IDBI Full Form

The Industrial Development Bank of India’s full name is IDBI.

The Industrial Development Bank of India was incorporated in 1964. IDBI is a bank that provides long-term loans and short-term loans to the industrial sectors and also supports their development. The Industrial Development Bank of India helps to sell the debentures, bonds, and shares of industrial corporations and also gives loans to industries to purchase property and machinery. Various other banks perform the same function like Industrial Finance companies, State finance corporations, etc. It is the subsidiary of the Reserve Bank of India (RBI).  

Functions of IDBI 

  • IDBI Bank’s primary goal is to help India’s industries develop. By providing them with credit and short- and long-term borrowing options.
  • The Indian Industrial Development Bank also assists in the sale of company shares, bonds, and debentures.
  • IDBI provides low-interest loans to industrial sectors to help them innovate and develop production.

Developmental Activities of IDBI

IDBI contributes to the growth of industries through a variety of initiatives, including promotional operations, technical consulting organizations, and entrepreneurship development institutes.

  • Developmental Activities

Industrial development banks in India carry out promotional activities that encourage industrial or economic sectors, such as employing people in rural or seasonal areas, as well as supporting research, technology, and small businesses.

  • Technical Advisory Organisation

The Industrial Development Bank of India also provides innovation advisory services to entrepreneurs and industries, and collaborates with other industries such as small and large businesses, as well as industrial finance corporations and state finance corporations.

  • Entrepreneurship development institutes

Because entrepreneurs are the key to the success of any industry, the Industrial Development Bank of India facilitates the development of entrepreneurship alongside the development of industries. They also create institutes for entrepreneurship development in several states.

Financial Resources of IDBI 

The Indian Industrial Development Bank obtains funds in the following ways:

  • Share Capital

The Industrial Development Bank of India raises funds by offering equity share capital to the public, but they make sure that the government’s stake of the total share capital is not less than 51%. IDBI was founded with a capital of 49 crores, which was increased to 9300 crores after recent amendments.

  • Borrowings

The Industrial Development Bank of India raises finances by borrowings or loans from the Indian government or the Reserve Bank of India, which is a subsidiary of the IDBI. IDBI raises funds by issuing debentures and bonds issued by the Indian government.

Conclusion

Like NABARD ( National Bank for Agriculture and Rural Development ) works for the development of the agricultural sector the same as IDBI helps to the development Of the Industrial sector of the country by providing them finance, long term, medium-term, and short term loans at a low-interest rate. 

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