Restructuring / Turnaround Strategies Case Study

IDBI: An Ailing Goliath

Abstract:
Since the late 1990s, the Industrial Development Bank of India (IDBI), which was set up in the early 1960s by the government of India as a Development Finance Institution (DFI), has been finding it difficult to sustain its core function of industrial financing. Despite being the tenth largest development bank in the world, it is witnessing eroding profitability, loss of top rated corporate clients and attrition of its top management.

Pedagogical Objectives:

• To discuss the possible options being considered by IDBI and the government of India to revive the financial behemoth.

Keywords : Development finance institution; Non-performing assets of the Industrial Development Bank of India (IDBI); Managing in Troubled Times Case Study; Universal banking; Industrial Development Bank of India (IDBI); Industrial Credit and Investment Corporation of India; Liberalisation of the Indian economy; Banking sector reforms in India; Banking companies; Non-banking financial institutions; Reverse Merger; Commercial banks in India; Unit Trust of India (UTI); IDBI bank; Stock Holding Corporation of India; Federation of Indian Chambers of Commerce and Industry