IDBI Bank

#1845

Rank

$7.78B

MarketCap IN

IN India

Country

Summary
IDBI Bank Limited provides banking and financial solutions to retail and corporate clients in India. It operates through Corporate/Wholesale Banking, Retail Banking, Treasury, and Other Banking Operations segments. The company offers savings, current, and salary accounts, and fixed deposits; home, auto, education, and personal loans, as well as loans against properties and securities; debit, credit, and prepaid cards; phone, mobile, and Internet banking services; and investment advisory and capital market services. It also provides fund and non-fund-based assistance; packing credit to exporters; receivable buyout with recourse; channel financing for dealers of corporates; scheme for financing automated teller machines (ATMs)/cash dispense vendors; technology upgrading fund scheme for textile and jute industries; and lending to non-banking finance companies/housing finance companies and commercial real estate sector. In addition, the company offers bank guarantees, letters of credit, documentary collection, bill discounting, and foreign currency; cash management, treasury, trade finance, and remittance services; and debt syndication and advisory services. Further, it provides finance to micro, small, and medium enterprises; agriculture finance; and products and services for non-resident Indians. Additionally, the company offers information technology and security, and contact center services; merchant banking, stock broking, portfolio management of pension/PF funds; and mutual fund, security trusteeship assignments, share pledge trustee, venture capital fund, safe keeping, escrow agency, and other trusteeship services, as well as acts as a trustee to securitization transactions and bond/debentures. As of March 31, 2022, it operated 1,886 branches, 3,403 ATMs, and 58 e-lounges. The company was formerly known as IDBI Ltd. and changed its name to IDBI Bank Limited in May 2008. The company was founded in 1964 and is headquartered in Mumbai, India.

History

Overview of development banking in India

Development Banking emerged after the Second World War and the Great Depression in the 1930s. The demand for reconstruction funds for the affected nations compelled in setting up of national institutions for reconstruction. At the time of Independence in 1947, India had a fairly 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. Specialized Development Financial Institutions such as the IDBI, NABARD, NHB and SIDBI were set up to meet the long-term financing requirements of industry and agriculture.

Formation of Industrial Development Bank of India

The Industrial Development Bank of India was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India. In 1976, the ownership of IDBI was transferred to the Union government and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects and also for expansion, modernization, and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI also provided 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 the sale of indigenous machinery on deferred payment terms.

After the public issue of IDBI in July 1995, the government shareholding in the bank came down from 100% to 75%.

IDBI played a pioneering role, particularly in the pre-reform era , in catalyzing broad-based industrial development in India in keeping with its Government-ordained 'development banking' charter. Some of the institutions built with the support of IDBI are the Securities and Exchange Board of India , National Stock Exchange of India , the National Securities Depository Limited , the Stock Holding Corporation of India Limited , the Credit Analysis & Research Ltd, the Exim Bank , the Small Industries Development Bank of India and the Entrepreneurship Development Institute of India.

Conversion of IDBI into a commercial bank

A committee formed by RBI recommended the development financial institution to diversify its activity and harmonize the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. To keep up with reforms in financial sector, IDBI reshaped its role from a development finance institution to a commercial institution. With the Industrial Development Bank Act, 2003, IDBI attained the status of a limited company viz., IDBI Ltd.Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI formally entered the portals of banking business as IDBI Ltd. from 1 October 2004. The commercial banking arm, IDBI Bank, was merged into IDBI in 2005.

Direct government intervention

The merger was expected to streamline operations of the bank. However, IDBI continued to base its policy towards industrial sector like the erstwhile IDBI entity did. This resulted in the retail business of the bank to be limited to 13 percent of its total business. As of March 2018, the total Non Performing Assets rose to ?55,588 crore and were about 28 percent of its total loans. This was the highest among Indian banks. The Union government intervened, with Life Insurance Corporation bailing out the bank with an infusion of ?9,300 crores.On 29 June 2018, LIC got a technical go-ahead from the Insurance Regulatory and Development Authority of India to increase stake in IDBI Bank up to 51%. LIC completed the acquisition of 51% controlling stake on 21 January 2019, with a total investment of ?21,624 crores.


Mission
To be the most preferred and trusted bank enhancing value for all stakeholders.

Vision
To be the most preferred and trusted bank enhancing value for all stakeholders.

Key Team

Mr. Suresh Kishinchand Khatanhar (Deputy MD & Whole Time Director)

Mr. Samuel Joseph Jebaraja B.E., M.B.A. (Deputy MD & Whole Time Director)

Mr. Padmabhushan Bahadure (Chief Technology Officer)

Mr. Aloke Sengupta (Chief Gen. Mang.)

Mr. Shalil Mukund Awale (Exec. Director & Chief Compliance Officer)

Mr. Subrat Kumar Mohapatra (Chief Gen. Mang.)

Ms. Padma Vinod Betai (Chief Gen. Mang.)


Recognition and Awards
IDBI Bank has been awarded with various awards in areas like Financial Inclusion, Green Banking, Retail Banking and Technology. Some specific awards are – Winner of the prestigious National MSME Excellence Award 2018, Star Performer Award 2017 from CMSME, MPCG Award 2017 from Governemnt of MP for Financial Inclusion, FinTech Excellence Award 2019 for efficient delivery of service through digital banking .

References
IDBI Bank
Leadership team

Mr. Rakesh Kumar Sharma (MD, CEO & Exec. Director)

Mr. Pothukuchi Sitaram (CFO & Exec. Director)

Ms. Jyothi Biju Nair (Deputy GM, Company Sec. & Compliance Officer)

Products/ Services
Banking
Number of Employees
1,000 - 20,000
Headquarters
Mumbai, Maharashtra, India
Established
1964
Net Income
100M - 500M
Revenue
Above - 1B
Traded as
IDBI.NS
Social Media
Sat Feb 24 2024
About

businessabc offers a global business, SMEs wiki directory blockchain, NFTs, AI powered marketplace for businesses worldwide.

Follow Us
Produced by
In collaboration with
Logo

Copyright 2023 © businessabc powered by ztudium