PUBLIC SECTOR BANKS IN INDIA – IDBI BANK
PUBLIC SECTOR BANKS OF INDIA – IDBI BANK
The Industrial Development Bank of India Limited (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. It is currently the 10th largest development bank in the world in terms of reach with 1455 ATMs, 883 branches including one overseas branch at DIFC, Dubai and 598 centers including two centres at Singapore and Beijing.
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. On 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 public issue in July 1995, the former continues to be the major shareholder (current shareholding is 65.14%).
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 the Industrial Development Bank 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.