2 Replies to “is IDBI a nationalised bank or a private bank?”

  1. IDBI is a private bank.

    For the purpose of taking a loan it is immaterial whether the bank is nationalized or otherwise.
    All banks are regulated by the central bank of the country (In India RBI)

  2. July 1964: Set up under an Act of Parliament as a wholly-owned subsidiary of Reserve Bank of India.

    February1976: Ownership transferred to Government of India. Designated Principal Financial Institution for co-ordinating the working of institutions at national and State levels engaged in financing, promoting and developing industry.

    March 1982: International Finance Division of IDBI transferred to Export-Import Bank of India, established as a wholly-owned corporation of Government of India, under an Act of Parliament.

    April 1990: Set up Small Industries Development Bank of India (SIDBI) under SIDBI Act as a wholly-owned subsidiary to cater to specific needs of small-scale sector. In terms of an amendment to SIDBI Act in September 2000, IDBI divested 51% of its shareholding in SIDBI in favour of banks and other institutions in the first phase. IDBI has subsequently divested 79.13% of its stake in its erstwhile subsidiary to date.

    January 1992: Accessed domestic retail debt market for the first time with innovative Deep Discount Bonds; registered path-breaking success.

    December 1993: Set up IDBI Capital Market Services Ltd. as a wholly-owned subsidiary to offer a broad range of financial services, including Bond Trading, Equity Broking, Client Asset Management and Depository Services. IDBI Capital is currently a leading Primary Dealer in the country.
    September 1994:Set up IDBI Bank Ltd. in association with SIDBI as a private sector commercial bank subsidiary, a sequel to RBI’s policy of opening up domestic banking sector to private participation as part of overall financial sector reforms.

    October 1994: IDBI Act amended to permit public ownership upto 49%.

    July 1995: Made Initial Public Offer of Equity and raised over Rs.2000 crore, thereby reducing Government stake to 72.14%.

    March 2000:Entered into a JV agreement with Principal Financial Group, USA for participation in equity and management of IDBI Investment Management Company Ltd., erstwhile a 100% subsidiary. IDBI divested its entire shareholding in its asset management venture in March 2003 as part of overall corporate strategy.

    March 2000: Set up IDBI Intech Ltd. as a wholly-owned subsidiary to undertake IT-related activities.

    June 2000: A part of Government shareholding converted to preference capital, since redeemed in

    March 2001; Government stake currently 58.47%.

    August 2000: Became the first All-India Financial Institution to obtain ISO 9002:1994 Certification for its treasury operations. Also became the first organisation in Indian financial sector to obtain ISO 9001:2000 Certification for its forex services.

    March 2001: Set up IDBI Trusteeship Services Ltd. to provide technology-driven information and professional services to subscribers and issuers of debentures.

    Feburary 2002: Associated with select banks/institutions in setting up Asset Reconstruction Company (India) Limited (ARCIL), which will be involved with the strategic management of non-performing and stressed assets of Financial Institutions and Banks.

    September 2003: IDBI acquired the entire shareholding of Tata Finance Limited in Tata Homefinance Ltd, signalling IDBI’s foray into the retail finance sector. The housing finance subsidiary has since been renamed ‘IDBI Homefinance Limited’.

    December 2003: On December 16, 2003, the Parliament approved The Industrial Development Bank (Transfer of Undertaking and Repeal Bill) 2002 to repeal IDBI Act 1964. The President’s assent for the same was obtained on December 30, 2003. The Repeal Act is aimed at bringing IDBI under the Companies Act for investing it with the requisite operational flexibility to undertake commercial banking business under the Banking Regulation Act 1949 in addition to the business carried on and transacted by it under the IDBI Act, 1964 .

    July 2004: The Industrial Development Bank (Transfer of Undertaking and Repeal) Act 2003 came into force from July 2, 2004.

    July 2004: The Boards of IDBI and IDBI Bank Ltd. take in-principle decision regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank of India Ltd. in their respective meetings on
    July 29, 2004.

    September 2004: The Trust Deed for Stressed Assets Stabilisation Fund (SASF) executed by its Trustees on September 24, 2004 and the first meeting of the Trustees was held on September 27, 2004.

    September 2004:The new entity “Industrial Development Bank of India” was incorporated on September 27, 2004 and Certificate of commencement of business was issued by the Registrar of Companies on September 28, 2004.

    September 2004:Notification issued by Ministry of Finance specifying SASF as a financial institution under Section 2(h)(ii) of Recovery of Debts due to Banks & Financial Institutions Act, 1993.

    September 2004:Notification issued by Ministry of Finance on September 29, 2004 for issue of non-interest bearing GoI IDBI Special Security, 2024, aggregating Rs.9000 crore, of 20-yea

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