Bank History

Before the Islamic revolution, there were four developing bank working on industrial investments:
  • “Bank of Industrial Credits” which was the first industrial development bank in Iran and was established based on civilization 2nd seven years development in 1956 with the seed money amounting to 600 million and with the aim of creation and reinforcement of private section enterprises.Primary capital shares of this bank completely belonged to government, however, after about 20 years of activity it was decided to change it into a private organization by gradually shares sales to the private section. In the early 1978, About 5% of shares were sold to private section and the prerequisite of its transition to privatization was started. This bank has paid 1107 facilities and loans amounting to 86.7 billion Rial to manufacturing and servicing units during its 22 years of activity and legally has contributed to 70 manufacturing and service units' investment amounting to 11 billion Rials.
  • “Bank of Industry and Mine Development” which was the second industrial development bank and also regarded as first private developing bank in the country was established in 1959 with the 400 million Rials capital. This bank belonged to the private section and about 87% of shares belonged to Iranian persons and organizations and the rest of 13% belonged to 19 foreign banks and institution. These 19 banks included 6 English, 2 French, 4 Japanese, 2 American, 2 German, 1 Italian and 2 Dutch banks and institutes. This bank had been paid about 122 billion Rial industrial loans and working capital for creation and development of Iran industries and had been participating in 148 servicing & producing associations totally 49.2 billion Rials up to the early 1978.
  • "Bank of Development & Investment" was the third developing bank and was established as a public shares company in 1973 with 1050 million Rials of capital that 50% of it was paid. About 82% of shares belonged to 3333 Iranian persons and institutes and remained 18% belonged to foreign persons and institutes. Up to the early 1978 this bank had been paid 165 loans and facilities to industrial units approximately amounting to 19.5 billion Rial and participated in 14 producing and servicing plans' capital totally amounting to 580 million Rial.
  • Iranian Investments Company started to work in 1976 with the capital of 15 billion Rials as a public shares company. The shareholders were 15 Iranian bank and 1600 real and legal entities. This company has invested in 22 manufacturing and servicing associations approximately amounting to 2.5 billion Rial and had bought shares of 22 manufacturing and servicing associations amounting to 1 billion Rials.

In addition to the abovementioned developing banks that were established for helping large and medium industrial companies, the loans and facilities for creation and development of small industrial manufacturer have been paid by industrial guarantee fund. This fund was created as in 1960 by transitional capital from collective fund of Iran and the U.S.A. for 138 billion Rials. This fund was a non-commercial commonwealth association for supporting small industries and its capital was gradually increased to 770 million Rials. It totally belonged to the government.

After glorious Islamic revolution of Iran based on resolution of general assembly of banking dated 09/15/1979 by permission resulted from article 19 th of legal bill of banking administration, "Bank of Industry and Mine" was established by integration of industrial credits bank, industrial and mineral development bank, investment and development of Iran bank, Iranian banking investment association, industrial and guarantee fund and mines fund. With citation to the meeting dated 06/4/1983 of general assembly of banking "integration of industrial guarantee fund and mines fund association in BIM" was annulled and bank's articles of association was revised with respect to the abovementioned units capital. Based on article 1 of extra meeting approval of general assembly of banking dated, 04-01-1998 , industrial guarantee fund was merged into BIM with all properties and belongings from date of approval.

The Law of protection and development of Iran 's industries:

By occurrence of the Islamic revolution of Iran in 1979, most of the capitalists who have embarked to creation of industrial units by the abuse of commonwealth and private section savings and also by penetration in government bodies, they started to retire their capital from financial resources of companies. Whereas, because of disorder of working staff and managing and money holders and primary materials ordering problems and sales of manufactured products, had imposed a serious depression to Iran's industries. Troubles and problem that country must faced them and post-revolutionary consequences, made the revolution congress and parliament to determine situation of public and private organization's and especially industrial units.

Consequently, government undertook to administrate some of industries by itself in order to regulate them. Finally the Law of protection and development of Iran 's industries was approved by the revolution congress in July 1979. According to this Law industries were divided into 4 groups. In case of the group of organization and manufacturer who had received remarkable loan for creation or development from banks, if their total exceeded their assets, they belonged to government section and the rest of their liabilities consider as government and commonwealth and must received by suitable way. If in such units liabilities belonged to commonwealth and banks, the bank will contribute to holding of these units as equal as their credits.

As a result, based on this article of Law, 212 units were financially covered up by banks, and 106 of these units (212) were covered by BIM.

In compliance with the Law of protection and development of Iran 's industries, the major activity of this bank was allotted to administration of manufacturing units. Consequently, a great deal of BIM's resources was assigned to such associations.

Concentration of industries and mines affairs and founding “Ministry of Industries and Mines”:

By evolving “Ministry of Industries and Mines” and concentration of industry and mine, BIM was affiliated by this ministry sustaining its financial, administrative and real characteristics.

This decision was made to approach following purpose:
  • Proceeding to developing banking work and avoiding administration of companies and manufactures.
  • Awarding financial facilities for establishment, development, completion and enhancement of industrial and mines units.
  • Make the best use of financial means for procurement and assign required resources.

Towards administration,systematizion,structural revision and finally delegation of affiliates companies, َ Atyeh Damavand investing Association was established in 2001 and started its activity in August 2002. Up to October 2002 all the affiliates covered by BIM (53 company) except instrumental companies of BIM were delegated to the Atyeh Damavand investing Association, in order to find its principle way of responsibilities and put itself in developing duties.