International Finance Corporation (IFC in India)


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The presentation captures an overview of the work done by IFC in India.

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  • FINO was recently declared winner under the category Achievement in Banking at the Base of the Pyramid at the Fifth IFC/ FT Sustainable Banking Awards
  • International Finance Corporation (IFC in India)

    1. 1. Promoting sustainable private sector development IFC in India
    2. 2. IFC in India <ul><li>Long term partner – first investment in India in 1958 </li></ul><ul><li>Regional hub for South Asia (including Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka) </li></ul><ul><li>Offices in India - Delhi, Mumbai, Chennai and Kolkata </li></ul><ul><li>Cumulative IFC Investments, India - March 2010 ($ 6.8bn) </li></ul><ul><li>IFC Committed Portfolio , India – December 2010 ($3.6b) </li></ul>
    3. 3. IFC’s Investments in India <ul><ul><ul><li>1950-60: Kirloskar Oil Engines </li></ul></ul></ul><ul><ul><ul><li>1970: HDFC, Zuari Industries, etc. </li></ul></ul></ul><ul><ul><ul><li>1980: Ashok Leyland, Mahindra & Mahindra, Tata steel, etc. </li></ul></ul></ul><ul><ul><ul><li>1990: Moser Baer, IDFC, Jet Airways, GVK, etc. </li></ul></ul></ul><ul><ul><ul><li>2000: Apollo Tyres, Dabur Pharma, ING Vysya, TVS Motors, Cairn India, etc </li></ul></ul></ul><ul><ul><ul><li>2010: Central Bank of India, WEG, Auro Mira and Utkarsh Microfinance </li></ul></ul></ul>
    4. 4. What are we doing in India today? <ul><li>Support Indian government to meet infrastructure finance needs </li></ul><ul><li>Encourage private investments in low-income states </li></ul><ul><li>Increase access to finance in under-served segments </li></ul><ul><li>Support to industrial sector , engineering, automotive components </li></ul><ul><li>Focus on agribusiness </li></ul><ul><li>Encourage energy efficiency, cleaner production, renewables </li></ul><ul><li>Helping Indian companies grow outside India: take Indian companies abroad – IFFCO, Tata Steel </li></ul><ul><li>Promote trade finance , eg: EXIM Bank </li></ul>
    5. 5. What defines IFC’s work in India… <ul><li>Partner central and state governments on their infrastructure development goals; advise on PPP transactions </li></ul><ul><li>Helping central and state governments undertake reform to improve investment climate </li></ul><ul><li>Encourage energy efficiency, cleaner production </li></ul><ul><li>Helping Indian companies adopt high environmental and social standards </li></ul><ul><li>Sharing corporate governance best practices </li></ul><ul><li>Stimulate community integration support to investment clients </li></ul><ul><li>Support to small and medium enterprises </li></ul><ul><ul><li>Improve availability of finance to SMEs </li></ul></ul><ul><ul><li>Provide training support to SMEs to strengthen operations, develop business skills </li></ul></ul><ul><li>Share costs with key stakeholders for sustained impact </li></ul><ul><li>Measure reach and focus on results </li></ul>Environment & Social Sustainability Access to Finance Business Environment Public-Private Partnerships Enterprise Assistance
    6. 6. IFC’s investment + advisory priorities as part of WB Group India’s context and IFC’s strategic role <ul><li>Clean production, energy efficiency, </li></ul><ul><li>Renewable energy </li></ul><ul><li>Adaptation </li></ul>Economic Inclusion Clean Growth Global Integration <ul><li>Focus on inclusive (Base of the Pyramid), </li></ul><ul><li>low income states of India, rural/ semi-urban in rest </li></ul><ul><li>Infrastructure finance & PPPs </li></ul><ul><li>Trade finance </li></ul><ul><li>South South projects </li></ul><ul><li>Innovative India models </li></ul><ul><li>Achieving rapid, </li></ul><ul><li>inclusive growth </li></ul><ul><li>Ensuring </li></ul><ul><li>development </li></ul><ul><li>is sustainable </li></ul><ul><li>Increasing </li></ul><ul><li>effectiveness of </li></ul><ul><li>service delivery </li></ul>
    7. 7. <ul><li>millions </li></ul>INDIA Commitments and Mobilization FY 06-FY10
    8. 8. Supporting Small Entrepreneurs in High Priority States in India <ul><li>Au Financers </li></ul><ul><li>Non banking financial corporation in Rajasthan </li></ul><ul><li>Provides financial assistance to low income, self employed, small entrepreneurs </li></ul><ul><li>Making credit accessible for micro and small enterprises </li></ul><ul><li>Key Outcomes </li></ul><ul><li>Expect to reach 180,000 small borrowers in the next five years </li></ul><ul><li>IFC’s initiative provides growth opportunities to the underserved in low income states </li></ul>
    9. 9. Powering Remote Villages in High Priority States <ul><li>Husk Power </li></ul><ul><li>The company converts locally available rice husk waste to electricity </li></ul><ul><li>Makes available economical, efficient and environment friendly power option </li></ul><ul><li>Provision of basic communication, education and healthcare infrastructure </li></ul><ul><li>Key Outcome </li></ul><ul><li>Impacting the people at the base of the pyramid and commercial establishments through affordable electricity </li></ul><ul><li>Reduction in crime rate due to availability of electricity </li></ul>
    10. 10. Making financial services accessible to the underserved <ul><li>Key Outcomes </li></ul><ul><li>Over 17 million customers from low income households enrolled </li></ul><ul><li>2.85m Deposit accounts opened </li></ul><ul><li>FINO </li></ul><ul><li>Provide smart card solutions for expanding access to financial services for the unbanked </li></ul><ul><li>Working with 20 banks, 10 MFIs, 4 Insurance companies, and 9 Government bodies </li></ul><ul><li>$ 4 Million IFC equity investment </li></ul><ul><li>FT award for Global BoP Bank 2010 </li></ul><ul><li>$ 1 million advisory project for : </li></ul><ul><ul><li>Developing business model </li></ul></ul><ul><ul><li>Capacity building of extension agents </li></ul></ul><ul><ul><li>Piloting testing </li></ul></ul><ul><ul><li>Monitoring and Evaluation systems </li></ul></ul>
    11. 11. Promoting Adoption of Water Conservation Practices <ul><li>Jain Irrigation </li></ul><ul><li>Global Agricultural Practices (GAP) modified to adapt Indian conditions </li></ul><ul><li>Pilot operational among onion and mango growers </li></ul><ul><li>Water footprint initiative to audit and conserve water </li></ul><ul><li>Key Outcomes </li></ul><ul><li>1000 farmers covered under Jain GAP; </li></ul><ul><li>to be scaled-up to cover more than 4000 farmers over three years </li></ul><ul><li>to be recognized by GLOBAL GAP as an entry standard </li></ul>
    12. 12. Healthcare through Public Private Partnership <ul><li>AP Healthcare </li></ul><ul><li>Upgradation of diagnostic services at medical colleges in Andhra Pradesh </li></ul><ul><li>Development of a comprehensive policy framework to improve availability of quality and affordable health care </li></ul><ul><li>Meghalaya Healthcare </li></ul><ul><li>Development of a hospital and a medical college </li></ul><ul><li>Creating professional employment opportunities for the locals </li></ul><ul><li>Key Outcomes </li></ul><ul><li>Affordable and accessible healthcare for low income groups </li></ul><ul><li>Addresses the critical shortage of trained medical and paramedical staff </li></ul><ul><li>Expanding access to affordable medical services </li></ul>
    13. 13. Going forward, IFC will continue focus on… <ul><li>addressing barriers to inclusive growth </li></ul><ul><li>enabling environment for investments in low income states </li></ul><ul><li>ramp up PPP advisory for infrastructure services </li></ul><ul><li>enhancing access to irrigation, drinking water, health and education sectors </li></ul>
    14. 14. Thank you