Notes On I.D.B.I.:

       The Industrial Development Bank of India (IDBI) was set up in 1964 as a part of the reorganized and integrated structure of industrial financing institute in the country. The Development Bank was a wholly owned subsidiary of the Reserve Bank of India upto 17th February 1976. It was delinked from the RBI with effect from 17th February 1976 and was made an autonomous corporation fully owned by the government of India.

Objectives of I.D.B.I.:

       The main objectives of IDBI are as follows:

  1. To bring into existence an apex institution to coordinate the activities of other financial institutions including banks.
  2. To provide term finance to industrial units.
  3. To provide direct financial assistance to industrial units and to bridge the gap between the supply of and demand for medium and long term finance.
Functions of I.D.B.I.:

       The IDBI envisages a wide range of functions for the Bank combined with a considerable measure of operational flexibility. The following are the main functions of the bank:

  1. It finances all types of industrial concerns - manufacturing, mining, transport, distribution etc
  2. It provides direct financial assistance to industrial concerns either on its own or I participation with other institutions. They normally do such financing by granting loans and advances or by purchasing or underwriting the securities.
  3. The IDBI provides refinance n respect of term loans to industrial concerns given by IFC, SFC or other financial institutions notified by the government.
  4. The bank has a provision to extend the special fund known as Development Assistance Fund. The fund is intended to provide assistance to industries for heavy investment invested in low anticipated rate of return.
  5. The Bank undertakes promotional activities such as marketing and investment research and surveys as well as techno-economic studies.

       The IDBI also provides technical and administrative assistance to any industrial enterprise for promotion, management, or expansion. Above all, it has been assigned a positive role in the process of industrialization through planning, promotion and developing of new industries to fill the gaps in the industrial sectors.