IIBI was dealing with a declining balance sheet that was clogged with ill or failing accounts. IIBI was initially called the Industrial Reconstruction Bank of India (IRBI) and was established to handle and restructure the accounts of failing enterprises. IRBI was established by an Act of Parliament several decades ago and carried out its duties competently, as evidenced by the fact that it was in the black. IIBI, on the other hand, had lost relevance since the emergence of new generation asset reconstruction firms. In more than one Union budget, the BJP-led NDA government promised cash to help IIBI get back on its feet, but the promised funding never materialized.
In a related event, IIBI was approached by numerous banks for a possible takeover. Still, it could not find a buyer since it lacked a branch network and a portfolio of appealing assets. To keep the institution afloat, the chairman of Kolkata's Allahabad Bank was appointed chairman of IIBI as a last resort. However, in 2012, the government announced that India’s ailing Industrial Investment Bank will be closed since it was no longer viable.
Organisational Structure Of IIBI
The state-owned Industrial Investment Bank of India Ltd (IIBI) was the first all-India financial institution to wound up in 2012. IIBI had been unable to adapt to changes in the financial system, as banks had ventured into historically dominated financial institution segments to gain access to cheaper resources.
According to the Reserve Bank of India's latest data, IIBI had a balance sheet of Rs. 2,154 crore at the end of March 2006. Due to its poor financial standing, IIBI was unable to conduct new business for a while.
Virendra Kumar Dhingra
Headquarters of IIBI
The IIBI was founded in 1971 by a resolution of the Indian Parliament under Section 617 of the Companies Act. The bank had offices in New Delhi, Mumbai, Chennai, Bengaluru, Ahmedabad, Guwahati, and Kolkata.
Products And Functions of IIBI
The Industrial Investment Bank of India provided a variety of products and services, including:
- Investments in financial instruments such as the stock market and the money market.
- Equity Subscription Asset Credit
- Assistance with project financing with a term loan
- Finance for equipment
- Short-term non-project asset-backed working capital and other short-term loans to businesses
This was all about IIBI Full form, IIBI History, and IIBI Functions. We hope this would be extremely beneficial for a banking exam. Please contact us if you have any questions, and we will be more than happy to assist you.
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