The IDBI Bank Limited (IDBI Bank or IDBI) is a Scheduled Commercial Bank under

the ownership of Life Insurance Corporation of India (LIC) and Government of India.
It was established by Government of India as a wholly owned subsidiary of Reserve
Bank of India in 1964 as Industrial Development Bank of India, a Development
Finance Institution, which provided financial services to industrial sector. In 2005, the
institution was merged with its subsidiary commercial division, IDBI Bank, and was
categorised as "Other Public Sector Bank" category. Later in March
2019, Government of India asked LIC to infuse capital in the bank due to
high NPA and capital adequacy issues and also asked LIC to manage the bank to
meet the regulatory norms. Consequent upon LIC acquiring 51% of the total paid-up
equity share capital, the bank was categorised as a 'Private Sector Bank' for
regulatory purposes by Reserve Bank of India with effect from 21 January 2019. IDBI
was put under Prompt Corrective Action of the Reserve Bank of India and on 10
March 2021 IDBI came out of the same. At present direct and indirect shareholding
of Government of India in IDBI Bank is approximately 95%, which Government of
India (GoI) vide its communication F.No. 8/2/2019-BO-II dated 17 December 2019,
has clarified and directed all Central/State Government departments to consider IDBI
Bank for allocation of Government Business. [6] Many national institutes find their
roots in IDBI like SIDBI, EXIM,[7] National Stock Exchange of India, SEBI, National
Securities Depository Limited. Presently, IDBI Bank is one of the largest Commercial
Banks in India.

The bank has an aggregate balance sheet size of ₹3.74 trillion as of 31 March 2016.
[8]
It has 2,088 Retail Banking Branches and 3,144 ATMs, 22 Banking Outlet- Fixed
BC, spreading all over India as of 31 March 2025, including one overseas branch
in Dubai, 58 e-lounges and 1,520 Centres as of 1 August 2023.[9] As of
September 2021, LIC holds 49.24% shareholding and the Government of India holds
45.48%, with LIC being in control of the management of the bank.

History
[edit]
Overview of development banking in India
[edit]
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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 (DFIs) 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 (IDBI)

[edit]
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The Industrial Development Bank of India (IDBI) 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 (1964–91), 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 (SEBI), National Stock Exchange of India (NSE),
the National Securities Depository Limited (NSDL), the Stock Holding Corporation of
India Limited (SHCIL), the Credit Analysis & Research Ltd, the Exim Bank (India),
the Small Industries Development Bank of India (SIDBI) and the Entrepreneurship
Development Institute of India.

Conversion of IDBI into a commercial bank

[edit]
A committee formed by RBI recommended the development financial institution
(IDBI) 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 (Transfer of
Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company
viz., IDBI Ltd.[citation needed]
Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a
'scheduled bank' under the RBI Act, 1934. The commercial banking arm, IDBI Bank,
was merged into IDBI in 2005.[6]

Direct government intervention

[edit]
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 (NPA) rose
to ₹55,588 crore (equivalent to ₹740 billion or US$8.7 billion in 2023) 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.[6]

On 29 June 2018, LIC got a technical go-ahead from the Insurance Regulatory and
Development Authority of India (IRDAI) to increase stake in IDBI Bank up to 51%.
[10]
LIC completed the acquisition of 51% controlling stake on 21 January 2019, with a
total investment of ₹21,624 crores.[11][12]

Operations
[edit]
Acquisition of United Western Bank
[edit]
In 2006, IDBI Bank acquired United Western Bank (headquartered at Satara) in a
rescue. By acquiring UWB, IDBI Bank doubled the number of its branches from 195
to 425.[13][14]

Strategic disinvestment to LIC

[edit]
LIC of India completed the acquisition of 51% controlling stake in the bank in
January 2019, making it the majority shareholder. Subsequent to the enhancement
of equity stake by LIC of India, Reserve Bank of India has clarified via press release
on 14 March 2019, that IDBI Bank stands re-categorised as a private sector bank,
with retrospective effect from 21 January 2019. LIC took over the management
control of the bank while the Union government, categorised as a promoter.[15]

Listings and shareholding

[edit]
IDBI Bank's equity shares are listed on Bombay Stock Exchange and the National
Stock Exchange of India.[16][17][needs update] As of September 2021, the Union government
held 45.48% shares in IDBI Bank, while LIC held 49.24% and the remaining is held
by non-promoters.[15]

Employees
[edit]
As of 1 September 2023, the bank had 18,283 employees, out of which 197 were
employees with disabilities.[18] The average age of bank employees on the same date
was 34 years.[18] The bank reported a business of ₹25.64 crores per employee and a
net profit of ₹12.17 lakhs per employee during the FY 2012–13.[18]

IDBI Intech Ltd.

IDBI Intech Ltd

Company type Subsidiary

Industry IT Solutions & Services in

Banking and Finance services

Founded March 2000

Headquarters Navi Mumbai, India

Services IT Consulting
IT Services
Outsourcing
Software Products

Number of 1750 (As on 31 October 2021)

employees

Parent IDBI Bank

Website IDBI Intech Ltd

IDBI Intech Ltd. (IIL) is a wholly owned subsidiary of IDBI Bank, established in 2000.
[19]

It provides IT related services in the areas of Consultancy, System Integration,

System implementation & support, Applications & Server hosting and other IT related
managed services and specialized training.[20][21]

IDBI Intech has been accredited with ISO 9001:2000 certification for IT-related
services including Data Centre Management and Call Centre, and also Certified IT
Security Auditing Organisation with the Indian Computer Emergency Response
Team (CERT-In).[22]

Awards and recognitions

[edit]

 IDBI Bank ranked #1197 in the Forbes Global 2000 in May 2013.[23]
 It received the 'Overall Best Bank' and 'Best Public Sector Bank' awards in
the Dun & Bradstreet Banking Awards, 2011.[24]
 In 2011, it received Banking Technology awards for best use of Business
Intelligence and the best Risk Management from Indian Banks
Association.[25]
See also
[edit]

 Banks portal

 Banking in India