3. History:
1.Initially established with the name of IRBI
(Industrial Reconstruction bank) by resolution of
parliament of India u/s 617 of Companies act 1956.
2.It was set up by IDBI for rehabilitation of sick
industries.
3.Govt. of India owns its entire share capital .
4.Its established with the main intention of
converting the Institutions into full fledge
development financial institutions .
5.Before the transfer of assets and liabilities to new
companies financial re-construction was done.
4. 1971---- Named it as IRCI – Industrial re-construction corp. of India Ltd. Established the institution
1984-----Decided and GOVT of India passed an Act to rename it .
1985---IRB
1997---17 March registered under Companies act.
5. Functions of IIBIL
1.Term loans assistance for project financing.
2.Assistance to sick units/Industries
3.Short duration , non project assets- backed financing for
working capital / other short term companies.
4.Equity subscription asset credit
5.Equipment finance
6.Investment in capital market and money market
instruments.
6. Remarkable growth:
During 1998-99 remarkable growth disbursement increased by 46% ----from-1,153.18
crores to 1,688.48%.
Sanctions of loans increased by 6% from 206.04 crores to 2175.16 crores
Down fall
1999-2000 gradually the sanctions went down from 2338 to 1439.58 crores
Disbursements also decreased by 15%
Critical position of IIBIL
2003 Fresh loans were given to IIBIL from GOI to cope with the continuous down fall.
2004-2005 IIBIL was still in down fall. No improvement in the position.
7. FORE CLOSURE:
2004-2005 Bank stood with negative -343.28 crores.
2005There was a proposal to merge IIBIL --- IDBI and IFCI.
IIBIL refused the proposal.
2006-2007 IIBIL still tried to continue the sole functioning by operating from KOLKATA
office diluting rest all branches.
GOVT. OF INDIA appointed DELOITTE & TOUCHE for the disposal of non performing
assets.
BANK CLOSURE:
2012Govt. of India announced the closure of IIBIL in the budget.
LIFE OF IIBIL: 22 yrs 8 months 24 days.