devlopment in financial institutation


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devlopment in financial institutation

  2. 2. DEVELOPMENT FINANCIAL INSTITUTIONS A financial agencies that provide medium and long-term financial assistance and engaged in promotion and development of industry, agriculture and other key sectors.  Ex: International Bank for reconstruction and Development (IBRD) also known as World Bank & International Monetary Fund (IMF) 
  3. 3. INTRODUCTION Industrial finance is a very complicated problem. It is of vital importance as development of any country depends on industrial development of that country „s economy. Why there is need of finance 1) Long term 2) Medium term 3) Short term
  4. 4. CONTINUE…. Long term capital is also known as block capital or fixed capital. it is needed to acquire -fixed and permanent assets  Medium term capital is required for repairs, replacements, maintenance of machines and building etc.  Short term capital is needed for purchase of raw material , and to meet day to day expenses 
  5. 5. TYPES OF FINANCIAL INSTITUTIONS IN INDIA Term lending  Refinance institutions  Investment institutions  State level institutions 
  6. 6. TERM LENDING  A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.  IFCI IDBI ICICI EXIM   
  7. 7. IFCI (INDUSTRIAL FINANCE CORPORATION OF INDIA) It was established in 1948  First development bank of India  Objective was to make medium and long term credits more readily available  Management - BOD total 12 members(4 by idbi,2 by center govt, 6 by shareholders) - -full time chairperson 
  8. 8. CONTINUE…. Resources of IFCI -ownership capital -Issue of shares and bonds -borrowing from RBI,IDBI AND CENTER GOVT -accepting deposits from public, state govt and local authorities 
  9. 9. FINANCIAL ASSISTANCE BY IFCI/IDBI Purpose New projects sanction(crores) IDBI 15919.6 67498 Expansion /acquisition Rehabilitation Modernization Working capital 5138 6649.2 50627 115.7 1415 5459.7 12976 837
  10. 10. IDBI (INDUSTRIAL DEVE. BANK OF INDIA) Set up in 1964  It was fully owned subsidiary of RBI but in 1976 delinked from RBI and made as autonomous body of GOI  H.O in Mumbai 11 branch offices  It is managed by a chairman and MD appointed by central govt, a deputy governor nominated of RBI, 20 other directors. 
  11. 11. CONTINUE.. With effect from 1 oct,2004 it has renamed as IDBIL. It has been accepted as a deemed banking co under banking regulation act. The govt holds the majority (58.47%) shares of IDBI LTD.  During last 40 years IDBI has given a qualitative dimension to the process of industrial development of the country. 
  12. 12. I.C.I.C.I. (INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA) Established in 1955 As a public ltd co, at the initiative of world bank  Authorized capital of 60 crores and issued capital 22 crores  The objectives of icici are to encourage establishment of new industries, to help in expansion and modernization, technical and managerial aid to increase production and employment. 
  13. 13. CONTINUE… In October 2001 .BOD Approved ICICI LTD AND ICICI BANK LTD. With effect from MAY 2002 IT IS SIMPLY ICICI bank .  ICICI is now the largest bank with total assets of more than 3000 billions  More than 700 branches and over 2200 ATM spread all over the country  It mainly deals in  Retail banking, wholesale banking, project finance, international business and special assets mgt 
  14. 14. CONTINUE…        Icici is known for its many firsts. -it was first Indian co to listed in New york stock exchange. Foreign financial investor own around 38% shares . Technology, strategy, low cost branches innovations are key reasons of icici success. They are the first to introduce mobile banking, on line financial information, portals to allow accounts and information on line. It was the first to introduce e-commerce. It has the largest no of call centers.
  15. 15. EXIM Established on1st JAN,1982.  Authorized capital 1000 crores and paid up is 650 crores.  Exim bank came into existence when international finance division of idbi was transferred to exim bank in 1982.  Exim started its working from march 1982  The issued capital is wholly subscribed by center govt 
  16. 16. CONTINUE…          The main objective of exim is to provide financial assistance to exporters and importers. It has to coordinate the working of those institutions which can promote international trade. Management is MD+17 other directors representing govt,RBI,ECGC,public sector banks Resources of EXIM -GOI -RBI -any organization approved by GOI TYPES OF ASSISTANCE -fund based -non fund based
  17. 17. ASSITANCE BY EXIM        Fund based Pre shipment credit Foreign currency Post shipment credit Deemed exports Loans to commercial banks for bills discounting Finance for consultancy and technology   Non fund based Guarantees
  18. 18. REFINANCING INSTITUITIONS  Are those which do not give finance directly but they create such structure by which the funds are allocated up to the minimum level.  N.A.B.A.R.D.  S.I.D.B.I.  N.H.B
  19. 19. NABARD-NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT       Started functioning from 1july 1982 Set up with an initial capital of 100 crores, now it is 2000 crores fully subscribed by GOI AND RBI. H.O IN Mumbai, with 28 regional and 391 district offices It is an apex orga for policies, planning and operations of agriculture ,ssi ,handicraft and village industries It mainly deals in three types of functions -credit ,developmental ,regulatory functions
  20. 20. CONTINUE……      Funds created by NABARD -rural infrastructural deve fund 28749 crores -R&d fund -Soft loan assistance fund -Credit and financial services fund
  21. 21. SIDBI Set up in oct 1989  Wholly owned subsidiary of IDBI  It is the principal financial institution for promotion ,financing and deve of small scale industries  In sep 2000 IDBI transferred 51% in favor of banks and other institutions in the first phase. 
  22. 22. 1) Its Functions are: A) SSI units for new/ expansion/ diversification/ modernization projects. B) Marketing development projects which expand the domestic and international marketability of SSI products. C) Existing well run SSI units and ancillaries/ subcontracting units/ vendor units for modernization and technology up gradation. D) Infrastructure development agencies for developing industrial areas.
  23. 23. NHB-NATIONAL HOUSING BANK Set up in July 1988  A principal agency to promote housing finance  Wholly owned subsidiary of RBI  Registered With capital of 350 crore which can be increased to 2000 crores. The board is authorized to issue increased capital to RBI, center govt. 
  24. 24. INVESTMENT INSTITUITIONS  Are those who invest the money collected in further securities and investments outside .LIKE  LIC  GIC
  25. 25. LIC Set up in 1956  Lic was formed by nationalizing 245 life insurance companies  The main aim was to 1. spread insurance 2. Mobilize savings 3. Investing funds 4. Act as trustees 
  26. 26. CONTINUE….. -promoting a sense of pride and job satisfaction among agents and employees  Diversification by LIC -LIC HOUSING FINANCE -LIC MUTUAL FUNDS -Jeevan bima sahyog assets mgt co(JBSAMC) -LIC International EC
  27. 27. VISION & MISSION Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."  Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India." 
  28. 28. TYPES OF INSURANCE SCHEMES           Whole life schemes Endowment policies Money back policy Plans for children Medical benefits linked insurance Plans to cover housing loan Joint life plans Group schemes Pension plans Social security schemes
  29. 29. G.I.C. It was incorporated on 22 November 1972.  The Government of India (GOI), through Nationalisation took over the shares of 55 Indian insurance companies and the undertakings of 52 insurers carrying on general insurance business. Main objective: GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance. 
  30. 30. VISION & MISSION Vision  “To be a leading global reinsurance and risk solution provider” Mission: Building long-term mutually beneficial relationship with business partners  Practicing fair business ethics and values  Applying “state-of-art” technology, processes including enterprise risk management and innovative solutions.  Developing and retaining highly motivated professional team of employees  Enhancing profitability and financial strength befitting the global position