IDBI sure is a public sector bank, but it is not a nationalised bank. That’s just because, back when those few banks were nationalized during 1969 or 1980, it wasn’t full-blown banks back then. Instead, if you know just a little bit of history stuff about this bank, IDBI started in 1964 as a financial institution created by Parliament.
History of IDBI Bank
Starting on July 1, 1964, IDBI was formed under the Industrial Development Bank of India Act. At that time, and sure enough, if you know just a little bit about its history, it was only granting loans to large-scale industries for growth.
- In 1976, the ownership was handed over to the Government of India by the RBI.
- For a long time, it was considered the main industrial-finance bank in India.
- In 2003, a new Act of Parliament transformed IDBI into a company limited by shares.
- On 21 January 2004, IDBI became a scheduled bank.
- In 2005, the financial wing was merged with the banking division.
- In 2006, with the takeover of United Western Bank, IDBI further grew in stature.
But later, things didn’t go well or THAT well, you know? The bank had a lot of bad loans. Because of that, the RBI put it under the Prompt Corrective Action (PCA) list.
To make things better, LIC poured in money during the 2018 and 2019 period, and took over the bank’s management. After a couple of years, IDBI came out of the PCA list on March 10, 2021.
Current Financial Condition
As of Mid-2025, IDBI Bank seems to be doing super well in the country, like it quite literally is the 6th largest public sector, and 10th largest overall bank in the country by market cap size. And just last year, IDBI Bank posted a net profit of ₹5,634 crore, which is a record for the bank.
Some other numbers for a full picture:
- Gross NPA: 4.53%
- Net NPA: 0.34%
- Capital Adequacy (Basel III): 22.26%
- Branches in India: 2,088
- ATMs: 3,144
- Overseas Branch: 1 (in Dubai)
