A detailed discussion was held on the subject at the board room of the Bombay head office of the Imperial Bank of India on 12 March 1927 and the Indian Institute of Bankers was established as a result on 30 April 1928 with Sir Norcot Warren, Managing Governor of the Imperial Bank of India as the first President.

The first general meeting was held at Bombay on 9 July 1928 and the institute conducted its first associate examinations between 6 and 13 April 1929.

The IIBF aims to be the premier institute for developing and nurturing competent professionals in the banking and finance sectors.

This goal is achieved through a process of education, training, examination, consultancy, counselling, and continuing professional development programs.

The pedagogy of Distance Learning offered by the institute is (i) publishing specific courseware for each paper/examination; (ii) publishing work books; (iii) tutorials through accredited institutions; (iv) contact classes; (v) virtual classes; (vi) e-learning through portal; (vii) campus training for selected courses, etc.