Industrial Bank of Pakistan


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Industrial Bank of Pakistan

  1. 1. Industrial Development Bank of Pakistan. INTRODUCTION IDBP is one of Pakistans’ oldest development financing institution created with the primary objective of extending term finance for investment in the manufacturing sector of the economy. Over the years, however, the Bank has emerged as an institution fostering the growth and development of SME sector stimulating industrial progress in the rural/less developed regions of the country besides offering lucrative opportunities to the house-holds and institutions for the investment in its deposit schemes. IDBP has also become an important component of the financial sector of Pakistan and is playing an active role in money and capital market of the country. DATE OF ESTABLISHMENT. “IDBP was established in August, 1, 1961.” HEAD OFFICE : 3rd Floor State Life Building No.2, Wallace Road, Off: I.I. Chundrigar Road, Karachi-74000 Phone : +92-21-99213601-10, Fax : +92-21-99213644 Email : REASON FOR ESTABLISHMENT/OBJECTIVES. The Bank provides medium and long term finance in local and foreign currencies for the creation of fixed assets to new industrial projects as well as for expansion, balancing, modernization or replacement of existing projects. It extends technical, financial and managerial advice to its clients in planning and execution of the industrial projects. It also facilitates transfer of technologies from developed countries to industrial enterprises in Pakistan. PAID UP CAPITAL. IDBP is wholly owned by Government of Pakistan with total paid up capital 500 Million, 57% of its shares held by Federal Government, 36% by State Bank of Pakistan and 7% by Provincial Governments and other Public sector corporations. Its Board of Directors consisting of the representatives of private sector is appointed by Ministry of Finance, Government of Pakistan. A unique feature of IDBP is that besides Development Financing Institution it is
  2. 2. also a scheduled bank and authorized dealer of foreign exchange. Thus IDBP extends all kinds of merchant, investment and commercial banking services to its clients which include provision of short term advances, trade financing, lease financing, guarantees and under-writing. Thus IDBP operates a full-fledged Bank in addition to its role as a development financing institution. SOURCES OF FUNDS. 1 ) Borrowing from the Federal Government. 2 ) Borrowing from the state bank of Pakistan. 3) Re discounting of bills. 4) Time deposits. 5) Issue and sale of bonds and debentures. SORT OF FINANCING ASSISTANT IDBP has the unique distinction of financing the first ever projects for a diversified list of products. These include UHT pack milk, three wheelers, radio/wireless receiving sets, marble processing, coal mining, granite, acetic yarn, PVC deep sea fishing etc. The projects implemented through IDBP’s financing generated over 100,000 new jobs and have an export potential of about Rs.8.00 billion per annum. The value addition by the completed project is estimated at about Rs.15 billion per annum. FUNCTIONS; DEVELOPMENT BANKING BUSINESS o Provides medium and long term finances o Provides guarantee, loans COMMERCIAL BANKING BUSINESS o Deposits o Remittances o Bills o Short term advances o Guarantees o Letter of Credit o Foreign exchange accounts MERCHANT BANKING BUSINESS o Underwriting of public issue of shares o Bridge Financing o Leasing COLLECTION OF UTILITY BILLS o Telephone Bills at all branches, and Gas Bills at Branches in Karachi.