IIBI Full Form
Introduction
IIBI was a government-owned financial institution that provided long-term finance to the industrial sector in India. It was headquartered in Kolkata and had branches in several cities in India. The Industrial Investment Bank of India (IIBI) was a development financial institution in India, which was established in 1971 with the primary objective of providing long-term finance to the industrial sector. The bank had offices in several Indian cities, including Kolkata, Mumbai, New Delhi, Chennai, Ahmedabad, and Guwahati. It offered a range of products and services, including term loan assistance for project finance, short-duration non-project asset-backed financing, working capital/other short-term loans to companies, equity subscription, asset credit, equipment finance and investments in the capital market and money market instruments.
History of IIBI
The Industrial Investment Bank of India (IIBI) was a development finance institution that aimed to rehabilitate sick industrial companies in India.
In 1997, the Industrial Reconstruction Bank of India was incorporated as the Industrial Investment Bank of India to convert the institution into a full-fledged development financial institution.
In 2005, a merger was proposed with the Industrial Development Bank of India and the Industrial Finance Corporation of India, but IIBI declined.
In 2006-2007, the Indian government decided to shut down the bank, and its closure was confirmed in the Budget 2012.
Objectives of IIBI
Promoting the growth and development of industries in India by providing long-term finance
Offering financial assistance to small and medium-sized enterprises (SMEs)
Supporting the growth of infrastructure projects
Encouraging foreign investment in India
Functions of IIBI
Offering term loans and project finance to industries
Providing venture capital and private equity funding to SMEs
Underwriting and syndication of debt and equity for infrastructure projects
Offering leasing, hire-purchase, and factoring services
Offering trade finance and foreign currency loans
Conclusion
The Industrial Investment Bank of India (IIBI) was a development finance institution established in 1971 under the ownership of the Ministry of Finance, Government of India. The bank aimed to rehabilitate sick industrial companies in India and offered a range of financial products and services, including project finance, asset-backed financing, and equity subscription. The bank had offices in Kolkata, Mumbai, New Delhi, Chennai, Ahmedabad, and Guwahati. In 2006-2007, the Indian government decided to shut down the bank, and its closure was confirmed in the Budget 2012. Deloitte and Touche were appointed to handle the Non-Performing assets of IIBI.
Frequently Asked Questions (FAQs)
The Industrial Investment Bank of India (IIBI) is a financial institution that provides long-term financing to industrial and infrastructure projects in India. It was established in 1948 with the objective of promoting the industrial development of India.
The IIBI provides a range of services including long-term project financing, term loan, working capital finance, and venture capital financing. It also offers financial advisory services and project appraisal services to clients.
The eligibility criteria for obtaining a loan from the IIBI vary depending on the type of loan and the project. Generally, the IIBI requires the borrower to have a sound credit history, a viable project proposal, and sufficient collateral.
To apply for a loan from the IIBI, you need to submit an application form along with the required documents such as the project report, financial statements, and proof of collateral. The IIBI will evaluate your application and conduct due diligence on your project before approving the loan.
The IIBI is a specialized financial institution that focuses on providing long-term financing to industrial and infrastructure projects. Its services and lending criteria are different from those of commercial banks which usually focus on short-term lending and consumer banking services.