IBA was formed for the development, coordination, and strengthening of Indian banking and to assist the member banks in various ways, including the implementation of new systems and the adoption of standards among the members.
On 20 November 2020, Union Bank of India's MD and CEO Rajkiran Rai was elected as the new Chairman of IBA.
Rakesh Sharma, MD and CEO of IDBI Bank, was elected as the Honorary Secretary for 2020–2021.
Established on September 26, 1946, initially comprising private banks, it later expanded its membership.
Although some banks joined the public sector in 1970, the IBA's operations remained unchanged.