Development Banks in Indian Financial Sector

DECLARATION
I Neha Agarwal. Student LAL BAHADYR SHASTRI INSTITUTE OF MANAGEMENT OF TECHNOLOGY of semester 4th hereby declare that I have completed this project report on Development banks in Indian Financial Sector. In the academic year 20010-2012. The information submitted is True and original to the best of my knowledge.
(Coordinator)
Development Banks In Indian Financial Sector
DEVELOPMENT BANKS
ACKNOWLEDGEMENT
On the event of the completion of this project, I take the opportunity to express my deep sense of gratitude toward all those people without whose guidance, inspiration and timely help this project would have never seen the light of day. Any accomplishment requires the efforts of many people and this project is no different. I find great pleasure in expressing my project guide professor, whose guidance and inspiration right from the conceptualization to the finishing stage proved to be very essential and valuable in the completion of the project ..This played a key role in the project. Lastly, I would like to thank all my classmates and friends for their valuable suggestions and guidance for the project work.
ROLE OF DEVELOPMENT BANKS IN INDIAN FINANCIAL SECTOR
TABLE OF CONTENTS
Introduction To Topic Objectives of Study Research Methodology Introduction To Development Banks Objectives of Development Banks Banks Under Study IDBI IFCI SIDBI Data Analysis Suggestions Conclusion Limitation Bibliography
INTRODUCTION TO TOPIC
TO INDIAN FINANCIAL SYSTEM HISTORY OF DEVELOPMENT BANKS INDIAN FINANCIAL SYSTEM:
Indian financial system is one of the world largest financial systems. Indian economy is world 4th biggest economy but this Indian financial system has under gone through various changes or we can say that it has different stages since its inception. Basically Indian financial system can be divided into 3 categories: Before independence Pre- 1991 era Post-1991 era
BEFORE INDEPENDENCE:
In British rule India first time seen the organized financial system, although all that was meant for British but that provided us the layout for future course of action i.e. to build our own financial system. At that time banks and other financial institutions were at their infantry stage but the given a base to build the whole system on them. That time can be considered as the preliminary stage of Indian financial system and at that time there were no development banks as the motive of colonial rule was to draw the wealth not to make country developing.
PRE 1991 ERA:
This era has seen the gradual rise in the economy of India. After independence banks and other financial institutions to provide funds were established and development banks were also a part of them which were established specially to provide financial aid to industrial sector and to promote entrepreneurship in India. The financial system in this era was based on socialistic pattern of society and the economy was of mixed type but basically it was public sector based economy. The motive was to promote every sector of society to uplift and earn for him self. Indian financial system continued with this pattern for about 40 years but in true sense the economic growth never boosted up as there was so many hindrances and lacks in system itself which taken country in such a crisis that it has to borrow funds by pledging its gold that was called the crisis of 1991.
POST 1991 ERA:

To come out the crisis, India has to adopt the new policy regarding the financial system to speed up the growth and to raise the economy and in order to perform that a new policy of LIBERALIZATION-PRIVATIZATION- GLOBALIZATION i.e. LPG was adopted. The basic motive was to reduce the government control over the economy and to let it flourish itself. Indian financial system is currently working on this policy and now the economic growth rate has also risen. Now the development banks are working in accordance with the industry in order to satisfy their need of funds and to provide every possible help required. Although the growth is still slow in comparison with other countries but soon India will become the strongest economy of world.
HISTORY OF DEVELOPMENT BANKS

The concept of development banking rose only after Second World War , Successive of the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up a worldwide institution for reconstructions. As a result the IBRD was set up in 1945 as a worldwide institution for development and reconstruction. This concept has been widened all over the world and resulted in setting up of large number of banks around the world which coordinating the developmental activities of different nations with different objectives among the world. The course of development of financial institutions and markets during the postIndependence period was largely guided by the process of planned development pursued in India with emphasis on mobilization of savings and channelizing investment to meet Plan priorities. At the time of Independence in 1947, India had a fairly well-developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectorial credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short-term working capital requirements of industry and agriculture. Specialized development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture. To facilitate the growth of these institutions, a mechanism to provide concessional finance to these institutions was also put in place by the Reserve Bank. Development Banks In Indian Financial Sector 10
The first development bank In India incorporated immediately after independence in 1948 under the Industrial Finance Corporation Act as a statutory corporation to pioneer institutional credit to medium and large-scale. Then after in regular intervals the government started new and different development financial institutions to attain the different objectives and helpful to five-year plans. The early history of Indian banking and finance was marked by strong governmental regulation and control. The roots of the national system were in the State Bank of India Act of 1955, which nationalized the former Imperial Bank of India and its seven associate banks. In the early days, this national system operated along side of a large private banking system. Banks were limited in their operational flexibility by the governments desire to maintain employment in the banking system and were often drawn into troublesome loans in order to further the governments social goals. The financial institutions in India were set up under the strong control of both central and state Governments, and the Government utilized these institutions for the achievements in planning and development of the nation as a whole. The all India financial institutions can be classified under four heads according to their economic importance that are:

All-India Development Banks Specialized Financial Institutions Investment Institutions State-level institutions Other institutions
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OBJECTIVES OF STUDY
To find out the role of development banks in Indian financial system To study the various development banks operating in India To give glance at the working of development banks To check the contribution of development banks in economic growth To check the individual contribution of each development bank To give check the current stature of Indian financial system To make a comparative study among various development banks To find out the weaknesses in financial system regarding with development banks
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RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. Why a research study has been undertaken, how a research problem has been defined, in what way and why the hypothesis has been formulated, what data have been collected and what particular method has been adopted, why particular technique of analyzing data has been used and a host of similar other questions are usually answered when we talk of research methodology concerning a research problem or study.
RESEARCH DESIGN:
Research Design is needed because it facilitates the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximum information with minimal expenditure of effort, time and money. I have adopted descriptive and conclusive research design. Descriptive research is those studies, which are concerned with describing the characteristics of a particular individual or a group. Since the aim is to obtain the accurate information about the development banks in terms of their role in Indian financial system, I have studied the various data available in books, journals, magazines and on internet.
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DATA SOURCES:
The researcher can gather primary data, secondary data or both. Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data specially gathered for a specific purpose or for a specific research project. Since the study is based on already existing facts and figures, so all the sources of data are secondary
SECONDARY DATA
The main source of information for the study was Weakly magazines RBI bulletin Information available in form of articles Information available on internet
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INTRODUCTION TO DEVELOPMENT BANKS

DEVELOPMENT banks in India have had a chequered and not always a happy history. Some have managed to come back from the brink by taking to universal banking, or merging with a normal bank. In general, it may be said that development banking has lost its charm. So much so that when an official was shifted from the none-too-healthy Indian Bank to NABARD, a banking veteran said that she deserved not congratulations but commiseration. From the time of Independence, political interference in the functioning of banks has been both overt and covert. For instance, loan Melas made many banks sick. Even now, many villagers think that a loan from a government bank is a gift; it need not be repaid. In spite of such impressive sounding institutions as Debt Recovery Tribunals, it is still difficult for banks to recover in full the amounts due; more often than not, banks have no option but write-off most of the dues. Periodic concessions to borrowers ordered by the Reserve Bank of India have made debt recovery quite difficult. Though development banks did not have to suffer from loan Melas, they too were subject to political pressure to fund projects of dubious value. For long years, there was no culture of financial closure; many projects started more with hope and hype than with calculated design, and with no clear idea of where the funds would be found to complete them. Even if the project had been well conceived, administrative delays made many projects unviable. During the License Raj, getting a manufacturing license was an end in itself. Licenses were obtained or bought merely because they were there and not because they made economic sense. It was also possible to control a company by investing no more than a small fraction of the total cost. It was not uncommon in those days for not-so-scrupulous-businessmen to recover their entire Development Banks In Indian Financial Sector 15
investment by extracting commissions. There was no competition to enforce efficiency. Under such circumstances, the surprise is not that development banks performed badly but that they survived at all. Notwithstanding these handicaps, development banks made the situation worse by a faulty appreciation of their role. Normally, bankers are cautious. They lend only to the wealthy who can offer safe and substantial collateral. Bankers are not ambitious: they are content charging a fixed interest even if the borrower makes a killing and multiples the investment several times. They also accept as normal the erosion of asset value by inflation. Development banking is different: Loans are made not to those who have accumulated wealth in the past but to those who show promise to become wealthy in the future. Normal banking looks for safety in assets accumulated from the past; in development banking, possible accumulation of assets in the future is the true collateral. Thus, while in normal banking, the collateral is real and tangible, in development banking, the collateral is a dream; it is intangible. In normal banking, an interest default of more than 90 days becomes a nonperforming asset. In the case of development, growth is rarely smooth; development happens in fits and starts; cash flows are subject to wild fluctuations and become negative at times. Hence, development banks need to have a longer perspective than three months; they should show patience for years. Normal banks can afford to be myopic; development banks should take the long view. For development banks, it is the trend line and not the current surplus that is important. As one development banker blithely explained: "When I see any risk, I take my money and run away." But that is not development banking; development banks take risks that ordinary banks will not.
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As a token of their support for progress, development banks offer an interest holiday for the gestation period, and then charge a suitably adjusted flat rate of interest. That does help new enterprises a little, but only a little. Interest holiday is too crude a device to help new enterprises that, being babies, suffer from unexpected (and periodic) teething problems. There is some truth in the well-worn clich that bankers lend when the borrower does not need any money, and foreclose when the borrower is in distress. Development bankers should be different; they should lend a helping hand in moments of distress, and make up for the risk they take by extracting larger returns when the borrower recovers. For that reason, development banks should not operate on a fixed rate of interest. They should evolve a mechanism which depends on the health of the borrower. One possibility is to take a share of the profits. However, that is highly risky. Profit-related investment is best left to venture capitalists. In risk taking, development banks fall midway between safety-conscious traditional banks and the daredevil venture capitalists. In seeking returns, they need to follow a via media neither be inflexible with a fixed rate of interest, nor be volatile and bet on equity. These two costs are linked to inflation and to national economic growth too. Hence, however low the charge on these two items, it will, in due course, overtake whatever fixed rate of interest one may consider as an alternative. In initial years, the returns from such a charge will be low; even nil. In course of time, whatever sacrifice is made in the teething (or difficult) years will always be made good unless the firm is incurable.
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In other words, development banks should think differently, and should have a long time horizon. They should acquire the expertise to assess the optimum waiting period and fix the rate of charge on wage costs and rents paid accordingly. Incidentally, this kind of charge is not only transparent; it will also make firms cost-conscious. That is an added benefit, additional safety. If development banks charge variable returns, they will need a complementary deposit regime. Pensioners like to have constant real returns that are protected against erosion by inflation. Hence, they need returns that rise with time. Thus, development banks would do well to devise a Pension Fund with inflation-linked returns. Then, they will have a matched programmed for assets and liabilities. Traditional banking is lending to the real estate developer at a fixed rate of interest. Venture funding is taking a share in his profits, but development banking is the policy of placing a charge on the rents collected. That is not normal and requires a change in the mindset, a new vision, which could give development banks a new life.
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Definition of a development bank: Development banks are .the institutions engaged in the promotion and development of industry, agriculture and other key sectors. "A development bank is like a living organism that reacts to the social-economic environment and its success depends on reacting most aptly to that environment". These banks should react to the socio-economic needs. They should satisfy the developmental needs of the economy and their success is linked to the satisfactory growth of the economy. A development bank has the opportunity to promote enterprises i.e. to conceive investment proposals and to stimulate others to pursue or' itself to carry them through, from 'conception' to 'realization'. In principle, a development bank is well suited to assume this kind of role. Yet, enterprise creation is fraught with costs and risks which development bank cannot neglect. Development banks can prudently undertake them only when they have the requisite financial strength, technical expertise and the managerial skill to bank. ", In his views, a development bank is an institution which takes up the job of developing industrial enterprises from its inception to completion. This process involves costs as well as risks. The bank should have sufficient financial sources and expertise to promote a new unit. "A development bank may be defined as a financial institution concerned with providing all types of financial assistance (medium as well as long-term) to business units. I the form of loans, underwriting, investment and guarantee operations and development in general and industrial The role of a development bank has been emphasized in this definition. In this view a development bank aims to provide financial and promotional facilities for the overall development of a country.
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Features of a development bank. A development bank has the following features or characteristics: It is a specialized financial institution which provides medium term and long-term lending facilities. Development banks primarily aim to accelerate the rate of growth. It helps industrialization specific and economic development in general The objective of these banks is to serve public interest rather than earning profits. Development banks react to the socio-economic needs of development. It is a multipurpose financial institution. Besides providing financial help it undertakes promotional activities also. It helps an enterprises from planning to operational level. It provides financial assistance to both private as well as public sector institutions. The role of a development bank is of gap filler. When assistance from other sources is not sufficient then this channel helps. It does not compete with normal channels of finance. A development bank does not accept deposits from the public like commercial banks and other financial institutions who entirely depend upon saving mobilization.
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GROWTH OF DEVELOPMENT BANKS Development banks attracted great attention after World War II but there one insurances or such institutions even much earlier, First development bank was found in Belgium in 1822. The purpose of financing and promoting industry. It was a joint stock bank which nursed funds through the sale of shares and bonds in order to finance; commercial and industrial enterprises. This new technique of banking got impetus only in 1852 when 'Credit Mobilize of France' was set up. It mobilized resources through the sale of bonds and promissory notes and made long-term investments particularly in public utility undertakings, railways, insurance companies and banks. It set a model for similar investment banks established in Germany, Austria, Belgium, Netherlands, Italy, Spain and Switzerland. Throughout the 19th century, the Credit Mobilize provided a great appeal to all countries which wanted to develop industries on a fast pace. In 1902, Industrial Bank of Japan was established for the purpose of financing her industrial development. This bank undertook functions of an issue, a Commercial Bank and mortgage institutions. Though the bank was helpful in Financing industrialization but it could not strictly be called a development bank. World War I, European countries developed specialized institutions to provide industrial finance for reconstruction, modernization and development of war regard industries. These banks were mainly mortgage banks which extended long-term loans to industrial undertakings upon first mortgage of industrial property. Among the important institutions were Bank of Finland Ltd., National Hungarian Industrial Mortgage Institute Ltd., and National Economic Bank of Poland. These banks were helpful in reviving the war shattered economies of these countries. In the second phase of development banking a need for financing small scale sector was recognized. The institutes created after great depression carried out the functions of capital under writing and direct
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subscription along with lending activities. The Industrial credit Company of Ireland and Netherlands, company for Industrial Financing participated in share capital of industrial undertakings in addition to granting term loans. In the next phase of development banking after World War II there was a trend to combine montage lending with underwriting and equity participation. Some institutions developed during this period were Industrial Development Bank of Canada (1944), France Corporation for Industry Ltd. and industrial and Commercial Finance Corporation Ltd., England (1945), Industrial Finance Department of Common wealth Bank of Australia (1945). These institutions not only provided term loans to industry but also participated in the share capital of companies. The institutions in England even have the option to convert their loans into preference or equity shares. Though English and Canadian institutions could at best be described as finance corporations but that of Australia could be called a development bank because it could assist in the establishment and development of industrial undertakings. Despite the differences in the organization, Scope and methods of various institutions the main thrust of all of them was to access, those enterprises where sufficient help was not forthcoming from traditional sources. They acted essentially as gap fillers in peculiar circumstances of the pest-war years. In the last 50 years developing countries have promoted many development thanks. These banks have been developed with special purpose in mind. They differ in ownership, organization, scope etc. Some' are exclusively owned by government (Industrial Development Bank of Nepal, 1959, National Development Bank of Brazil, 1965) others by private interests (Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of Thailand, etc.) Some other Banks (Summer Bank of Turkey) are meant to promote and finance government ' undertakings only, some exclusively for private enterprises while some for both. Some banks can only lend while some can lend and take equities besides
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underwriting. Some are concerned with entire economy while some are for specific sectors only. Some banks are regional, some are national while a few are inter-regional (Asian Development Bank) or international such as World Bank, International Finance Corporation, International Development Association etc. Some banks provide only local currency while some deal in both local and foreign currencies, etc.
OBJECTIVES OF DEVELOPMENT BANKS

Every country felt the need to accelerate the rate of development in post world war era. There was a need to set up such institutions which would take up promotional activities besides financing. In this background developmental banks were needed for the following reasons: 2. Fulfill capital Needs 1'nere was a dearth of capital needed to foster industrial growth in underdeveloped countries. Owing to the low level of income of the people there were no sufficient surpluses for capitalization. There was a need for institutions which could meet this gap between demand and supply for capital. 3. Need for Promotional Activities Besides capital needs, underdeveloped countries suffered from lack of expertise, managerial and technical know-how. Developmental banks could take up the job of and joint sectors and provide managerial and resources and skills and of channeling them into approved fields under private auspices are needed in these countries.
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3. Lay Foundations for Industrialization A number of countries got independence from colonial rule. Their economies needed to be rehabilitated. Other underdeveloped and developing countries too needed to accelerate the pace of industrialization. To lay a solid foundation for growth, establishment of certain key industries such as cement, engineering, machine making, chemicals, etc. is essential. Private entrepreneurs were not forthcoming to invest in these vital' areas due to risk involved and long gestation period in those industries. The governments of under developed countries set up development and institutions to fill the vacuum.
4. Help Small and Medium Sectors' The large scale was, to some extent, able to meet its needs. There was a need to mitigate sufferings of small and medium size industries which form a sizeable sector of the industrial economy. Despite the important role played by these sectors they experience scarcity of capital owing to the apathy of investors to invest their savings because of their credit worthiness and profitability. There was a need for special institutions to help these sectors in playing vital role in the industrialization of developing and under developed countries.
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FUNCTIONS OF DEVELOPMENT BANKS

Development banks have been started with the motive of increasing the pace of industrialization. The traditional financial institutions could not take up this challenge because of their limitations. In order to help all round industrialization development banks were made multipurpose institutions. Besides financing they were assigned promotional work also. Some important functions of these institutions are discussed as follows: 1. Financial Gap Fillers Development banks do not provide medium-term and long-term loans only but they help industrial enterprises in many other ways too. These banks subscribe to the bonds and debentures of the companies, underwrite to their shares and debentures and, guarantee the loans raised from foreign and domestic sources. They also help 'undertakings to acquire machinery from with in and outside the country. 2. Undertake Entrepreneurial Role Developing countries lack entrepreneurs who can take up the job of setting up new projects. It may be due to lack of expertise and managerial ability. Development banks were assigned the job of entrepreneurial gap filling. They undertake the task of discovering investment projects, promotion of industrial enterprises, provide technical and managerial assistance, undertaking economic and technical research, conducting surveys, feasibility studies etc. The promotional role of development bank is very significant for increasing the pace of industrialization.
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3. Commercial Banking Business Development banks normally provide medium and long-term funds to industrial enterprises. The working capital needs of the units are met by commercial banks. In developing countries, commercial banks have not been able to take up this job properly. Their traditional approach in dealing with lending proposals and assistance on securities has not helped the industry. Development banks extend financial assistance for meeting working capital needs to their loan if they fail to arrange such funds from other sources. So far as taking up of other functions of banks such as accepting of deposits, opening letters of credit, discounting of bills, etc. there is no uniform practice in development banks. 4. Joint Finance Another feature of development bank's operations is to take up joint financing along with other financial institutions. There may be constraints of financial resources and legal problems (prescribing maximum limits of lending) which may force banks to associate with other institutions for taking up the financing of some projects jointly. It may also not be possible to meet all the requirements of a concern by one institution, So more than one institution may join hands. Not only in large projects but also in medium-size projects it may be desirable for a concern to have, for instance, the requirements of a foreign loan in a particular currency, met by one institution and under writing of securities met by another.
5. Refinance Facility Development banks also extend refinance facility to the lending institutions. In this scheme there is no direct lending to the enterprise. The lending institutions
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are provided funds by development banks against loans extended' to industrial concerns. In this way the institutions which provide funds to units are refinanced by development banks. In India, Industrial Development Bank of India provides reliance against ('term loans granted to industrial 'concerns by state financial corporations. commercial banks and state co-operative banks. 6. Credit Guarantee The small scale sector is not getting proper financial facilities due to the clement of risk since these units do not have sufficient securities to offer for loans, lending institutions are hesitant to extend them loans. To overcome this difficulty many countries including India and Japan have devised credit guarantee scheme and credit insurance scheme. In India, credit guarantee scheme was introduced in 1960 with the object of enlarging the supply of institutional credit to small industrial units by granting a degree of protection to lending institutions against possible losses in respect of such advances. In Japan besides credit guarantee, insurance is also provided. These schemes help small scale concerns to avail loan facilities without hesitation. 7. Underwriting of Securities Development banks acquire securities of industrial units through either direct subscribing or underwriting or both. The securities may also be acquired through promotion work or by converting loans into equity shares or preference shares. So development banks may build portfolios of industrial stocks and bonds. These banks do not hold these securities on a permanent basis. They try to disinvest in these securities in a systematic way which should not influence market prices of these securities and also should not lose managerial control of the units.
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Development banks have become world wide phenomena. Their functions depend upon the requirements of the economy and the state of development of the country. They have become well recognized segments of financial market. They are playing an important role in the promotion of industries in developing and underdeveloped countries.
LENDING
PROCEDURES
OF
DEVELOPMENT
BANKS
(OPERATIONAL ACTIVITIES)
Development banks follow a procedure for evaluating a proposal for a project. The basic objective is to check whether the applicant fulfils various conditions prescribed by the lending institution and the project is viable. The acceptance of a wrong proposal will result in the wastage of scarce resources. These banks adopt the following procedure for lending:
1. Project Appraisal and Eligibility of Applicant Every financial institution serves a particular area of activity or there are certain limits prescribed beyond which they cannot go. Before processing the application, it is important to find out whether the applicant is eligible under the norms of the institution or not. The second aspect which is looked into is to determine whether the enterprise has fulfilled various conditions prescribed by the government. In case some license is required from the government. It should have been taken or an assurance is received from the licensing authority. After satisfying these preliminary issues the project is appraised by a team of technical financial and economic officers of the institutions from various discussions with the promoters and clarifications sought on various points. The bank institution considers financial assistance in the light of Development Banks In Indian Financial Sector 28
(I) Guidelines for assistance to industries issued by the government or others concerned from time to time (ii) Guidelines issued by the bank (iii) Policy decisions of the Board of Directors of the bank. 2. Technical Appraisal A technical appraisal involves the study of: 1) Feasibility and suitability of technical process in Indian conditions. 2) Location, of the project in relation to the availability of raw materials, power: water. labour, fuel, transport, communication facilities and market for finished products. 3) The scale of operations and its suitability for the planned project. 4) The technical soundness of the projects. 5) Sources of purchasing plant and machinery and the reputation of suppliers. etc. 6) Arrangement for the disposal of factory affluent and use of bye products, if any. 7) The estimated cost of the project and probable selling price of the product. 8) The programmer for completing the project. 3. Economic Viability The economic appraisal will consider the national and industrial priorities of the project export potential of the product employment potential, study of market. 4. Assessing Commercial Aspects
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The examination of commercial aspects relates to the arrangements for the purchase of raw materials and sale of finished products. If the concern has some arrangement for sale then the position of the party should be assessed. 5. Financial Feasibility The financial feasibility of a new and an existing concern will be assessed differently. The assessment for a new concern will involve: 1) The needs for fixed assets, working capital and preliminary expenses will be estimated to find out its needs. 2) The financing plans will be studied in relation to capital structure, promoters' contribution, debt-equity ratio. 3) Projected cash flow statements both during the construction and .operation periods 4) Projected profitability and the like dividend in near future. If a project is already in operation and is undertaking expansion or diversification, the financial feasibility will be different. The analysis of existing capital structure, contribution of owners, debt-equity ratio, past financial performance results shown by profit and loss accounts and balance sheets, the sources of raising funds, likely needs .of the concern, future debt-equity ratio (after extending financial help), debt service coverage, internal rate .of return, in the financial position of the concern and viability for 6. Managerial Competence The success .of a concern depends up on the competence of management. Proper application of various policies will determine the Success of an enterprise.
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A lending institution would see the background, qualifications, business experience of promoters and other persons associated with management. 7. National Contribution Besides commercial profitability, national contribution .of the project is also taken into account. The role of the project in the national economy and its benefits to the society in the form of good quality products, reasonable prices, employment generation, helpful in social infrastructure etc. should be assessed. Development banks aim at the over all welfare of the society. 8. Balancing of Various Factors Various factors should be balanced against each other. The circumstances .of the individual project will help in weighing various factors. Some factors may be strong as their in-depth analysis should be avoided. In case a project is profitable, there will be no need to assess cash flow. Weaknesses located in certain areas may be .off set by the good points in the .other. An experienced management and sound economic outlook may compensate some weakness in financial positions. The responsibility of lending bank lies in balancing judiciously different considerations for arriving at a consensus. 9. Loan Sanction After the appraisal report on the project is prepared by the bank's officers, it is placed before the advisory committee consisting of experts drawn from various fields of the particular industry. If the advisory committee is satisfied tile proposal then it recommends the case to the Managing Director or board of Directors
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along with its own report. When the assistance is sanctioned hen a letter to this effect is issued to the pay giving details of conditions. 10. Loan Disbursement The loan is disbursed after the execution of loan agreement. The execution of documents of security or guarantee etc. should precede the disbursement of loan. In case some property is pledged to the bank then title deeds of such property are properly scrutinized. The fulfillment of various conditions proceeding to disbursement will determine the time of paying the money to the party. 11. Follow up The job of a lending bank does noted by disbursing the assistance. It has first to see whether the construction .of the project is as per schedule decided earlier. In case some delay is taking place in executing the plans then the reasons for it should be determined. Later during operations, the result should be properly followed. It should be seen whether the revenue earned by the concern will be sufficient to meet its obligations or not so a proper follow up by the bank will enable it to follow the progress of the unit.
DEVELOPMENT BANKING IN INDIA

The foreign rulers in India did not take much interest in the industrial development of the country. They were interested to take raw materials to England and bring back finished goods to India. The government did not show Development Banks In Indian Financial Sector 32
any interest for securing up institutions needed for industrial financing. The recommendation for setting up industrial financing institutions was made in 1931 by Central Banking Enquiry Committee but no concrete steps were taken. In 1949, Reserve Bank had undertaken a detailed study to find out the need for specialized institutions. It was in 1948 that the first development bank i.e. Industrial Finance Corporation of India (IFCI) was established. IFCI was assigned the role of a gap-filler which implied that it was not expected to compete with the existing channels of industrial finance. It was expected to provide medium and long-term credit to industrial concerns only when they could not raise sufficient finances by raising capital or normal banking accommodation. In view of the vast size of the country and needs of the economy it was decided 10 set up regional development banks to cater to the needs of the small and medium enterprises. In 1951, Parliament passed State Financial Corporation Act. Under this Act state governments could establish financial corporations for their respective regions. At present there are 18 State Financial Corporations (SFC's) in India. The IFCI and state financial corporations served only a limited purpose. There was a need for dynamic institutions which could operate as true development agencies. National Industrial Development Corporation (NIDC) was established in 1954 with the objective of promoting industries which could not serve the ambitious role assigned to it and soon turned to be a financing agency restricting itself to modernization and rehabilitation of and jute textile industries. The Industrial Credit and Investment Corporation of India (ICICI) were established in 1955 as a Joint Stock Company. ICICI was supported by Government of India, World Bank, Common wealth Development Finance Corporation and other, foreign institutions. It provides term loans and takes an active part in the underwriting of and direct investments in the shares of industrial units. Though ICICI was established in private sector but its pattern of
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shareholding and methods of raising funds gives it the characteristic of a public sector financial institution. . Another institution, Refinance Corporation for Industry Ltd. (RCI) was set up in 1958 by Reserve Bank of India, LIC and Commercial Banks. The purpose of RCI was to provide refinance to commercial banks and SFC's against term loans granted by them to industrial concerns in private sector. In 1964, Industrial Development Bank of India (IOBI) was set up as an apex institution in the area of industrial finance, RCI was merged with IDBI. IDBI was a wholly owned subsidiary of RBI and was expected to co-ordinate the activities of the institutions engaged in financing, promoting or developing industry. However, it is no longer a wholly owned subsidiary of the Reserve Bank of India. Recently, it made a public issue of shares to increase its capital. In order to promote industries in the slate another type of institutions, namely, the State Industrial Development Corporations (SIDC's) were established in the sixties to promote medium scale industrial units. The state owned corporations have promoted a number of projects in the joint sector and assisted sector. At present there are 28 SIDC's in the country. The State Small Industries Development Corporations (SSIDC's) were also set up to cater to the needs of industry at state level. These corporations manage industrial estates, supply raw materials, run common service facilities and supply machinery on hire purchase basis. Some states have established their own institutions. A number of other institutions also participate in industrial financing. The Unit Trust of India (UTI) established in 1964, Life Insurance Corporation of India (1956) and General Insurance Corporation of India (GIC) set up in 1973 also finance industrial activities at all India level. Some more units have been set up to provide help in specific areas such as rehabilitation of sick units, export finance, agriculture and rural development. Industrial Reconstruction Corporation of India Ltd. (RCI)' was set up in 1971 for the rehabilitation of sick units. In 1982 the Export-Import Bank of India (Exim
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Bank) was established to provide financial assistance to exporters and importers. In order to meet credit needs of agriculture and rural sector, National' Bank for Agriculture and Rural Development (NABARD) was set up in 1982. It is responsible for short term, medium term and long-term financing of agriculture and allied activities. The institutions such as Film Finance Corporation, Tea Plantation Finance Scheme, Shipping Development Fund, Newspaper Finance Corporation, Handloom Finance Corporation, Housing Development Finance Corporation also provide financial various areas.
PROMOTIONAL ROLE OF DEVELOPMENT BANKS IN INDIA

The pace of development cannot be accelerated by providing financial assistance alone. There are factors which inhibit industrialization of an underdeveloped country. It is essential to make a correct diagnosis of those factors and plan things accordingly. The growth potential of different areas, the availability of natural resources, demand conditions, infrastructure facilities, etc. should be taken into account before deciding the pattern .of industrialization of various places. The task of identification of growth potentialities and preparation of feasibility studies is not an easy task. It requires huge finances and technical expertise which is beyond the competence of entrepreneurs of under-developed countries. It is in this area where development banks can play crucial role. In addition to providing the traditional role of providing financial assistance, development banks in India are undertaking promotional role also. Some of the areas where these banks are participating are: (1) Surveys of Backward Areas Under the Industrial Development Bank of India, development institutions conducted industrial potential surveys in June, 1970 with a view to identify Development Banks In Indian Financial Sector 35
specific project ideas for implementation in those areas. These surveys studied the availability of resources, demand potential and availability of infrastructures facilities. In 1982, Government .of India identified 83 districts in the country where no medium or large scale industrial units existed. IOBI jointly with IFCI and ICICI launched a programme for identifying industrial opportunities and needs for. These project ideas were further screened and developed for arriving at some firm decision about their implementation. IDBI conducted feasibility studies and cleared projects for implementation. (2) Inter-Institutional Groups (IIG's) With a view to provide a forum to the national and state financial institutions, IDBI constituted 23 IIG's in various states and union territories These groups aimed to help accelerate the process of industrial development in a state with particular emphasis on less developed areas, An attempt was also made to evolve suitable strategies for industrial development within the framework of national and state policies and local requirements. IDBI has been constantly reviewing the functioning of these groups so as to evolve suitable measures for malting them effective. (3) Establishing Technical Consultancy Organizations (TCO's), There is a need for technical consultancy at the time of selling up a new unit and at the time of making change like modernization, expansion, diversification, etc. The small and medium scale units cannot pay high fees of consultancy agencies. With a view to help these entrepreneurs, financial institutions set up 17 consultancy organization for providing consultancy at nominal rates. These organizations provide consultancy services to small and medium entrepreneurs, commercial banks, state-level financial institutions and other agencies engaged in industrial promotion and development. The consultancy services covered so
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far include market surveys, preparation of feasibility and project reports, entrepreneur ship development programmes, diagnostic studies and rehabilitation schemes for sick units, services for implementing projects on turnkey basis. TCO's have been giving thrust to modernization small and medium scale sectors also. In this respect they have undertaken in depth studies of specific sub- sectors of small scale industry so as to identify their modernization needs and prepare modernization programmes. (4) Entrepreneurial Development Programmes (EPP's) Industrial development of a country is directly influenced by the quality of entrepreneurs it has produced, with a view to impart requisite training to entrepreneurs. IDBI has been encouraging entrepreneurial development programmes. It has mainly used the agency of TCO's for drawing up and conducting these programmes to cater to the needs of entrepreneurs from small and medium scale sectors. IDBI meets up to 50 per cent of the cost of such programmes and the balance cost is met by state governments or other sponsoring institutions. Development banks have also been trying to strengthen the infrastructure for conducting entrepreneurial development programmes. The main thrust has been to institutionalize entrepreneurship activities, generating, sharpening and sharing knowledge through research documentation and publication, developing a cadre of professionals. A major step in this area was the setting up of Entrepreneurship Development Institute of India, Ahmedabad in 1983. The objective of this institution was to train EPP trainers, providing resource inputs running model development programmes, conducting. (5) Technological Improvements
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Development banks, especially IDBI have been helping small and medium sectors in developing and upgrading of their technology so that they arc able to match the pace of development. These banks also encourage entrepreneurs to adopt sophisticated technology with the help of academic and research institutes and also to encourage entrepreneurship among science and technology graduates. Development banks have done a good job in promoting industrial activities in various parts of the country. The development of backward areas is a gigantic task in India. Private entrepreneurs cannot measure to this task of their own. So development banks are expected to play an important role in this regard. These banks should help in setting up new projects by associating private entrepreneurs so that their management is left to them. After a particular stage of a project the development institutions should transfer the responsibility to private sector and same resource should be used to develop more units. Development banks, in co-operation with private sector, can certainly help in accelerating the pace of industrial development.
ROLE OF DEVELOPMENT BANKS IN FINANCIAL SECTOR

Financial institutions provide means and mechanism of transferring resources from those who have an excess of income over expenditure to those who can make productive use of the same. The commercial banks and investment institutions mobilize savings of people and channel them into productive uses. Financial institutions provide all type of assistant required infrastructural facilities Institutions e p economic persons who can take the development in the following ways. 1. Providing Funds:-
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The underdeveloped countries have low levels of capital formation. Due to low incomes, people are not able to save sufficient funds which are needed for sensing up new units and also for expansion diversification and modernization of existing units. The persons who have the capability of starting a business but does not have requisite help approach to financial institutions for help. These institutions help large number of persons for taking up some industrial activity. The addition of new industrial units and increasing the activities of existing units will certainly help in accelerating the pace of economic development. Financial institutions have large inventible funds which are used for productive purposes 2. Infrastructural Facilities Economic development of a country is linked to the availability of infrastructural facilities. There is a need for roads, water, sewerage, communication facilities, electricity etc. Financial institutions prepare their investment policies by keeping national priorities in miner-The institutions invest in those aim is which can help in increasing the development of the country. Indian industry and agriculture is facing acute shortage of electricity. All India" institutions are giving priority to invest funds in projects generating electricity. These investments will certainly increase the availability of electricity. Small entrepreneurs cannot spare funds for creating infrastructural facilities. To overcome this problem, institutions at state level are developing industrial estates and provide sheds, having all facilities at easy installments. So financial institutions are helping in the creation of all those facilities which are essential for the development of a country 3. Promotional Activities An entrepreneur faces many problems while setting up a new unit. One has to undertake a feasibility report, prepare project report, complete registration formalities, seek approval from various agencies etc. All these things require time, money and energy. Some people are not able to undertake this exercise or
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some do not even take initiative. Financial institutions are the expense and manpower resources for undertaking the exercise of starting a new unit. So these institutions take up this work on behalf of entrepreneurs. Some units may be set up jointly with some financial institutions and in that case the formalities are completed collectively. Some units may not have come up had they not received promotional help from financial institutions. The promotional role of financial institutions is helpful in increasing the development of a country. 4. Development of Backward Areas Some areas remain neglected because facilities needed for setting up new units are not available here. The entrepreneurs set up new units at those places which are already developed. It causes imbalance in economic development of some areas. In order to help the development of backward areas, financial institutions provide special assistance to entrepreneurs for setting up new units in these areas. IDBI, IFCI, ICICI give priority in giving assistance to units set up in backward areas and even charge lower interest rates on lending. Such efforts certainly encourage entrepreneurs to set up new units in backward areas. The industrial units in these areas improve basic amenities and create employment opportunities. These measures will certainly help in increasing the economic development of backward areas. 5. Planned Development Financial institutions help in planned development of the economy. Different institutions earmark their spheres of activities so that every business activity is helped. Some institutions like SIDBI, SFCI's especially help small scale sector while IFCI and SIDC's finance large scale sector or extend loans above a certain limit. Some institutions help different segments like foreign trade, tourism etc. In this way financial institutions devise their roles and help the development in their own way. Financial institutions also follow the development priorities set by
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central and state governments. They give preference to those industrial activities which have been specified in industrial policy statements and in five year plans. Financial institutions help in the overall development of the country 6. Accelerating Industrialization Economic development of a country is linked to the level of industrialization there. The setting up of more industrial units will generate direct and indirect employment, make available goods and services in the country and help in increasing the standard of living. Financial institutions provide requisite financial, managerial, technical help for setting up new units. In some areas private entrepreneurs do not want to risk their funds or gestation period His long but the industries are needed for the development of the area. Financial institutions provide sufficient funds for their development. Since 1947, financial institutions have played a key role in accelerating the pace of industrialization. The country has progressed in almost all areas of economic development. 7. Employment Generation Financial institutions have helped both Direct and indirect employment generation. They have employed many persons to man their offices. Besides office staff, institutions need the services of experts which help them in finalizing lending proposals. These institutions help in creating employment by financing new and existing industrial units. They also help in creating employment opportunities in backward areas by encouraging the setting up of units in those areas, Thus financial institutions have helped in creating new and better job opportunities.
ALL INDIA DEVELPOMENTS BANKS
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In India, various financial institutions were set up after independence only. The Government of India has taken sleeps to set up institutions which assist various sectors of the economy. At present the country has 12 institutions at the national level and 46 at the state level. The All India Financial Institutions comprise six: All-India Development Banks, namely: Industrial Development Bank of India, Industrial Finance Corporation of India Ltd., Industrial Credit and Investment Corporation of India Ltd., Small Industries Development Investment Bank of India, Industrial Reconstruction Bank of India and SCICI Ltd. Specialized institutions comprise of Risk Capital and Technology Finance Corporation Ltd., Technology Development and Information Company of India Ltd. and Tourism Finance Corporation of India Ltd. There are three investment institutions: Life Insurance Corporation of India Ltd., Unit Trust of India and General Insurance Corporation of India. At state level there are 18 State Finance Corporations and 18 state finance corporations and 28 state industry development corporations.
INDUSTRIAL FINANCE CORPORATION OF INDIA (IFCI)
At the same time raw industrial units were to be set up for industrializing the country. Government of India came forward to set up the Industrial Finance Corporation of India (IFCI) in July 1948 under a Special Act. The Industrial Development Banks In Indian Financial Sector 42
Development Bank of India, scheduled banks, insurance companies, investment trusts and co-operative banks are the shareholders of IFCI. The Government of India has guaranteed the repayment of capital and the payment of a minimum annual dividend. Since July I, 1993, the corporation has been converted into a company and it has been given the status of a Ltd. Company with the name Industrial Finance Corporations of India Ltd. IFCI has got itself registered with Companies Act, 1956. Before July I, 1993, general public was not permitted to hold shares of IFCI, only Government of India, RBI, Scheduled Banks, Insurance Companies and Co-operative Societies were holding the shares of IFCI. Management of IFCI The corporation has 13 members Board of Directors, including Chairman. The Chairman is appointed by Government of India after consulting Industrial Development Bank of India. He works on a whole time basis and has tenure of 3 years. Out of the 12 directors, four are nominated by the IDBI, two by scheduled banks, two by co-operative banks and two by other financial institutions like insurance companies, investment trusts, etc. IDBI normally nominates three outside persons as directors who are experts in the fields of industry, labour and economics, the fourth nominee is the Central Manager of IDBI. The Board meets once in a month. It frames policies by keeping in view the interests of industry, commerce and general public. The Board acts as per the instructions received from the government and IDBI. The Central Government reserves the power up to the Board and appoints a new one in its place. The Board is assisted by the Central Committee which consists of the chairman, two directors elected by nominated directors and the Board of directors elected by the elected directors. This committee assists the Board in discharge of its functions. It .can act on all matters under the competence of the Board, So this committee practically transacts the entire business of the corporation. IFCI also
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has Standing Advisory Committees one each for textile, sugar, jute, hotels, engineering and chemical processes and allied industries. The experts in different fields appointed on Advisory Committees. The chairman is the ex-officio member of all Advisory Committees. All applications for assistance are first discussed by Advisory Committees before they go to Central Committees.
Financial Resources of IFCI

The financial resources of the corporation consist of share capital bonds and debentures and borrowings.' a) Share Capital:The IFCI was set up with an authorized capital of Rs. 10crores consisting of 20,000 shares of Rs. 5,000 each. This capital was later on increased at different times and by March, 2003 it was Rs. 1068 crores. The capital was subscribed by Central Government, Reserve Bank of India, scheduled banks, Life Insurance Corporation, investment trusts, co-operative banks are other financial institutions. In 1964, the share capital held by the central government and RBI was transferred to the Industrial Development Bank. The corporation thus became a subsidiary of IDBI. The central government had guaranteed the shares of the corporation both for repayment of the principal and for the payment of a dividend at 2.5 per cent on the original issue and 4 per cent on the additional issues. However, since July I, 1993IFC has been converted into a limited company. b) Bonds and Debentures:-
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The corporation is authorized to issue bonds and debentures to supplement its resources but these should not exceed ten times of paid-up capital and reserve fund. The bonds and debentures stood at a figure of Rs. 57.69 crores 1971 and rose to Rs. 15366.5 crores as on 31st March 2003. The bonds and debentures are also guaranteed by the central government for both payment of interest at such rates as may be fixed at the time the bonds and debentures are issued. c) Borrowings:The corporation is authorized to borrow from government IDBI and financial institutions. Its borrowings from IDBI and Govt. of India were Rs. 975.6 crore on March 31, 2003. Total assets of IFCI as on March 31, 2003 aggregated Rs. 22866 crore including investments of Rs. 3820.3 crore and loans and advances of Rs. 13212.8crore. Priority Criterion for Investment IFCI plans its financing policies as per the priorities set by the government through Industrial Policy Statements. The Industries which are in high priority are given more importance. Following considerations are taken into account while selecting a financial proposal: i. ii. iii. iv. v. vi. vii. Importance of the project for national economy. Employment-oriented and labour-intensive nature of the project. Export potential of the unit, Projects located in backward areas or 'no industry districts. Projects initiated by new or technician entrepreneurs. Projects which will harness indigellously available technology, technical know how and raw materials. Projects which will help rural areas.
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viii. ix.
Projects which help in conserving energy or which manufacture renewable energy systems or devices. Projects to be set up in co-operative sector.
Eligibility for Assistance under Direct Financing Following types of industrial concerns are eligible for direct finance under IFCI Act, amended from time to time: i. ii. Limited companies incorporated in India, in private, public or joint Sector Co-operative societies registered in India, which are engaged or propose to engage in any of the activities related to a. Manufacture, preservation or processing of goods b. Shipping c. Mining d. Hotel industry e. Generation or distribution of electricity or any other form of power f. Transport of passengers or goods. g. Maintenance, repair or servicing of machinery or vehicles. h. Assembling, repairing or packing of articles. i. Development of contiguous area of land as an industrial estate. j. Fishing or providing shore facilities for fishing. k. Providing special or technical knowledge or other services for promotion of industrial growth. l. Research and Development of any process or product in relation to any of the matters aforesaid. Purpose of Direct Assistance: IFCI provides direct financial assistance for the following causes: a. Setting up of new industrial projects.
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b. Expansion of existing units or for diversification into new lines of activity. c. For renovation and modernization of existing units. IFCI does not ordinarily provide funds for working capital purpose as this function is left to commercial banks. It does not allow utilizing its assistance for meeting existing liabilities of the industrial concerns. Similarly, foreign currency loans can be used for purchasing capital goods only and not of raw material.
FUNCTIONS OF IFCI
IFCI is authorized to render financial assistance in one or more of the following forms: i. Granting loans or advances to or subscribing to debentures of industrial concerns repayable within 25 years. Also it can convert part of such loans or debentures into equity share capital at its option. ii. iii. iv. v. vi. Underwriting the issue of industrial securities i.e. shares, stock, bonds, 0r debentures to be disposed off within 7 years. Subscribing directly to the shares and debentures of public limited companies. Guaranteeing of deferred payments for the purchase of capital goods from abroad or within India. Guaranteeing of loans raised by industrial concerns from scheduled balls or state co-operative banks. Acting as an agent of the Central Government or the World Bank in respect of loans sanctioned to the industrial concerns. IFCI provides financial assistance to eligible industrial concerns regardless of their size. However, now-a-days, it entertains applications from those industrial concerns whose project cost is about Rs. 2 crores because upto project cost of Rs. 2 crores various state level institutions (such as Financial Corporations, Development Banks In Indian Financial Sector 47
SIDCs and banks) are expected to meet the financial requirements of viable concerns. While approving a loan application, IFCI gives due consideration to the feasibility of the project, its importance to the nation, development of the backward areas, social and economic viability, etc. The most of the assistance sanctioned by IFCI has gone to industries of national priority such as fertilizers, cement, power generation, paper, industrial machinery etc. The corporation is giving a special consideration to the less developed areas and assistance to them has been stepped up. It has sanctioned nearly 49 per cent of its assistance for projects in backward districts. The corporation has recently been participating in soft loan schemes under which loans on confessional rates are given to units in selected industries. Such assistance is given for modernization, replacement and renovation of plant and equipment. IFCI introduced a scheme for sick units also. The scheme was for the revival of sick units in the tiny and small scale sectors. Another scheme was framed for the self-employment of unemployed young persons. The corporation has diversified not merchant banking also. Financing of leasing and hire purchase companies, hospitals, equipment leasing etc. were the other new activities of the corporation in the last few years. Promotional Activities The IFCI has been playing very important role as a financial institution in providing financial assistance to eligible industrial concerns. However, no less important is its promotional role whereby it has been creating industrial opportunities also. It has been taking up directly as well as indirectly; such steps and activities are regarded necessary for the acceleration of the process of industrialization in the country. The promotional role of IFCI has been to fill the gaps, either in the institutional infrastructure for the promotion and growth of industries, or in the provision of the much needed guidance in project intensification, formulation, implementation and
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operation, etc. to the new tiny, small-scale or medium scale entrepreneurs or in the efforts at improving the productivity of human and material resources. (a) Development of Backward Areas: - The main thrust of all financial institutions has been to remover regional imbalances by promoting industrialization of backward areas. IFCI introduce a scheme of confessional finance for projects set up in backward areas. The backwarddistricts were divided into three categories depending upon the state of development there. All these categories were eligible for concessional finance. Nearly 50 per cent of total lending of IFCI has been to develop backward areas. (b) Promotional Schemes:- IFCI has been operating six promotional schemes with the object of helping entrepreneurs to set up new units, broadening the entrepreneurial base, encouraging the adoption of new technology, tackling 'the problem of sickness and promoting opportunities for self development and . self employment of unemployed persons etc. These schemes are as such: a. Subsidy for Adopting Indigenous Technology:The projects which use indigenously developed technology are entitled to a concession in the form of subsidy covering interest payments due to IFCI during the first three years of operations, extendable to five years. b. Meeting Cost of Market Studies: - The entrepreneurs setting up medium sized industrial projects for the first time can avail 75 per cent of the cost of market survey/study subject to a ceiling of Rs. 15,000 provided it is handled by Technical Consultancy Organization. . c. Meeting Cost of Feasibility Studies: - IFCI provides subsidy for the fees paid for consultancy assignments relating to feasibility, project reports etc. The amount allowable is 80 per cent of the fees Development Banks In Indian Financial Sector 49
of Rs. 7,500 whichever is less. This limit is Rs. 8,500 or 100 per cent of the total fees whichever is less for handicapped or scheduled caste persons. d. Promoting Small Scale and Ancillary Industries: - For the identification of products suitable for ancillary or further processing in small scale sector and preparation of feasibility reports a subsidy of Rs.0.1 million per annum for technical consultancy organization is allowed. e. Revival of Sick Units: - There is a subsidy to the extent of 80 per cent or Rs. 5,000 (whichever is less) for the fees charged by a technical consultancy organization for carrying out a diagnostic study or for the implementation of rehabilitation programme. This facility is allowed to tiny units or units in small scale sector.' f. Self-development and Self employment Scheme: An unemployed person in the age group of 21 to 35 years may be allowed a soft loan for providing margin money for getting a loan from a bank or a financial institution. The soft loan at interest free rate in first year and has confessional interest later on. The amount available under this scheme is 25% of margin money subject to Rs. 5000.
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INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)
Industrial Development Bank of India was set up to accelerate the development of the country. A number of financial institutions came into existence after independence and were catering to a variety of needs of the industry. There was a lack of co-ordinating different institutions and it led to overlapping and duplication in their efforts: At the same time some gigantic projects of national importance were not getting required financial assistance. It was in response to this need that the Industrial Development Bank of India (IDBI) was established in 1964 as a wholly owned subsidiary of Reserve Bank of India. The bank was to act as an apex institution co-coordinating functions of all the financial institutions into a single integrated movement of development banking and supplementing their resources for industrial financing and as an agency for providing financial support to all worthwhile projects of national importance whose access to existing institutional sources is limited.
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The ownership of IDBI was transferred to Central Government on February 16, 1976. It is now working as state owned autonomous corporation. IDBI provides direct financial assistance to industrial units to bridge the gap between supply and demand of medium and long term finance. The IDBI Act was amended, in 1994, to permit public ownership upto 49 percent. In 1995, it raised more than Rs. 20 billion through its first initial public offer (IPO) of equity. It reduced the stake of the government to 72.14 percent. Further, in June 2000, a pan of the equity shareholding of the government was convened into preference share capital which was redeemed in March 2001, resulting into further reduction of government stake to 58.47 percent. Financial Resources of IDBI a. Share Capital. IDBI was formed with an authorized capital of Rs. 50 crores which was raised a number of times. In October, 1994, Government of India's amended certain provisions of IDBI Act under which its authorised capital has been increased to Rs. 2000 crore which can further be increased to Rs. 5000 crore. A pan of equity capital (Rs. 253 crore) has been convened into preference capital. IDBI has been permitted to issue equity capital to public with a stipulation that at no time Government holding will be less than 51 per cent. As on March 31,2003 the paid up capital of IDBI stood at Rs. 652.8 crores and reserve funds at Rs. 6325.3 crore. b. Borrowings. The bank is authorised to raise its resources through borrowings from Government of India, Reserve Bank of India and other fmancia1 institutions. On March 31, 2003, the bank had borrowings of Rs. 41798.0 crore by way of bonds and debentures, deposits of Rs. 4329.9 crore and borrowings of Rs. 5359.9 crore from Government of India and other sources.
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Management of IDBI The management of IDBI is vested in a Board of Directors consisting of 22 persons including a full-time Chairman-cum-Managing Director appointed by the Central Government. The other members of the Board comprise of a representative of the RBI, a representative each of the all-India financial institutions, two officials of the Central Government, three representative search of he public sector banks and SFCs and five representatives having special knowledge and experience of industry; The .Board has constituted an Executive Committee consisting of ten directors. Ad-hoc committees of Advisers are also constituted to advise it on. specific projects. Recently, Government of India ha9 sought to repeal the IDBI Act. 1964. by introducing The Industrial Development Bank.(Transfer of Undertaking and Repeal) Bill 2002 is Lok Sabha. The Bill is aimed at convening IDBI into a company under the Companies Act as also enabling it to undertake banking business.
Functions of IDBI
The main functions of IDBI are as follows: 1) To co-ordinate the activities of other institutions providing term finance to industry and to act as an apex institution. 2) To provide refinance to financial institutions granting medium and longterm loans to industry. 3) To provide refinance to scheduled banks or co-operative banks. 4) To provide refinance for export credit granted by banks and financial institutions
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5) To provide technical and administrative assistance for promotion management or growth of industry. 6) To undertake market surveys and techno-economic studies for the development of industry. 7) To grant direct loans and advances to industrial concerns. IDBI is empowered to finance all types of industrial concerns engaged or proposed to be engaged in the manufacture, preservation or processing of goods, mining, hotel, industry, fishing, shipping transport, generation or distribution of power, etc. The bank can also assist concerns engaged in the setting up of industrial estates or research and development of any process or product or in providing technical knowledge for the promotion of industries. Until recently IDBI also functioned as Expon Bank of the country. 8) To render financial assistance to industrial concerns. IDBI operates various schemes of assistance. e.g., Direct Assistance Scheme. Soft Loans Scheme. Technical Development Fund Scheme, Refinance Industrial Loans Scheme. Bill Re-discounting Scheme. Seed Capital Assistance Scheme. Overseas Investment Finance Scheme. Development Assistance Fund, etc.
OPERATIONS OF IDBI
Since its inception in 1964, IDBI has extended its operations to various areas of industrial sector. It provides direct as well as indirect financial assistance for increasing the pace of industrial development. Aggregate assistance sanctioned by March. 2003 amounted to Rs. 223932.1 crore and disbursements amounted to Rs. 168166.5crores. The operation 1. Direct Assistance Development Banks In Indian Financial Sector 54
Direct financial assistance includes project finance assistal1ce, soft-loan assitace, assistance under technical development fund scheme and rehabilitation assistance for sick units. Various schemes under direct assistance are discussed as follows:a) Project Finance Assistance: - Under project finance scheme. the IDBI extends direct assistance to industrial concerns in the form of : a. Project loans b. Subscription to and/or underwriting of issues of shares and debentures. c. Guarantee for loans and deferred payments. Financial assistance under this scheme is granted for setting up new projects as well as for expansion and Modernization renovation of existing units. IDBI normally extends assistance to public limited companies in the private, public, joint sector and co-operative sectors. Bank's assistance is sought for projects involving large capital outlay or sophisticated technology. Bank gives preference to units set up by new entrepreneurs or projects located in backward areas. The repayment period is settled by looking at the capacity of the enterprise. Normally, repayment is spread over a period of 8-10 years with a grace period of 2-3 years. These loans are usually secured by a first legal mortgage of the immovable properties of the borrowing concern and floating charge on its other assets, subject to a first charge on raw materials, stocks, etc. for working capital borrowings. The bank does not hold shares & debentures, taken over under legal obligation for underwriting or taken over directly, for a longer period. As a matter of policy, the bank places major emphasis on the long-term economic viability of the projects rather than on the immediate sale ability of their products. In the case of
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assistance in the form of guarantees of loans and deferred payments, the bank charges a guarantee commission of 1 per cent in normal cases. There has been a constant increase in direct assistance. Upto March, 2003 cumulative assistance in the form of direct loans to industrial concerns and .subscriptions came to Rs. 102601.8 crore. Most of this assistance was in priority sector industries such as basic industrial chemicals, cement, fertilizers, Iron and steel, electricity, fertilizer, sugar, textiles, paper and industrial machinery. IDBI introduced special schemes for industrialization of backward areas. In a scheme introduced in 1969 it offered concessional rates of interest, longer grace periods for repayments, etc. These concessions were available to small and medium units having project cost upto Rs. 3 crores. In collaboration With IFCI and ICICI, the bank is also giving concessional rupee assistance upto Rs. 2 crores and underwriting assistance up to Rs.1crore. The assistance to backward areas has also been increasing. To achieve balanced regional growth and accelerate industrial development IDBI initiated promotion and development activities. In co-operation with other institutions the bank conducted industrial potential surveys in a number of states. b) Soft Loan Scheme IDBI introduced in 1976 the soft loan scheme to provide financial assistance to product units in selected industries viz., cement, cotton, textiles. jute, sugar and certain engineering industries to modernize. Financial replace and renovate their plant and equipment so as to achieve higher and more economic levels of production. This scheme is implemented by IDBI with .financial participation by IFCI and ICICI. The basic criteria for assistance under the scheme are the weakness or non-viability of industrial concerns arising out of mechanical obsolescence. Industrial concerns which are not in a position 10 bear the normal lending rate of interest of the financial institutions are provided on accessional
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assistance to the full extent of the loan. In other cases the limit of concessional assistance is 66 per cent of the loan. c) Technical Development Fund Scheme The Government of India introduced the Technical Development Fund (TDF) Scheme in March. 1976 for issue of import licenses for import of small value balancing equipment, technical know how, foreign consultancy services and drawings and designs by industrial units to enable them to achieve fuller capacity utilization, technological up gradation and higher exports. Some industrial units found it difficult to take advantage of the import license issued under this scheme for want of rupee resources. In January, 1977, IDBI introduced a scheme for providing matching rupee loans to industrial units to enable them to utilize import licenses issued under TDF scheme. The scheme which was started for six specified industries now covers all industries as also import of any other input needed by the industrial units for improving export capabilities. This scheme of the bank has not been successful as only one-fourth of the units sought this assistance. Rehabilitation Assistance to Sick Units The problem of growing industrial sickness in India is a cause of worry. It adversely affects production, employment, generation of income and utilization of productive resources. With a view to combat sickness, IDBI has devised the Refinance Scheme for Industrial Rehabilitation. The units which have been assisted by State Financial Corporation or State Industrial Development Corporations and are classified as sick are eligible under this scheme. There should be a possibility of the unit being revived in a reasonable time. The bank provides for capital expenditure required for restarting the unit on viable level. The need for margin money for additional term-loan and working
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Capital, working capital term loan, payment of statutory liabilities, cash losses during rehabilitation period etc. are met by the bank. The bank has also been trying to bring merger of sick units with healthy units. 2. Indirect Assistance IDBI cannot provide direct financial assistance to various industrial units situated in different parts of tile country. It has adopted a strategy under which it extends financial assistance directly to large and complicated industrial units involving large capital outlays and sophisticated technology. It helps small scale in industries indirectly through providing assistance to other financial institutions which, in turn, help these industries. The indirect help of IDBI takes the form of refinancing of industrial loans, rediscounting of bills, seed capital assistance and financial support to 6ther institutions by way of subscribing to their shares, debentures, bonds etc. a) Refinance of Industrial Loans IDBI provides refinance facility against term loans granted by the eligible credit institutions to industrial concerns for setting up of industrial projects as also for their expansion, modernization and diversification. IDBI provides refinance to commercial banks, regional rural banks, state, co-operative banks, state financial corporations, state industrial development corporations or other institutions extending term loan assistance to industrial units. Industrial units seeking term loan approach the eligible financial institutions which, after sanctioning the loans, approach the IDBI for refinance facility. The appraisal of loan application is done by primary institution by keeping in view the guidelines issued by central government and the IDBI. The bank relies in the appraisal done by the primary lending institutions that have to bear primary responsibility for the loans granted by them. IDBI sanctioned a sum of Rs. 20712.3 crores upto March 2003 under refinance of industrial
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loans. Since 1967, IDBI has been extending indirect financial help to small scale sector principally through its schemes of refinance of industrial loans and bills discounting. b) Rediscounting of Bills IDBI introduced another indirect financing' scheme in 1965, whereby rediscounting facility of machinery bills was, introduced. This scheme was to help indigenous machinery manufacturers and their purchases. The purchaser of machinery accepts bills of exchange or promissory notes of the seller and undertakes to take the payment in installments. The seller gets the bills discounted with his banker who in turn rediscounts these bills with min. The buyer is enabled to acquire the machinery on deferred payment terms without going through the usual procedures involved in obtaining a project loan. The usual deferred period is 5 years but in deserving cases it can be extended upto 7 years. The scheme has been extended for expansion and diversification of existing units also. The rediscounting facility has been made available to imported machinery also where bills will be required to be drawn by local agents of foreign firms. c) Seed Capital Assistance:With a view to help first generation entrepreneurs who have the skills but lack financial resources, IDBI started seed capital assistance scheme in September, 1976. Under the first scheme, Financial Corporations provide seed capital assistance to projects in small scale sector from their special class of share capital contributed by IDBI and the state government. The maximum amount of assistance under this scheme is to meet the gap in the equity contribution which is 20 per cent of the cost of the project.
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

Development Banks In Indian Financial Sector 59
(SIDBI)
SIDBI is a Principal Development Financial Institution for: -- Promotion -- Financing and -- Development of Industries in the small scale sector and --Co-coordinating the functions of other institutions engaged in similar activities. Provision of Charter SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto. Business Domain of SIDBI The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million . About 3.1 Development Banks In Indian Financial Sector 60
million such units, employing 17.2 million persons account for a share of 36 per cent of India's exports and 40 per cent of industrial manufacture. In addition, SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.
SIDBI among Top 30 Development Banks of the World SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets Mission To empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development Vision To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform OBJECTIVES Mandatory Objectives Four basic objectives are set out in the SIDBI Charter. They are: Financing Promotion Development Co-ordination Development Banks In Indian Financial Sector 61
For orderly growth of industry in the small scale sector, The Charter has provided SIDBI considerable flexibility in adopting appropriate operational strategies to meet these objectives. The activities of SIDBI, as they have evolved over the period of time, now meet almost all the requirements of small scale industries which fall into a wide spectrum constituting modern and technologically superior units at one end and traditional units at the other. Development Outlook The major issues confronting SSIs are identified to be: Technology obsolescence Managerial inadequacies Delayed Payments Poor Quality Incidence of Sickness Lack of Appropriate Infrastructure and Lack of Marketing Network There can be many more similar issues hindering the orderly growth of SSIs. Over the years, SIDBI has put in place financing schemes either through its direct financing mechanism or through indirect assistance mechanism and special focus programmes under its P&D initiatives. In its approach, SIDBI has struck a good balance between financing and providing other support services.
SHAREHOLDING The entire issued capital of Rs.450 crore has been divided into 45 crore shares of Rs.10 each. Of the total Rs.450 crore subscribed by IDBI, while setting up of
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SIDBI, 19.21% has been retained by it and balance 80.79% has been transferred / divested in favour of banks / institutions / insurance companies owned and controlled by the Central Government. PRODUCTS AND SERVICES DIRECT FINANCE Objective: SIDBI had been providing refinance to State Level Finance Corporations / State Industrial Development Corporations / Banks etc., against their loans granted to small scale units. Since the formation of SIDBI in April, 1990 a need was felt/ representations were made that SIDBI being the principal financial institution for the small sector, should take up the financing of SSI projects directly on a selective basis. So it was decided to introduce direct assistance schemes to supplement the other available channels of credit flow to the small industries sector. Since then, SIDBI has evolved itself into a supplier of a range of products and services to the Small & Medium Enterprises [SME] sector. BILLS FINANCE Objectives: Bills Finance Scheme involves provision of medium and short-term finance for the benefit of the small-scale sector. Bills Finance seeks to provide finance, to manufacturers of indigenous machinery, capital equipment, components subassemblies etc, based on compliance to the various eligibility criteria, norms etc as applicable to the respective schemes.
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To be eligible under the various bills schemes, one of the parties to the transactions to the scheme has to be an industrial unit in the small-scale sector within the meaning of Section 2(h) of the SIDBI Act, 1989. REFINANCE Objective Refinance scheme is introduced for catering to the need of funds of Primary Lending Institutes for financing small-scale industries. Under the scheme, SIDBI grants refinance against term loans granted by the eligible PLIs to industrial concerns for setting up industrial projects in the small scale sector as also for their expansion / modernization / diversification. Term loans granted by the PLIs for other specified eligible activities / purposes are also eligible for refinance. INTERNATIONAL FINANCE Objective The main objective of the various International Finance schemes is to enable small-scale industries to raise finance at internationally competitive rates to fulfill their export commitments. The financial assistance is being offered in USD and Euro currencies. Assistance in Rupees is also considered, independent of foreign currency limits. SIDBI has a license to deal in foreign exchange as a "restricted" Authorized Dealer (i.e. SIDBI confines its foreign exchange activities only to its own exposures and to exposures for its customers. The Mumbai Head Office (MHO) of SIDBI operates as a Category 'A' branch that maintains foreign currency positions. PROMOTIONAL ACTIVITIES Objective Development Banks In Indian Financial Sector 64
As an apex financial institution for promotion, financing and development of industry in the small scale sector, SIDBI meets the varied developmental needs of the Indian SSI sector by its wide-ranging Promotional and Developmental (P&D) activities. P&D initiatives of the Bank aim at improving the inherent strength of small scale sector on one hand as also economic development of poor through promotion of micro-enterprises. In pursuance of its multifaceted P&D activity, synergistic with its business activities aimed at development of the small industries, SIDBI looks forward to a partnership with NGOs, associate financial institutions, corporate bodies, R&D laboratories, marketing agencies, etc., for national level programmes. SIDBI has identified the following thrust areas of P&D activities, which are being undertaken in partnership with various institutions, agencies, and NGOs:
DATA ANALYSIS
Data analysis of IFCI in concern with various sectors as per the assistance provided by it to them IFCI AND INDUSTRIAL FINANCE:
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The sanctions of IFCI went up to Rs. 6579.7 crore in 1995-96 from 32.3 crore in 1985-86, but it declined to Rs. 778 crore by 2001-02. up to march 2003, total sanctioned assistance was Rs. 45426.7 crore while disbursements were Rs. 44169.2 crore.
Year 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 total from 1970 to 2003 45426.7 44169.2 Sanctions 499.2 798.1 922.6 1635.5 1817 2429.8 2421.2 2347.9 3745.9 4327 6579.7 3952.2 5708.2 3622.8 2045.6 1417.9 778 2035.1 Growth rate% 20.2 59.9 15.6 77.3 11.1 33.7 -0.4 -3 59.5 15.5 52.1 -39.9 44.4 -36.5 -43.5 -30.7 -45.1 161.6 Disbursements 403.9 451.6 657.1 997.5 1121.8 1574.3 1604.4 1733.4 2163.1 2838.7 4586.5 5175.5 5615 4836.4 3374.3 2152.7 1069.9 1796.5 Growth rate 48 11.8 45.5 51.8 12.5 40.6 1.9 8 24.2 32.4 61.6 12.5 8.5 -13.9 -30.5 -36.9 -49 63.8
IFCI AND PRODUCT WISE ASSISTANCE IFCI provides direct financial assistance for financing projects in terms of rupee loans, foreign currency loans, and by underwriting and direct subscription to shares, debentures and bonds.
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Years 1998-99 1999-00 2000-01 2001-02 2002-03 up to march 2003
Sanctions 3129.6 1900.3 1371.2 721.4 2021.7 37122.6
Disbursements 4229.3 3027.4 2093.2 1065.6 1783.1 35926.4
IFCI AND PURPOSE WISE ASSISTANCE In the purpose wise sanctions and disbursements, new projects got Rs. 15919.6 cr which is 35.17 % of total sanctions up to march 2003.
Serial no. 1 2 3 4 5 6 7 Purpose New Expansion Rehabilitation Modernization Working capital Others total Sanctions 15919.6 6649.2 115.7 5459.8 837.5 16279.4 45261.1 Disbursements 15611.3 6547.5 114.2 5480.4 774.2 15476.1 44003.6
IFCI AND SECTOR WISE ASSISTANCE The IFCI provided maximum assistance to private sector by giving Rs. 40660.9 cr as on march 2003. This constitutes over 89% of total assistance by IFCI. The public sector got very little out of the total sanctions of IFCI.
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Serial no. 1 2 3 4 5
Sector Public Joint Cooperative Private total
Sanction 1541.1 2192 867,1 40660.9 45261.1
Disbursements 1539.1 2146 838.4 39480.1 44003.6
DATA ANALYSIS OF IDBI The main objective of IDBI is to provide term finance and financial services for establishment of new projects as well as the expansion, diversification, modernization and technology up gradation of existing industrial enterprises. It is one of the most important financial institutions which has provided lot of funds for industrial activities in the country.
IDBI AND PURPOSE WISE ASSISTANCE
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Serial no. 1 2 3 4 5 6
Purpose New Expansion Rehabilitation Modernization Working capital total
Year 1998-2003 1998-2003 1998-2003 1998-2003 1998-2003
Sanctions 67498.8 50627.3 12976.5 1415.8 44086.5 176604.9
IDBI AND SECTOR WISE ASSISTANCE

Serial no 1 2 3 4 5 Sectors Public Joint Cooperative Private Trust total Amount 34963 11753.7 1802.2 169304.2 50 217873.3 Percentage 16.05 5.39 .83 77.71 .02 100
IDBI AND INSTITUTION WISE ASSISTANCE Serial no. 1 2 Institutions SFC SIDC Total 2000-01 129.8 233.2 363 2001-02 87.7 99.6 187.3
SIDBI AND FINANCIAL ASSISTANCE
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The sanctions of SIDBI are generally given to those entrepreneurs who have business of small scale and fulfill the criteria of SIDBI. It undertakes a large variety of promotional and developmental activities in order to improve the strength of small scale units, creating employment opportunities and new way for economic development of poor. Year 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003 Sanctions 295 1764.8 1820.4 3276.5 3008.1 2304.1 498.2 3.2 79.4 -7.9 -23.4 279 672.4 766.5 1506.2 949.3 4173.6 141.1 13.9 96.5 -37 Growth% Disbursements Growth
up to march 12459.7
CONCLUSION
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Development bank plays a very important role in economic development of our country. Since independence they have contributed a lot to the inception of industrialization and all other technological innovations. There basic objective is to assist the development in country which perform by proving every kind of help possible i.e. financial, advisory, technological etc. This study helps in portraying the current picture of development banks in India and shows their role in economy. It also helps in showing the various schemes that banks have and their whole procedure to provide the assistance to people. This study also shows the various lacks in the system of development banks due which they fail in some sphere to achieve their set targets. There are various drawbacks in our own financial system that hinderers the growth of these development banks such as lack of funds with government, lack of project, lack of efficient machinery, In this study all the possible measure to remove these hindrances are described through which we can move more speedily then other economies in world. In this study four major development banks in India are taken into research work i.e. IDBI, IFCI, SIDBI, and NABARD. All the schemes, assistances and programs are studied and highlighted. Every bank differs from his objective with each other so as the assistance provided by them. Every bank has separate guidelines and management to take care of activities which are performing and work areas are also different, although their main motive is same which the development of country through balanced economic growth. This study throws light on the working of these development banks and how they performed their activities in past.
LIMITATIONS OF STUDY
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Although lots of care and efforts are made to ensure the fault free study but still there remains certain limitations which possibly may occur such as Lack of time acted as constraint in study Lack of development banks in near by areas also acts as constraint as its not possible to get the real exposure. Researcher limitations in knowledge are also the limitations of study. The study is based on secondary data so any kind of discrepancy in that will cause same in the study.
BIBLOGRAPHY
WEBSITIES http: //www.idbi.com http: //www.sidbi.com http: //www.google.com http: //www.banknetindia.com NEWSPAPERS Financial express Business line The economic times Business standard
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DECLARATION

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

ROLE OF DEVELOPMENT BANKS IN INDIAN FINANCIAL SECTOR

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

PRE 1991 ERA:

Development Banks In Indian Financial Sector

POST 1991 ERA:

Development Banks In Indian Financial Sector

HISTORY OF DEVELOPMENT BANKS

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

INTRODUCTION TO DEVELOPMENT BANKS

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

OBJECTIVES OF DEVELOPMENT BANKS

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

FUNCTIONS OF DEVELOPMENT BANKS

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

DEVELOPMENT BANKING IN INDIA

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

PROMOTIONAL ROLE OF DEVELOPMENT BANKS IN INDIA

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

ROLE OF DEVELOPMENT BANKS IN FINANCIAL SECTOR

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

ALL INDIA DEVELPOMENTS BANKS

Development Banks In Indian Financial Sector

INDUSTRIAL FINANCE CORPORATION OF INDIA (IFCI)

Development Banks In Indian Financial Sector

Financial Resources of IFCI

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector

Development Banks In Indian Financial Sector