SFCs, SIDCs, IFCI, ICICI, IDBI, IRBI, & SIDBI

1. CSJM University Kanpur
Institute Of Business Management (IBM)
FINANCIAL INSTITUTIONS AND
MARKETS
Group:- 2
Parul Singh (Group Leader)
Sneha Banerjee
Samreen Hashim
Mohd. Nadeem
Atif Mohammad
Mohd. Baizad Malik
Submitted to :-
Miss Sakshi Bajpai

2. Contents:-
1) State Level Industrial Development Banks
(a) SFCs (b) SIDCs
2) IFCI
3) ICICI
4) IDBI
5) IRBI
6) SIDBI

3.  SFCs (State FinancialCorporations)
SIDCs/SIICs (State Industrial Development
Corporations/State Industrial Investment
Corporations)

5. About SFCs
Government of India, after consulting with the state
government and the RBI introduced State Finance
Corporations bill in the Parliament in 1951.
SFCs Act came into existence with effect fromAugust
1st , 1952.

6. To establish uniformity in regional industries.
To provide incentives to new industries.
To bring efficiency in regional industrial units.
To provide finance to small scale, medium size
and cottage industries in state.
To develop regional financial resources.

7. Functions Of SFCs
 The main function of the SFCs is to provide loans to small and medium
scale industries engaged in the manufacture, preservation or processing
of goods, mining, hotel industry, generation or distribution of power,
transportation, fishing, assembling, repairing or packaging articles with
the aid of power, etc.
Granting loans or advances or subscribing to shares and debentures of the
industrial undertaking repayable within twenty years.

8. Continued….
 Guaranteeing loans raised by the industrial concerns repayable
within twenty years.
 Underwriting of the shares, bonds and debentures subject to their
disposal in the market within seven years.
 Guaranteeing deferred payments for the purchase of capital
goods by industrial concerns within India.
 Providing loans for setting up new industrial units as well as for
expansion and modernization of the existing units.
 Discounting the bills of small and medium scale industries.

9. Management Of SFCs
State Financial Corporations of every state is Governed by a board of
directors consisting of 18 directors in all, duly elected and nominated.
Management of SFCs is done through:-
1. Share Capital
2. Bonds And Debentures
3. Public Deposits
4. Other Sources.

10. At Present :-
There are 18 SFCs in India
These are regulated underThe State Financial
Corporations Act, 1951.

12. Functions of SIDCs
 Provide finance to industrial units
 Arranging for land, power, roads, licenses for industrial
units
 Sponsoring the establishment of such units, especially in
backward areas.

13. Management of SIDCs
1/3 in the form of underwriting/ direct subscription assistance
2/3 in the form of term loans.

14. Funds of SIDCs are raised
through-
Share capital and reserves
Borrowings from IDBI
State governments and banks
Bonds and debentures

16. INTRODUCTION
 The Government of India set up the IFCI under IFCI Act in July 1948.
 It is the first development financial institution in the county to cater
to the long-term finance needs of the industrial sectors.
 The main objective of IFCI is to making medium & long term credits
more readily available for industrial concerns in India.

17. CAPITAL
 The authorized capital of the corporation as per IFCI Act 1948,
was Rs.10 crores. It was raised to Rs.20 crores by the
Amendment Act 1972.
 50% of the share capital is held by the IDBI & remaining 50%
by banks, cooperative banks, insurance company, investment
trusts etc.,

18. FUNCTIONS
• The corporation grants loans and advances to industrial concerns.
• Granting of loans both in rupees and foreign currencies.
• The corporation underwrites the issue of stocks, bonds, shares
etc.
• The corporation can grant loans only to public limited companies
and co-operatives but not to private limited companies or
partnership firms.

19. Activities of the IFCI
The promotional activities of IFCI are as follows:
SoftLoan Assistance
EntrepreneurDevelopment
IndustrialDevelopmentin
BackwardAreas
Subsidised Consultancy
Management
Development

20. Organisation and Management
•The Head Office of the IFCI is in New Delhi. It has also established its Regional offices
in Bombay, Chennai, Kolkata, Chandigarh, Hyderabad, Kanpur and Guwahati.
•The branch office of IFCI is located in Bhopal, Pune, Jaipur, Cochin, Bhubaneswar,
Patna, Ahmedabad and Bangalore.
•The IFCI is managed by a Board of Directors, headed by a Chairman, who is appointed
by the Government of India, in consultation with RBI.The chairman holds his position
for a period of 3 years, subject to extension.
•Of the 12 directors, 4 are nominated by the IDBI, three of whom are experts in the
fields of industry, labour and economics and the fourth is the General Manager of the
IDBI.The remaining 8 directors are nominated.
•Two directors are nominated for a term of 4 years by each of the following-scheduled
banks, co-operative banks, insurance companies and investment companies making
up eight directors.

21. TAG LINE- “ HUM HAI NA”
“ KHAYAL AAPKA”

22. ABOUT ICICI BANK
INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA.
FOUNDED IN 1955 BY AS A JOINT VENTURE
OF THE WORLD BANK.
ICICI BANK LAUNCHED INTERNET BANKING
OPERATION IN 1998.
IN 2000, ICICI BANK BECAME THE FIRST
INDIAN BANK TO LIST ON THE NEW YORK
STOCK EXCHANGE AND IT IS LISTED ON BSE
& NSE.
ICICI BANK IS INDIA’S SECOND LARGEST
BANK.

23. Role in Indian financial
infrastructure
The bank has contributed to the set-up of a number of Indian
institutions to establish financial infrastructure in the country over
the years:
• National Stock Exchange
• Credit Rating Information Services of India Limited (CRISIL)
• Asset Reconstruction Company India Limited
• Financial Innovation Network and Operations Pvt Ltd

24. PRODUCT AND SERVICES
• iMobile SmartKeys
• ICICI Merchant Services
• SmartVault
• Saral Loans
• Travelers Cheque (initially)
• CardS (credit card, debit card, travel
cards,corporate cards prepaid
cards,business cards)
• Loans (home loans ,personal loans
,two wheeler loans, car loans)
•Touch n Remit' facility for NRIs
in Kingdom of Bahrain
•Pockets by ICICI Bank
•ICICI Bank Unifare Bangalore
Metro Card
•ICICIBankPay onTwitter
•NRI banking
•ICICIBankPay onTwitter
•iWish- the flexible recurring
deposit
•Blockchain technology
•Software robotics

25. SWOT ANALYSIS OF ICICI

27. INITIATIVES
• 100 DigitalVillages
• Go Green
• Literary Endeavour
AWARDS
• Best Retail Bank in India’ at the Asian Banker International Excellence
in Retail Financial Services Awards 2016.
• Winner at the ‘Global Safety Awards 2016’ organized by the Energy
and Environment Foundation.This award is sponsored by Ministry of
Petroleum & Natural Gas and Ministry of Coal,Government of India.

29. INTRODUCTION
• Industrial Development
Bank of India (IDBI)
established under Industrial
Development Bank of India
Act, 1964, is the principal
financial institution for
providing credit and other
facilities for developing
industries and assisting
development institutions.
HISTORY
• Till 1976, IDBI was a subsidiary bank
of RBI. In 1976 it was separated from
RBI and the ownership was
transferred to Government of India.
IDBI is the tenth largest bank in the
world in terms of development.The
National Stock Exchange (NSE), the
National Securities Depository
Services Ltd. (NSDL), Stock Holding
Corporation of India (SHCIL) are
some of the Institutions which has
been built by IDBI.

30. Organisation and
Management:
IDBI CONSIST OF A BOARD OF DIRECTORS,
CONSISTING OF A CHAIRMAN AND MANAGING
DIRECTOR APPOINTED BY THE GOVERNMENT OF
INDIA, A DEPUTY GOVERNOR OF THE RBI
NOMINATED BY THAT BANK AND 20 OTHER
DIRECTORS ARE NOMINATED BY THE CENTRAL
GOVERNMENT.
THE BOARD HAD CONSTITUTED AN EXECUTIVE
COMMITTEE CONSISTING OF 10 DIRECTORS,
INCLUDING THE CHAIRMAN AND MANAGING
DIRECTOR. THE EXECUTIVE COMMITTEE IS
EMPOWERED TO SANCTION FINANCIAL
ASSISTANCE.

31. Functions of IDBI:
 To provide financial assistance to industrial
enterprises.
To promote institutions engaged in industrial
development.
To provide technical and administrative
assistance for promotion management or
expansion of industry.
To undertake market and investment research
and surveys in connection with development of
industry.

32. IDBI Assistance:
• The IDBI provides financial assistance either
directly or through some specified financial
institutions
(I) Direct Assistance:
(II) Indirect Assistance:

33. Developmental Activities of
IDBI:
(1) Promotional Activities:
(2)TechnicalConsultancy Organizations:
(3) Entrepreneurship Development Institute:

34. Subsidiaries of IDBI Bank
 IDBI Capital Market Services Limited (ICMS)
 IDBI Intech Limited (IIL)
 IDBI Asset Management Limited (IAML)
 IDBI MFTrustee Company Limited (IMTCL)
 DBITrusteeship Services Ltd (ITSL)

36. Establishment - April, 1971(started as IRCI)
Converted - (statutory corporation) Industrial Reconstruction
Bank of India (IRBI)
Started Capital - Rs. 10 cores
 After converted authorized capital of Rs. 200 crore and a paid-
up capital of Rs. 50 crore.

37. Basic Objective -
To assist rehabilitation of sick industrial units
or rehabilitation of units likely to face
closure, but showing promise of viability
providing financial, technical or managerial
assistance so that they can be put up again
as viable units.

38. Functions of IRBI:
To provide-
Financial assistance to sick industrial units.
Merchant banking services for amalgamation, merger,
reconstruction, etc.,
Consultancy services to the banks in the matter of sick units,
To undertake leasing business.
Restructuring of the management.
Technical and managerial guidance

39. Resources:
• Managed by - Board of directors
(whose members shall not be less than 9 and more than 15)
• Authorized capital - Rs. 25 crore.
(The Corporation has received Rs. 10 crores from Govt. of India and has raised Rs. 11
crores by issuing bonds to the public)
• Appointment -Three directors are appointed by IDBI. It has also constituted an
executive committee to consider the grant of restructuring loans up to the extent
of Rs 5 lakh in any single case.The repayments period varies from 4 to 12 years

40. Working of the Corporation an
Evaluation:
• The corporation actually, gave assistance only to 72 applicants
out of 418 which applied for.
• The total assistance sanctioned during that year alone was the
order of Rs. 46.88 crores. During the year 1989-90, it
sanctioned and disbursed total assistance of Rs. 146.6 crores
and 141.1 crores in the last year.
• The cumulative term loan assistance made to various
individual units situated in notified backward areas up to 31st
March 1990 was amounted to Rs. 206 crores to 229 crores.

42. Set up onApril 2, 1990 through an act of parliament, it was incorporated
initially as a wholly owned subsidiary of Industrial Development Bank of
India
It is an apex body and
nodal agency for
formulating
coordination and
monitoring the policies
and programmes for
promotion and
development of small
scale industries.

43. To empower the Micro, Small and
Medium Enterprises (MSME) sector
with a view to contributing to the
process of economic growth,
employment generation and
balanced regional development.
To emerge as a single window for meeting the
financial and developmental needs of the
MSME sector to make it strong, vibrant and
globally competitive, to position SIDBI Brand
as the preferred and customer - friendly
institution and for enhancement of share -
holder wealth and highest corporate values
through modern technology platform.

44. OBJECTIVES OF SIDBI
 Promotion
 Financing
 Co-ordination
 Development

45. FUNCTIONS
 Refinances loans and advances
 Discounts and rediscounts bills
 Extends soft loan assistance
 Grants direct assistance
 Extends financial support to State Small Industries Corporations
 Provides financial support to National Small Industries Corporation

46. PRODUCTS AND
SERVICES
Direct finance
Bills finance
Refinance
International finance
Promotional & Development activities.
Fixed deposit scheme
Technology Up-gradation & Modernization
Fund Scheme (TDMF)
Venture Capital Fund Scheme
Seed Money Schemes
National Equity Fund Scheme