FINANCIAL INSTITUTION IN INDIA
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
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
Why there is need of finance
1) Long term
2) Medium term
3) Short term
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
Short term capital is needed for purchase of
raw material , and to meet day to day
TYPES OF FINANCIAL INSTITUTIONS IN INDIA
State level institutions
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 (INDUSTRIAL FINANCE CORPORATION OF
It was established in 1948
First development bank of India
Objective was to make medium and long
term credits more readily available
- BOD total 12 members(4 by idbi,2 by center
govt, 6 by shareholders)
- -full time chairperson
Resources of IFCI
-Issue of shares and bonds
-borrowing from RBI,IDBI AND CENTER
-accepting deposits from public, state govt and
FINANCIAL ASSISTANCE BY IFCI/IDBI
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.
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
During last 40 years IDBI has given a
qualitative dimension to the process of
industrial development of the country.
I.C.I.C.I. (INDUSTRIAL CREDIT & INVESTMENT CORPORATION
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
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
Icici is known for its many firsts.
-it was first Indian co to listed in New york stock
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.
Established on1st JAN,1982.
Authorized capital 1000 crores and paid up is
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
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
-any organization approved by GOI
TYPES OF ASSISTANCE
-non fund based
ASSITANCE BY EXIM
Pre shipment credit
Post shipment credit
Loans to commercial
banks for bills
Non fund based
those which do not give finance
directly but they create such
structure by which the funds are
allocated up to the minimum level.
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
It is an apex orga for policies, planning and
operations of agriculture ,ssi ,handicraft and village
It mainly deals in three types of functions
-credit ,developmental ,regulatory functions
Funds created by NABARD
-rural infrastructural deve fund 28749 crores
-Soft loan assistance fund
-Credit and financial services fund
Set up in oct 1989
Wholly owned subsidiary of IDBI
It is the principal financial institution for
promotion ,financing and deve of small scale
In sep 2000 IDBI transferred 51% in favor of
banks and other institutions in the first phase.
1) Its Functions are:
A) SSI units for new/ expansion/ diversification/
B) Marketing development projects which expand
the domestic and international marketability of
C) Existing well run SSI units and ancillaries/
subcontracting units/ vendor units for
modernization and technology up gradation.
development agencies for
developing industrial areas.
NHB-NATIONAL HOUSING BANK
Set up in July 1988
A principal agency to promote housing
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.
those who invest the money
collected in further securities and
investments outside .LIKE
Set up in 1956
Lic was formed by nationalizing 245 life
The main aim was to
1. spread insurance
2. Mobilize savings
3. Investing funds
4. Act as trustees
-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
VISION & 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."
"A trans-nationally competitive financial
conglomerate of significance to societies and
Pride of India."
TYPES OF INSURANCE SCHEMES
Whole life schemes
Money back policy
Plans for children
Medical benefits linked insurance
Plans to cover housing loan
Joint life plans
Social security schemes
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.
VISION & MISSION
“To be a leading global reinsurance and risk solution provider”
Mission: Building long-term mutually beneficial relationship with business
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
Enhancing profitability and financial strength befitting the global