IDBI Full Form – Industrial Development Bank of India

IDBI Bank Limited (IDBI Bank) is a scheduled commercial bank. It is owned by LIC and the Government of India. In 1964, the Indian government established IDBI. It began as an RBI-owned subsidiary. The main aim was to provide finance to the industrial sector.

In 2005, IDBI merged with its commercial arm. After the merger, it became an “Other Public Sector Bank.” In March 2019, due to high NPA and low capital, the Government asked LIC to infuse capital. LIC took control of IDBI to meet RBI norms. LIC acquired 51% of shares. For regulatory purposes, IDBI has been regarded as a private sector bank since January 21, 2019.

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Full Form of IDBI

The Full form of IDBI is Industrial Development Bank of India. IDBI was once under RBI’s Prompt Corrective Action (PCA). On 10 March 2021, IDBI came out of PCA. At present, the Government of India holds about 95% shares (directly and indirectly). The Indian Government directed departments to allocate business to IDBI Bank. IDBI played a key role in building financial institutions like SIDBI, EXIM Bank, NSE, SEBI, and NSDL.

IDBI Operations

As of 31 March 2016, IDBI’s balance sheet stood at ₹3.74 trillion. The bank had 2,104 branches & 3,112 ATMs by March 2025. It also had twenty-four fixed BC outlets, 58 e-lounges, & 1,534 centres as of 1 August 2023. IDBI has one overseas branch in Dubai. As of September 2021, LIC held 49.24% and the Indian Govt. held 45.48%. LIC controls IDBI Bank’s management.

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IDBI History

Development banking in India started after World War II. India had a strong banking system following its 1947 independence. The focus was on providing finance to agriculture and industry. Institutions like IDBI, NHB, NABARD, & SIDBI were created.

Industrial Development Bank (IDBI) was set up by an Act of Parliament in 1964. It became a wholly owned subsidiary of RBI. Ownership passed to the Union Government in 1976. IDBI emerged as the leading organization for industry development & financing.

IDBI financed greenfield projects and modernization. It also refinanced loans from other banks. In 1995, IDBI went public. Government holding reduced to 75%. IDBI played a major role in industrial development from 1964–1991.

It helped create SEBI, NSE, SHCIL, NSDL, CARE, EXIM Bank, SIDBI, and EDI India. A committee recommended that IDBI transition from development finance to commercial banking. IDBI became a limited company in 2003. The RBI designated Industrial Development Bank of India as a scheduled bank in September 2004. IDBI and IDBI Bank merged in 2005.

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IDBI Mission

Industrial Development Bank of India is one of India’s leading commercial banks. Today, it serves millions of customers across India. It offers various financial services for individuals and businesses.

• Delight customers with excellent service.
• Offer best-in-class financial solutions.
• Expand retail network to reach more people.
• Maintain excellence in corporate banking.
• Focus on new challenges like climate risk and green finance.
• Use world-class technology and systems.
• Improve business efficiency through strong processes.
• Follow all regulatory norms strictly.
• Adopt the best risk management practices.
• Promote a positive and dynamic work culture.
• Support holistic employee development.
• Build a passionate and future-ready workforce.
• Act fairly, transparently, and ethically.
• Set benchmarks in good corporate governance.
• Work towards becoming greener and socially responsible.

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IDBI Chairman

The Chairman of IDBI Bank is T.N. Manoharan. He also serves as an Independent Director. He was re-appointed as Part-time Chairman. His new term is for three years. The appointment is subject to shareholder approval. It also requires confirmation from the Reserve Bank of India (RBI).

IDBI Board Of Directors

IDBI Bank is managed by an experienced & professional Board of Directors. The Board includes experts from banking, finance, insurance, government, and other key sectors. Here is the list of the Board of Directors:

1. Mr. T.N. Manoharan
2. Mr. Rakesh Sharma
3. Mr. Jayakumar S. Pillai
4. Mr. Sumit Phakka
5. Mr. Manoj Sahay
6. Mr. Sushil Kumar Singh
7. Mr. Sat Pal Bhanoo
8. Mr. R. Doraiswamy
9. Mr. Bhuwanchandra B. Joshi
10. Mr. Samaresh Parida
11. Mr. N. Jambunathan
12. Mr. Deepak Singhal
13. Mr. Sanjay G. Kallapur
14. Ms. P.V. Bharathi
15. Mr. Ajay Prakash Sawhney

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IDBI Direct Government Intervention

After the merger, IDBI still focused on industrial loans. Retail banking remained only 13% of its business. The non-performing assets (NPAs) of IDBI had risen to ₹55,588 crore by March 2018, which accounted for 28% of all loans. This was the highest Non-Performing Asset among Indian banks. LIC infused ₹9,300 crores to save the bank. LIC received approval to raise its stake to 51% on June 29, 2018. The acquisition was finalized by LIC on January 21, 2019. LIC made a ₹21,624 crore investment.

Acquisition of United Western Bank

In 2006, IDBI Bank acquired UWB (United Western Bank). UWB was headquartered at Satara. This was done as a rescue acquisition. After this, IDBI Bank doubled its branches. The number of branches increased from 195 to 425.

IDBI Disinvestment to LIC

Life Insurance Corporation of India acquired 51% controlling stake in IDBI Bank in January 2019. This made LIC the majority shareholder. The RBI clarified in a press release on March 14, 2019, that IDBI Bank is now a private sector bank following LIC’s increase in its stake. This change is effective retrospectively from 21 January 2019. The bank’s management was also taken over by LIC. The Union Government remained as a promoter.

IDBI Listings and Shareholding

The Bombay Stock Exchange and the National Stock Exchange of India both list equity shares of IDBI Bank. The Union government owned 45.48% of IDBI Bank’s shares as of September 2021. LIC held 49.24% shares. The remaining shares were held by non-promoters.

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IDBI Intech Ltd.

IDBI Intech Ltd. is a wholly owned subsidiary of IDBI. It was established in 2000. It provides IT-related services. These include Consultancy, System Integration, System Implementation, Support, Applications & Server Hosting.

Additionally, it offers specialized training and managed IT services. For its IT services, IDBI Intech is certified to ISO 9001:2000. These consist of call center services and data center management. Additionally, it holds CERT-In certification as a Certified IT Security Auditing Organization.

IDBI Awards and Recognition

In May 2013, IDBI Bank came in at number 197 on Forbes’ Global 2000 list. In the 2011 Dun & Bradstreet Banking Awards, it was named the “Overall Best Bank” and the “Best Public Sector Bank.” The Indian Banks Association also presented it with a Banking Technology Award in 2011. These honors were given for Best Risk Management and Best Use of Business Intelligence.

IDBI Bank News

IDBI Bank regularly shares important updates, announcements, and financial results with its stakeholders. Below is a link of key news and events from the recent past.

IDBI Code Of Conduct

IDBI Bank follows a strict Code of Conduct for its employees. It aims to ensure honesty, integrity, and transparency in all dealings. Employees are expected to follow laws and regulations at all times. They must avoid any conflict of interest in their work. Confidential information of customers must be protected and not shared. Employees must not take bribes or gifts that influence decisions.

They should act in the best interests of the bank & customers. Respect for colleagues and customers is compulsory. The bank promotes fair treatment, diversity, and equal opportunity. Disciplinary action is taken if there is any violation of this code. The Code ensures that IDBI Bank maintains its trust and reputation.

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IDBI Bank’s e-BG Facility

IDBI Bank offers Electronic Bank Guarantee (e-BG) service. It is done in partnership with National e-Governance Services Ltd (NeSL). This facility is available for both Corporate & Retail Corporate customers. e-BG is a fully digital process to issue bank guarantees.

It replaces the old paper-based guarantee system. The guarantee is issued on the National E-Governance Services Limited portal using API-based workflow. e-Stamping and e-Signatures are used. The process ensures security and transparency. The e-BG is delivered instantly to the beneficiary.

Benefits of e-BG

• It offers a quick, paperless service.
• All e-BGs are stored in the central repository of NeSL.
• Processing is instant with e-stamping and digital signatures.
• There is no need for physical paperwork.
• The system lowers the possibility of tampering and fraud.
• Beneficiaries don’t need to maintain physical records.
• Alerts are sent to the beneficiary and applicant immediately.
• Both parties can view and download e-BG anytime on the NeSL portal.

COVID-19 Moratorium

IDBI Bank applied an automatic moratorium on loan accounts during the COVID-19 pandemic. The bank did this without taking consent from customers. Customers had to send an email to opt out of the moratorium. Because of this, many customers ended up paying more than their original loan amounts. This action was seen by many as unethical for a reputed bank like IDBI.

IDBI Full Form