INDIAN FINANCIAL SYSYTEM

1. FINANCIAL INSTITUTION IN
INDIA

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. 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
• Long term
• Medium term
• Short term

4. • 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. TYPES OF FINANCIAL INSTITUTIONS IN
INDIA
• Term lending
• Refinance institutions
• Investment institutions
• State level institutions

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. 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. 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. FINANCIAL ASSISTANCE BY IFCI/IDBI
• Purpose sanction(crores) IDBI
• New projects 15919.6 67498
• Expansion /acquisition 6649.2 50627
• Rehabilitation 115.7 1415
• Modernization 5459.7 12976
• Working capital 837
• 5138