IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. 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 10th largest development bank in the world in terms of reach with 1945 ATMs, 1159 branches including one overseas branch at DIFC, Dubai and 779 centers including two overseas centres at Singapore & Beijing.[2] IDBI Bank is on a par with nationalized banks and the SBI Group as far as government ownership is concerned. It is one among the 26 commercial banks owned by the Government of India. The Bank has an aggregate balance sheet size of Rs.2908.37 billion as on 31 March 2012. Some of the institutions built by 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), the Entrepreneurship Development Institute of India, and IDBI Bank, which is owned by the Indian Government.

Recent developments

The name of Mr. M. S. Raghavan was recently cleared by Government of India to become CMD of IDBI Bank, taking over from outgoing CMD Mr. R.M. Malla. Mr. Raghavan, who was executive director in Bank of India, assumed the charge on July 5, 2013.

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 (Transfer of Undertaking and Repeal) 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.

Overview of development banking in India

The concept of development banking rose only after Second World War, after the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide institution for reconstruction. As a result the IBRD was set up in 1945 as a worldwide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which coordinating the developmental activities of different nations with different objectives among the world. The Narashimam committee had recommended to give up its direct financing functions and to perform only the promotional and refinancing role. However, the S.H.Khan committee, appointed by the RBI, recommended its transformation into a universal bank.[3]

The course of development of financial institutions and markets during the post-Independence period was largely guided by the process of planned development pursued in India with emphasis on mobilisation of savings and channeling investment to meet Plan priorities. At the time of Independence in 1947, India had a fairly well 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. Specialised development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture. To facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions was also put in place by the Reserve Bank.

The first development bank In India incorporated immediately after independence in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and large-scale. Then after in regular intervals the government started new and different development financial institutions to attain the different objectives and helpful to five-year plans.

Inof IDBI Act.

Industrial Development Bank of India (IDBI)

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. In 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’s public issue in July 1995, the former continues to be the major shareholder (current shareholding: 75%). IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI also provides 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 sale of indigenous machinery on deferred payment terms.[citation needed]

IDBI has played a pioneering role, particularly in the pre-reform era (1964–91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained ‘development banking’ charter.[citation needed]

Narasimam committee[4] recommends that IDBI should give up its direct financing functions and concentrate only in promotional and refinancing role. But this recommendation was rejected by the government. Later RBI constituted a committee under the chairmanship of S.H.Khan to examine the concept of development financing in the changed global challenges. This committee is the first to recommend the concept of universal banking. The committee wanted the development financial institution to diversify its activity. It recommended to harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking.

Bank Scheme

Financial Institution

Title Scheme Description Bank

Schemes Link

Date Checked

Misc Schemes

IDBI Bank

Working Capital Financing to IT & ITES Entities

Micro, Small and Medium Enterprises engaged in export of software / software services.

Link to Bank's Scheme

Nov 29 2013 - 14:10

Misc Schemes

IDBI Bank

Vendor Financing Vendor Solutions

Finance for Vendors of large Corporates /Original Equipment Manufacturers (OEMs)

Link to Bank's Scheme

Nov 28 2013 - 15:43

Shops & Traders

IDBI Bank

Sulabh Vyapar Business Solutions

The product aims to provide hassle free finance to traders and to meet their business and financial needs at competitive interest rate

Link to Bank's Scheme

Nov 28 2013 - 15:43

Term & Working Capital Schemes

IDBI Bank SME Smart Line of Credit

Financial assistance is offered to the MSMEs by way of pre-approved composite loan

Link to Bank's Scheme

Nov 28 2013 - 15:43

Term & Working Capital Schemes

IDBI Bank Property Power

The Product aims to cater to the needs of MSME segment and other small corporate customer by way of providing loan against their existing commercial and  residential properties

Link to Bank's Scheme

Nov 28 2013 - 15:43

Commercial Vehicle Finance

IDBI Bank

Loans to Small Road & Water Transport Operators

This product enables various transport operators acquire fleets of vehicles/ vessels

Link to Bank's Scheme

Nov 28 2013 - 15:43

Bank Scheme

Financial Institution

Title Scheme Description Bank

Schemes Link

Date Checked

Misc Schemes

IDBI Bank

Laghu Udhyami Credit Cards (LUCC) Scheme

LUCC Scheme is for the Existing borrowers belonging to Small business units, retail traders, artisans, village industries, small scale industrial units and tiny units, professionals and self employed persons, whose dealings with the bank have been satisfactory for the last three years

Link to Bank's Scheme

Nov 28 2013 - 15:43

Credit Guarantee Fund Trust

IDBI Bank Funding under CGTMSE

Finance for Micro/ Small Enterprise (manufacturing/ services) as defined under MSMED Act and by RBI. Providing security for the loan availed by the micro/small enterprises units (MSEs).

Link to Bank's Scheme

Nov 28 2013 - 15:43

Doctors & Healthcare

IDBI Bank Finance to Medical Practitioners

Term loan & Overdraft/ Cash Credit for All medical practitioners/ doctors/ clinics.

Link to Bank's Scheme

Nov 28 2013 - 15:43

Term & Working Capital Schemes

IDBI Bank Channel financing for dealers

"Dealer Finance Programme" is designed in such a way such that it leads to a better liquidity position by providing various facilities to the dealers

Link to Bank's Scheme

Nov 28 2013 - 15:44

Interest rates

As per RBI mandate, Savings Bank interest will be calculated on the daily balances maintained in your account, at a rate of interest as specified by RBI from time to time (existing rate is 4.00% p.a.).

Savings Bank Rate (w.e.f. May 03, 2011) 4.00 % p.a.

Base Rate (w.e.f February 01, 2013)10.25 % All the loans are linked to Base Rate of the Bank

Current BPLR (w.e.f February 01, 2013) 14.75 %

Fixed Deposits Interest Rate

The Bank pays interest on deposits as per various deposit schemes. Interest Rates are revised from time to time and made known to public. Revised interest rates are applicable only to the renewals and fresh deposits while existing deposit continue to get interest at the contracted rate

Interest Rate on Term Deposits (w.e.f. January 01, 2014 )

Resident Term Deposit / NRO for deposit upto less than Rs. 1 Crore #

Tenor Interest Rate (% p.a.) 15-45 days 6.0046 days to 6 months 8.506 months 1 days 8.756 months 2 days to 499 days 9.10500 days 9.30501 days to 5 yrs 9.00>5 yrs-7 yrs 9.00>7 yrs – 10 yrs 9.00>10 yrs up to 20 yrs * 8.50

Senior Citizen Interest Rates** for deposit upto less than Rs. 1 Crore#

Tenor Interest Rate (% p.a.) 15-45 days 6.0046 days to 6 months 8.506 months 1 days 8.756 months 2 days to 499 days 9.60500 days 9.80501 days to 5 yrs 9.50>5 yrs-7 yrs 9.50>7 yrs – 10 yrs 9.50>10 yrs up to 20 yrs * 9.00

# Deposits of Rs 1 Crore and above are treated as Bulk deposit w.e.f April 01, 2013 as per the revised definition advised by RBI.

*I. Retail deposits on regular payment of interest basis (i.e. non-cumulative basis) may be accepted by the branches.

II. Acceptance of deposits for any period over 10 years under Specified Government Schemes with interest

cumulative on quarterly basis (cumulative basis) would require prior approval (RBG Corporate Centre).

III. Retail Deposits under Floating Rate Term Deposit (FRTD) Scheme for maturity bucket above 10 years to 20 years (non-cumulative) may also be accepted.

** The Senior Citizen Interest rates are 0.50% higher for deposits from 6 months 2 days and above, including for Suvidha Tax Saving Deposits.

Floating Rate Term Deposit

ANCHOR RATE DETAILS Average of Weighted Avg. Yield of

364 days Treasury Bill Auction undertaken by RBI for Quarter

Anchor Rate (%) Anchor Rate for Quarter

Between April 1 – June 30, 2012 8.19 July 1 – September 30, 2012Between July 1 – September 30, 2012 8.04 Between October 1 – December 31, 2012Between October 1 – December 31, 2012

8.05 Between January 1 – March 31, 2013

Between January 1 – March 31,2013 7.86 Between  April 1 – June 30, 2013Between April 1 - June 30,2013 7.46 Between July 1 - Sept.30, 2013Between July 1 – September 30, 2013 9.53 Between October 01 – December 31, 2013Between October 01 – December 31, 2013

8.83 Between January 1 – March 31, 2014

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