DEVELOPMENT BANKS

DEVELOPMENT BANKS IN INDIA

NABARD ICICI IDBI

COMMERCIAL
SIDBI IFCI
BANKS

STATE FINANCIAL
COOPERATIONS
WHAT IS DEVELOPMENT BANKS
A Development Bank is a polygonal development
finance institution devoted to improving the social
and monetary development of its associate
nations.
It helps improve the value of people's lives by
providing loans and scientific support for a broad
variety of development activities.
 OBJECTIVES

Lay Foundations for Industrialization

Meet Capital Needs

Need for Promotional Activities

Help Small and Medium Sectors'

FUNCTIONS
Financial Gap Fillers

Undertake Entrepreneurial Role

Joint Finance

Refinance Facility

Credit Guarantee

Underwriting of Securities
Role of development banks
in financial system
Providing
Funds

Employment Infrastructura
Generation l Facilities

Accelerating
Promotional
Industrializat
Activities
ion

Planned Development
Develop of Backward
ment Areas
FUNCTIONS OF A
DEVELOPMENT BANK
Increase loans and equity investments to its
developing associate countries (DMCs) for their
monetary and social development.
Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
Promotes and facilitates speculation of public and
private capital for growth and development.
Responds to requests for assistance in coordinating
growth policies and plans of its increasing member
countries.
 IFCI
The government of india set up the industrial
finance corporation of india in july
Management of IFCI
12 directors
4 are nominated by the IDBI
 OBJECTIVES OF IFCI
Promoted by new enterpreneurs
Based on indegenous technology
Which would result in substitution of imports
Providing input for incresing agricultural products
FUNCTIONS OF IFCI

DIRECT JOINT
FINANCING FINANCING
 OPERATIONAL ACTIVITIES
Concessional finance to projects in less
development areas
Concessional finance for renewable energy
systems
Power of attorney scheme
Bridging loans
Sub loans in foreign currencies
IDBI
The Industrial Development Bank of India (IDBI) was
established on 1 July 1964 under an Act of Parliament
as a wholly owned subsidiary of the Reserve Bank of
India.
In 16 February 1976, the ownership of IDBI was
transferred to the Government of India and it was
made the principal financial institution for
coordinating the activities of institutions engaged in
financing, promoting and developing industry in the
country.
THE PRINCIPAL SOURCE OF FUNDS
OF IDBI
Share capital and reserves
Borrowing from government of india and RBI
Market borrowing by way of bonds
Deposits and other borrowings
Repayment of past assitance by borrowers
Foreign currency borrowings from worid
banks
Asian development banks and international
markets
OBJECTIVES and FUNCTIONS

Planning,promoting,developing industries
Co-ordinating the working in institutions
engaged in financing
Undertaking market and investment
research
Providing technical and administrative
assitance
Subsidiaries
Operational Activities
Direct Assistance
Indirect Assistance
Refinance Schemes
Refinance Scheme for industrial
rehabilitation
Automatic Refinance Scheme
Refinance Scheme for modernisation
Bills Rediscounting Scheme
contd.
Soft loan scheme for modernisation

Seed capital assitance scheme

SFCs special share capital schemes

Development assistance fund(DAF)

 ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) Bank Ltd.
ICICI is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra.
The Bank has a network of 2,630 branches and 8,003 ATM's in
India, and has a presence in 19 countries, including India.
OBJECTIVES OF ICICI

Assisting in the creation

Expansion
Modernisation of such enterprises
Encouraging and promoting the
participation private capital
Encouraging and promoting private
ownership
FUNCTIONS OF ICICI
Assistance to industries
Provision of foreign currency loans
Merchant banking
Letter of credit
Project promotion
Housing loans
Leasing operations
 SIDBI
Established in 1990 under an Act of Indian Parliament.
Objective: Promotion, Financing & Development of
MSMEs and Co-ordinating Functions of institutions
engaged in similar activities.
Ownership : Public sector banks/FIs/Insurance Cos
owned or controlled by the Government of India.
Structural Linkage: With Ministry of Finance and
Ministry of SSI.
Nodal Agency : For SME Schemes of GoI
OBJECTIVES
FINANCING

PROMOTION

DEVELOPMENT

CO-ORDINATION
 NABARD
National Bank for Agriculture and Rural
Development (NABARD) is an apex
development bank in India having headquarters
based inMumbai (Maharashtra) and other
branches are all over the country.

It was established on 12 July 1982 by a special act by

the parliament

Main focus was to uplift rural India by increasing

the credit flow for elevation of agriculture & rural
non farm sector and completed its 25 years on 12
July 2007.
OBJECTIVES OF NABARD
1 . To give financial assistance for increasing
the agricultural production
2.To supply the long term needs of the rural
areas
3.To supply loans by way of refinance
4.To help small industries ,cottage industries
and also artisans
5.To achieve overall rural development
 FUNCTIONS OF NABARD
Credit functions
Development functions
Regulatory functions
Apex institution for rural finance
Refinance institutions
Contribution of share capital
Investment in securities
Conversion and rescheduling facilities
Financial help to non agricultural sector
Training programs
Co-ordination of actvities
ACHIEVEMENT OF NABARD
Short term assistance
long term assistance
Schematic lending
Assistance to less developed states
Assistance to non-farm sector
Rehabilitation programme
Assistance to research and development projects
Credit plans under the new strategy
Integrated rural development programme
Regional rural banks
THANK YOU