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Development Banks: Mamta Harsita Kuldeep Lovelesh Harikesh

This document provides information on various development banks in India, including their objectives and functions. It discusses the Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Small Industries Development Bank of India (SIDBI), and National Bank for Agriculture and Rural Development (NABARD). The development banks aim to promote industries, meet capital needs, provide loans and support, and help with rural/agricultural development and small businesses. They work to fill financial gaps, provide various types of financing, and undertake promotional activities.

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Ravneet Kaur
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217 views

Development Banks: Mamta Harsita Kuldeep Lovelesh Harikesh

This document provides information on various development banks in India, including their objectives and functions. It discusses the Industrial Finance Corporation of India (IFCI), Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Small Industries Development Bank of India (SIDBI), and National Bank for Agriculture and Rural Development (NABARD). The development banks aim to promote industries, meet capital needs, provide loans and support, and help with rural/agricultural development and small businesses. They work to fill financial gaps, provide various types of financing, and undertake promotional activities.

Uploaded by

Ravneet Kaur
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© © All Rights Reserved
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Download as PPT, PDF, TXT or read online on Scribd
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DEVELOPMENT BANKS

MAMTA
HARSITA
KULDEEP
LOVELESH
HARIKESH

DEVELOPMENT BANKS IN
INDIA

WHAT IS DEVELOPMENT
BANKS
A Development Bank is a polygonal

development finance institution devoted to


improving the social and monetary development
of its associate nations.
Its main emphasis is the welfare of the people.
For example the Asian Development Bank's
overarching goal is to decrease poverty in Asia
and the Pacific.
It helps improve the value of people's lives by
providing loans and scientific support for a broad
variety of development activities.

OBJECTIVES
Lay Foundations for Industrialization
Meet Capital Needs
Need for Promotional Activities
Help Small and Medium Sectors'

FUNCTIONS
Financial Gap Fillers
Undertake Entrepreneurial Role
Joint Finance
Refinance Facility
Credit Guarantee
Underwriting of Securities

Role of development banks


in financial system

FUNCTIONS OF A
DEVELOPMENT
BANK to its
Increase loans and equity investments

developing associate countries (DMCs) for their


monetary and social development.
Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
Promotes and facilitates speculation of public
and private capital for growth and development.
Responds to requests for assistance in
coordinating growth policies and plans of its
increasing member countries.

IFCI
The government of india set up the

industrial finance corporation of india in


july 1948
Management of IFCI
12 directors
4 are nominated by the IDBI

OBJECTIVES OF IFCI
Promoted by new enterpreneurs
Based on indegenous technology
Which would result in substitution of

imports
Providing input for incresing agricultural
products

FUNCTIONS OF IFCI

OPERATIONAL
ACTIVITIES
Concessional finance to projects in

less development areas


Concessional finance for renewable
energy systems
Power of attorney scheme
Bridging loans
Sub loans in foreign currencies

IDBI
The Industrial Development Bank of India

(IDBI) was established on 1 July 1964 under an


Act of Parliament as a wholly owned
subsidiary of the Reserve Bank of India.
In 16 February 1976, the ownership of IDBI
was transferred to the Government of India
and it was made the principal financial
institution for coordinating the activities of
institutions engaged in financing, promoting
and developing industry in the country.

THE PRINCIPAL SOURCE OF


FUNDS OF IDBI
Share capital and reserves
Borrowing from government of india and

RBI
Market borrowing by way of bonds
Deposits and other borrowings
Repayment of past assitance by borrowers
Foreign currency borrowings from worid
banks
Asian development banks and
international markets

OBJECTIVES and FUNCTIONS


Planning,promoting,developing

industries
Co-ordinating the working in institutions
engaged in financing
Undertaking market and investment
research
Providing technical and administrative
assitance
Subsidiaries

Operational Activities
Direct Assistance
Indirect Assistance
Refinance Schemes
Refinance Scheme for industrial

rehabilitation
Automatic Refinance Scheme
Refinance Scheme for modernisation
Bills Rediscounting Scheme

contd.
Soft loan scheme for modernisation
Seed capital assitance scheme
SFCs special share capital schemes
Development assistance fund(DAF)

ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA) Bank Ltd.


ICICI is an Indian diversifiedfinancial servicescompany
headquartered inMumbai, Maharashtra.
It is the second largest bank in India by assets and third
largest bymarket capitalization. It offers a wide range
of banking products and financial services to corporate
and retail customers through a variety of delivery
channels and through its specialized subsidiaries in the
areas of investment banking, life and non-life insurance,
venture capital and asset management.
The Bank has a network of 2,630 branches and 8,003
ATM's in India, and has a presence in 19 countries,
including India.

OBJECTIVES OF ICICI
Assisting in the creation
Expansion
Modernisation of such enterprises
Encouraging and promoting the

participation private capital


Encouraging and promoting private
ownership

FUNCTIONS OF ICICI
Assistance to industries
Provision of foreign currency loans
Merchant banking
Letter of credit
Project promotion
Housing loans
Leasing operations

SIDBI

Established in 1990 under an Act of Indian

Parliament.
Objective: Promotion, Financing & Development
of MSMEs and Co-ordinating Functions of
institutions engaged in similar activities.
Ownership : Public sector banks/FIs/Insurance
Cos owned or controlled by the Government of
India.
Structural Linkage: With Ministry of Finance and
Ministry of SSI.
Nodal Agency : For SME Schemes of GoI

OBJECTIVES

SIDBI : Sphere of
Direct
Finance Operations : MSMEs, Service sector,
activities
Infrastructure etc.
Indirect Finance : Resource support to Banks, NBFCs, SFCs,
other
State & central financing/ development agencies.
Micro Credit operations : Pioneers in micro credit movement
in the
country. Developed several leading MFIs.
Associate Institutions ISTSL & Credit Guarantee Fund,
India SME Asset: SIDBI Venture Capital Ltd,
MSME Rating Agency,
Reconstruction Company Ltd.
Nodal Agency : For several GoI schemes like
TUFS, CLCSS and IDLSS
Food Processing and Devp. Of Integrated Infrastructure

OPERATIONAL ACTIVITIES

Promotional activities
Enterprise promotion
Human resource development
Technology upgradation
Environmental and quality

management
Information dissemination
Market promotion

NABARD
National Bank for Agriculture and Rural

Development(NABARD) is an apex
development bank inIndiahaving headquarters
based inMumbai(Maharashtra)and other
branches are all over the country.
It was established on 12 July 1982 by a special act
by the parliament and its main focus was to uplift
rural India by increasing the credit flow for
elevation of agriculture & rural non farm sector
and completed its 25 years on 12 July 2007.
It has been accredited with "matters concerning
policy, planning and operations in the field of
credit foragricultureand other economic activities
in rural areas in India".
RBI sold its stake in NABARD to the Government
of India, which now holds 99% stake

OBJECTIVES OF NABARD
1 . To give financial assistance for

increasing the agricultural production


2.To supply the long term needs of the
rural areas
3.To supply loans by way of refinance
4.To help small industries ,cottage
industries and also artisans
5.To achieve overall rural development

FUNCTIONS OF NABARD
Credit functions
Development functions
Regulatory functions
Apex institution for rural finance
Refinance institutions
Contribution of share capital
Investment in securities
Conversion and rescheduling facilities
Financial help to non agricultural sector
Training programs
Co-ordination of actvities

ACHIEVEMENT OF
NABARD
Short term assistance
long term assistance
Schematic lending
Assistance to less developed states
Assistance to non-farm sector
Rehabilitation programme
Assistance to research and development

projects
Credit plans under the new strategy
Integrated rural development programme
Regional rural banks

THANK YOU

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