IDBI Full Form
IDBI, complete form, is a private sector bank, non-nationalized, which provides products and services to its customers. The bank has various subsidiaries and is a part of the banking sector in India. Here, you will find more information on IDBI. The full name IDBI stands for Indian Development Bank.
IDBI is a private-sector bank
Despite being one of the country’s largest banks, IDBI has been plagued by poor performance. The bank has been in the Prompt Corrective Action (PCA) framework for nearly four years, which has limited its ability to lend and expand its business. It has also suffered from a lack of access to expensive deposits and poor profitability. To get back on track, IDBI needs to do several things, including becoming more tech-savvy and nimble.
The IDBI was founded in 1964 as the Development Financial Institution and has since diversified its business into a broad range of financial services. It has also played a significant role in promoting industrial development in the country. It helped create institutions such as the National Stock Exchange (NSE), the Stock Holding Corporation of India (SHV), and the Entrepreneurship Development Institute of India (SIDBI).
To acquire IDBI Bank, interested companies must clear a due diligence process to prove they are fit to take over the bank. The Reserve Bank of India will determine the qualifications of interested parties and the amount of equity stake they will need to purchase. The process of due diligence typically takes about six months, and IDBI Bank expects to invite financial bids in March.
It is a non-nationalized bank.
The IDBI Bank is a development finance institution owned by the Life Insurance Corporation of India and the Government of India. It was founded in 1964 as the Industrial Development Bank of India (IDBI) to offer financial services to the industrial sector. In 2005, it merged with IDBI Bank Limited and was placed under the category of “other development finance institution.” In response to the high NPA ratio of IDBI Bank, the government requested the Life Insurance Corporation to inject capital into the bank to meet regulatory requirements.
IDBI provides both direct and indirect financial assistance to the economy. The bank offers loans to industrial units within three to twenty-five years. Moreover, it invests in bonds and stocks of financial firms. It also engages in various marketing activities and has specific programs for the underprivileged.
The sale of IDBI Bank will result in a partial transfer of government and LIC stakes and a transfer of management control. However, the government has clarified that the government would not be buying a majority stake in the bank. Moreover, the government also clarified that it would not allow consortium bids.
It provides products and services to its customers.
IDBI is an Indian financial institution that provides its customer’s various financial products and services. Its products and services include project loans, rupee loans, foreign currency loans, corporate finance, and equity financing. It also offers equipment leasing and bill finance. Besides providing financial services, IDBI conducts research and development to benefit the industrial sector.
IDBI was established in 1964 and was taken over by the Government of India in 1976. It was established with the primary objective of providing financial assistance to the Indian industry and became one of the most prominent financial institutions in the country. It was instrumental in developing several national-level institutions such as the National Stock Exchange, Exim Bank, Stock Holding Corporation of India, and Entrepreneurship Development Institute of India.
The IDBI is also responsible for lending funds to state-level corporations. It assesses their business plans and resource forecasts to determine the optimal lending rates for specific projects. It fixes the rate based on the perceived risk, borrower’s track record, and industry outlook. IDBI also offers short and medium-term loans at interest rates related to maturity.
It has subsidiaries
IDBI is a financial institution that provides loans and financial services to the agricultural and corporate sectors. It also provides services to the NRI and MSME sectors. The company also has subsidiaries in several African countries. Its subsidiaries provide various products and services, including credit cards, loans, and leasing.
The IDBI Group has several subsidiaries. IDBI Fortis Life Insurance Company Ltd distributes a range of life insurance products. It also offers general insurance, homes range, and health insurance. In 2009, IDBI Fortis Life Insurance Company Ltd opened the first Cash Processing Centre in Mumbai, which won the Special Jury Award for technological initiatives at the IBA Banking Technology Awards.
IDBI also offers foreign exchange-related services. The bank offers spot currency purchases and debt servicing, swaps, forward exchange rate agreements, and other derivative products. However, it has not accepted trusteeship assignments since August 2000. However, IDBI has a subsidiary named IDBI Trusteeship Services Ltd. to help protect and manage funds for non-resident Indian clients.