History of IDBI Bank Ltd.
1964
- The Comp. was Incorporated on 1st July, at Mumbai. The Bank was established as a wholly owned subsidiary of Reserve Bank of India on 1st July, under a special statute, viz., Industrial Development Bank of India Act.
1965
- With effect from 1st April, the Bank introduced a scheme for rediscounting usance bills/promissory notes arising out of sale of indigenous machinery on deferred payment basis.
- The Bank decided to supplement its refinance operations with a measure of risk-sharing with other institutions on a systematic basis and introduced a participation scheme for this purpose, with effect from 1st April, 1966.
- The Development Assistance Fund was established on 27th March, in terms of Notification dated 16th March, issued by Government of India.
1972
- The IDBI took initiative in establishing a technical consultancy service centre at the State level in Kerala in February called the Kerala Industrial & Technical Consultancy Organisation and contributed 51% to its paid-up capital of Rs 2 lakhs.
1973
- North Eastern Industrial & Technical Consultancy Organisation, Ltd. [NEITCOs], was sponsored by IDBI in May. Another technical consultancy organisation, viz., Bihar Industrial & Technical Consultancy Organisation, limited [BITCOs], was set up.
- Refinance facilities are provided to eligible banks, which are authorised dealers in foreign exchange, against medium-term export credits granted to exporters in the private sector, who are manufacturers, recognised export houses or other exporters of standing.
- The Bank as a apex institution, has also been vested with the responsibility of strengthening the resources position of term financing institutions with a view to enabling them to expand and diversify their activities.
- The Bank received various lines of credit from IDA/World Bank from time to time beginning from the year in US Dollars.
1976
- With a veiw to promoting fuller utilisation of capacity, technological upgradation & export development, the Government of India established in March, the Technical Development Fund [TDFs].
- Two Seed Capital Assistance Schemes were introduced by IDBI during the year viz. [is] SFC Special Share Capital Scheme & [iis] IDBI's own scheme.
1977
- IDBI introduced in January, at the instance of Government of India, a scheme for providing rupee assistance, to industrial units receiving import licences, under the TDF.
- IDBI, apart from giving resource support for setting up of IFCI, UTI and SFCs, helped in establishing Shipping Credit & Investment Corporation of India, Ltd., Stock Holding Corporation of India Ltd., Securities & Exchange Board of India, Discount & Finance House of India, Ltd., Tourism Finance Corporation of India Ltd., Over The Counter [OTCs] Exchange of India, Biotech Consortium India Ltd., and Indian Investment Management Comp. Ltd.
1982
- 55,00,000 shares issued.
1983
- 130,00,000 shares issued.
1984
- IDBI introduced equipment finance scheme in September.
- 30,00,000 shares issued.
1985
- A new scheme known as Equipment Refinance Scheme was introduced with effect from July 1st.
- The Bank introduced a new scheme called the Foreign Currency Refinance scheme. Under this Scheme, the Bank would extend foreign currency refinance facility to SIDCs/SIICs under the Bank Normal Refinance Scheme.
- A special scheme of assistance for installing in-house quality testing facilities was introduced under SIDF. Presently, this scheme is being operated by SIDBI.
- 30,00,000 shares issued.
1986
- Small industries development fund was set up in May to pay concentrated attention to the provision of financial & non-financial inputs to the small scale sector.
- 30,00,000 shares issued.
1987
- The National Equity Fund Scheme was introduced in August for providing equity type support to new tiny & small scale industrial units which are engaged in manufacturing activities & also for rehabilitation of potentially viable sick SSI units.
- 20,00,000 shares issued.
1988
- 45,00,000 shares issued.
1989
- 97,00,000 shares issued.
1991
- With effect from 1st April, DAF was merged with the General Fund.
- The Bank resources can be augmented through issue of bonds and debentures with or without Government guarantee.
- IDBI introduced 3-year 9% capital for sale to the public in the domestic market.
- 66,00,000 shares issued.
1992
- The Bank issued unsecured bonds for a minimum aggregate amount of Rs 300 crores as follows: Deep Discount Bond had a face value of Rs 1,00,000 was issued at a deeply discounted price of Rs 2,700 with a maturity period of 25 years from the date of allotment, Double Option Bond had a face value of Rs 5,000 bears an interest of 15% payable at the end of 10th year on redemption with a premium of Rs 250 per bond. Part A of Rs 5,000 & Part B of Rs 16,500 are tradable separately on Stock Exchanges at Ahmedabad Mumbai, Bangalore, Calcutta, Delh and Mumbai & Regular Return Bond had a face value of Rs 5,000 where interest on principal sum is payable half-yearly. These bonds are redeemable at a premium of 5% at the end of 10 years from the date of allotment.
- The bank entered the area of merchant banking to provide professional advice & services to industry for raising resources from capital market, acquisition of assets on lease & mergers/take-overs of existing units.
- The Bank set up a foreign exchange dealing room to deal with all foreign exchange transactions. The bank had set up Investor Services of India limited with a view to providing registrar & transfer services based on high technology system. - In order to provide wider range of direct finance to meet the specific requirements of clients, the bank introduced new products such as Asset Credit & Equipment Finance. Also introduce equipment leasing to meet the increasing demand for such services.
- 50,00,000 shares issued.
1993
- Authorised Capital reclassified. Equity Shares sub-divided. 2530,00,000 Pref. shares issued. Under Section 4 of IDBI Act, 1964, Government of India by notification in Official Gazette date 16.11.1994 converted 2530,00,000 No. of equity shares into Preference shares.
1994
- The Bank obtained the membership of National Stock Exchange. IDBI Bank limited promoted & incorporated in September as a commercial bank with an authorised capital of Rs 500.
- The Bank had set up a Mutual Fund as a trust with a view to offering innovative investment products to investors backed by high quality servicing.
- 17,30,93,300 shares allotted to public.
1995
- 17 New ventures were sanctioned. The beneficiary industries were electronics, industrial automation, industrial products & machinery, computer software etc.
- The bank entered into an Umbrella Grant Agreement with the World Bank for US $ 50 million aimed at phasing out use of ozone Depleting Substances in industry as part of ongoing efforts to reduce environmental degradation.
- Loan was approved by World Bank as part of financial sector development of select commercial banks underwrite the bank acts as pass through Agent.
- The Bank offered 16,80,00,000 No. of Equity shares of Rs 10 each to Public at a premium of Rs 120 each along with 1,44,20,000 No. of equity shares of Rs 10 each at a price of Rs 130 per share was offered for sale by Government of India. Out of above 3,36,00,000 shares offered to UTI, Exim Bank & IRBI.
- 5,80,000 shares offered to employees, 10,02,20,000 shares were offered to public along with 19,78,000 shares not taken up in various categories [all were taken up along with unsubscribed portion of shares offered to other categoriess].
1997
- The Bank accepted 68 debenture trusteeship assignments in respect of bonds & debentures aggregating to Rs 2,743 crores.
1997
- IDBI, became the first financial institution to apply NSDL as DP.
- IDBI has signed an agreement with National Securities Depository Ltd [NSDLs] to get its equity shares admitted for dematerialisation.
- IDBI has signed a $50-million bilateral seven-year loan facility arranged by Asahi Finance Ltd with Asahi Bank Ltd, Hong Kong as the lender.
- The Reserve Bank of India has shot down the IDBI proposal to privately place equity shares of its subsidiary, IDBI Bank, with the shareholders of financial institution.
- The largest financial institution of country IDBI has merged its foreign exchange & domestic treasury operations following rapid deregulation of money & foreign exchange markets in the country.
- The 500 MW Pench thermal power project, promoted by Pench Power Ltd, has tied up its financing arrangement with IDBI.
- The IDBI has signed a $150 million line of credit with the Export-Import Bank of Japan [EXIM-Js] at Tokyo.
- IDBI is set to become the first all-India financial institution to float capital gains bonds.
1998
- The Industrial Development Bank of India [IDBIs] has commissioned a study on the country debt market.
- The IDBI has tied up a $150 million line of credit with the Export Import Bank of Japan for financing Indo-Japanese joint venture projects in India.
- The IDBI is set to enter the capital market with a mega Rs 1,000-1,500 crore debt issue [Flexibond 4s]. This will be IDBI maiden retail issue in the current fiscal.
- American Express Bank, the travel related & financial services company, has entered into a strategic alliance for financial services with IDBI Bank.
- IDBI Bank has entered into a strategic alliance with leading travel and financial service Comp. American Express Bank.
- The Industrial Development Bank of India would enter the capital market with a public issue of four crore shares with a face value of Rs 40 crore.
- IDBI may tie the knot with US based $75.9 billion Principal Financial Group for management of provident and pension funds in the country.
- The Industrial Development Bank of India has tied up with 8 commercial banks for extension of loans against its Flexibonds V issue slated to be launched from December 21.
1999
- IDBI Bank Ltd, came out with a maiden public offering of four crore equity shares of Rs 10 each at a premium of Rs 8 per share aggregating Rs 72 crore, said four lakh shares were reserved for its employees and another 40 lakh shares were reserved for IDBI equity holders on a competitive basis. The issue will close on February 16, 1999. The shares are proposed to be listed on BSE, NSE, & the Indore Stock Exchange.
- IDBI Bank, promoted by two premier financial institutions - Industrial Development Bank of India [IDBIs] & Small Industries Development Corporation of India [SIDBIs] - is coming out with a public issue of 40 million equity shares of Rs.10 each at a premium of Rs.8 per share aggregating Rs.72 crores.
- THE IDBI is all set to launch the sixth issue of Flexibonds, from February 22 to mobilise Rs. 1,500 crores, inclusive of greenshoe option of Rs. 750 crores.
- American Express Bank [Amexs] has entered into a strategic alliance with IDBI Bank for its personal financial services [PFSs] division to jointly explore the development of products such as smart card and debit card, & market complementary products & services to customers of both the banks.
- The Board for Industrial & Financial Reconstruction [BIFRs] has declared ATV Projects a sick Comp. & appointed IDBI as operating agency [OAs] for preparing the rehabilitation package for company.
- IDBI has succeeded in entering into one-time settlement for 77 cases for fiscal year 1998-99 as compared to 45 cases in the previous year. - The IDBI has decided to enter the market for first time this fiscal to borrow Rs 1500 crore through its Flexibond-VII issue.
- A Memorandum of Understanding [MoUs] between IDBI & Principal Financial Group was signed in Mumbai.
2000
- The Comp. proposal for forfeiture of 3,03,100 No. of equity shares of Rs. 10/- each for non-payment of allotment money. - The Bank has been made the nodal agency for disbursing the Montreal Protocol-approved $80 million compensation package to four Indian companies, including SRF Ltd., & Gujarat Flurocarbonds.
- IDBI & CIDC would set up a joint working group to chalk out modalities for lending to the construction industry & risk assessment of the business.
- The Comp. has proposed to undertake a capital restructuring exercise to reduce the Government stake to 51 per cent through an American Depository Share issue.
- IDIB Principal Asset Management Company, the 50:50 joint venture between Industrial Development Bank of India & Principal Financial Group-USA, has brought about several changes in its top management.
- The Comp. is launching a special deposit scheme- IDBI Suvidha - to mop-up Rs 2,200 crore worth of outflow on Acc. of premature redemption of discount bonds issued five years back.
- Crisil has assigned the highest safety rating of `AAA' to various bonds issue of company.
- Crisil has assigned the highest safety rating of `AAA' to various bonds issue of company.
- IDBI has become the first all-India financial institution to qualify for the ISO 9002 certification for its treasury operations.
- Industrial Development Bank of India & the Export-Import bank of the United States have signed an memorandum of understanding for financing in the amount of $300 million to support import of US-sourced goods for Indian borrowers.
- Hughes Tele.com [Indias] has tied up a Rs 250-crore loan with the Industrial Development Bank of India.
- The Industrial & Development Bank of India has sold 36,500 No. of equity shares of Pan Foods limited to the promoters at a price of Rs 10 per share.
- Industrial Development Bank of India [IDBIs], one of country's leading financial institutions, launched a novel investment concept of asset allocation 'future goals' in a 50:50 joint venture with the US-based principal Financial group.
- IDBI has appointed I-Flex Solutions Ltd, the information technology arm of Citibank, to implement an integrated banking solutions package in a phased manner over 12-18 months.
- Industrial Development Bank of India has set up two internal task forces, one to explore opportunities to enter the insurance sector, while the other to lead IDBI Intech, a newly form IT subsidiary.
- Industrial Development Bank of India is considering hiving off its venture capital scheme as a separate Comp. before the end of the year.
- 18,074,300 partly paid up equity shares of face value of Rs 10/- each were forfeited on August 25. Consequently, [is] the aggregate face value of Rs 180,743,000 has been reduced from the Subscribed & Paid up equity capital, [iis] allotment money in Arrears of Rs 135,557,250 has been written down fully & [iiis] Forfeited shares Acc. has been credited by Rs 45,185,750 being the amount actually paid up on the forfeited shares.
- The Bank is re-entering the retail market after about eight months, with its Flexibonds-9 issue.
- The Comp. proposes to exercise the call option & redeem Easy Exit Bond & Regular Income Bond at face value plus interest accrued and outstanding at the end of 5 years from the date of allotment, i.e. March 18, 2001.
- IDBI issued bonus equity shares in the ratio of 3:5 that is, three bonus shares for every five equity shares held.
2001
- India Post & Industrial Development Bank of India [IDBIs] Principal Asset Management Comp. have entered into a joint partnership to make available current & future investment opportunities through post offices across India.
- The Industrial Development Bank of India & Morgan Guaranty Trust Company of New York have entered into a long-term rupee interest rate swap.
- The Industrial Development Bank of India has launched a new Comp. - 'IDBI Trusteeship Services Ltd.' for carrying out trusteeships and other related business.
- Industrial Development Bank of India has formed a new Comp. -- IDBI Trusteeship Services limited for carrying out trusteeship & related businesses.
- IDBI has sold 1,40,845 No. of equity shares for Rs 15 each of Pennar Profiles to P Udaya Bhaskara Reddy, a strategic investor, as part of the arrangements enteredinto by promoters of Pennar Profiles with IDBI.
- The Bank has launched a non-convertible debentures issue to raise at least Rs 500 crore.
- The Government has re-appointed Mr S.K. Chakraborty as the acting Chairman & Managing Director of Industrial Development Bank of India [IDBIs]. Mr Chakraborty has been given an extension of three months beginning May 1 or till a regular CMD is appointed.
-Credit Rating & Information Services of India Ltd [Crisils] has downgraded the outstanding bond issues & the certificate of deposit programme of Industrial Development Bank of India.
-Industrial Development Bank of India has picked up over 30 per cent equity stake in a Chennai-based high-end animation & motion graphics company, MUV Technologies, by investing Rs 2.7 crore. MUV Technologies, which has already set up the studio, is engaged in the development, production & creation of high concept, professional computer animation, visual effects & motion graphics.
- The Credit Rating Information Services of India Ltd [Crisils] has assigned a rating of `AA+', indicating high safety to the the Industrial Development Bank of India [IDBIs] Rs 2,500-crore `Flexibonds' & Rs 6,343 crore `Omni bonds' programme
- IDBI bank has plans to open over200 atms soon in a bid to expand its operations in India & thus position itself to become a fast growing entity.
-The Finance Ministry did a last-minute volte face on July 30, asking Mr S.K. Kapur to temporarily head the Industrial Development Bank of India [IDBIs]. This is the fourth time that the Ministry has hesitated from appointing a full-time Chairman for top term-lender.
2001
- India largest term lender Industrial Development Bank of India raised Rs 55 crore [$11.68 millions] through a private placement of 90-day commercial paper, debt dealers said.
2002
- Industrial Development Bank of India has informed that Mr T M Nagarajan has been appointed as Whole Time Director [designated as Deputy Managing Directors] of IDBI for period from the date of taking charge & upto September 30,2002.
-Industrial Development Bank of India has informed that Govt of India, vide notification dated July 19, 2002 has appointed Shri D C Gupta, Secretary Financial Sector, Ministry of Finance, Dept of Economic Affairs as a Director on the Board of Industrial Development Bank of India wef July 19, 2002.
-Industrial Development Bank of India has informed BSE that the shareholders other than Central Government have elected the following three Directors in the AGM held on August 02, 2002
Mr Ravi Veera Gupta Mr Manohar Gopal Bhide Mr Jamshed J Irani
-Appointed as the lead manager to the 1000 mw Maithon Power Company
-Board accords in-principal approval for group entry into non-life/reinsurance broking business
-Receives from the Asian Development Bank a line of credit worth $100 million
-Slashes interest rates on Flexibonds by 25 basis points
-Gives revamping package for Natco Pharma Ltd.
-Enters domestic market with Omni bonds worth Rs 250 cr
-Sets up a body of Rs 100 crore exclusively for providing support to the film industry
-Promoters of Visaka Industries Ltd buy-back 4,63,858 equity shares of face value Rs.10/- each held by Industrial Development Bank of India at a price of Rs.23/- per share
-ICRA assigns downward rating to IDBI long-term programmes
-FIs, banks given more power to recover NPAs through Asset Reconstruction Ordinance
-Comes out with the issue of Flexibonds-14 with four bonds on July 26 to collect a total of Rs 200 crore
-Refuses to accept GE-Bechtel offer to restart Dabhol Power Comp. [DPCs]
-Mops up Rs 337 cr by securitising loans to three firms
-Buys back Float Rate Notes of $250 mn
-Hits market with 9.4% interest for five-year retail bonds
-Reports drop in non-performing assets [NPAss] at Rs 1,300 crore
-Raises Rs 415 cr through Flexibonds-15
-Government gives nod for restructuring package for Comp. by repealing the IDBI Act & facilitating the conversion of development financial institution into a stand-alone bank
-Endorses proposal to purchase DPC power at Rs 2.80/unit
-Reduces Flexibonds interest rate by 25-85 basis points
-Sells 2,98,174 fully paid equity shares of Rs 10/- each of Infotech Enterprises, reduces the holding in the Comp. to 4.51%
2003
-Refunds $100,000 deposit amount to DPC bidders with a view to sell assets of DPC
-IDBI board okays 50 % Asset Management Comp. [AMCs] stake sell off to Principal Financial Group of USA
-Offloads 25 lakh Discount & Finance House of India [DFHIs] equity shares to State Bank of India [SBIs]
-Seizes salt refinery of Ganesh Benzoplast under Securitisation Act
-Centre permits IDBI to reissue Statutory Liquidity Ratio [SLRs] bonds
-Divests its 50% stake in AMC and trustee Comp. in favour of Principal Financial Group of USA for Rs 94 crore
-Takes possession on the second resort of Suman Motels limited under the Securitisation Act
-Modifies its financing pattern for films by doing away with profit-sharing or overflow, & the completion bond guarantee
-Acquires entire stake of Tata Finance limited in Tata Homefinance limited for Rs 49.98 crore, enters housing finance sector
-Offloads its stake in Gujarat Borosil limited to Vulcan Exports limited
-Sells 7.56 crore shares in Mangalore Refinery and Petrochemicals limited [MRPLs] to Oil and Natural Gas Corporation limited [ONGCs]
-Signs a formal subscription Agreement on July 7, 2003 with Nepal Development Bank limited [NDBLs], a private sector development bank in Nepal. Buys 10% stake in NDBL
-Acquires the knit processing unit of Suditi Industries Ltd on July 4 which is situated close to Navi Mumbai under the Securitisation Act
-Sues Spectrum Power Generation Limited [SPGLs] for allotment of shares worth Rs 23.25 crore in SPGL
-J K Corp allots 26,53,500 shares to IDBI by way of conversion of part of rupee term loans into equity shares of Comp. under restructuring scheme
-IDBI, IFCI ink deal to launch SLR bonds
-Lok Sabha introduces IDBI [Transfer of Undertaking & Repeals] Bill, 2002 on August 14 which will pave the way for transformation of institution into a bank
-Acquires CMM Studios under Securitisation Act
-Appointed P P Vora, chairman & managing director, IDBI, as the chairman of it new housing finance arm
-IDBI Homefinance mops up $20 million through external commercial borrowings
-Clears restructuring package for Stone India Ltd.
-IDBI Homefinance reduces home loan rates up to 150 basis points
-Ties up with Andhra Bank to sell Governtment of India [GOIs] saving bonds
-Acquires 1,62,87,668 shares amounting to 5.51% of total paid up capital of Recron Synethetics Ltd.
-UTI Chairman and Managing Director [CMDs] Mr. M Damodaran takes charge as CMD of IDBI & holds concurrent charge from October 1 as part of an interim arrangement
-Mr P P Vora has withdrawn from the board of IDBI Bank wef November 4, 2003.
Further, Industrial Development Bank of India [IDBIs] has notified nomination of Mr M Damodaran, CMD, IDBI as its nominee director on the Board of bank wef November 4, 2003 in place of Mr P P Vora.
-Lok Sabha clears Industrial Development Bank [transfer of undertaking and repeals] Bill of 2002
2004
-IDBI rejigs debt borrowing program
-IDBI gets a bonanza out of IFCI-PNB amalgamation
-Industrial Development Bank of India [IDBIs] has informed that the Government of India, Ministry of Finance vide notification dated February 4, 2004 states that in supersession to the notification dated September 29, 2003 & consequent upon the approval of Appointment Committee of Cabinet, it has decided to entrust the additional charge of post of Chairman & Managing Director [CMDs], IDBI to Shri M. Damodaran, Chairman, Unit Trust of India w.e.f. October 1, 2003 to May 31, 2004.
-Standard and Poor [S&Ps] Ratings Services on February 19 assigned Industrial Development Bank of India [IDBIs] proposed $300 million senior unsecured notes a 'BB' rating. An obligation rated 'BB' is less vulnerable to non-payments & other speculative issues. However, it faces major ongoing uncertainties or exposures to adverse business, financial or economic conditions, which could lead to obligour inadequate capacity to meet its financial commitments on the obligation.
--Industrial Development Bank of India [IDBI] has acquired 17,60,000 shares amounting to 12.11% of total paid up capital of Soma Textiles Limited.
2004
-The promoters of Eastern Threads Ltd [ETLs] have purchased 4 lakh equity shares of face value of Rs 10 each of ETL, from Industrial Development Bank of India, at a price of Re 1 per share. The transaction constituted over one per cent of paid up capital of ETL.
-IDBI acquires 46 lakh shares of Mysore Cements
-Mr Damodaran has been appointed CMD at IDBI with effect from June 1, 2004 till May 31, 2007
2005
-Industrial Development Bank of India Ltd [IDBIs] has informed that the Public Issue of IDBI Flexibonds - 23, which was opened for subscription on March 21, 2005 has been closed on March 29, 2005.
2006
-IDBI signs MoU with Fortis
-IDBI sets up new branch in Andheri
-IDBI - Tripartite MOU with Federal Bank and Forties Insurance International
2007
- Industrial Development Bank Of India Limited has informed that as per provisions of Article 134 to 138 of Articles of Association of IDBI Ltd., read with Sections 255 & 256 of Companies Act, 1956, the shareholders have re-appointed the following two directors after retirement by rotation on the Board of Directors of IDBI limited in the 3rd Annual General Meeting of IDBI limited held on June 22, 2007.
[1s] Shri Hira Lal Zutshi and
[2s] Shri A. Sakthivel
2008
-Industrial Development Bank Of India Limited has submitted to a copy of Resolution passed by Board by circulation on March 12, 2008 in respect of change of name of Bank to 'IDBI Bank Limited' by passing a Special Resolution through Postal Ballot in terms of Section 192A of Companies Act, 1956.
