The Industrial Investment Bank of India (IIBI) was a

development finance institution A development financial institution (DFI), also known as a development bank or development finance company (DFC), is a financial institution that provides risk capital for economic development projects on a non-commercial basis. , total commitme ...

under the ownership of

Ministry of Finance A ministry of finance is a part of the government in most countries that is responsible for matters related to the finance. Lists of current ministries of finance Named "Ministry" * Ministry of Finance (Afghanistan) * Ministry of Finance and Ec ...

Government of India The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

. It operated from its inception in 1971 until it was closed down by the Indian government in 2012. It was a

with the aim of rehabilitating sick industrial companies in India. IIBI offered a wide range of products and services, including term loan assistance for

project finance Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project financing structure involves a number of equi ...

, short duration non-project asset-backed financing,

working capital Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is consi ...

/other short-term loans to companies, equity subscription, asset credit, equipment finance and investments in capital market and

money market The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a compon ...

instruments.

History

It was established in 1971 by resolution of the

Parliament of India The Parliament of India ( IAST: ) is the supreme legislative body of the Republic of India. It is a bicameral legislature composed of the president of India and two houses: the Rajya Sabha (Council of States) and the Lok Sabha (House of the ...

u/s 617 of the Companies Act. The bank was headquartered at

Kolkata Kolkata (, or , ; also known as Calcutta , the official name until 2001) is the capital of the Indian state of West Bengal, on the eastern bank of the Hooghly River west of the border with Bangladesh. It is the primary business, comme ...

and had presence in

New Delhi New Delhi (, , ''Naī Dillī'') is the capital of India and a part of the National Capital Territory of Delhi (NCT). New Delhi is the seat of all three branches of the government of India, hosting the Rashtrapati Bhavan, Parliament Ho ...

Mumbai Mumbai (, ; also known as Bombay — List of renamed Indian cities and states#Maharashtra, the official name until 1995) is the capital city of the Indian States and union territories of India, state of Maharashtra and the ''de facto'' fin ...

Chennai Chennai (, ), formerly known as Madras ( the official name until 1996), is the capital city of Tamil Nadu, the southernmost Indian state. The largest city of the state in area and population, Chennai is located on the Coromandel Coast of th ...

, Bengaluru, Ahmedabad and

Guwahati Guwahati (, ; formerly rendered Gauhati, ) is the biggest city of the Indian state of Assam and also the largest metropolis in northeastern India. Dispur, the capital of Assam, is in the circuit city region located within Guwahati and is the ...

. The Industrial Reconstruction Corporation of India Ltd. (IRCI), set up in 1971 for rehabilitation of sick industrial companies, was reconstituted as Industrial Reconstruction Bank of India (IRBI) in 1985 under the IRBI Act, 1984. With a view to converting the institution into a full-fledged development financial institution, IRBI was incorporated under the

Companies Act 1956 The Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, and set out the responsibilities of companies, their directors and secretaries. It was repealed and replaced b ...

, as Industrial Investment Bank of India Ltd. (IIBI) in March 1997. The clientele of the bank included

Videocon Videocon Industries Limited is an Indian multinational conglomerate, headquartered in Mumbai. The group had 17 manufacturing sites in India and plants in Mainland China, Poland, Italy and Mexico. It was the third largest picture tube manufact ...

, Dr Morepen, Perfect Threads, Clutch Auto Limited, JSW Ispat and LML Motors. In 2005, a merger was considered of IIBI with the Industrial Development Bank of India and

Industrial Finance Corporation of India IFCI, previously Industrial Finance Corporation of India, is a development finance institution under the ownership of Ministry of Finance (India), Ministry of Finance, Government of India. Established in 1948 as a statutory corporation, IFCI is ...

, but IIBI refused. After the merger was refused by IIBI, the Indian government decided in 2006-2007 to close down the bank instead. As of 2011, the bank operated from its sole remaining office in Kolkata.

Deloitte and Touche Deloitte Touche Tohmatsu Limited (), commonly referred to as Deloitte, is an international professional services network headquartered in London, England. Deloitte is the largest professional services network by revenue and number of profession ...

was appointed to dispose of IIBI's Non-Performing assets. The bank's closure was announced in the Budget 2012.

References

{{Banking in India Financial services companies of India Investment banks in India 1971 establishments in West Bengal Indian companies established in 1971 Indian companies disestablished in 2012 Banks established in 1971 Banks disestablished in 2012