Categorization of IDBI Bank Ltd. as OTHER PUBLIC SECTOR BANK by RBI
Industrial Development Bank of India Ltd. (since renamed as IDBI Bank Ltd.) was incorporated under Companies Act 1956, as a Limited Company, registered with the Registrar of Companies, Maharashtra, Mumbai vide Certificate of incorporation dated 27th September, 2004. In terms of the Articles of Association of the IDBI Bank Ltd., the Central Government being a shareholder of the company shall, at all times, maintain not less than 51% of the Issued Capital of the company. Considering the shareholding pattern, IDBI Ltd. has been categorized under a New Sub-Group "Other Public Sector Banks".
Reserve Bank of India has, vide its letter no DBOD. BP. 1630/21.04.152/2004-05 dated April 15, 2005 confirmed that IDBI Ltd. (since renamed as IDBI Bank Ltd.) may be considered as Government-owned bank.
IDBI Bank Ltd. to be Treated on PAR with Nationalised Banks / SBI
Ministry of Finance has vide its circular no. F.No. 7/96/2005-BOA dated December 31, 2007 advised Secretaries of all Ministries/Departments of Government of India that the bank may be treated on par with Nationalised Banks/State Bank of India by Govt. Departments / Public Sector Undertakings / other entities for all purposes, including deposits / bonds / investments / guarantees etc. and Government business.
'Other Public Banks' included in 'Public Sector Banks' in Income Tax Act 1961
Section 10(23D) of the Income Tax Act 1961, after amendment by Finance Act 2009, incorporates 'Other Public sector Banks' in the expression 'Public Sector Banks' .
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