DEVELOPMENT BANKS

DEVELOPMENT BANKS IN INDIA

NABARD ICICI IDBI COMMERCIAL BANKS STATE FINANCIAL COOPERATIONS SIDBI IFCI

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.  It helps improve the value of people's lives by providing loans and scientific support for a broad variety of development activities.

OBJECTIVES

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Lay Foundations for Industrialization

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Meet Capital Needs

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Need for Promotional Activities

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Help Small and Medium Sectors'

FUNCTIONS

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Financial Gap Fillers

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Undertake Entrepreneurial Role

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Joint Finance

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Refinance Facility

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Credit Guarantee

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Underwriting of Securities

Role of development banks in financial system

Employment Generation

Providing Funds Infrastructura l Facilities Accelerating Industrializat ion Planned Develop ment Promotional

Activities

Development of Backward Areas

FUNCTIONS OF A DEVELOPMENT BANK

 Increase loans and equity investments to its 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  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

DIRECT FINANCING JOINT FINANCING

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 diversified headquartered in financial services Mumbai, Maharashtra . company  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

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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

FINANCING PROMOTION DEVELOPMENT CO-ORDINATION

NABARD



National Bank for Agriculture and Rural

Development (NABARD) is an apex development bank in India having headquarters based in Mumbai ( Maharashtra ) branches are all over the country.

and other  It was established on 12 July 1982 by a special act by the parliament  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.

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

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