DEVELOPMENT BANKS

MAMTA HARSITA KULDEEP

LOVELESHHARIKESH

DEVELOPMENT BANKS IN INDIA

WHAT IS DEVELOPMENT BANKSA Development Bank is a polygonal

development finance institution devoted to improving the social and monetary development of its associate nations.

Its main emphasis is the welfare of the people. For example the Asian Development Bank's overarching 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'

FUNCTIONSFinancial Gap Fillers

Undertake Entrepreneurial Role

Joint Finance

Refinance Facility

Credit Guarantee

Underwriting of Securities

Role of development banks in financial system

FUNCTIONS OF A DEVELOPMENT BANK 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.

IFCIThe government of india set up the

industrial finance corporation of india in july 1948

Management of IFCI12 directors4 are nominated by the IDBI

OBJECTIVES OF IFCIPromoted by new enterpreneursBased on indegenous technologyWhich would result in substitution of

importsProviding input for incresing agricultural

products

FUNCTIONS OF IFCI

OPERATIONAL ACTIVITIESConcessional finance to projects in

less development areasConcessional finance for renewable

energy systemsPower of attorney schemeBridging loansSub loans in foreign currencies

IDBIThe 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.

THE PRINCIPAL SOURCE OF FUNDS OF IDBI

Share capital and reservesBorrowing from government of india and

RBIMarket borrowing by way of bondsDeposits and other borrowingsRepayment of past assitance by borrowersForeign currency borrowings from worid

banks Asian 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 ActivitiesDirect AssistanceIndirect AssistanceRefinance SchemesRefinance Scheme for industrial

rehabilitationAutomatic Refinance Scheme Refinance Scheme for modernisationBills Rediscounting Scheme

contd.Soft loan scheme for modernisation

Seed capital assitance scheme

SFCs special share capital schemes

Development assistance fund(DAF)

ICICIICICI (INDUSTRIAL CREDIT AND INVESTMENT

CORPORATION OF INDIA) Bank Ltd. ICICI is an Indian diversified financial services company

headquartered in Mumbai, Maharashtra. It 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.

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.

OBJECTIVES OF ICICI

Assisting in the creationExpansionModernisation of such enterprisesEncouraging and promoting the

participation private capitalEncouraging and promoting private

ownership

FUNCTIONS OF ICICI

Assistance to industriesProvision of foreign currency loansMerchant bankingLetter of creditProject promotionHousing loansLeasing operations

SIDBIEstablished in 1990 under an Act of Indian

Parliament.Objective: Promotion, Financing & Development

of MSMEs and Co-ordinating 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 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, otherState & central financing/ development agencies.• Micro Credit operations : Pioneers in micro credit movement in thecountry. 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 likeTUFS, CLCSS and IDLSSFood Processing and Devp. Of Integrated InfrastructureDevelopment (IID) Projects.

OPERATIONAL ACTIVITIES

Promotional activitiesEnterprise promotionHuman resource developmentTechnology upgradationEnvironmental and quality management

Information disseminationMarket 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.

It 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

OBJECTIVES OF NABARD

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 refinance4.To help small industries ,cottage

industries and also artisans5.To achieve overall rural development

FUNCTIONS OF NABARDCredit functionsDevelopment functionsRegulatory functionsApex institution for rural financeRefinance institutionsContribution of share capitalInvestment in securitiesConversion and rescheduling facilitiesFinancial help to non –agricultural sectorTraining programsCo-ordination of actvities

ACHIEVEMENT OF NABARDShort term assistancelong term assistanceSchematic lendingAssistance to less developed statesAssistance to non-farm sectorRehabilitation programmeAssistance to research and development

projectsCredit plans under the new strategyIntegrated rural development programmeRegional rural banks

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