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Introduction
IDBI was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and started functioning on July 01, 1964.

IDBI is engaged in direct financing of the industrial activities as well as in re-finance and re-discounting of bills against finance made available by commercial banks under their various schemes.
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The objectives of this institution are To create principal institution for long term finance. To coordinate the institutions working in this field for planned development of industrial sector. To provide technical and administrative support to the industries. To conduct research and development activities for the benefit of industrial sector.

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Main Functions of IDBI

IDBI coordinates between various financial institutions who are highly involved in provide financial assistance, promoting, and developing various industrial units. IDBI works for the advancement of technology and other welfare schemes to ensure economic development.

Industrial Development Bank of India acts as a catalyst in various industrial development programs

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Soft loans for various purposes including modernization and under equipment finance schemes

Sanction of foreign currency loans for import of equipment or capital goods. Short term working capital loans to the corporate for meeting their working capital requirements. Refinance to banks and other institutions against loans granted by them.

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IDBI is the Entrepreneurship Development Institute

Realizing that entrepreneurship development is the key to industrial development. IDBI played a prime role in setting up of the Entrepreneurship Development Institute of India for fostering entrepreneurship in the country.

It extends financial support to various organizations in conducting studies or surveys of relevance to industrial development.

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Promotional activities
Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs consultancy services for small and medium enterprises entrepreneurship development self-employment and wage employment

Energy Conservation, Common Quality Testing Centers for small industries.

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Wholesale Banking services

The services that are offered under the wholesale division are. Cash Management Transactional services Finance of working capital Agro based business transactions Trade services Important source of income in a number of infrastructure projects such as power, transport, telecom, railways, roadways, and logistics and so on.

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Retail Banking Services

The retail products offered by the bank include Housing loans Personal loans Securities loans Mortgage loans Educational loans Merchant establishment overdrafts Holiday travel plans Commercial property loans

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Other services
It offers some allied services and financial solutions to cater to the target audience. Financial product distribution Pension fund management Corporate and retail services Debt management services Another subsidiary of the Industrial Development Bank of India is the IDBI Gilts Limited. The main services of this segment is trading of bonds, offering insurance, auction underwriting and so on.

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Other information
It raises funds by way of market borrowing by way of bonds and deposits, borrowing from Govt. and RBI, borrowing abroad in foreign currency and lines of credit. The Net Interest Income amounted to around Rs 2166 Crores while the Net Profit amounted to around Rs 187 Crores.

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