IDBI Full Form

IDBI Full Form

IDBI Full Form is the Industrial Development Bank of India.

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 

  • The main objective of IDBI bank is to formulate the industries of India. By giving them credit facilities and short-term and long-term borrowings.  
  • The industrial development bank of India also helps in Selling the Shares, bonds, and debentures of enterprises.  
  • IDBI helps to innovate and develop production by industrial sectors by providing them low-interest loans. 

Developmental Activities of IDBI

IDBI helps in the development of Industries by performing various activities like some Promotional activities or Technical Consultant Organisations and Entrepreneurship development institutes. 

  • Developmental Activities

Industrial development banks of India perform promotional activities which promote the industrial sectors or economics sectors like employing the people of rural or seasonal areas like self-employment and wage employment also support science technology and small industries. 

  • Technical Advisory Organisation

Industrial Development Bank of India also provides Advisory services to the entrepreneurs or industries regarding innovation and also works together with other industries like small industries and large industries or with Industrial finance corporations or State finance corporations. 

  • Entrepreneurship development institutes

Industrial Development Bank of India facilitates the Development of Entrepreneurship along with the development of industries because the entrepreneurs are the key to the success of every industry. They also establish some institutes for the development of Entrepreneurship in various states. 

Financial Resources of IDBI 

Industrial Development Bank of India gets the finances in the following ways:- 

  • Share Capital

The industrial development bank of India raises funds by issuing the Equity share capital to the public but they make sure that the government share must not be less than 51percent of the total share capital of IDBI. IDBI was established with an initial capital of 49 crores, then after the recent amendments, it was raised to 9300 crores. 

  • Borrowings

The IDBI raises funds from the borrowings or loans by the Government of India or the Reserve bank of India who is the holding of the Industrial development bank of India. IDBI raises their borrowings with the help of debentures and bonds of the Government of India.  


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.