1. Industrial Investments Bank of India Ltd (IIBIL) was established in 1971 as the Industrial Reconstruction Corporation of India to provide financing to sick industries, with its entire share capital owned by the Government of India. 2. Over time, IIBIL took on additional roles like providing term loans for project financing, working capital assistance, and investing in capital markets. It saw remarkable growth in the late 1990s but then began declining in the early 2000s. 3. By the mid-2000s, IIBIL was in a critical financial position with losses, and despite efforts to merge it with other banks or continue operating on a smaller scale, the government ultimately announced its closure in 2012 after 22 years

1. IIBIL
INDUSTRIAL INVESTMENTS BANK OF INDIA LTD.

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.