IDBI Bank
This article needs additional citations for verification. (January 2022) |
Number of employees | 17,736 (March 2021) |
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Subsidiaries |
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Capital ratio | 13.31% |
Website | www |
The IDBI Bank Limited (IDBI Bank or IDBI) is a
The bank has an aggregate balance sheet size of ₹3.74 trillion as of 31 March 2016[update].[8] It has 3,353 ATMs, 2,000 Retail Banking branches as on 1st April 2024, including one overseas branch in Dubai, 58 e-lounges and 1,442 Centres as of 1 August 2023[update].[9] As of September 2021[update], Life Insurance Corporation holds the 49.24% shareholding and the Government of India holds 45.48%, with LIC being in control of the management of the bank.
History
Overview of development banking in India
Development Banking emerged after the
Formation of Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) was established in 1964 under an
After the public issue of IDBI in July 1995, the government shareholding in the bank came down from 100% to 75%.
IDBI played a pioneering role, particularly in the pre-reform era (1964–91), in catalyzing broad-based industrial development in India in keeping with its government-ordained 'development banking' charter.
Some of the institutions built with the support of IDBI are the
Conversion of IDBI into a commercial bank
A committee formed by RBI recommended the development financial institution (IDBI) to diversify its activity and harmonize the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. To keep up with reforms in financial sector, IDBI reshaped 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., IDBI Ltd.[citation needed]
Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934. The commercial banking arm, IDBI Bank, was merged into IDBI in 2005.[6]
Direct government intervention
The merger was expected to streamline operations of the bank. However, IDBI continued to base its policy towards industrial sector like the erstwhile IDBI entity did. This resulted in the retail business of the bank to be limited to 13 percent of its total business. As of March 2018[update], the total
On 29 June 2018, LIC got a technical go-ahead from the Insurance Regulatory and Development Authority of India (IRDAI) to increase stake in IDBI Bank up to 51%.[10] LIC completed the acquisition of 51% controlling stake on 21 January 2019, with a total investment of ₹21,624 crores.[11][12]
Operations
Acquisition of United Western Bank
In 2006, IDBI Bank acquired United Western Bank (headquartered at Satara) in a rescue. By acquiring UWB, IDBI Bank doubled the number of its branches from 195 to 425.[13][14]
Strategic disinvestment to LIC
LIC of India completed the acquisition of 51% controlling stake in the bank in January 2019, making it the majority shareholder. Subsequent to the enhancement of equity stake by LIC of India, Reserve Bank of India has clarified via press release on 14 March 2019, that IDBI Bank stands re-categorised as a private sector bank, with retrospective effect from 21 January 2019. LIC took over the management control of the bank while the Union government, categorised as a promoter.[15]
IDBI Bank's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.[16][17][needs update] As of September 2021[update], the Union government held 45.48% shares in IDBI Bank, while LIC held 49.24% and the remaining is held by non-promoters.[15]
Employees
As of 31 March 2015, the bank had 16,555 employees, out of which 197 were employees with disabilities.[18] The average age of bank employees on the same date was 34 years.[18] The bank reported a business of ₹25.64 crores per employee and a net profit of ₹12.17 lakhs per employee during the FY 2012–13.[18]
Parent IDBI Bank | | |
Website | IDBI Intech Ltd |
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IDBI Intech Ltd. (IIL) is a wholly owned subsidiary of IDBI Bank, established in 2000.[19]
It provides IT related services in the areas of
IDBI Intech has been accredited with ISO 9001:2000 certification for IT-related services including Data Centre Management and Call Centre, and also Certified IT Security Auditing Organisation with the Indian Computer Emergency Response Team (CERT-In).[22]
Awards and recognitions
- IDBI Bank ranked #1197 in the Forbes Global 2000 in May 2013.[23]
- It received the 'Overall Best Bank' and 'Best Public Sector Bank' awards in the Dun & Bradstreet Banking Awards, 2011.[24]
- In 2011, it received Banking Technology awards for best use of Business Intelligence and the best Risk Management from Indian Banks Association.[25]
See also
- Banking in India
- Indian Financial System Code
- List of largest banks
- List of companies of India
- Make in India
References
- ^ "About us". IDBI Bank. Retrieved 29 January 2019.
- ^ "Contact Us". IDBI Bank. Retrieved 29 January 2019.
- ^ a b c d <cite web|url=https://archives.nseindia.com/corporate/SE_Results_March2023_29042023132514.PDF
- ^ "Govt, LIC together may dilute up to 65% stake in IDBI Bank". Moneycontrol. Retrieved 22 October 2022.
- ^ "IDBI Group". IDBI Bank. Retrieved 29 January 2019.
- ^ a b c Gupta, Arindam (25 August 2021). "Tumultuous journey of a development bank". Business Line. Archived from the original on 28 August 2021. Retrieved 10 January 2022.
- ^ "Home - Exim Bank". www.eximbankindia.in.
- ^ "About us". IDBI Bank. Retrieved 22 February 2014.
- ^ "IDBI Bank Branch & ATM Locator". IDBI Bank. Retrieved 1 February 2020.
- ^ "IRDAI clears LIC IDBI Bank Deal". The Economic Times. 29 June 2018. Retrieved 1 July 2018.
- ^ "LIC completes acquisition of 51% stake in IDBI Bank". The Economic Times. 21 January 2019. Retrieved 11 January 2022.
- ^ K., Ram Kumar (8 March 2021). "LIC holds the key in Govt's IDBI Bank stake sale". Business Line. Archived from the original on 23 April 2021. Retrieved 11 January 2022.
- ^ "History". IDBI Bank. Retrieved 22 February 2014.
- ^ "United Western Bank to merge with IDBI". Rediff.com. 13 September 2006. Retrieved 22 February 2014.
- ^ a b "IDBI Bank strategic sale: Most merchant bankers indicate 52 weeks' time". The Economic Times. 19 September 2021. Retrieved 11 January 2022.
- ^ "IDBI Bank". BSEindia.com. Retrieved 22 February 2014.
- ^ "IDBI Bank". NSE India. Retrieved 22 February 2014.
- ^ a b c "Annual Report 2012-13" (PDF). IDBI Bank. Retrieved 22 February 2014.
- ^ "IDBI Intech Ltd | Integrating Disruptive Technologies". IDBI Intech Ltd.
- ^ "IDBI to ramp up IDBI Intech". 16 July 2006 – via The Economic Times - The Times of India.
- ^ "IDBI Bank wins Asian Banker Technology Implementation Award 2011". Retrieved 30 April 2023.
- ^ Panel of Auditors cert-in.org.in
- ^ "IDBI Bank on the Forbes Global 2000 List". Forbes. May 2013. Retrieved 18 February 2014.
- ^ "IDBI Bank Wins Dun & Bradstreet Banking Awards 2011 for Overall Best Bank & Best Public Sector Bank". Business Standard. 5 September 2011. Retrieved 22 February 2014.
- ^ "IDBI Bank bags IBA's prestigious Banking Technology Awards". Business Standard. 4 March 2011. Retrieved 22 February 2014.