Government to shut operations of ailing IIBI

Kolkata, Jul 9: The government has decided to wind up operations of the ailing Industrial Investment Bank of India (IIBI).

The Union Finance Ministry has asked IIBI to work out details of the closure.

''All the employees of the Development Financial Institution (DFI) will be absorbed in other government institutions. We are working out an absorption plan,'' IIBI Chairman O N Singh said.

The institution has a recovery backlog of Rs 400-500 crore while the total asset size is Rs 2,400 crore, Mr Singh said.

IIBI, the erstwhile Industrial Reconstruction Bank of India, has 160 employees at present. It was set up in 1985 to rehabilitate sick and closed industrial institutions.

IIBI was incorporated into a full fledged DFI in 1997 by providing the management operational and financial autonomy.

UNI