Functions of IDBI
1. Project Financing: IDBI provides financial assistance to industrial and infrastructure projects. It offers long-term loans and credit to companies and organisations for establishing new projects, expanding existing ones, and modernising operations. This support helps in the growth and development of various industries in the country.
2. Developmental Banking: As a developmental bank, IDBI plays a crucial role in fostering economic growth and development. It works towards achieving the broader economic and social objectives of the government by providing financial resources and expertise to key sectors of the economy.
3. Capital Market Operations: IDBI engages in capital market activities. This includes underwriting securities, facilitating the issuance of bonds and stocks by companies, and participating in the capital market, to raise funds for various purposes. These activities contribute to the efficient functioning of India’s capital markets.
4. Investment Banking: IDBI provides investment banking services, which involves advising companies on mergers and acquisitions, capital restructuring, and other financial transactions. It acts as a financial intermediary between businesses, helping them access capital and make strategic financial decisions.
5. Rural and Agricultural Development: IDBI extends financial support to rural and agricultural development projects. It plays a role in funding initiatives aimed at improving rural infrastructure, increasing agricultural productivity, and addressing rural poverty.
6. Retail Banking (through IDBI Bank): IDBI Bank, a subsidiary of IDBI, offers a range of retail banking services to individuals and small businesses. This includes savings accounts, current accounts, personal loans, home loans, credit cards, and other retail financial products and services.
7. Promotion of Priority Sectors: IDBI actively promotes and supports priority sectors identified by the government, such as small and medium-sized enterprises (SMEs), export-oriented industries, and sectors with significant employment generation potential.
8. Technical Assistance and Consultancy: IDBI provides technical and consultancy services to assist industrial and infrastructure projects in areas like project planning, feasibility studies, and project implementation.
9. International Operations: IDBI also has a presence in international markets and is engaged in financial activities related to international trade and investment. The international operations of IDBI are aligned with India’s broader economic goals of increasing exports, attracting foreign investments, and expanding the global footprint of Indian businesses. It provides export credit to facilitate the export of goods and services from India to international markets. This helps Indian exporters access the necessary funds for the production, marketing, and distribution of their products abroad.