The full form of IIBI is Industrial Investment Bank of India. From its founding in 1971 until its closure by the Indian government in 2012, IIBI was a financial investment firm under the control of the Indian government. It acted as a development bank to revive India’s failing industrial enterprises.
IIBI has provided many goods and services, including project finance loan arrangement support, short-term non-project asset-backed funding, cash flow, and other short-term financings.
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An Overview of IIBI’s Past
- A resolution of the Indian Parliament’s Companies Act, U/S 617, established IIBI in 1971.
- The bank has offices in Mumbai, New Delhi, Bengaluru, Chennai, Ahmedabad, and Guwahati, and its headquarters is in Calcutta.
- The Industrial Reconstruction Corporation of India Ltd., founded in 1971 for the rehabilitation of failing industrial enterprises, was reconstituted as the Industrial Reconstruction Bank of India under the IRBI Act of 1984 in 1985.
- The bank’s clients included Videocon, Great Threads, Dr Morepen, Clutch Auto Limited, JSW Ispat, and LML Motors.
- In 2005, it was suggested that IIBI join the Industrial Development Bank of India and the Industrial Finance Corporation of India, but IIBI declined.
- After IIBI rejected the merger in 2006–2007, the Indian government decided to close the bank.
- In 2011, the bank’s lone surviving branch was still operating in Kolkata.
- Deloitte & Touche was chosen to manage IIBI’s non-performing assets. The closure of the bank was confirmed in Budget 2012.