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Ranika edit Master Click toChaudhary subtitle style

Financial institution in India

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introduction
Industrial finance is a very complicated problem. It is of vital importance as development of any country depends on industrial development of that country s economy. Why there is need of finance
1) 2) 3)

Long term Medium term Short term

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Long term capital is also known as block capital or fixed capital. it is needed to acquire term capital is required for repairs, replacements, maintenance of machines and building etc. term capital is needed for purchase of raw material , and to meet day to day expenses

-fixed and permanent assets

Medium

Short

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Types of financial institutions in india

Term

lending institutions institutions

Refinance

Investment State

level institutions

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Term lending
IFCI IDBI ICICI IIBI EXIM TFCI

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REFINANCE INSTITUIONS
NABARD SIDBI NHB

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INVESTMENT INSTITUITIONS
LIC GIC UTI

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STATE LEVEL INSTITUTIONS

SFC

IFCI (INDUSTRIAL Finance CORPORATION OF INDIA)

It

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was established in 1948 development bank of India

First

Objective

was to make medium and long term credits more readily available BOD total 12 members(4 by idbi,2 by center govt, 6 by shareholders) -full time chairperson

Management -

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Resources

of IFCI

-ownership capital -Issue of shares and bonds -borrowing from RBI,IDBI AND CENTER GOVT -accepting deposits from public, state govt and local authorities

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Financial assistance by ifci/idbi

Purpose New projects Rehabilitation Modernization Working capital sanction(crores) IDBI 15919.6 67498 115.7 1415 5459.7 837 5138 12976

Expansion /acquisition6649.2 50627

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Idbi (industrial deve. bank of india)

Set It

up in 1964

was fully owned subsidiary of RBI but in 1976 delinked from RBI and made as autonomous body of GOI in Mumbai 11 branch offices is managed by a chairman and MD appointed by central govt, a deputy governor nominated of RBI, 20 other directors.

H.O It

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With

effect from 1 oct,2004 it has renamed as IDBIL. It has been accepted as a deemed banking co under banking regulation act. The govt holds the majority (58.47%) shares of IDBI LTD. last 40 years IDBI has given a qualitative dimension to the process of industrial development of the country.

During

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ABOUT ICICI
Established Authorized The

in 1955 As a public ltd co, at the initiative of world bank capital of 60 crores and issued capital 22 crores objectives of icici are to encourage establishment of new industries, to help in expansion and modernization, technical and managerial aid to increase production and employment.

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In

October 2001 .BOD Approved ICICI LTD AND ICICI BANK LTD. With effect from MAY 2002 IT IS SIMPLY ICICI bank . is now the largest bank with total assets of more than 3000 billions than 700 branches and over 2200 ATM spread all over the country mainly deals in banking, wholesale banking,

ICICI

More It

Retail

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Icici -it

is known for its many firsts.

was first Indian co to listed in New york stock exchange. financial investor own around 38% shares . strategy, low cost branches innovations are key reasons of icici success. are the first to introduce mobile

Foreign

Technology,

They

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EXIM
Established Authorized Exim

on1st JAN,1982.

capital 1000 crores and paid up is 650 crores. bank came into existence when international finance division of idbi was transferred to exim bank in 1982. started its working from march 1982

Exim The

issued capital is wholly subscribed

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The main objective of exim is to provide financial assistance to exporters and importers. It has to coordinate the working of those institutions which can promote international trade. Management is MD+17 other directors representing govt,RBI,ECGC,public sector banks Resources of EXIM -GOI -RBI -any organization approved by GOI TYPES OF ASSISTANCE

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Assitance by exim
Fundfund based Non based Pre shipment Guarantees Foreign Post

credit

currency exports

shipment credit

Deemed Loans

to commercial banks for bills discounting for consultancy and technology

Finance

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Refinancing instituitions

Are those which do not give finance directly but they create such structure by which the funds are allocated up to the minimum level.

Nabard-national bank for agriculture and rural development

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Started functioning from 1july 1982 Set up with an initial capital of 100 crores, now it is 2000 crores fully subscribed by GOI AND RBI. H.O IN Mumbai, with 28 regional and 391 district offices It is an apex orga for policies, planning and operations of agriculture ,ssi ,handicraft and village industries It mainly deals in three types of functions

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Funds created by NABARD -rural infrastructural deve fund crores -R&d fund -Soft loan assistance fund -Credit and financial services fund 28749

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Sidbi
Set

up in oct 1989 owned subsidiary of IDBI

Wholly It

is the principal financial institution for promotion ,financing and deve of small scale industries sep 2000 IDBI transferred 51% in favor of banks and other institutions in the first phase.

In

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Nhb-national housing bank

Set A

up in July 1988

principal agency to promote housing finance owned subsidiary of RBI With capital of 350 crore which can be increased to 2000 crores. The board is authorized to issue increased capital to RBI, center govt.

Wholly

Registered

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Investment instituitions
Are

those who invest the money collected in further securities and investments outside .LIKE

LIC GIC UTI

LIC
Set Lic

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up in 1956

was formed by nationalizing 245 life insurance companies main aim was to spread insurance Mobilize savings Investing funds Act as trustees

The -

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-promoting a sense of pride and job satisfaction among agents and employees
Diversification

by LIC

-LIC HOUSING FINANCE -LIC MUTUAL FUNDS -Jeevan bima sahyog assets mgt co(JBSAMC) -LIC International EC

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TYPES OF INSURANCE SCHEMES

Whole

life schemes policies back policy benefits linked insurance

Endowment Money Plans

for children to cover housing loan schemes

Medical Plans Joint

life plans

Group