developmental banks in india

8/2/2019 Developmental banks in India

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1 IFCIEstablishment:-

It is against this backdrop that the government established The Industrial

Finance Corporation of India (IFCI) on July 1, 1948,

Objectives:-

1) To provide long and medium-term credit to industrial concerns

2)Guarantee loans and deferred payments3)Underwrite and directly subscribe to shares and debentures issuedby companies

4)Assist in setting up new projects5)assist projects under co-operatives and in backward areas.

Functions:-

1) Direct financial support to industrial units

2) Subscription and underwriting of public issues of shares and

debentures.3) Guaranteeing of foreign currency loans and also deferredpayment guarantees.

4) merchant banking, leasing and equipment finance


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Major activities:-

1)IFCI Financial Services, Ltd. provides merchant banking business servicesin India.

2)It offers stock brokerage, investment advisory, portfolio management,insurance broking and advisory, depository, and distribution of home loans

services.

2 NABARD

(NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT)

Establishment:-

NABARD, an apex development bank, was set up on the recommendations of

CRAFICARD Committee on July 12, 1982 under NABARD Act 1981 with a capital

of Rs.100 crore contributed by Central Govt. and RBI,

Functions:-

1)providing credit to agriculture, small and village and cottageindustries


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2)acting as agent of Govt. and RBI, providing training andresearch facilities.

3)inspection of RRBs and Coop Banks, receipt of returns andmaking of recommendations for opening new branches.

Objectives:-

1) The National Bank will be an apex organisation in respectof all matters relating to policy, planning operational aspects in

the field of credit for promotion.

2) The Bank will serve as a refinancing institution.3) The Bank will also provide direct lending to any institution.4) The Bank will have organic links with the Reserve Bank

and maintain a close link with in.

Activities:-

1) Refinance disbursement under ST-Agri & Others and MT-Conversion/Liquidity support aggregated Rs.19452 crore during 2009-10

2) Under Watershed Development Fund with a corpus of Rs.1102 croreas on 31 March 2008, 513 projects in 14 states have benefited.3) Farmers now enjoy hassle free access to credit and security through

906.40 lakh Kisan Credit Cards that have been issued through a vast

rural banking network.


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4) Under the Farmers' Club Programme, a total of 54805 clubs covering104648 villages in 587 districts have been formed, helping farmers get

access to credit, technology and extension services.

3 EXIM

(EXPORT IMPORT BANK OF INDIA)

Establishment:-

Exim Bank was established on Jan 01, 1982 (and started functioning

wef March 01, 1982) under Export Import Bank of India Act 1982,

Functions:-

1)Direct finance to exporter of goods.

2)Direct finance to software exports and consultancy services.

3)finance for overseas joint ventures and turnkey construction project

4)Multi-currency financing facility to project exporters.

5)finance for deferred payment facility

6)finance for import and export of machinery and equipment on lease basis

Objective:-

for providing financial assistance to exporters and importers, and for

functioning as the principal financial institution for coordinating the


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working of institutions engaged in financing export and import of

goods and services with a view to promoting the countrys

international trade

4 SIDBI

(SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA)

Establishment:-

SIDBI was established under SIDBI Act 1988 and commenced its operations wef April 02,

1990

Objective:-

1. Financing2. Promotion

3. Development4. Co-ordination

Functions:-

1) development and equity support to small and tiny industry.

2) providing working capital through single window scheme

3) providing refinance support to banks/development finance institutions.4) undertaking direct financing of SSI units.

5) coordination of functions of various institutions engaged in finance to SSI andtiny units.


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5 NHB

(NATIONAL HOUSING BANK)

Establishment:-

NHB, the apex bank for Housing, was established on July 09, 1988 under NHB Act 1987,

as a wholly owned subsidiary of RBI with head quarters in New Delhi.

Functions:-

1) promotion and development of housing finance institutions.

2) refinance to banks and other housing finance institutions for credit facilitiesgranted by them for housing.

3) inspection of books of accounts of housing finance institutions

4) technical, administrative and advisory assistance to housing financeinstitutions.

5) providing underwriting and guarantee facilities to housing finance institutions.6) arranging financing and resources for institutions engaged in housingfacilities.

Objectives:-

6) To encourage public agencies to emerge as facilitators and suppliers

of serviced land, for housing.

2) To promote a network of dedicated housing finance institutions.

3) To augment resources for the sector and channelize them for housing.


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4) To make housing credit more affordable.

6 ICICI

(INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA)

Establishment:-

ICICI was set up during 1955 as a private company with a view to provide support to

industry in India by way of rupee and foreign currency loans.

Functions:-

1) Assistance to industrial undertakings for new projects, expansion,modernization, diversification etc. in the shape of rupee loans or foreign

currency loans.

2) subscription and underwriting of capital issues3) Guaranteeing the payment for credits.4) Merchant banking, equipment leasing and project counselling.

Objective:-

1) To assist in the formation,

2) To stimulate and promote the participation of private capital

3) To furnish technical and managerial aid

4) To assist in the development of the capital market


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7 IDBI

(INDUSTRIAL DEVELOPMENT BANK OF INDIA)

Establishment:-

It was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and

started functioning on July 01, 1964. Under Public Financial Institutions Laws

(Amendment) Act 1976, it was delinked from RBI.

Functions:-

1) irect loans to industrial undertakings

2) soft loans for various purposes

3) underwriting and direct subscription to shares/debentures4) sanction of foreign currency loans5) short term working capital loans

6) refinance to banks and other institutions against loans granted by them.

Objective:-1) Co-ordination, regulation and supervision of the working of other

financial institutions

2) Supplementing the resources of other financial institutions

3) Planning, promotion and development of key industries

4) Devising and enforcing a system of industrial growth.


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8 SFC

(State Financial Corporations)

Establishment:-

To meet the financial needs of small and medium enterprises, the

government of India passed the State Financial Corporation Act in

1951.

Objectives:-

1) ) Provide long and medium-term loan

2) Grant financial assistance to any single industrial concern

3) Provide Financial assistance whose paid up share capital do not

exceed Rs.3 crore.4) To lay special emphasis on the development of backward areas

Functions:-

1) Guaranteeing loans raised by industrial concerns

2) Guaranteeing deferred payments

3) Underwriting of the issue

4) Act as agent of the Central government, State government, IDBI,

IFCI


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9 Investment Banks

Investment Banks are investment institutions which are formed to

provide to investors, particularly smaller ones having small savings,

the benefits of diversified investment and skilled management in thesphere of investment in industrial securities. These institutions sell

their shares or units to small investors to mobilize their savings.

These savings are invested in shares, debentures, bonds and loans of

profitmaking joint stock companies. The investments are diversified,

that is, made in securities of a sufficiently large number of

companies, generally from different industries, using professional

management skills. This reduces the investment risk and ensures

reasonable income from the investments.

developmental banks in india

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