IDBI Bank
Corporate brand
UnclaimedAn Indian banking institution that evolved from a government-owned industrial development finance institution into a full-service commercial bank.
Last updated November 3, 2026
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Overview
IDBI Bank is an Indian scheduled commercial bank whose origins lie in the Industrial Development Bank of India, a development finance institution established by an Act of Parliament in 1964. The original institution was created to provide long-term financial support for industrialization, including funding for new projects and assistance with expansion, modernization, and diversification. It also refinanced loans made by state-level financial institutions and banks and supported the sale of domestically produced machinery through bill rediscounting facilities. The bank’s institutional history is closely connected with the development of India’s post-independence financial architecture. In 1976, ownership moved from the Reserve Bank of India to the Union government, and IDBI became the principal financial institution responsible for coordinating bodies involved in industrial finance and promotion. Its support contributed to the creation or development of several important Indian financial institutions and market-infrastructure organizations, including SIDBI, EXIM Bank India, SEBI, the National Stock Exchange of India, NSDL, and other sectoral institutions. Financial-sector reforms in the 1990s encouraged IDBI to move beyond the traditional development-finance model. Following a public issue in 1995, the government’s direct shareholding was reduced from complete ownership to 75 percent. The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 converted the institution into a limited company, and the Reserve Bank of India classified it as a scheduled bank in 2004. In 2005, the commercial banking arm known as IDBI Bank was merged with the parent institution, creating the modern IDBI Bank structure and broadening its focus toward commercial banking. The bank expanded its branch network through the 2006 acquisition of United Western Bank, a rescue transaction that more than doubled its branch count at the time. It subsequently developed retail, corporate, treasury, wealth-management, transaction-banking, and digital-banking activities. Its offering includes deposit accounts, loans, payments, internet banking, mobile banking, cards, remittances, and financial services for businesses and institutions. IDBI Intech, a wholly owned information-technology subsidiary established in 2000, supports technology consulting, systems integration, application and server hosting, data-center operations, call-center services, and related managed services. IDBI Bank experienced significant asset-quality and capital-adequacy pressure during the late 2010s. By March 2018, reported non-performing assets had reached approximately ₹55,588 crore, representing about 28 percent of total loans according to the cited reference material. The bank was placed under the Reserve Bank of India’s Prompt Corrective Action framework. The Government of India subsequently asked Life Insurance Corporation of India to inject capital and take management responsibility. LIC received regulatory approval to increase its stake and completed the acquisition of a 51 percent controlling interest on 21 January 2019 after investing ₹21,624 crore. The Reserve Bank of India then reclassified IDBI Bank as a private-sector bank for regulatory purposes, although the Government of India and LIC together continued to hold overwhelming promoter ownership and public-sector influence. The bank exited Prompt Corrective Action on 10 March 2021. It remains listed on the Bombay Stock Exchange and the National Stock Exchange of India. Reference material describes a network exceeding 2,100 branches and more than 3,700 ATMs as of July 2025, together with banking outlets, e-lounges, and a Dubai branch. The same material reports that, as of September 2025, LIC held 49.24 percent and the Government of India held 45.48 percent, with the balance owned by non-promoter shareholders. IDBI Bank therefore occupies a distinctive position: it is operationally classified as a private-sector bank for regulatory purposes, while its ownership and institutional history remain strongly associated with the Indian state and LIC.
History
IDBI Bank developed from India’s post-independence effort to build specialized institutions for long-term economic development. The Industrial Development Bank of India was created in 1964 as a wholly owned subsidiary of the Reserve Bank of India. Its original mandate was not conventional retail banking; it was to provide long-term rupee and foreign-currency finance to industrial enterprises, support new projects, and assist established companies with expansion, modernization, and diversification. In 1976, ownership was transferred to the Government of India. IDBI was designated the principal financial institution for coordinating organizations engaged in industrial finance, promotion, and development. During the period before the major financial reforms of the 1990s, it played a central role in channeling capital toward industrial projects. It also helped develop the broader financial system. Institutions and market organizations associated with its support or institutional legacy include SIDBI, EXIM Bank India, SEBI, the National Stock Exchange of India, NSDL, Stock Holding Corporation of India, and other development-oriented bodies. The financial reforms introduced from 1991 onward changed the environment in which development finance institutions operated. IDBI diversified into refinancing and other banking activities and gradually moved away from a strict separation between long-term development finance and commercial banking. Its 1995 public issue reduced the government’s stake to 75 percent. The Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 converted the institution into a limited company. The Reserve Bank of India incorporated it as a scheduled bank in September 2004, and the commercial banking arm, IDBI Bank, was merged into the institution in 2005. The merger created a broader commercial bank but did not immediately eliminate the legacy of industrial lending. Retail banking represented only a limited share of the business for a period, while exposure to stressed industrial borrowers contributed to later asset-quality problems. In 2006, IDBI Bank acquired United Western Bank in a rescue transaction. The acquisition increased the number of branches from approximately 195 to 425, strengthening the bank’s physical distribution in India. By March 2018, the bank reported very high non-performing assets and faced capital-adequacy pressure. The cited reference material places gross non-performing assets at approximately ₹55,588 crore, or around 28 percent of total loans. The Government of India responded by asking LIC to provide capital and take a management role. LIC received approval in 2018 to raise its stake and completed the purchase of a 51 percent controlling interest on 21 January 2019, following a reported investment of ₹21,624 crore. The Reserve Bank of India subsequently treated IDBI Bank as a private-sector bank for regulatory classification, effective from the date of LIC’s control. This classification did not remove the government’s influence: LIC and the Union government together retained a dominant ownership position. IDBI Bank was placed under the Reserve Bank’s Prompt Corrective Action framework during its period of financial stress. It exited that framework on 10 March 2021. In parallel, the bank continued developing retail products, corporate services, digital channels, treasury operations, wealth management, and government-business capabilities. The Government of India directed central and state departments to consider IDBI Bank for the allocation of government business. The bank’s technology capabilities are supported in part by IDBI Intech, a wholly owned subsidiary founded in 2000. IDBI Intech provides consulting, systems integration, systems implementation and support, application and server hosting, data-center and call-center services, managed technology services, and specialized training. As described in the supplied reference material, IDBI Bank had more than 2,100 branches and over 3,700 ATMs as of July 2025, as well as banking outlets across India, a Dubai branch, and a network of e-lounges. Its shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India. The institution remains active and combines a commercial-bank operating model with a distinctive ownership structure rooted in LIC and the Government of India.
- 2021
Exit from Prompt Corrective Action
[1]IDBI Bank exits the RBI’s Prompt Corrective Action framework.
- 2019
LIC becomes the controlling shareholder
[1]LIC completes the acquisition of a 51 percent controlling stake, and the RBI reclassifies the bank as a private-sector bank for regulatory purposes.
- 2018
LIC receives approval to increase its stake
[1]Insurance-sector regulators provide technical approval for LIC to raise its holding in IDBI Bank to 51 percent.
- 2006
United Western Bank acquisition
[1]IDBI Bank acquires United Western Bank in a rescue transaction and expands its branch network.
- 2005
Commercial banking arm merges with IDBI
[1]IDBI Bank, the commercial banking subsidiary, is merged into the parent institution.
- 2004
IDBI is incorporated as a scheduled bank
[1]The Reserve Bank of India incorporates IDBI as a scheduled bank under the Reserve Bank of India Act.
- 2003
IDBI becomes a limited company
[1]Legislation transfers the undertaking into a limited-company structure and repeals the original statutory framework.
- 1995
Public issue reduces direct government ownership
[1]Following a public issue, the Government of India’s direct holding falls from 100 percent to 75 percent.
- 1976
Ownership transfers to the Government of India
[1]IDBI becomes government-owned and is assigned a coordinating role among institutions supporting industrial development.
- 1964
Industrial Development Bank of India is established
[1]The Government of India establishes IDBI under parliamentary legislation as a development finance institution and wholly owned Reserve Bank of India subsidiary.
Products and positioning
A full-service Indian bank combining a legacy in industrial and development finance with retail, corporate, institutional, and digital banking capabilities.
Retail banking
Retail banking
IDBI Bank’s retail business includes deposit products, payment accounts, personal finance, housing finance, vehicle finance, education loans, cards, remittances, and related customer services. Retail banking became increasingly important as the institution shifted from its original development-finance mandate toward a diversified commercial-bank model.
Corporate banking · 1964
Corporate and industrial banking
Corporate and industrial banking reflects IDBI’s historical strength in long-term finance. Services include project finance, working-capital facilities, loans for expansion and modernization, transaction banking, institutional credit, and other financing for companies and organizations.
Digital banking
Digital banking
The bank provides internet and mobile banking services and operates e-lounges and other technology-enabled service points. These channels support account access, payments, transfers, service requests, and selected banking transactions without requiring a branch visit.
Investment and treasury services
Treasury and wealth-management services
IDBI Bank offers treasury, foreign-exchange, investment, and wealth-related services to retail, corporate, and institutional customers. These activities complement its deposit-taking and lending businesses and broaden the bank’s role beyond traditional credit provision.
Banking technology · 2000
IDBI Intech technology services
IDBI Intech is a wholly owned technology subsidiary established in 2000. It provides technology consulting, systems integration, implementation and support, application and server hosting, data-center and call-center operations, managed services, and specialized training.
Controversies
2026
IDBI Bank employees strike over planned privatization
IDBI Bank employees began a two-day nationwide strike to protest the planned privatization of the lender. The employees called on the Central government to scrap the sale of the bank to Fairfax Financial Holdings. The strike was reported as a response to the planned privatization and the proposed sale to Fairfax Financial Holdings.
2026
IDBI workers call strike opposing proposed takeover
The United Forum of IDBI Officers and Employees called for a two-day nationwide strike opposing the proposed sale of IDBI Bank to Fairfax. The union also raised concerns about the sale's transparency and valuation.
Brand decisions
2021
Exit from Prompt Corrective ActionStrategyBackground
IDBI Bank had been subject to the RBI’s Prompt Corrective Action framework because of financial and regulatory concerns.
Action taken
The bank exited the framework on 10 March 2021.
Aftermath
The exit marked a regulatory recovery milestone and allowed the bank to continue its commercial and digital-banking development outside the corrective-action regime.
2019
LIC assumes control of IDBI BankM&ABackground
The bank faced high non-performing assets and capital-adequacy pressure, prompting government intervention and a request for LIC capital support.
Action taken
LIC acquired a 51 percent controlling interest and took management control after a reported investment of ₹21,624 crore.
Aftermath
The RBI classified IDBI Bank as a private-sector bank for regulatory purposes, while LIC and the Government of India retained dominant ownership.
LIC investment in IDBI Bank. ₹21,624 crore (January 2019)
2006
Acquisition of United Western BankM&ABackground
United Western Bank was acquired in a rescue transaction.
Action taken
IDBI Bank acquired United Western Bank and integrated its operations and branch network.
Aftermath
The acquisition increased IDBI Bank’s branches from approximately 195 to 425, according to the cited reference material.
2005
Consolidation into a commercial-bank structureStrategyBackground
Financial-sector reforms encouraged development finance institutions to diversify and combine long-term finance with commercial banking.
Action taken
IDBI merged its commercial banking arm, IDBI Bank, into the parent institution after becoming a scheduled bank.
Aftermath
The transaction created the modern IDBI Bank platform and expanded its scope into retail and broader commercial banking.
Recent events
IDBI Bank employees strike over planned privatization[3]
IDBI Bank employees began a two-day nationwide strike to protest the planned privatization of the lender and called on the Central government to scrap the sale to Fairfax Financial Holdings.
Reported
IDBI workers call strike opposing proposed takeover[4]
The United Forum of IDBI Officers and Employees called for a two-day nationwide strike opposing the proposed sale of IDBI Bank to Fairfax. The union also raised concerns about the sale's transparency and valuation.
Reported
India announces $5.5 billion sale of 60.7% stake in IDBI Bank to Fairfax Financial Holdings[5]
India's Ministry of Finance announced on Wednesday the sale of a 60.7% stake in state-owned IDBI Bank to Canada's Fairfax Financial Holdings for over 529 billion rupees ($5.5 billion), with Fairfax's winning bid at 81 rupees per share. The government said the deal, which still requires approvals including a Reserve Bank of India fit-and-proper assessment, would become the largest foreign direct investment transaction in India's financial sector. IDBI Bank shares fell more than 7% on Thursday after the announcement.
Weekdays and relative dates follow the original report; their exact calendar dates have not been verified.
Reported
IDBI Bank launches banking services on WhatsApp[6]
IDBI Bank announced the launch of banking services on WhatsApp, including account balance information, recent transactions, cheque-book requests, email statements, interest rates, and nearby branch and ATM details.
Reported
IDBI Bank launches four specialised gold-loan branches[7]
IDBI Bank launched four specialised gold-loan branches by remodelling existing branches in Tamil Nadu, Bengaluru and Hyderabad.
Sources8 sources
- 1IDBI Banken.wikipedia.org
- 2IDBI Bank official websiteidbibank.in
- 3IDBI Bank employees strike over planned privatizationmoneycontrol.com
- 4IDBI workers call strike opposing proposed takeovercnbc.com
- 5印度宣布以55亿美元向Fairfax Financial Holdings出售IDBI Bank 60.7%股权cnbc.com
- 6IDBI银行推出WhatsApp银行服务thehindubusinessline.com
- 7IDBI Bank 开设四家专业黄金贷款分行thehindubusinessline.com
- 8IDBI Bank launches WhatsApp banking services for its customerstechgraph.co
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