INDUSTRIAL DEVELOPMENT BANK OF INDIA

The Industrial Development Bank of India (IDBI) is a central co-coordinating agency, which directly and indirectly, is concerned with the problems and questions related to long and medium term financing of industry. An apex financial institution at the national and the state level, it finances and nurtures the Indian industry in a significant way. It primarily focuses on a balanced development of the industrial sector. Government stake today is at 72.14% and can be further reduced to 51%.

The core area of operation of IDBI has been project financing. Long term project specific finance through loans, convertible and non-convertible debentures, underwriting, direct subscriptions however, continue to form the largest single segment.

MILESTONES

- Set up in July 1964, by an act of Parliament, as a fully owned subsidiary of the Reserve Bank Of India (RBI).

- In 1976, ownership was transferred to the Government Of India. (GOI)

- The Export Import Bank Of India (EXIM Bank) branched off from IDBI's international finance division in 1982.

- SIDBI, the Small Scale Industries Development Bank Of India, a wholly owned subsidiary, was started in 1990 to address the specific needs of the Small Scale Industries.

- IDBI permitted public ownership in 1994.

- IDBI has significantly strenghthened the Capital Market in the country through the setting up of the Securities and Exchange Board of India (SEBI), the National Stock Exchange of India Limited (NSEIL), Credit Analysis and Research Limited (CARE), the Stock Holding Corporation Of India Limited. (SHCIL), Investor Services of India Limited (ISIL), National Securities Depository Limited (NSDL). Apart from these Capital Market institutions, IDBI has its own subsidiary institution IDBI Investment Management Company Limited (IIMCO) to manage mutual funds and other investment products for investors.

SUBSIDIARY ORGANISATIONS

The subsidiary organisations of IDBI are expected to expand the functional reach of IDBI group in liberalised market conditions.

- Small Scale Industries Development Bank Of India (SIDBI) caters to the needs of the Small Scale Enterprises in the country.

- IDBI Capital Market Services Limited (ICMS) is a stock broking company which provides capital market related services.

- IDBI Bank- a commercial bank.

- IDBI Intech Limited is involved in IT related activities, identifying areas of operations include internet products/services, network services, web- based solutions, on-line portal and content offerings, product customization and development and IT training.

|