IRBI Bank Full Form
What is the full form of IRBI Bank?
IRBI stands for the Industrial Reconstruction Bank of India. Briefly, the Industrial Reconstruction Corporation of India (IRCI) was transformed into the Industrial Reconstruction Bank of India (IRBI) in 1984 by an Act of the Indian government. To replace IRCI, IRBI was founded in March 1985. Currently, IRBI must serve as the main rebuilding organization for all of India, helping and promoting industrial growth and rehabilitating industrial problems. Term loans and operating capital financing are offered by IRBI to medium-sized, big, small, and also very small sector firms. Additionally, it offers support services such as consulting, drafting mergers, sale, reconstruction, and other auxiliary plans, as well as merchant banking and renting equipment. To end industrial illness, IRBI has complete authority to take any action.
Brief History
For industrial units' necessary capital expenditures related to modernisation, diversification, renovation, growth, etc., during the 1986–1987 period, the IRBI sanctioned a total of Rs. 148.9 crores in assistance and disbursed Rs. 946 crores in the form of term loans. The IRBI's imposed penalty totalled Rs. 897 crores in 1995–1996. 3,521 crores were sanctioned overall, while 2,404 crores were paid out.
Functions of IRBI
- To offer sick industrial units financial aid.
- To offer banks consulting services regarding sick units such as intentional default, willful mismanagement, unauthorized money-diversion, and partner disagreements.
- To start a leasing business A company buys a product and then rents it to a consumer for a recurring cost under the leasing business model..
- To aid sick industrial units managerially and technically.
- To obtain support from other financial institutions and governmental organizations to recover and revitalize ailing industrial units.
- To offer commercial banking services for consolidation, merger and reconstruction.