The document discusses Indian financial institutions and development banks, outlining their definitions, types, features, roles, and functions. It highlights key institutions such as commercial banks, investment banks, and various development banks like NABARD and IDBI, emphasizing their importance in financing sectors like agriculture and industry. Additionally, it explains the specific roles of these banks in promoting economic growth and providing long-term credit to facilitate development in India.

1. INDIAN FINANCIAL
INSTITUTIONS &
DEVELOPMENT
BANKS :
PRESENTED TO :
MS . ALKA SOOD.
Asst. Prof.SMS.
PRESENTED BY :
AMANDEEP.
BUPIN:19PBA008.
BADDI UNIVERSITY OF
EMERGING
SCIENCES AND
TECHNOLOGY.

2. CONTENTS :
i. CONCEPT OF INDIAN FINANCIAL INSTITUTIONS.
ii. TYPES OF INDIAN FINANCIAL INSTITUTIONS (FI).
iii. COCEPT OF DEVELOPMENT BANKS .
iv. FEATURES OF DEVELOPMENT BANKS .
v. ROLE & FUNCTIONS OF DEVELOPMENT BANKS .
vi. DEVELOPMENT BANKS IN INDIA.
vii. AND FUNCTIONS OF DEVELOPMENT BANKS IN
INDIA.

3. FINANCIAL INSTITUTION (FI)
• DEFINITION OF FI : A financial institution is a company that focuses on dealing with
financial transactions, such as investments, loans, and deposits.
MEANING AND COCEPT OF FI :
1. A financial institution (FI) is a company engaged in the business of dealing with
financial and monetary transactions such as deposits, loans, investments, and
currency exchange.
2. Financial institutions (FI) : encompass a broad range of business operations within
the financial services sector including banks, trust companies, insurance
companies, brokerage firms, and investment dealers.
3. Financial institutions can vary by size, scope, and geography.

4. TYPES OF FINANCIAL INSTITUTIONS
IN INDIA
• List of top seven Financial Institutions of India : Financial
institutions are:
1. Commercial Banks.
2. Merchant Banks.
3. Mutual Funds .
4. Investment Banks .
5. Credit Unions.
6. Savings and Loan Associations.
7. Mutual Savings Banks.

5. TYPES OF FINANCIAL INSTITUTIONS
IN INDIA
1. COMMERCIAL BANK : Is a financial institution which performs
the functions of accepting deposits from the general public and giving
loans for investment with the aim of earning profit. In fact, commercial
banks, as their name suggests, axe profit-seeking institutions, i.e., they
do banking business to earn profit.
2. MERCHANT BANKS : A merchant bank is a bank that deals mainly with
firms, investment, and foreign trade, rather than with the public.
IN OTHER WORDS , : Is a financial institution that engages in underwriting
and business loans, catering primarily to the needs of large enterprises .

6. TYPES OF FINANCIAL INSTITUTIONS
IN INDIA
3. Mutual Funds : Is a company that pools money from many investors and
invests the money in securities such as stocks, bonds, and short-term debt.
The combined holdings of the mutual fund are known as its portfolio.
Investors buy shares in mutual funds.
4. Investment Banks : An investment bank is a financial services company
that acts as an intermediary in large and complex financial transactions.
Is
usually involved when a startup company prepares for its launch of an initial
public offering (IPO). And when a corporation merges with a competitor. It
also has a role as a broker or financial adviser for large institutional clients
such as pension funds.

7. TYPES OF FINANCIAL INSTITUTIONS
IN INDIA
5. Credit Unions : A cooperative association that makes small loans to its
members at low interest rates and offers other banking services (such as
savings and checking accounts).
6. Savings and Loan Associations : Also called (S&L), savings and loan — is
a financial institution similar to a bank that specializes in helping people get
residential mortgages.
Primary Purpose is
making loans to its members, usually for the purchase of real estate or
homes.
7. Mutual Savings Banks : Are chartered by local or regional governments
and do not offer capital stock, but rather the bank is owned by its members,
and any profits are shared among its members.

8. CONCEPT OF DEVELOPMENT BANKS IN INDIA
 DEVELOPMENT BANKS : Are financial institutions that provide long-
term credit. They are also known as term-lending institutions
or development finance institutions.
 Such banks often lend (loan)
& finance (money) at low and stable rates of interest to promote
long-term investments with considerable social benefits.
 “ Such lending is sanctioned to promote and develop
important sectors like agriculture, industry, import-export,
housing, and allied activities.”

9. FEATURES OF DEVELOPMENT BANKS IN INDIA
a) It is a specialised financial institution.
b) It provides medium and long term finance to
business units.
c) Unlike commercial banks, it does not accept
deposits from the public.
d) It is not just a term-lending institution.
e) It is essentially a development-
oriented bank.

10. FUNCTIONS & ROLE OF DEVELOPMENT BANKS
IN INDIAN FINANCIAL SYSTEM
1. To promote and develop small-scale industries (SSI) in India.
2. To finance the development of the housing sector in India.
3. To facilitate the development of large-scale industries (LSI) in India.
4. To help the development of agricultural and rural sector India.
5. To enhance the foreign trade of India.
6. To help to review (cure) sick industrial units.
7. To encourage the development of Indian entrepreneurs.
8. To promote economic activities in backward regions of the country.
9. To contribute in the growth of capital markets.

11. .

12. DEVELOPMENT BANKS IN INDIA
A. Industrial Development Banks :
1. Industrial Finance Corporation of India (IFCI)
i. The IFCI was the
first specialized financial institution set up in India to provide term
finance to large industries in India.
ii. It was established on 1st July, 1948 under the Industrial Finance
Corporation Act of 1948.
iii. Headquartered – New Delhi.
iv. Currently Listed in BSE & NSE.
v. CEO : Emandi sankara rao.

13. Functions of IFCI
i. For setting up a new industrial undertaking.
ii. For expansion and diversification of existing
industrial undertakings.
iii. For renovation and modernization of
existing concerns.
iv. For meeting the working capital
requirements of industrial concerns in some
exceptional cases.

14. 2 . Industrial Development Banks OF INDIA
(IDBI)
i. IDBI was established in 1964 .
ii. To provide credit and other financial facilities for
the development of the fledgling Indian industry.
iii. CEOs : Rakesh Sharma.
iv. Headquarter : Mumbai.

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

16. 3. SMALL INDUSTRIES DEVELOPMENT
BANK OF INDIA (SIDBI)
i. SIDBI was establish in 2april 1990.
ii. Wholly owned subsidiary of Industrial
Development Bank of India, presently the
ownership is held by 33 Government of India
owned / controlled institutions.
iii. It is headquartered in Luck now.
iv. Director of SIDBI : Devendra kumar singh.

17. Functions of SIDBI
i. To initiate steps for technological up gradation
and modernization of existing units.
ii. To expand the channels for marketing the
products of SSI sector in domestic and
international markets.
iii. To promote employment oriented industries
especially in semi-urban areas to create more
employment opportunities and thereby
checking migration of people to urban areas.

18. B. Agricultural Development Bank:
1. National Bank for Agriculture & Rural Development
(NABARD) :
a) It was established on 12 July 1982 .
b) Its main focus was to uplift rural India by increasing the
credit flow for elevation of agriculture & rural non-farm
sector.
c) NABARD is the apex institution in the country which
looks after the development of the cottage industry, small
industry and village industry, and other rural industries.
d) G.R. Chintala is the new chairman of (NABARD) May 27,
2020.
e) Headquarter : Mumbai .

19. ROLE OF NABARD
i. Undertakes monitoring and evaluation of projects
refinanced by it.
ii. Refinances the financial institutions which
finance the rural sector.
iii. Regulates the institutions which provide financial
help to the rural economy.
iv. Provides training facilities to the institutions
working in the field of rural upliftment.
v. Regulates the cooperative banks and the RRBs.

20. C . Export-Import DEVELOPMENT
Bank :
1. Export-Import Bank of India (EXIM Bank) :
i. The Export-Import Bank of India (Exim Bank) is a
public sector financial institution created by an Act
of Parliament, the Export-import Bank of India Act,
1981.
ii. The business of Exim Bank is to finance Indian
exports that lead to continuity of foreign exchange
for India.
iii. The Exim Bank extends term loans for foreign trade.
iv. Established in 1 january 1982.
v. CEO : David Rasquinha.

21. FUNCTIONS OF Export-Import Bank of
India (EXIM Bank) :
i. Underwriting the issue of shares, stocks, bonds,
debentures of any company engaged in exports.
ii. Developing and financing export oriented industries.
iii. Collecting and compiling the market and credit information
about foreign trade.
iv. It provides direct financial assistance to exporters of plant,
machinery and related service in the form of medium-term
credit.

22. D. HOUSING DEVELOPMENT BANK :
1. National Housing Bank (NHB):
i. Founded on 9 July 1988.
ii. Headquarter : New Delhi.
iii. Managing Director : Sarada Kumar Hota 28
June, 2019.
iv. The institution owned by the Reserve Bank
of India was established to promote private
real estate acquisition. Now it is owned by
the Government of India.

23. FUNCTIONS OF NHB :
i. To provide guarantee and underwriting facilities to housing
finance institutions.
ii. To provide guidelines to housing finance institutions to
ensure their healthy growth.
iii. To co-ordinate the working of all agencies connected with
housing.
iv. To promote and develop Specialised housing finance
institutions for mobilising resources and extending credit
for housing .
v. To formulate schemes for mobilisation of resources and
extension of credit for housing.

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