Industrial Development Bank of Pakistan at a Glance

The Industrial Development Bank of Pakistan is a specialized financial institution that has been serving the country's industrial sector since its inception. The bank was established in 1980 with the primary objective of promoting industrial development in Pakistan.

The bank's headquarters is located in Karachi, and it has a network of branches spread across the country. It offers a range of financial services to its clients, including loans, advances, and other credit facilities. The bank's services are designed to cater to the specific needs of the industrial sector.

The Industrial Development Bank of Pakistan has a strong commitment to supporting small and medium-sized enterprises (SMEs), which are the backbone of Pakistan's economy. The bank provides specialized services to SMEs, including training and capacity-building programs.

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The IDBP's financial struggles have been quite a challenge. By the mid-2000s, the bank had accumulated a loss of about Rs27 billion due to loan defaults.

The bank's financial performance continued to decline, and by the end of 2009, the accumulated deficit had risen to Rs28 billion.

The Pakistani government took steps to address the issue by merging IBDP with the Profitable Investment Corporation of Pakistan in 2006, in part to improve IBDP's financial performance.

Despite these efforts, the bank continued to struggle commercially, leaving the government to explore ways to make IDBP economically viable.

The Industrial Development Bank of Pakistan is a government-owned institution, with 57 percent of its shares held by the Federal Government. This significant stake gives the government considerable influence over the bank's operations.

The State Bank of Pakistan owns a substantial portion of the bank, with 36 percent of the shares held by this central bank. This ownership structure is reflective of the government's commitment to its economic development goals.

Provincial Governments and other public sector corporations collectively own 7 percent of the bank's shares. This dispersal of ownership among different government entities helps to ensure a balanced approach to the bank's management.

The bank's board of directors is comprised of representatives from the private sector, appointed by the Ministry of Finance. This appointment process allows for a mix of public and private sector expertise to guide the bank's decision-making.

The Industrial Development Bank of Pakistan has a robust banking system, with a paid-up capital of 500 million Pakistani rupees. This significant investment allows IDBP to provide a wide range of services.

IDBP obtains funds through borrowing from the government and central bank, re-discounting bills, time deposits, and bond/debenture issues. This diverse funding approach enables the bank to support various sectors.

IDBP provides various banking services, including loans, guarantees, bill collection, letter of credit, and foreign exchange. Its comprehensive services aim to mobilize savings and promote capital formation in Pakistan.

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Commercial banking business involves a range of services that cater to the financial needs of individuals and businesses. One of the key services offered is bill management, which includes the issuance and collection of bills.

Bills are a type of financial instrument that allows businesses to manage their cash flow. Deposits are another essential service, where individuals and businesses can deposit their money into their accounts.

Deposits can be in the form of current accounts, savings accounts, or fixed deposit accounts. Foreign Exchange accounts are also available, which allow individuals and businesses to hold and manage their foreign currency deposits.

Guarantees are provided by commercial banks to secure loans or other financial transactions. Letter of Credit is a type of guarantee that ensures the payment of goods or services.

Commercial banks also provide remittances, which allow individuals to send money to other countries or within their own country. Short term advances are also offered, which provide businesses with immediate access to cash.

Here are some of the key services offered under commercial banking business:

The Bank operates a robust branch network across the country, with a presence in 7 provinces and 1 territory. Its Head Office is located in Karachi, Sindh, Pakistan.

Industrial Development Bank of Pakistan has a total of 13 branches, which are strategically located to cater to the needs of its customers.

Here's a breakdown of the Bank's branch network:

The Bank's branch network is well-distributed, covering a wide geographic area and providing its customers with easy access to its services.

The Industrial Development Bank of Pakistan has some significant news that affects its operations and employees. The company will not have to pay any stamp duty or other charges for the transfer of assets and liabilities.

The government has mandated that the company will be deemed a banking company and will apply for a license from the State Bank of Pakistan to operate as a bank. This is a crucial step in the transition process.

All permanent employees of IDBP who have been with the company for at least a year will be transferred to the new company. Their terms and conditions will remain the same.

The company will also take over all pending legal proceedings against IDBP. This means that the new company will be responsible for defending or prosecuting these cases.

The government's guarantees to foreign and local institutions that extended loans to IDBP will remain in force. This provides a level of continuity and stability for these institutions.