DEVELOPMENT BANKS

SUBMITTED TO: SUBMITTED BY:

Dr. Dinesh Kumar Ankush Kumar
Roll No : 3696
Sec – A
DEVELOPMENTBANKSIN INDIA
WHAT IS DEVELOPMENT
BANKS
 A Development Bank is a polygonal development
finance institution devoted to improving the social
and monetary development of its associate nations.
 I t s main emphasis is the welfare of the people. For
example the Asian Development Bank'soverarching
goal is to decrease poverty in Asia and the Pacific.
 It helps improve the value of people's lives by
providing loans and scientific support for a broad
variety of development activities.
 OBJECTIVES

Lay Foundations for Industrialization

Meet Capital Needs

Need for Promotional Activities

Help Small and Medium Sectors'

FUNCTIONS
 Financial Gap Fillers

 Undertake Entrepreneurial R ole

 Joint Finance

 Refinance Facility

 Credit Guarantee

 Underwriting of Securities
Role of development banks
in financial system
FUNCTIONS OFA
DEVELOPMENTBANK
 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.
 IFCI
 T h e government of india set up the industrial
finance corporation of india in july 1948
 M a n ag emen t of IFCI
 1 2 directors
 4 are nominated by the IDBI
 OBJECTIVESOFIFCI
 P r o m o t e d by new enterpreneurs
 B a s e d on indegenous technology
 W h i c h would result in substitution of imports
 Providing input for incresing agricultural
products
FUNCTIONS OFIFCI
 OPERATIONALACTIVITIES
 Concessional finance to projects in less
development areas
 Concessional finance for renewable energy
systems
 P o w e r of attorney scheme
 Bridging loans
 S u b loans in foreign currencies
IDBI
 T h e Industrial Development Bank of India (IDBI) was
established on 1July 1964 under an Act of Parliament
as a wholly owned subsidiary of the Reserve Bank of
India.
 I n 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.
THEPRINCIPAL SOURCEOFFUNDS
OFIDBI
 S h a r e capital and reserves
 Borrowing from government of india and
RBI
 M a r k e t borrowing by way of bonds
 Deposits and other borrowings
 Repayment of past assitance by borrowers
 Fo r e ig n currency borrowings from worid
banks
 A s i a n development banks and international
markets
OBJECTIVES and FUNCTIONS

 Planning,promoting,developing industries
• Co-ordinating the working in institutions
engaged in financing
• Undertaking market and investment
research
• Providing technical and administrative
assitance
• Subsidiaries
 Operational Activities
 D i r e c t Assistance
 I n d i r e c t Assistance
 Refinance Schemes
 Refinance Scheme for industrial
rehabilitation
 Automatic Refinance Scheme
 Refinance Scheme for
modernisation
 Bills Rediscounting Scheme
contd.
 S o f t loan scheme for modernisation

 S e e d capital assitance scheme

 S F C s special share capital schemes

 Development assistance fund(DAF)

 ICICI
 I C I C I (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) Bank Ltd.
 I C I C I is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra.
 I t is the second largest bank in India by assets and third
largest by market capitalization. It offers a wide range of
banking products and financial services to corporate and
retail customers through a variety of delivery channels and
through its specialized subsidiaries in the areas of investment
banking, life and non-life insurance, venture capital and asset
management.
 T h e Bank has a network of 2,630 branches and 8,003 ATM's in
India, and has a presence in 19 countries, including India.
OBJECTIVESOFICICI
 Assisting in the creation
 Expansion
 Modernisation of such enterprises
 Encouraging and promoting the
participation private capital
 Encouraging and promoting
private ownership
FUNCTIONS OFICICI
 Assistance to industries
 Provision of foreign currency loans
 M e r c h a n t banking
 L e t t e r of credit
 P r o j e c t promotion
 H o u s i n g loans
 Leasing operations
 SIDBI
 Established in 1990 under an Act of Indian
Parliament.
 Objective: Promotion, Financing & Development of
MSMEs and Co-ordinating Functions of institutions
engaged in similar activities.
 O w n e r s h i p : Public sector banks/FIs/Insurance Cos
owned or controlled by the Government of India.
 Structural Linkage: With Ministry of Finance and
Ministry of SSI.
 N o d a l Agency : For SME Schemes of GoI
OBJECTIVES
 SIDBI : Sphere of activities
•Direct Finance Operations : MSMEs, Service sector,
Infrastructure etc.
•Indirect Finance : Resource support to Banks, NBFCs, SFCs,
other
State & central financing/ development agencies.
•Micro Credit operations : Pioneers in micro credit movement
in the
country. Developed several leading MFIs.
•Associate Institutions ISTSL & Credit Guarantee Fund,
India SME Asset: SIDBI Venture Capital Ltd,
MSME Rating Agency,

Reconstruction Company Ltd.

•Nodal Agency : For several GoI schemes like
TUFS, CLCSS and IDLSS
Food Processing and Devp. Of Integrated Infrastructure
OPERATIONALACTIVITIES
 Promotional activities
 Enterprise promotion
 H u m a n resource development
 Technology upgradation
 Environmental and quality
management
 Information dissemination
 M a r k e t promotion
 NABARD
 National Bank for Agriculture and Rural
Development (NABARD) is an apex development bank
in India having headquarters based
inMumbai (Maharashtra) and other branches are all over
the country.
 I t was established on 12 July 1982 by a special act by the
parliament and its 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.
 It has been accredited with "matters concerning policy,
planning and operations in the field of credit
for agriculture and other economic activities in rural areas
in India".
 RBI sold its stake in NABARD to the Government of
India, which now holds 99% stake
OBJECTIVESOFNABARD
1. To give financial assistance for increasing
the agricultural production
2.To supply the long term needs of the rural
areas
3.To supply loans by way of refinance
4. To help small industries ,cottage industries
and also artisans
5.To achieve overall rural development
 FUNCTIONS OFNABARD
 C r e d i t functions
 Development functions
 Regulatory functions
 A p e x institution for rural finance
 Refinance institutions
 Contribution of share capital
 In v estmen t in securities
 Conversion and rescheduling facilities
 Financial help to non –agricultural sector
 Train in g programs
 Co-ordination of actvities
ACHIEVEMENT OFNABARD
 S h o r t term assistance
 l o n g term assistance
 Schematic lending
 Assistance to less developed states
 Assistance to non-farm sector
 Rehabilitation programme
 Assistance to research and development
projects
 C r e d i t plans under the new strategy
 In teg rated rural development programme
 Regional rural banks
THANK YOU