The era of economic reforms had given the same option to the PSUs to tap new capital.  

• As the AIFIs had more or less fixed rate of interest as compared to the banks which could mobilize cheaper deposits to lend cheaper—the AIFIs seemed to become irrelevant.  

• The AIFIs witnessed a sharp decline in recent years. At this juncture the government decided to convert them into Development Banks (suggested by the Narasimhan Committee-I) to be known as the All India Development Banks (AIDBs). 
• In 2000, the government allowed ICICI to go for a reverse merger (when an elder enterprise is merged with a younger one) with the ICICI Bank—the first AIDB emerged with no obligation of project financing—such entities in coming times will be known as the universal banks. 

Source: TMH Ramesh Singh