IIBI Full Form- Industrial Investment Bank of India

What is IIBI? The full form of IIBI is Industrial Investment Bank of India. In order to support small and medium-sized businesses (SMEs) in the nation, the Industrial Investment Bank of India (IIBI) was founded as a development financial institution in 1948. It was founded as a division of the Industrial Development Bank of India (IDBI), which at the time was the country's most prestigious development finance organization. 

Operating as an independent organization from the IDBI, the IIBI was dedicated to offering SMEs project finance, term loans, working capital financing, and consultancy services. Through its nationwide network of regional offices and branches, it also offered financial support to small businesses. In 2004, the IIBI and the IDBI amalgamated.

History of IIBI

As a division of the Industrial Development Bank of India (IDBI), the Industrial Investment Bank of India (IIBI) was founded in 1948 to offer financial support to small and medium-sized businesses (SMEs) throughout the nation. When the IIBI was founded, it was the only organization in India dedicated solely to lending money to small and medium-sized businesses.

Through its nationwide network of regional offices and branches, the IIBI initially supported SMEs with funding and other forms of assistance. Additionally, it made a significant contribution to the expansion and advancement of India's small business sector by offering project, term, and working capital financing.

The IIBI encountered difficulties in the 1980s and 1990s as a result of many circumstances, including heightened competition from other financial institutions, modifications to the regulatory landscape, and a change in the government's emphasis on major sectors. The IIBI consequently had trouble continuing to be profitable and run efficiently.

As part of a larger reform of India's development financial institutions, the IIBI and the IDBI amalgamated in 2004. Now a commercial bank, the combined company is known as the IDBI Bank and serves a wide spectrum of clients, including people, companies, and enterprises, with a range of financial services and products.

Products of Industrial Investment Bank of India 

The Industrial Investment Bank of India (IIBI) offered small and medium-sized businesses (SMEs) in India a variety of financial services and products as a development financial institution. The following were a few of the goods that the IIBI sold:

• Working capital finance: This was made available to SMEs in order to cover their immediate financial demands, including the price of labor, raw materials, and other costs.
• Term loans: To help SMEs with their long-term financial demands, such as the price of growing their business or buying fixed assets, the IIBI offered term loans.
• Project finance: To assist SMEs in funding certain projects, including establishing a new factory or updating current facilities, the IIBI offered project finance.
• Advisory services: The IIBI also offered technical assistance, marketing, and financial planning and management to SMEs.

Functions of Industrial Investment Bank of India 

In order to support small and medium-sized businesses (SMEs) in India, the Industrial Investment Bank of India (IIBI) was founded as a development financial institution in 1948. The IIBI performed a number of important tasks, including:

• Financing: The IIBI offered SMEs a variety of financial services and products, such as project finance, term loans, and working capital financing.
• Encouraging the expansion of small companies: By offering financial support and advising services, the IIBI significantly contributed to the expansion and development of small industries in India.
• Encouraging the creation of new projects: The IIBI offered SMEs financial support to assist them in financing new initiatives, such establishing a new factory or updating current facilities.
• Providing advisory services: The IIBI also offered technical assistance, marketing, and financial planning and management to SMEs.