Ans: The full form of IDBI is Industrial Development Bank of India. It was established in July, 1964. However, in February 1976, the IDBI was taken over by the government and was made an autonomous institution. It was established with the object of recognizing and integrating the structure of the existing financial institution in the country for gearing up the needs of rapid industrialization.

The objectives of IDBI are:

(a) Planning, promoting and developing industries to fill the gaps in the industrial structure in India.

(b) Providing technical and administrative assistance for promotion etc.

(c) Co-coordinating the working of institutions engaged in financing.

(d) Undertaking market and investment research and surveys for techno-economic studies in connection with development of industry.

The functions of IDBI are:

(a) It renders technical, managerial and administrative assistance for promotion, management and expansion of industry.

(b) It provides financing facilities to IFCI, SFC and other financial institutions approved by the Government.

(c)  It co-ordinates the activities of other financial institutions for the promotion and development of industries.

(d) By purchasing and / or underwriting shares and debentures of industrial concerns it provides capital.

(e) It also provides guarantee for deferred payments due from industrial concerns and for loans raised by them.