indian financial system (development banks)

8/11/2019 Indian Financial System (Development Banks)

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DEVELOPMENT BANKS


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DEVELOPMENT BANKS IN INDIA

NABARD ICICI IDBI

IFCISIDBICOMMERCIAL

BANKS

STATE FINANCIALCOOPERATIONS


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WHAT IS DEVELOPMENT BANKS

A Development Bankis a polygonal developmentfinance institution devoted to improving the social

and monetary development of its associatenations.

It helps improve the value of people's lives byproviding loans and scientific support for a broad

variety of development activities.


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OBJECTIVES

Lay Foundations for I ndustrial ization

Meet Capital Needs

Need for Promotional Activi ties

Help Small and Medium Sectors'


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FUNCTIONSF inancial Gap Fil lers

Undertake Entrepreneur ial Role

Joint F inance

Refinance Facil i ty

Credit Guarantee

Underwri ting of Securities


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Role of development banks

in f inancial system

ProvidingFunds

Infrastructura

l Facilities

PromotionalActivities

Developmentof Backward

Areas

PlannedDevelop

ment

Accelerating

Industrialization

Employment

Generation


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IFCI

The government of india set up the industrialfinance corporation of india in july

Management of IFCI 12 directors

4 are nominated by the IDBI


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OBJECTIVES OF IFCI Promoted by new enterpreneurs

Based on indegenous technology

Which would result in substitution of imports Providing input for incresing agricultural products


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FUNCTIONS OF IFCI

DIRECTFINANCING

JOINTFINANCING


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OPERATIONAL ACTIVITIES

Concessional finance to projects in lessdevelopment areas

Concessional finance for renewable energysystems

Power of attorney scheme

Bridging loans

Sub loans in foreign currencies


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THE PRINCIPAL SOURCE OF FUNDS

OF IDBIShare 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 woridbanks

Asian development banks and internationalmarkets


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contd.

Soft loan scheme for modernisation

Seed capital assitance scheme

SFCs special share capital schemes

Development assistance fund(DAF)


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ICICI

ICICI (INDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA) Bank Ltd.

ICICI is an Indian diversified financial servicescompanyheadquartered in Mumbai, Maharashtra.

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.
http://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Financial_services


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OBJECTIVES OF ICICI

Assisting in the creation

Expansion

Modernisation of such enterprises

Encouraging and promoting theparticipation private capital

Encouraging and promoting privateownership


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FUNCTIONS OF ICICI

Assistance to industries

Provision of foreign currency loans

Merchant banking

Letter of credit

Project promotion

Housing loans

Leasing operations


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SIDBI Established in 1990 under an Act of Indian Parliament.

Objective: Promotion, Financing & Development ofMSMEs and Co-ordinating Functions of institutionsengaged 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


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OBJECTIVESFINANCING

PROMOTION

DEVELOPMENT

CO-ORDINATION


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NABARD

National Bank for Agriculture and RuralDevelopment(NABARD) is an apexdevelopment bank in Indiahaving headquartersbased inMumbai(Maharashtra)and other

branches are all over the country.

It was established on 12 July 1982 by a special act bythe parliament

Main focus was to uplift rural India by increasingthe credit flow for elevation of agriculture & ruralnon farm sector and completed its 25 years on 12

July 2007.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/India


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OBJECTIVES OF NABARD

1 . To give financial assistance for increasingthe agricultural production

2.To supply the long term needs of the ruralareas

3.To supply loans by way of refinance

4.To help small industries ,cottage industriesand also artisans

5.To achieve overall rural development


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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


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ACHIEVEMENT OF NABARD

Short term assistance

long term assistance

Schematic lending

Assistance to less developed statesAssistance 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


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indian financial system (development banks)

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