial institutions.

Critical Evaluation
The IDBI, during 35 years of its working has done commendable job in different areas. It has given special
attention to better regional development and innovational and promotional activities. It has conducted surveys of
backward regions. It has provided special help to backward areas of the country on concessional terms.
The financial resources of IDBI are being directed into socially more desirable channels, refinance of export
credit is offered at the lower rate of interest. It sanctioned and disbursed amounts are nearly 37% and 40%
respectively of the total sanctioned and disbursed amount of all the term lending institutions of India. Thus, under
the able leadership of IDBI, the specialized termfinancial institutions of our country are poised to play a vital and
dynamic role  in the process ofindustrial development of our country.

Industrial Development Bank of India (IDBI)  

Click Here for Specimen Table  
Figures at All-India / State level : (Currently showing India with State Level consolidated
figures)Maharashtra |
(Data table headings are shown Year-wise in descending order)

  Asset Classification of IDBI (1998 to 2004)

  Assistance Sanctioned and Disbursed by IDBI in India (1964-1970, 1970-1975, 1975-
1980, 1980-1981 to 2003-2004)
  Category-wise Share Holding Pattern of IDBI (2003 and 2004)
  Financial Highlights of IDBI (As of Year-end) in India (1994-1995 to 2003-2004)
  Income and Expenditure of IDBI in India (2002 to 2004)
  Industry-wise Assistance Disbursed by IDBI in India (1999-2000 to 2003-2004)
  Industry-wise Assistance Sanctioned by IDBI in India (1999-2000 to 2003-2004)
  Industry-wise Outstanding Assistance of IDBI (1998 to 2004)
  Investment in Shares of Other Institutions by IDBI in India (1999-2000 to 2003-
2004)
  Liabilities and Assets of Industrial Development Bank of India - Part II (1971 to
2004) - Part II
  Liabilities and Assets of Industrial Development Bank of India (1971 to 2004) - Part I
  Maturity Pattern of IDBI's Assets and Liabilities in India (1999-2000 to 2003-2004)
  Operational Highlights of IDBI in India (1999-2000 to 2003-2004)
  Outstanding Assistance Portfolio of IDBI in India (1998 to 2004)
  Overall Operational of IDBI in India (1999-2000 to 2003-2004)
  Product-wise Assistance Disbursed by IDBI in India (1999-2000 to 2003-2004)
  Product-wise Assistance Sanctioned by IDBI in India (1999-2000 to 2003-2004)
  Purpose-wise Assistance Disbursed by IDBI in India (1999-2000 to 2003-2004)
  Purpose-wise Assistance Sanctioned by IDBI in India (1999-2000 to 2003-2004)
  Refinance Assistance Sanctioned and Disbursed (SFCs and SIDCs) by IDBI in India
(1999-2000 to 2003-2004)
  Resources Utilization and Working Results of Industrial Development Bank of India
(31.03.2001 to 31.03.2004)
  Sector-wise Assistance Disbursed by Industrial Development Bank of India (1995-
1996 to 2003-2004)
  Sector-wise Assistance Sanctioned by Industrial Development Bank of India (1995-
1996 to 2003-2004)
  State-wise Assistance Disbursed by IDBI in India (1999-2000 to 2003-2004)
  State-wise Assistance Sanctioned by IDBI in India (1999-2000 to 2003-2004)
  Industry-wise Loans Disbursed by IDBI in India (1999-2000 to 2002-2003)
  Financial Parameters of Industrial Development Bank and Its Assistance in India
(1991-1992 to 2001-2002)
  Forms of Assistance by Industrial Development Bank of India (1991-1992 to 2001-
2002)
  List of IDBI Bank ATMs in India (As on 13th March, 2002)
  Cash Flow Statement of IDBI in India (2001)
  IDBI Assistance to Technical Consultancy Organisations(TCOs) in India (During 1996-
1997 to 2000-2001)
  Outstanding Debt of IDBI in India (1998 to 2001)
  Share Holding Pattern of IDBI in India (At the end of March, 1999 and 2001)
  Trend in Resource Support to other Financial Institutions by IDBI in India (1995-1996
to 2000-2001)
  Cash Flow Statement of Industrial Development Bank of India (For the year ended
 March 31, 2000)
  State-wise Applications Received for Financial Assistance by IDBI in India (During
1998-1999 to April - June 2000)
  State-wise Direct Financial Assistance Sanctioned and Disbursed by IDBI in India
(During 1997-1998 to April - June 2000)
  Industry-wise Assistance Disbursed by IDBI in India (1995-1996 to 1998-1999)
  Industry-wise Assistance Sanctioned by IDBI in India (1995-1996 to 1998-1999)
  Institution-wise Refinance Assistance Sanctioned and Disbursed by IDBI in India
(1996-1997 to 1998-1999)
  Operational Highlights of IDBI in India (1994-1995 to 1998-1999)
  Overall Operations of IDBI (1997-1998 and 1998-1999)
  Product-wise Assistance Disbursed by IDBI in India (1996-1997 to 1998-1999)
  Product-wise Assistance Sanctioned by IDBI in India (1996-1997 to 1998-1999)
  Purpose-wise Assistance Sanctioned by IDBI in India (1995-1996 to 1998-1999)
  State-wise Assistance Disbursed by IDBI in India (1995-1996 to 1998-1999)
  State-wise Assistance Sanctioned by IDBI in India (1995-1996 to 1998-1999)
  Institutionwise Refinance Assistance Sanctioned and Disbursed by IDBI in India
(1994-1995 and 1995-1996)
  Schemewise Assistance Disbursed by IDBI in India (1994-1995 and 1995-1996)
  Schemewise Assistance Sanctioned by IDBI in India (1995-1996)
  Financial Parameters of Industrial Development Bank and Its Assistance in
India (1980-1981, 1985-1986 to 1990-1991)
  Forms of Assistance by Industrial Development Bank of India (1975-1976, 1980-
1981, 1985-1986 to 1990-1991)

Specimen Data Tables : Banks and Financial Institutions

Financial Institution-wise Disbursement in India 

(2000-2001 to 2002-2003)
(Rs. in Crore)
Institution 2000-01 2001-02 2002-03
IDBI 1743.6 1151 3924.2
IFCI 2152.7 1096.9 1796.5
ICICI 31664.5 25831 -
IIBI 1709.8 1070 1091.9
IDFC 766.5 1506.1 949.3
SIDBI 6441.4 5919.3 6789.4
Exim Bank 2070.5 3869.2 6047.8
NABARD 1412 1897 2216.4

Statewise Priority Sector Lending of Public

Sector Banks in India 
(1997 to 1999)
(Rs. in Crore)
March
States/UTs
1997 1998 1999
Andhra Pradesh 7205.62 8727.80 9202.44
Arunachal Pradesh 20.27 23.79 29.93
Assam 1018.89 963.16 1083.80
Bihar 2993.98 3107.43 3604.20
Goa 269.47 339.87 421.09
Gujarat 4675.29 5542.48 6228.66
Haryana 2487.61 2893.73 3506.50
Himachal Pradesh 487.06 558.05 640.79
Jammu & Kashmir 247.54 302.80 342.98
Karnataka 5971.12 7017.59 8601.58
Kerala 3395.40 3499.60 3918.86
Madhya Pradesh 4205.57 4909.41 5638.55
Maharashtra 10453.26 12697.68 15457.85
Manipur 96.31 102.86 111.10
Meghalaya 49.26 62.05 67.02
Mizoram 19.18 22.72 27.35
Nagaland 66.46 58.92 65.90
Delhi 3743.13 4639.57 5902.95
Orissa 1901.25 2089.20 2105.74
Punjab 4695.32 5502.57 6583.48
Rajasthan 2808.41 3614.73 4197.77
Sikkim 17.63 24.67 27.82
Tamil Nadu 9049.19 9736.06 10467.29
Tripura 122.53 132.43 138.73
Uttar Pradesh 7435.39 8360.68 9298.93
West Bengal 4639.25 5155.67 5680.61
Andaman & Nicobar Islands 15.97 16.90 24.89
Chandigarh 509.34 509.27 576.50
Dadra & Nagar Haveli 6.36 11.99 17.04
Daman & Diu 6.59 7.50 8.40
Lakshadweep 1.76 2.16 2.27
Pondicherry 104.73 104.33 113.10

State-wise Net Small Savings Collections in India 

(1998-99 to 2001-02)
(Rs. in Crore)
Net Amount (including P.P.F.)
 Collected through Post Offices
States/UTs
1998- 1999- 2000- 2001-
99 2000 01 02
Andhra Pradesh 1121.10 1566.33 1809.68 1752.95
Assam 95.29 464.63 513.74 471.08
Arunachal Pradesh 14.39 10.29 15.32 11.71
Bihar 1676.50 1970.52 2210.29 1438.79
Bihar-Jharkhand - - 0.00 881.79
Gujarat 2661.90 3276.96 4281.25 3759.71
Goa 74.42 80.94 102.47 110.20
Haryana 907.32 970.23 978.18 1129.83
Himachal Pradesh 60.69 (-)507.27 235.79 304.12
Jammu & Kashmir 231.36 254.98 300.34 273.00
Karnataka 1162.16 1336.94 1570.96 1366.66
Kerala 555.54 689.62 491.71 495.46
Madhya Pradesh 1021.85 1215.50 993.28 1184.73
M.P. Chattisgarh - - 363.68 326.39
Maharashtra 2977.83 3171.76 4100.36 3406.98
Manipur 16.57 21.39 25.47 13.48
Meghalya 21.12 19.72 33.07 24.17
Mizoram 7.90 8.51 15.48 9.75
Nagaland 7.80 6.14 8.66 13.26
Orissa 435.06 521.18 545.18 569.98
 Punjab 1642.08 1920.04 2181.06 1832.03
Rajasthan 1594.02 2203.26 2609.22 2973.24
Sikkim 9.41 12.05 12.70 9.41
Tamil Nadu 874.19 1304.50 1600.22 1520.98
Tripura 71.71 104.70 138.27 126.06
Uttar Pradesh 3717.51 4334.12 4042.99 3979.95
Uttaranchal - - 462.60 484.07
West Bengal 4424.08 5249.12 6181.67 6488.02
Andaman & Nicobar
4.82 1.73 (-)4.37 1.11
Islands
Chandigarh 31.01 17.14 3.40 51.85
Daman & Diu 5.39 5.73 4.27 2.47
Delhi 1326.29 1087.93 1672.06 1571.74
Lakshadweep 0.05 0.20 0.11 0.05
Army Post Office 13.48 23.36 18.39 28.79
Pondicherry 8.26 20.90 61.47 80.88
India 26771.10 31363.15 37578.97 36694.69

Note : 1. The figures received from Department of Post, New Delhi 

             are subject to reconcilation.
          2. It does not include figures of P.P.F. of Banks.
          3. The break up of Kerala Circle is not available.

Industrial Development Bank of India (IDBI) is the tength largest bank in the world in terms of development. The
National Stock Exchange (NSE), The National Securities Depository Services Ltd. (NSDL), Stock Holding
Corporation of India (SHCIL) are some of the institutions which has been built by IDBI. IDBI is a
strategic investorin a plethora of institutions which have revolutionized the Indian Financial Markets. 

IDBI Bank, promoted by IDBI Group started in November 1995 with a branch at Indore with an equity capital
base of Rs. 1000 million.

Main functions of IDBI

IDBI is vested with the responsibility of co-ordinating the working of institutions engaged in financing, promoting
and developing industries. It has evolved an appropriate mechanism for this purpose. IDBI also
undertakes/supports wide-ranging promotional activities including entrepreneurship development programmes for
new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of
technology and programmes for economic upliftment of the underprivileged. 

IDBI's role as a catalyst

IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI
can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades
of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio. 

Developmental Activities of IDBI 

Promotional activities

In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities
relating to developmental programmes for new entrepreneurs, consultancy services for small and medium
enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the
underprivileged. These include entrepreneurship development, self-employment and wage employment in the
industrial sector for the weaker sections of society through voluntary agencies, support to Science and
Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries. 
Technical Consultancy Organisations

With a view to making available at a reasonable cost, consultancy and advisory services to entrepreneurs,
particularly to new and small entrepreneurs, IDBI, in collaboration with other All-India Financial Institutions, has
set up a network of Technical Consultancy Organisations (TCOs) covering the entire country. TCOs offer
diversified services to small and medium enterprises in the selection, formulation and appraisal of projects, their
implementation and review. 

Entrepreneurship Development Institute

Realising that entrepreneurship development is the key to industrial development, IDBI played a prime role in
setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country. It
has also established similar institutes in Bihar, Orissa, Madhya Pradesh and Uttar Pradesh. IDBI also extends
financial support to various organisations in conducting studies or surveys of relevance to industrial development.

The Industrial Development Bank of India Limited, popularly known as IDBI Bank is one of the leading public
sector banks in India. Categorized as "other public sector bank" by Reserve Bank of India (RBI), IDBI Bank is
also the 4th largest Indian bank. Founded in 1964 to provide credit and other facilities to its customers, IDBI Bank
currently has 457 centers, 688 branches and 1020 ATMs across the nation. It is world's 10th largest development
bank in terms of reach. IDBI Bank also built several institutions including the National Stock Exchange of India
(NSE), the Stock Holding Corporation of India (SHCIL) and the National Securities Depository Services Ltd.
(NSDL) etc.

Brief History

IDBI Bank was founded on July 1, 1964 under an Act of Parliament. It was established as a wholly owned
subsidiary of RBI (Reserve Bank of India). The ownership was however transferred to the Government of India
on February 16, 1976. It worked as the main financial institution, whose main goal was to coordinate with other
institutions associated with financing, developing and promoting the industry. With the public issue of IDBI Bank
released in July 1995, the share holding of the Government came down below 100%. However, the majority of
the share was still owned by the government, which is currently 52.3%. IDBI Bank started offering a wide array of
products and services to its customers, which covered entire range of industrial activities including services and
manufacturing.

In September 2003, IDBI acquired the entire shareholding of Tata Finance Limited in Tata Home Finance Ltd.
Since then, the fully owned housing subsidiary was known as 'IDBI Home Finance Limited'. Next year, on July
29, 2004, the Board of Directors of IDBI and IBDI Bank approved the merger of IDBI Bank with the Industrial
Development Bank of India Ltd. IDBI Bank also acquired United Western Bank in 2006.

Subsidiaries

IBDI Bank has the following subsidiaries:

 IDBI Capital Market Services Limited

 IDBI Home Finance Limited
 IDBI Intech Limited
 IDBI Gilts Limited

Products and Services

IDBI Bank offers a wide array of products and services to its customers. For different customer groups and
needs, there are different types of products and services including Personal Banking, Corporate Banking, SME
Finance and Agri Business etc.
Personal Banking

Following products and services are offered under Personal Banking:

 Deposits
o Savings Account
o Current Account
o Fixed Deposits
o Suvidha Tax Saving Fixed Deposit
o Pension Accounts
o Sabka Account
o Super Shakti Account for Women
o Jubilee Plus Account
 Loans
o Home Loans
o Loans Against Property
o Education Loans
o Personal Loan
o Loan Against Securities
o Reverse Mortgage Loan
o Auto Loan
 Payments
o Tax Payments
o Stamp Duty payments
o EasyFill
o Bill Payment
o Card to Card Money Transfer
o Online Payments
o PayMate
 Investments Advisory
o Smart Financial Planning
o Mutual Fund
o Insurance
o Fixed Income Securities
 Cards
o Gold Debit Card
o International Debit cum ATM Card
o Gift Card
o World Currency Card
o Cash Card
o KIDS Debit Card
o Foundation Day Cash Back Scheme 2009
o Platinum Card
 Institutional Banking
o Institutional Savings Account
o Corporate Payroll Account
 24 Hours Banking
o Phone Banking
o SMS Banking
o AccountAlerts
o Internet Banking
 Other products
o Lockers
o India Post
 Preferred Banking
 NRI Services
 Capital Market
o IPO
o Demat
Corporate Banking

Following products and services are offered by IDBI Bank for the corporates:

 Project Finance
 Infrastructure Finance
 Syndication, Underwriting & Advisory Services
 Carbon Credits Business
 Working Capital
 Cash Management Services
 Trade Finance
 Tax Payments
 Derivatives
 Technology Upgradation Fund Scheme (TUFS)
 Film Financing Scheme
 Direct Discounting Bills
 Rehabilitation Finance

SME Finance

Following SME Finance products are offered by the IDBI Bank:

 Sulabh Vyapar Loan

 Dealer Finance
 Funding under CGFMSE
 Direct Credit Scheme - SIDBI
 Preferred customer scheme - IDBI Bank / SIDBI
 Vendor financing (Pre - Sale)
 Vendor financing (Post - Sale)
 Lending Against the Security of Future Credit Card Receivables
 Working Capital Financing - Software Development Entities
 Finance to Medical Practitioners
 Loan to SRWTO
 SME Hosiery Special Current Account