The Industrial Development Bank of India is the apex financial institution in the field of development banking in the country. It was established in July, 1964 with the twin objectives of:
(a) meeting the growing financial needs of rapid industrialization in the country, and
(b) coordinating the activities and assisting the growth of all institutions engaged in financing industries.
It is an organization with sufficiently large financial resources which not only provides direct financial assistance to the large and medium-large industrial units, but also helps the small and medium industries indirectly by extending refinancing and re-discounting facilities to other industrial financing institutions.
Thus, the primary aim of the IDBI has been to integrate the structure of industrial financing institutions and to fill the gap between demand and supply of term finance in the country. Initially, the IDBI was set up as a wholly owned subsidiary of the Reserve Bank of India, but, in 1976, it was taken over by the Government of India and was made an autonomous institution.