idbi, sidbi,. ifci, icici

2. National Level
Industrial
Development
Banks
IDBI
IFCI
ICICISIDBI
IIBI

3.  Industrial Development Bank of India
 established in July 1964 by the Govt. of India
 To provide financial facilities for development
of industrial units in India.

4.  The Head office of IDBI is located in Mumbai.
 It is currently 10th largest development bank in the
world in terms of reach, with 3350 ATMs, 1853
branches, including one overseas branch at Dubai,
and 1382 centres.

5. IDBI functions as an apex bank for the
development banks engaged in industrial
financing and insurance.
GIC
UTI
LIC
SFCs
ICICI
IFCI

6. MANAGEMENT of IDBI
 22 members Board of Directors nominated by the
Central Government.
 Shri Kishor Kharat is MD and CEO of IDBI.

7. FUNCTIONS of IDBI
 Direct financial assistance to industrial units
 Indirect financial assistance to industrial enterprises
 As an Apex body
 Assistance to Backward areas
 Rediscounting/ discounting bills of exchange

8.  Help entrepreneurs in identifying economically viable
project and provided technical assistance
 Carries out research work by collecting information about
market .
 Provides venture capital for new industries
 Helps in entrepreneurial development through training
programme .
 Provide consultancy services

9. SOURCES OF FUNDS
 Authorised capital rs.3000 crores
 Issued share capital rs.2058 crores.
 Its shares are listed in BSE,NSE.
 IDBI can build its financial resources through shares,
debentures, deposits from companies, borrowings from RBI
and the Govt. of India

10. Diversification of Activities of IDBI
Since 1990, IDBI has set up number of institutes,
including:
 Small Industries Development Bank of India in 1990.
 IDBI Investment Management Company (IIMCO)in 1994.
 IDBI Capital Market Services Ltd. (ICMS)in 1995.
 IDBI bank Ltd.

11. IDBI has supported for establishment of
 National Stock Exchange of India ,
 Infrastructure Development Financial Corp. (IDFC),
 SEBI,
 EXIM Bank,
 Entrepreneurial Development Institute of India,
 Technical Consultancy Organization (TCO)

12. PROBLEMS WITH IDBI
IDBI is facing big problem of NPAs.
 In 2004, RBI incorporated IDBI as scheduled Bank.
 In July 2016 FM declared there is a chance of dilution
of GOI stake in IDBI to below 50%.

13.  IFCI is an Indian government owned development
bank to cater to the long-term finance needs of the
industrial sector.
 It was the first DFI established by the Indian
government after independence.

14.  The Government established the Industrial
Finance Corporation of India (IFCI) on 1 July
1948. The IFCI was established to provided
access to low-cost funds.

15. MANAGEMENT of IFCI
 Chairman is appointed by the Government of India,
for a period of 3 years.
 12 directors, nominated by the IDBI, scheduled
banks, cooperative banks, insurance trusts .

16. FUNCTIONS OF IFCI
 Soft Loan Assistance
 Entrepreneur Development
 Industrial Development in Backward Areas
 Subsidised Consultancy

17.  IFCI has provided assistance to all types of
industries . 2/3 of assistance was given to 5
major industries and they are:
• Cement,
• Cotton, Artificial yarn,
• Mining industry,
• Hotel industry,
• Generation or distribution of power electricity.

18. PROBLEMS with IFCI
 The rate of interest which the corporation charged
was extremely high.
 There was a great delay in sanctioning loans and in
making the amount of the loans available.
 The ‘corporation’s insistence on the personal
guarantee of managing directors in addition to the
mortgage of property was considered wrong.

19. ICICI
 Industrial credit and investment corp. of India.
 In 1955, as a joint-venture of the World Bank,
India's public-sector banks set up ICICI to provide
project financing to Indian industry.

21. ICICI Bank
 headquartered in Mumbai,
 the second largest bank in India in terms of
assets
 ICICI does not exist any more as a
development financial institution , it is a
banking company.

22. Objectives of ICICI
 To provide loans to industrial projects in private
sector.
 To stimulate the promotion of new industries.
 To assist the expansion and modernization of
existing industries.
 To provide Technical and managerial aid to
increase production

23. FUNCTIONS OF ICICI
 Providing medium and long term loans for starting
private production units
 Helping in raising the investments by Indians and
foreigners in the private sector production units.
 Providing technical and managerial assistance.
 Guaranteeing the loans of private sector units.

24.  Providing capital to developmental projects in the
private sector
 Participating in equity capital and in debentures.
 Underwriting new issues of shares and debentures
 and providing foreign currency loan to such units.
 Establishing strong relations with the foreign financial
institutions

25. o SIDBI is the wholly owned
subsidiary of IDBI.
o engaged in meeting
financial needs of small
scale industrial units.
o The decision to set up
SIDBI was announced in
the budget of 1988-89 and
it actually started working
form 2nd April 1990

26.  It functions as an apex institution in the area
of SSI finance.
 Mr. Susil Muhnot, chairman and managing
director of SIDBI.

27. FUNCTION of SIDBI
 Supplement efforts of existing institutions to
help financing SSI.
 Direct lending to SSI sector.
 Refinancing primary lending organizations to
help them to finance SSI sector.

28.  Bill rediscounting and refinance of bills.
 Finance export oriented units.
 Extending seed capital / soft loans to
entrepreneurs.
 Providing export credit to the SSIs, small
entrepreneurs in the purchase of assets, raw
material etc.