Apex Body in Industrial Finance in India

The apex body in industrial finance in India is the Industrial Development Bank of India (IDBI). It was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India (RBI). In 2019, IDBI Bank was privatized, and now LIC is the majority stakeholder of the bank.

Functions of IDBI

IDBI is responsible for providing financial assistance to various industrial sectors, including small and medium enterprises (SMEs), infrastructure, and export-oriented units. Its primary functions include:

1. Project Finance: IDBI provides long-term financial assistance to industrial projects that require huge capital investments.

2. Refinancing: IDBI refinances loans given by other financial institutions to industrial projects.

3. Underwriting: IDBI underwrites securities issued by corporate bodies.

4. Bills Discounting: IDBI discounts bills of exchange of industrial units.

5. Investment Banking: IDBI provides investment banking services, including underwriting, advisory services, and project appraisal.

6. Merchant Banking: IDBI provides merchant banking services, including issue management, portfolio management, and capital restructuring.

7. Venture Capital: IDBI provides venture capital to start-ups and high-growth companies.

Conclusion

In conclusion, IDBI is the apex body in industrial finance in India. It plays a vital role in promoting industrial development by providing financial assistance to various industrial sectors. Its functions include project finance, refinancing, underwriting, bills discounting, investment banking, merchant banking, and venture capital.

The Industrial Development Bank ofIndia (IDBI) was established in 1964 as an apex financial institution to provide credit and other financial facilities for the development of the Indian industry. Headquarters: Mumbai.