The document discusses various development banks and financial institutions in India that provide assistance to different sectors. It summarizes the objectives and functions of key institutions like IDBI, ICICI, SIDBI, IFCI, IIBI, EXIM Bank, NABARD, SFCs and SIDCs. IDBI provides long term financing to industries while SIDBI focuses on small and medium enterprises. EXIM Bank finances exports and imports. NABARD works on uplifting rural India. SFCs and SIDCs cater to state-level industrial development.

1. Ms. Anubha Rastogi
Astt. Prof, Vidya School Of Business
2017-18

2. Anubha Rastogi | VSB

3.  A Development Bank is a polygonal development finance institution devoted to improving the social and
monetary development of its associate nations.
 It helps improve the value of people's lives by providing loans and scientific support for a broad variety of
development activities.
 IDBI, IFCI, ICICI and IIBI provide financial assistance for long and medium-term basis to all types of industries.
 EXIM Bank provides financial assistance mainly to export and import business and units related to this.
 SIDBI was promoted mainly for promotion of small-scale sector.
 SFCs and SIDCs are State level industrial development institutions promoted to meet the requirements in the
State level.
Anubha Rastogi | VSB
IIBI

4. Anubha Rastogi | VSB
 Increase loans and equity investments to its developing associate countries (DMCs) for their
monetary and social development.
 Provides technical help for the planning and implementation of development projects and
programs and for advisory services.
 Promotes and facilitates speculation of public and private capital for growth and development.
 Responds to requests for assistance in coordinating growth policies and plans of its increasing
member countries.

5. Anubha Rastogi | VSB
 The Industrial Development Bank of India (IDBI) was established on 1 July 1964 under an Act of
Parliament as a wholly owned subsidiary of the Reserve Bank of India.
 In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it
was made the principal financial institution for coordinating the activities of institutions engaged
in financing, promoting and developing industry in the country.
 OBJECTIVES and FUNCTIONS
 Planning, promoting, developing industries
 Coordinating the working in institutions engaged in financing
 Undertaking market and investment research
 Providing technical and administrative assistance
 Subsidiaries
 THE PRINCIPAL SOURCE OF FUNDS OF IDBI
 Share capital and reserves
 Borrowing from government of India and RBI
 Market borrowing by way of bonds
 Deposits and other borrowings
 Repayment of past assistance by borrowers
 Foreign currency borrowings from world
banks
 Asian development banks and international
markets

6. Anubha Rastogi | VSB
• Some of the products and services offered by IDBI are as follows:
 Equipment Finance
 Asset Credit
 Working Capital Loan
 Corporate Loan
 Film Financing
 Direct Discounting
 Equipment Lease
 Venture Capital Fund
 Technology up gradation Fund Scheme
 Refinance
 Project Finance
 Bills Rediscounting
 Rehabilitation Finance
 Forex Services
 Debenture Trusteeship
 Merchant Banking
• Operational Activities
 Direct Assistance
 Indirect Assistance
 Refinance Schemes
 Refinance Scheme for industrial rehabilitation
 Automatic Refinance Scheme
 Refinance Scheme for modernization
 Bills Rediscounting Scheme
 Soft loan scheme for modernization
 Seed capital assistance scheme
 SFCs special share capital schemes
 Development assistance fund(DAF)

7. Anubha Rastogi | VSB
 ICICI (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA) Bank Ltd.
 ICICI is an Indian diversified financial services company headquartered in Mumbai,
Maharashtra.
 The Bank has a network of 2,630 branches and 8,003 ATM's in India, and has a presence in 19
countries, including India.
 Setup under the aegis of Government of India, world bank & the representative of private
industry on January 5, 1955
 OBJECTIVES OF ICICI
 Assisting in the creation
 Expansion
 Modernization of such enterprises
 Encouraging and promoting the participation private capital
 Encouraging and promoting private ownership
 FUNCTIONS OF ICICI
 Assistance to industries
 Provision of foreign currency loans
 Merchant banking
 Letter of credit
 Project promotion
 Housing loans
 Leasing operations

8. Anubha Rastogi | VSB
 Small Industries Development Bank of India.
 Established on April 2 1990 under an Act of Indian Parliament.
 Objective: Promotion, Financing & Development of MSMEs and Coordinating Functions
of institutions engaged in similar activities.
 Ownership : Public sector banks/FIs/Insurance Cos owned or controlled by the
Government of India.
 Structural Linkage: With Ministry of Finance and Ministry of SSI.
 Nodal Agency : For MSME Schemes of GoI
 Some of the products and services offered by SIDBI are:
 Direct Finance Schemes
 Bills Finance Schemes
 Refinance Schemes
 Internal Finance Schemes
 Marketing Finance & Development Schemes
 SIDBI Foundation for Micro Credit
 Promotional & Development Activities
 Fixed Deposit Schemes

9. Anubha Rastogi | VSB
 The government of India set up the industrial finance corporation of India in July 1948
 Management of IFCI
 12 directors
 4 are nominated by the IDBI
 OBJECTIVES OF IFCI
 Promoted by new entrepreneurs
 Based on indigenous technology
 Which would result in substitution of imports
 Providing input for increasing agricultural products
 OPERATIONAL ACTIVITIES
 Concessional finance to projects in less development areas
 Concessional finance for renewable energy systems
 Power of attorney scheme
 Bridging loans
 Sub loans in foreign currencies
 The activities, which are undertaken by IFCI, can be broadly classified into:
 Project Financing
 Financial Services
 Comprehensive corporate advisory schemes

10. Anubha Rastogi | VSB
 Industrial Investment Bank of India Ltd (IIBI) was set up as a company under the Companies
Act, 1956, in March 1997.
 It came into being by converting the erstwhile Industrial Reconstruction Bank of India (IRBI)
 Some of major Functions of IIBI are:
 Providing financial assistance in the form of short, medium, and long-term loans, demand loans,
working capital facilities, equity participation, assets credit, equipment finance.
 Investing in capital market instruments like shares, debentures, bonds and also money market
instruments.
 Underwriting and extending guarantees
 Providing leasing and hire purchase finance
 Providing consultancy and merchant banking services.

11. Anubha Rastogi | VSB
 Export Import Bank of India (Exim Bank) was set up in the year 1981 by an Act of Parliament for
the purpose of financing, facilitating and promoting Foreign Trade in India.
 The Bank's Operations can be broadly classified as:
 Providing Export Credits,
 Creating Export Capability,
 Export Services, and
 Research & Development
 Functions includes
 Corporate Banking Group which handles a variety of financing programmes for Export Oriented
Units (EOUs), Importers, and overseas investment by Indian companies.
 Project Finance / Trade Finance Group handles the entire range of export credit services.
 Small and Medium Enterprise: EXIM Bank India handles credit proposals from SMEs under various
lending programmes of the Bank.
 Export Services Group offers variety of advisory and value-added information services aimed at
investment promotion.
 Export Marketing Services Bank offers assistance to Indian companies, to enable them establish
their products in overseas markets.
 Besides these, the Support Services groups, which include: Research & Planning, Treasury and
Accounts, Loan Administration, Internal Audit, Management Information Services, Information
Technology, Legal, Human Resources Management and Corporate Communications.

12. Anubha Rastogi | VSB
 National Bank for Agriculture and Rural Development (NABARD) is an apex development bank
in India having headquarters based in Mumbai (Maharashtra) and other branches are all over the
country.
 It was established on 12 July 1982 by a special act by the parliament
 Main focus was to uplift rural India by increasing the credit flow for elevation of agriculture & rural non
farm sector and completed its 25 years on 12 July 2007.
 OBJECTIVES OF NABARD
 To give financial assistance for increasing the agricultural production
 To supply the long term needs of the rural areas
 To supply loans by way of refinance
 To help small industries ,cottage industries and also artisans
 To achieve overall rural development
 FUNCTIONS OF NABARD
 Credit functions
 Development functions
 Regulatory functions
 Apex institution for rural finance
 Refinance institutions
 Contribution of share capital
 Investment in securities
 Conversion and rescheduling facilities
 Financial help to non –agricultural sector
 Training programs
 Co-ordination of activities

13. Anubha Rastogi | VSB
 ACHIEVEMENT OF NABARD
 Short term assistance
 long term assistance
 Schematic lending
 Assistance to less developed states
 Assistance to non-farm sector
 Rehabilitation programme
 Assistance to research and development projects
 Credit plans under the new strategy
 Integrated rural development programme
 Regional rural banks

14. Anubha Rastogi | VSB
 State Financial Corporation are an Integral part of institutional finance structure in the country.
SFC promotes small and medium industries of the states. 18 SFCs in India.
 Besides, SFCs are helpful in ensuring
 balanced regional development,
 higher investment,
 more employment generation
 and broad ownership of industries.
 SFCs provide financial assistance by way of
 term-loans,
 direct subscription to equity debenture,
 guarantees,
 discounting of bills of exchange
 and special seed capital.
 The SFCs also operate a number of refinance schemes and equity assistance schemes on IDBI
ISIDBI's behalf.
 SFCs also provide assistance to newer types of business like floriculture, tissue culture, poultry
farming, commercial complexes and more.

15. Anubha Rastogi | VSB
 These are 28 SIDCs in India.
 SIDCs are established under the Companies Act, 1956, as wholly owned undertakings of State
Governments for pronation and development of medium and large industries in their respective
States.
 Some of these Corporations are also functioning as SFCs.

16. Anubha Rastogi | VSB
 Banks are the most commonly visible and most frequently used financial institutions by
general public.
 The primary objective of a Bank is to collect funds from the public and to re-deploy them in
a profitable way.
 Banks in India can be broadly divided into two categories:
 Scheduled Banks : those banks, which are listed, in the second schedule of the Reserve Bank of
India Act, 1934. These Scheduled Banks include Commercial Banks, Regional Rural Banks, Urban
Cooperative Banks and State Cooperative Banks.
 Non-Scheduled Banks.

17. Anubha Rastogi | VSB

18. Anubha Rastogi | VSB

19. Anubha Rastogi | VSB

20. Anubha Rastogi | VSB

21. Anubha Rastogi | VSB

22. Anubha Rastogi | VSB

23. Anubha Rastogi | VSB

24. Anubha Rastogi | VSB
 Character of founder and key leaders
 Capital – equity . . . “skin in the game” Venture
 Capacity – cash flow capability to easily make interest and principle payments & awareness
 Conditions – industry trends, seasonality, operational changes, world events, etc.
 Collateral – “hard” assets to pledge Banker
 Common sense – what does your gut tell you?

25. Anubha Rastogi | VSB
 8 Major Sources of Industrial Finance Available in India
1. Internal Self-Finance:
The saving of the unit itself. It may be the household, the business or the government.
An advantage of investment through internally generated funds is that it combines the acts of saving and
investment.
2. Equity, Debentures and Bonds:
A large part of finance for fixed investments [building, machines, etc.] comes from different types of equity
or shares such as ordinary, cumulative and non-cumulative preference shares These are debt (loans),
instruments. The buyers of those debentures and bonds are the creditors of companies. They get a fixed
rate of interest on the money invested in these securities.
3. Public Deposits:
Another source is public deposits. It is also a debt-instrument, mostly for short-term finance. Under this
system, people keep their money as deposit with these companies or managing authorities for a period of
six months, a year, two years, three years or so. Depositors receive a fixed interest.
4. Loans from Banks:
Commercial banks can do also provide funds for meeting short-term needs or for working capital. Loans
are given against the guarantee of government securities and stocks with companies.

26. Anubha Rastogi | VSB
5. The Managing Agency System:
Under this system an individual or a group of individuals finance the initial stage of the
establishment of industries, and manage many activities of the company thus established very
often. In the past when there was a great shortage of industrial finance and almost complete lack
of financial institutions, and capital market in the real sense had not even come into existence,
managing agents were popular.
6. Indigenous Bankers:
Inspite of the establishment of new financial institutions, indigenous bankers also advance financial
help to a few large-scale industries, particularly during the time of stress, both for fixed capital and
working capital. But mainly they have provided finance to small scale industries.
7. Development Finance Institutions:
Established with the help of the Government to fill-in the gap in industrial finance and to promote
the objective of planning, these institutions cater to the needs of large and small industries. DFIs
These institutions provide huge quantity of finances for setting up of new industries, for meeting
their several needs and in several forms. These also ensure and monitor the use of finance in pre-
planned directions. As such these fit well with the modem scenario of industrial development.
8. Foreign Capital:
As a supplement to domestic finance, external capital too has been made use of in meeting the
needs of industrial finance, mostly for long-term needs. This has taken several forms. There is the
foreign aid (i.e., loans on concessional term) from foreign governments and foreign institutions (like
the World Bank) extended to the Government. A part of this assistance has also gone to the private
sector