This document provides an overview of development finance institutions (DFIs) in India. It discusses that DFIs play an important role in allocating resources for economic development. In India, DFIs operate at both the national and state level. Some major national level DFIs include NABARD, IFCI, SIDBI, and IDBI. State level DFIs include SFCs, SIDCs, REC, and IDFC. Each organization is briefly described in terms of its founding, objectives, and roles in providing financing for agriculture, small businesses, infrastructure and industrial development projects.

1. PRESENTATION
ON
DFI’s
IN
INDIA
PRESENTED BY
BHASKAR
MBA(3rd SEM)
AIMCA

2. DFI’s
The economic development of any country
depends on the extent to which its financial system
efficiently and effectively mobilizes and allocates
resources. There are a number of a banks and
financial institution that perform this function; one
of them is the development bank. They undertake
to foster the development of a nation, generally not
undertaken by other banks.
DFI basically stand for development finance
institution which are created mainly to catered to
the medium & long term financing requirement

3. DFI’s in
INDIA
A group composed of Development Finance
Institutions
(DFI) and Investment Institutions forms All India
Financial Institutions (AIFI)
Some of DFI’s are:
•National level institution
•State level institution

4. National level institution:
•National Bank For Agriculture And Rural
Development (NABARD)
•Industrial Finance Corporation of India
• Small Industries Development Bank Of India [SIDBI]
•State Bank of India
•Industrial Development Bank of India
•ICICI Bank

5. State level institution:
•Rural Electrification Corporation
(REC)
•INFRASTRUCTURE DEVELOPMENT
FINANCE COMPANY(IDFC)
•State Financial Corporations (SFCs)
•State Industrial Development
Corporations (SIDCs)

6. National Bank For Agriculture And Rural Development
(NABARD)
NABARD is established on july 12 1982 as a development
Bank, in terms of the Preamble of the Act, "for providing and
regulating Credit and other facilities for the promotion and
development of agriculture, small scale industries, cottage and
village industries, handicrafts and other rural crafts and other
allied economic activities in rural areas with a view to promoting
integrated rural development and securing prosperity of rural
areas

7. Industrial Finance Corporation of India
•The Industrial Finance Corporation of India
(IFCI) was established on July 1, 1948, as the
first Development Financial Institution in the
country to cater to the long-term finance needs
of the industrial sector.
•The newly-established DFI was provided
access to low-cost funds through the central
bank's Statutory Liquidity Ratio or SLR which in
turn enabled it to provide loans and advances to
corporate borrowers at concessional rates.
•It provide direct rupee and foreign currency
loans for setting up new industrial project & for
expansion

8. Small Industries Development Bank Of India
[SIDBI]
•SIDBI has been set up by the Government of India
with its headquarters in Lucknow, Uttar Pradesh.
• It is the principal financial institution for promotion,
financing and development of industries in the small
scale sector and to coordinate functions of the
institutions engaged in similar activities.
•SIDBI aim is to serve as the principal financial
institutions for promotion financing and development of
industry in the small scale sector and to co-ordinate
the functions of the institutions engaged in promoting,
financing or developing industry in the small scale
sector.

9. State Bank of India
•State Bank of India was constituted on 1 July 1955. More
than a quarter of the resources of the Indian banking
system thus passed under the direct control of the State.
Later, the State Bank of India (Subsidiary Banks) Act was
passed in 1959, enabling the State Bank of India to take
over eight former State-associated banks as its
subsidiaries (later named Associates).
•The Bank is actively involved since 1973 in non-profit
activity called Community Services Banking. All the
branches and administrative offices throughout the
country sponsor and participate in large number of
welfare activities and social causes. Business is more
than banking because we touch the lives of people
anywhere in many ways.

10. Industrial Development Bank of India
•IDBI was a wholly owned subsidiary of RBI up to February
1976.
• It was delinked from RBI in February 1976 and was made
an autonomous corporation fully owned by the Government
of India.
• The IDBI is the apex financial institution and besides
providing financial assistance on consortium basis, the
major function of coordination between the various
institutions is looked after by the bank
•There is no restriction on the quantum of assistance or the
maximum or minimum limits.

11. ICICI Bank:
•ICICI Bank was originally promoted in 1994 by
ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary.
•ICICI Bank is India's second-largest bank head
quatered at Mumbai
•ICICI Bank offers a wide range of banking
products and financial services to corporate and
retail customers through a variety of delivery
channels and through its specialised subsidiaries
and affiliates in the areas of investment banking,
life and non-life insurance, venture capital, asset
management and information technology

12. State level institution: In order to meet the financial
reqiurement of small scale & medium size industries the
GOI passed state financial corporation act of 28 sept 1951
which empowered the state govt to established the
financial institution. Some of those are:-
Rural Electrification Corporation (REC):
•REC was setup in 1969
•Objective of REC:
1. Rapid electrification of rural & backward areas
2. Promotion of decentralised distribution of power in rural are
3. Full explotation of irrigation potential trough energisation of
pumpsets
4.It provide assistance for electrification through various schem

13. INFRASTRUCTURE DEVELOPMENT FINANCE
COMPANY(IDFC)
•Infrastructure Development Finance Company is a
leading finance player in India. Infrastructure Development
Finance Company Ltd (IDFC) is India's leading integrated
infrastructure finance player providing end to end
infrastructure financing and project implementation services.
•The company's main business is to provide finance for
infrastructure projects including through ownership of
infrastructure assets.
• They operate a full range of business lines, from project
and corporate finance to asset management (mutual funds
and alternatives) and investment banking.
• They are engaged in providing finance and advisory
services for infrastructure projects, asset management and
investment banking.

14. •Infrastructure Development Finance Company Ltd
was incorporated on January 30, 1997, as a public
limited company with their registered office at
Chennai. In the year 1994,

15. •State Financial Corporations (SFCs)
SFCs are the State-level financial institutions which
play a crucial role in the development of small and
medium enterprises in the concerned States. They
provide financial assistance in the form of term loans,
direct subscription to equity/debentures, guarantees,
discounting of bills of exchange and seed/ special
capital, etc. SFCs have been set up with the
objective of catalysing higher investment, generating
greater employment and widening the ownership
base of industries.

16. •State Industrial Development
(SIDCs)
Corporations
SIDCs have been established under the Companies
Act, 1956, as wholly-owned undertakings of State
Governments. They have been set up with the aim
of promoting industrial development in the
respective States and providing financial assistance
to small entrepreneurs. They are also involved in
setting up of medium and large industrial projects in
the joint sector/assisted sector in collaboration with
private entrepreneurs or wholly-owned subsidiaries.