IDBI And Its Functions:
IDBI bank is one of the top 10 banks in the world, and we all are very familiar with this bank. Also, as it comes under the top 10 banks of the world, we can even trust the bank blindly. But, still, whenever we get to connect with any bank, we always try to know about its features and how does it work, how is it different from other banks, and many more things. So, here, we will try to clear out each and every question related to the term IDBI.
The very first question that comes to our mind is, what is IDBI Bank’s full form ? So, the full form of the bank is “Industrial Development Bank of India”. The bank was firstly established in 1964. The main act to establish the bank was to offer credit and other financial facilities for the development of the fledgling Indian industry. Also, the most interesting thing is that the bank also tries to give employment to our country, by offering jobs to most of the people. According to the latest survey, in March 2019, the data shows that there are in total of 18000 employees working with IDBI Bank, even the bank tries to offer jobs to the person with disabilities. Previously, the bank was established as the subsidiary of RBI (Reserve Bank of India) and latterly it was owned by the Government of India (GOI).
Even many of the other institutes of national importance find their roots in IDBI namely Exim Bank, NSDL, Sidbi, and NSE. Currently, LIC (Life Insurance Corporation of India) holds a 51% stake in IDBI Bank. Also, the bank serves many of its key products, while some can be stated as below:
- Credit cards.
- Consumer Banking.
- Retail Banking.
- Investment Banking.
- Commercial Banking.
- Asset Management.
- Mortgages, and many more.
Most of the people often also question that, what LIC (Life Insurance Corporation of India) needs to do with IDBI Bank? So, basically, the truth is, that the bank is not being privatized. While the LIC itself is entirely owned by the government. So, instead of using taxpayers’ money, policyholders’ money will be used to keep the bank alive.
People often ask about the objectives and features of the IDBI bank. So, some of the objectives as well as features of the bank can be stated as follows:
- Planning, promotion, and development of key industries and diversification of industrial growth.
- To offer mortgage and to SFCs, IFCI, other institutions, organized banks, state co-operative banks by the manner of subsidizing loans granted by such institution to industrial interests for transports.
- To guarantee deferred payment due to any industrial concern.
- Planning, encouraging and developing industries to fill up empty spaces in the industrial structure in India.
I hope you have got all the information, you were searching for about the IDBI Bank.