IDBI Bank

Development banks are banks that provide long-term and medium-term loans to industrialists and organize related activities. The main objectives of development banks are to promote entrepreneurship, prepare projects, conduct project reviews, provide market knowledge and promote exports. State financial corporations came into existence in all states with the enactment of the State Financial Corporations Act in 1951. Industrial Development Bank of India ( IDBI) is a development bank established in the public sector for industrial purposes. It started its operations on July 1, 1964. Initially under the full control of the Reserve Bank of India, IDBI became an independent institution in 1976. It is headquartered in Mumbai and has regional offices. It is the apex bank for industrial finance in India. In September 2004, RBI incorporated IDBI as a Scheduled Bank. IDBI, which provides long-term loans to industries, was declared a private sector bank by the Reserve Bank of India on January 21, 2019 . IDBI lost its public sector bank status after public sector insurance company LIC acquired 51% of IDBI's shares. Small Industries Development Bank of India (SIDBI), formed in 1990, is a subsidiary of IDBI. Its main objective is to provide loans to small industries. It coordinates the activities of other institutions in this field.