Developmental banks

1,477 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,477
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
99
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Developmental banks

  1. 1. INTRODUCTION  Development banks are those financial institutions engaged in the promotion and development of industry, agriculture and other key sectors.  They may be publically or privately owned and operated.  An example of a successful private development bank is Grameen Bank founded in 1976 to serve small borrowers in Bangladesh.
  2. 2. GRAMEEN BANK
  3. 3. ROLE OF DEVELOPMENT BANKS IN FINANCIAL SYSTEM PROVIDING FUNDS ACCELERATING INDUSTRIES PLANNED DEVELOPMEN T PROMOTION AL ACTIVITIES EMPLOYMENT GENERATION
  4. 4. DEVELOPMENTAL BANKS ALL INDIA LEVEL STATE LEVEL SIDBI,IFCI SFCs,SIDCs,SIICs
  5. 5. SIDBI  Small industries developmental bank of India.  Set up on April 2, 1990.  It is aimed to aid the growth and development of micro, small and medium-scale enterprise (MSME) in India.  SIDBI has initiated various schemes for upliftment of MSME sector.
  6. 6. IFCI  IFCI stands for Industrial finance corporation of India.  Established on July 1, 1948 as the first development institution.  It was formed to fulfill the long term finance needs of the industrial sector.  Constitution of IFCI was changed in1993 from a statutory corporation to a company under the Indian company act 1956.  Subsequently the name of the company was also cahnged to IFCI LTD with effect from 1999.
  7. 7. FUNCTIONS OF IFCI  For setting up a new industrial undertaking.  For expansion and diversification of existing industrial undertaking.  For renovation and modernization of existing concerns.  For meeting the working capital requirements of industrial concerns in some exceptional cases.  Direct financial support to industrial units for under taking new projects, expansion, diversification etc.
  8. 8. SFCs  SFCs stands for State Financial Corporations.  To meet the financial requirements of small scale and medium sized industries, there was a need of special financial institution.  With this view the central government passed the state financial corporation act on 28th September, 1951.  Till now 18 financial corporation have been established.
  9. 9. OBJECTIVES  To establish uniformity in regional industries.  To provide incentives to new industries.  To provide finance to small-scale, medium sized and cottage industries in the state.  To develop financial resources.
  10. 10. SIDCs  SIDCs stands for state industrial development corporation  The SIDC were set up under the companies act,1956 for promotion and development of medium and large industries. • It exists in all the states and have developed infrastructure facilities • The interest rate ranges between 13.5% to 17% depending upon the size of the loan.
  11. 11. FUNTIONS  To promote industrial development.  28 SIDCs are functioning in the country.  Granting of financial assistance to industrial concerns in the form of direct investments, loans and identification of project ideas.
  12. 12. SIICs  SIICs stands for state industrial infrastructure and investment corporation.  Set up under the companies act under the overall control of the state government to develop industrial infrastructure in the states.  Infrastructure projects undertaken by the corporation include developing growth centers.  Only 10 corporations have been set up in the different states.
  13. 13. FUNCTIONS OF SIICs  Granting of financial assistance to industrial concerns in the form of loans.  Promote industrial development of respective state or union territory.  28 SIICs are functioning in the country.

×