Later in March 2019, Government of India asked LIC to infuse capital in the bank due to high NPA and capital adequacy issues and also asked LIC to manage the bank to meet the regulatory norms.

The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry.

Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building.

Specialized Development Financial Institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI were set up to meet the long-term financing requirements of industry and agriculture.

IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects and also for expansion, modernization, and diversification purposes.

IDBI played a pioneering role, particularly in the pre-reform era (1964–91), in catalyzing broad-based industrial development in India in keeping with its government-ordained 'development banking' charter.

The Union government intervened, with Life Insurance Corporation bailing out the bank with an infusion of ₹9,300 crores.

[6] On 29 June 2018, LIC got a technical go-ahead from the Insurance Regulatory and Development Authority of India (IRDAI) to increase stake in IDBI Bank up to 51%.

[13][14] LIC of India completed the acquisition of 51% controlling stake in the bank in January 2019, making it the majority shareholder.

[20][21] IDBI Intech has been accredited with ISO 9001:2000 certification for IT-related services including Data Centre Management and Call Centre, and also Certified IT Security Auditing Organisation with the Indian Computer Emergency Response Team (CERT-In).