Design IFS

II.1What are Financial Institutions ?
Financial intermediaries are firms that collect the funds

from lenders and channel those funds to borrowers
(Mishkin)
Financial intermediaries are firms whose primary

business is to provide customers with financial
products and services that can not be obtained more
efficiently by transacting directly in securities markets
(Z.Bodie &Merton)
http://articles.economictimes.indiatimes.com/2015-03-04/news/59767556_1_institutions-illicit-wealth-
perpetrators
SPECIAL CHARACTERISTICS OF
FINANCIAL INSTITUTIONS
Financial institutions provides an ideal linkage between depositors
and investors, thus encouraging both savings and investments.
Financial institutions facilitates expansion of financial markets over
space and time.
Financial institutions promotes efficient allocation of financial
resources for socially desirable and economically productive
purposes.
Financial institutions influences both the quality and the pace of
economic development.
BROAD CATEGORIES OF FINANCIAL INSTITUTIONS
Financial Institutions in India
Organized Sector Unorganized Sector
Money Lenders Indigenous Bankers Pawn Brokers Traders & Landlords
Capital Market Institutions Money Market Institutions
RBI Com Banks Co-op Banks P.O. SB Govt(T-Bills)
Development Insurance(LIC&GIC) UTI Agl Financing Institutions Govt(P.F., NSC etc.) IRBI Exim Bank NBFC
Banks
Hire Purchase Cos Leasing Cos Investment Cos Finance Cos

UNORGANISED FINANCIAL
INSTITUTIONS
Relatively less controlled
Moneylenders,
Indigenous bankers,
Lending pawn brokers,
Landlords,
Traders etc.
This part of the financial system is not directly amenable to control by
the Reserve Bank of India (RBI).
MONEY LENDERS
A moneylender is a person or group who typically offers
small personal loans at high rates of interest. The high interest
rates charged by them is justified in many cases by the risk involved.
They play an active role in lending to people with less access to banking
activities, such as the unbanked or under banked or in situations where
borrowers do not have good credit history. They sometimes lend to
people like gamblers and compulsive shoppers who often get into debt.
Many countries have laws in place that requires money lenders to be
registered and limits on the interest rates that may be charged. For
example in India licensed money lenders are governed by Money
Lenders Acts of respective states .
INDIGENOUS BANKERS
Indigenous bankers constitute the ancient banking system of
India.
They have been carrying on their age-old banking operations
in different parts of the country under different names:
In Chennai, these bankers are called Chettys ;
In Northern India Sahukars, Mahajans and Khatnes;
In Mumbai, Shroffs and Marwaris;
And in Bengal, Seths and Banias.
INDIGENOUS BANKERS
Accordingto the Indian Central Banking Enquiry Committee, an indigenous banker
or bank is defined as an individual or private firm which receives deposits, deals in
hundies or engages itself in lending money.
The indigenous bankers can be divided into three categories:
(a) those who deal only in banking business (e.g., Multani bankers);
(b) those who combine banking business with trade (e.g., Marwaris and
Bengalies); and
(c) those who deal mainly in trade and have limited banking business.
The indigenous banker is different from the moneylender. The moneylender is not a
banker; his business is only to lend money from his own funds. The indigenous
banker, on the other hand, lends and accepts funds from public.
Lending Pawnbroker
A Lending Pawnbroker is an individual or business (pawnshop) that
offers secured loans to people, with items of personal property used
as collateral.
The word pawn is derived from the Latin pignus, for pledge, and the
items having been pawned to the broker are themselves
called pledges or pawns, or simply the collateral.
A landlord is the owner of a house, apartment, condominium, land
or real estate which is rented or leased to an individual or business,
who is called a tenant (also a lessee or renter).
When a juristic person is in this position, the term landlord is used.
Other terms include lessor and owner.
The term landlady may be used for female owners, and lessor applies
to both genders.
Trader
The term Trader can refer to:
Merchant, retailer or one who attempts to generally buy wholesale and
sell later at a profit
Trader (finance), someone who buys and sells financial instruments
such as stocks, bonds, derivatives, etc.
BROAD CATEGORIES OF FINANCIAL
INSTITUTIONS
ORGANISED SECTOR
Capital Market Institutions:

These Institutions mainly provide long term funds to individuals and corporate
customers. They consist of term lending institutions like financial corporations and
investing institutions like LIC.
Money Market Institutions:

Money Market Institutions supply only short term funds to individuals
and corporate customers. They consist of commercial banks, co-
operative banks, etc.
Development Bank
Development banks are unique financial institution that act as catalytic
agents in promoting balanced development of the country and thereby aid
in the economic growth of the country.
Development Bank is a financial institution dedicated to fund new and
upcoming businesses and economic development projects by equity capital
or loan capital.
Development banks are those financial institutions engaged in the promotion
and development of industry, agriculture and other key sectors.
Definition 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
INSURANCE COMPANY
Insurance in India refers to the market for insurance in India which covers
both the public and private sector organizations. It is listed in the Constitution
of India in the Seventh Schedule as a Union List subject, meaning it can only
be legislated by the Central government.
The insurance sector has gone through a number of phases by allowing private
companies to solicit insurance and also allowing foreign direct investment.
India allowed private companies in insurance sector in 2000, setting a limit
on FDI to 26%, which was increased to 49% in 2015.
However, the largest life-insurance company in India, Life Insurance
Corporation of India is still owned by the government and carries a sovereign
guarantee for all insurance policies issued by it.
LIFE INSURANCE CORPORATION
(INDIA) (LIC)
Life Insurance Corporation (India) (LIC) is an Indian state-owned insurance
group and investment company headquartered in Mumbai.
It is the largest insurance company in India with an estimated asset value
of 1560482 crore (US$240 billion).
As of 2013 it had total life fund of Rs.1433103.14 crore with total value of
policies sold of 367.82 lakh that year.
The company was founded in 1956 when the Parliament of India passed the
Life Insurance of India Act that nationalized the private insurance industry in
India.
Over 245 insurance companies and provident societies were merged to create
the state owned Life Insurance Corporation
Type Public Sector
Industry Financial services
Founded 1-Sep-56
Headquarters Mumbai, India
Key people S.K Roy (Chairman),
Sushobhan Sarker (Managing Director),
S.B Mainak (Managing Director)
N.R Guha (Managing Director),
V.K Sharma (Managing Director),
Usha Sangwan (Managing Director)
Products Life insurance,
health insurance,
investment management,
mutual fund
Revenue US$54,400 million(2012)
Profit US$3,257 million (2012)
Total assets 1560482 crore(US$240 billion) (2013)
Owner Government of India
Number of employees 119,767 (Mar 2012)[1]
Subsidiaries LIC Housing Finance
LIC Pension Fund Ltd.
LIC International
LIC Cards Services
LIC Nomura Mutual Fund
Website www.licindia.in
GENERAL INSURANCE CORPORATION
OF INDIA
GIC of India (GIC Re) is the sole reinsurance company in the Indian
insurance market with over four decades of experience.
GIC Re has its registered office and headquarters in Mumbai.
Type Public-sector undertaking
Industry Insurance
Founded 22 November 1972
Headquarters Mumbai, India
Area served Worldwide
Key people A K Roy, Chairman & MD[1]
Services Reinsurance
Owner Government of India
Website www.gicofindia.com
UNIT TRUST OF INDIA
UNIT TRUST OF INDIA
UNIT TRUST OF INDIA
AGRICULTURE FINANCING
INSTITUTIONS
Agricultural finance institutions are the institutions which render
financial services ranging from,
short-, medium- and long-term loans,
to leasing, to crop and livestock insurance,
covering the entire agricultural value chain - input supply, production and
distribution, wholesaling, processing and marketing.
AGRICULTURE FINANCING
INSTITUTIONS
Government
National Savings Certificates, popularly known as NSC, is an Indian

GovernmentSavingsBond,primarilyusedforsmallsavingsandincometax
savinginvestmentsinIndia.It is part of the postal savings system of Indian Postal
Service (India Post).
Government
PROVIDENT FUND
A Provident fund is a form of social safety net into which workersmustcontributea

portionoftheirsalariesandemployersmustcontributeonbehalfoftheirworkers. The
money in the fund is then paid out to retirees, or in some cases to the disabled who
cannot work.
The Employees provident Funds and Miscellaneous provisions Act, 1952 is enacted to
provide a kind of social security to the industrial workers. The Act mainly provides
retirement or old age benefits, such as Provident Fund, Superannuation Pension,
Invalidation Pension, Family Pension and Deposit Linked Insurance.
EXIM Bank
Export-Import Bank of India is the premier export finance institution
in India, established in 1982 under the Export-Import Bank of India
Act 1981.
Since its inception, Exim Bank of India has been both a catalyst and a
key player in the promotion of cross border trade and investment.
Non-Banking Financial Company
A Non-Banking Financial Company (NBFC) is a company registered under
the Companies Act, 1956 engaged in
the business of loans and advances,
acquisition of shares/stocks/bonds/debentures/securities issued by Government or
local authority
or other marketable securities of a like nature, leasing, hire-purchase, insurance
Examples: Hire Purchase Cos,
Leasing Cos
Investment Cos
Finance Cos
Money Market Institutions
Money Market Institutions supply only short term funds to individuals and
corporate customers. They consist of commercial banks, co-operative
banks, etc.
RBI
Commercial Banks
Co-operative Banks
Post Office Savings Bank
Government(Treasury Bills)
RBI
'Reserve Bank Of India - RBI' The central bank of India, which was
established on April 1, 1935, under the Reserve Bank of India Act.
The RBI uses monetary policy to create financial stability in India and
is charged with regulating the country's currency and credit systems.
Commercial Banks
A Bank that offers services to the general public and to companies.

Cooperative banking
Cooperative banking is retail and commercial banking organized on

a cooperative basis.
Cooperative banking institutions take deposits and lend money in most
parts of the world.
Post Office Savings Bank
Post offices operated or continue to operate postal savings systems to

provide depositors who do not have access to banks a safe, convenient
method to save money and to promote saving among the poor.
Government(Treasury Bills)
Treasury Bills are short term (up to one year) borrowing instruments
of the Government of India which enable investors to park their short
term surplus funds while reducing their market risk.
Financial Institutions
Industrial Finance Corporation of India.(IFCI)
Industrial Development Bank of India(IDBI)
State Financial Corporations.
Industrial Credit and Investment Corporation of India.(ICICI)
EXIM Bank of India.
National Small Industrial Development Corporation.
National Industrial Development Corporation.
Life Insurance Corporation of India
Unit Trust of India
Industrial Finance Corporation of India
At the time of independence in 1947, India's capital market was relatively

under-developed.
Although there was significant demand for new capital, there was a dearth of
providers.
Merchant bankers and underwriting firms were almost non-existent
and commercial banks were not equipped to provide long-term industrial
finance in any significant manner.
It is against this backdrop that the government established The Industrial
Finance Corporation of India (IFCI) on July 1, 1948, as the first
Development Financial Institution in the country to cater to the long-term
finance needs of the industrial sector.
The newly-established DFI was provided access to low-cost funds through
the central bank's Statutory Liquidity Ratio or SLR which in turn enabled it
to provide loans and advances to corporate borrowers at concessional rates.
By the early 1990s, it was recognized that there was need for
greater flexibility to respond to the changing financial system.
It was also felt that IFCI should directly access the capital markets
for its funds needs.
It is with this objective that the constitution of IFCI was changed in
1993 from a statutory corporation to a company under the Indian
Companies Act, 1956.
Subsequently, the name of the company was also changed to "IFCI
Limited" with effect from October 1999.
Products & Services
I. Project finance: The product range includes following credit products:

a) Short-term Loans (upto two years) for different short term requirements including bridge
loan, Corporate Loan etc.
b) Medium-term Loans (more than two years to eight years) for business expansion,
technology up-gradation, R&D expenditure, implementing early retirement scheme,
Corporate Loan, supplementing working capital and repaying high cost debt.
c) Long-term Loans (more than eight years to upto 15 years) - Project Finance for new
industrial/infrastructure projects Takeout Finance, acquisition financing (as per extant
RBI guidelines / Board approved policy), Corporate Loan, Securitization of debt.
d) Structured Products: acquisition finance, pre-IPO investment, IPO finance, promoter
funding, etc.
e) Lease Financing
f) Takeover of accounts from Banks / Financial Institutions / NBFCs
g) Financing promoters contribution (private equity participation)/subscription to
convertible warrants
h) Purchase of Standard Assets and NPAs
II. Nodal agency for Sugar Development Fund

. The Sugar Development Fund was instituted by the Govt of India (GoI)
in 1982 with the objective of rendering financial assistance through loans
at concessional rates for rehabilitation and modernization of sugar
factories as well as for sugarcane development.
. The scope has subsequently been enlarged to cover projects involving
bagasse based co-generation of power and production of Anhydrous
alcohol or ethanol from molasses undertaken by Sugar Units.
. IFCI has been the Nodal Agency for monitoring of SUGAR
DEVELOPMENT FUND (SDF) loans for projects related to
modernization and expansion, co-generation of power and production of
alcohol/ethanol in the private sector.
As a nodal agency, IFCI undertakes loan documentation, creation

of security, recommendations to GoI for disbursement of funds,
monitoring the progress of projects during implementation and
operations, recovery of SDF dues and furnishing clarifications to
queries of SDF.
In line with its mandate for industrial development, IFCI in its role
as the nodal agency for SDF has till date, facilitated sanction/
disbursement of SDF loans to 271 projects for an aggregate
sanctioned amount of Rs 2414.03 crore.
III. Corporate advisory services:

a) Corporate advisory & infrastructure services
b) Infrastructure advisory
c) Monitoring agency for public issues
d) Restructuring advisory services
e) Bid process management
Industrial Development Bank of India
(IDBI)
Established in 1964 asasubsidiaryofRBI.
Transferred to government of India in 1976.
Head Quarters in Mumbai.
The government holdings in IDBI, after the IPO, is 51.4%.
IDBI has setup institutions like NSE of INDIA, National Securities Depositaries services
limited(NSDSL), & the Stock holding Corporation of India(SHCIL)
Supports State Financial Corporations, SIDC, Commercial Banks
Provide credit for major financial facilities to assist with the industrial development of India.
(Source:http://
www.idbi.com/hindi/pdf/investor/analyst-presentation/IDBI-Investor-Presentation-September-2013-revised.p
df
)
FUNCTIONS
Direct assistance from IDBI:
Helps the industrial sector by granting project loans,
Underwriting of and direct subscription to the industrial
securities (shares and debentures)(E.g. CDS),
Soft loans,
And technical development funds(March 1976 TDF, Fund provides foreign
exchange for import of small value balancing equipment, technical know how, foreign consultancy
services, drawings and designs)
FUNCTIONS
Indirect assistance from IDBI:
Indirect assistance to small and medium enterprises by granting
loans.
It also refinances industrial loans of the IFCI, SFC's((3to25years) , SIDCs, commercial
banks and Co operative Banks(3to 10 years) and RRBs, along with the billing related to the sale of the indigenous
.
machinery)
Bill Finance facility

.
Bills Re discounting Scheme (1965-indegeneous machinery-bills of exchange/promissory note-
indigenous machinery-capital goods-CJSCSP- all machinery and manf industries)
Direct Discounting of Bills Scheme.(1988-Direct Discount- 5yrs track record)
FUNCTIONS
Coordinating functions:
Coordinates the functions of financial institutions such as
ICICI, IFCI, LIC and GIC, with respect to industrial
development.
RESOURCES OF IDBI
Paid up Capital
Reserves
Repayments of Loans
Market Borrowings
Temporary Credit from RBI
Foreign Lines of credit from world bank, Asian Development bank
institute(ADBI) and others.
Raising funds from the international money markets.
(Source Financial Reports)
State Financial
Corporation
Introduction
A Central Industrial Finance corporation was set up under the industrial Finance
corporations Act, 1948 in order to provide medium and long term credit to
industrial undertakings which fall outside normal activities of commercial banks.
The State governments expressed their desire that similar corporations be set up in
states to supplement the work of the Industrial financial corporation.
State governments also expressed that the State corporations be established under
a special statue in order to make it possible to incorporate in the constitutions
necessary provisions in regard to majority control by the government, guaranteed
by the State government in regard to the payment principal.
In order to implement the views Expressed by the State governments the State
Financial Corporation bill was introduced in the Parliament
Financial Resources Of The SFCS
The SFCs mobilize their financial resources from the following sources
1.Their own Share capital
2.Income from investment and repayment of loans
3.Sale of bonds
4.Loans from the IDBI ( To some extent )
5.Borrowings from the Reserve Bank of India
6.Deposits from the Public
7.Loans from State Governments.
Institutions Supporting Small-scale
Industries
CENTRAL
LEVEL
SSI BOARD STATE LEVEL
KVIC DIs
SIDO DICs
NSIC SSIs SFCs
NSTEDB
SIDCs/SIICs
NPC
NISIET SSIDCs
NIESBUD
IIE
EDI
OTHERS
Industry Association
Non Governmental Organizations
R & D Laboratories
State Financial Corporations
(sfcs)
The state-level institutions have played an important role in the development of small and medium
enterprises in their respective states with the main objectives of financing and promoting these
enterprises for achieving balanced regional growth, catalyze investment, generate employment and
widen the ownership base of industry.
With the liberalization drive getting accelerated, SFCs future business is likely to face SFCS
provides a range of financial services that utilizes sound and dynamic investment decisions to select
clients aiming to protect and develop their global wealth.
The State Financial Corporations (sfcs) are state-level financial institutions, operating as regional
development banks playing a crucial role in the development of small and medium enterprises in the
states concerned in tandem with national priorities.
There are 18 sfcs in the country, of which 17 were set up under the sfcs Act 1951.
Tamil Nadu Industrial Investment Corporation Ltd. Established in 1949 under the Companies Act as
Madras Industrial Investment Corporation, also functions as a SFC.
Forms of Assistance
The forms of assistance can be broadly classified into direct assistance and indirect assistance. The basic
feature of direct assistance is that financial institutions provide funds directly to the project, whereas, in
indirect assistance, the financial institutions provide guarantees on behalf of the promoter(s) of the
project.
Direct assistance
Fund based assistance:
In this kind of assistance, term loans are provided in both rupees and in foreign currency. Apart from
this, funds are provided by subscription to the equity shares of the company.
Rupee term loans:
Rupee term loans are extended for site, construction, factory and other buildings; purchase of plant
and machinery, as well as, for technical know how, preliminary and pre-operative expenses, and margin
money for working capital. Generally, the repayment period is five to fifteen years with an initial
moratorium of six months.
Foreign currency term loans:
Institutions provide term loans in foreign currency to fund the acquisition of fixed assets like plant and
machinery, as well as to acquire technical know how from foreign suppliers. Institutions generally ask for a
first charge on the assets financed by them, and on all other fixed assets of the borrower, to secure the loans.
Subscription to Equity Shares:
This form of assistance is available to the project only when institutions are sure that the project is not
able to take any more debt, although the proposed venture is worthwhile. It is often a very small part of the
project cost.
Seed Capital Assistance:
This form of assistance is provided by national financial institutions through the State Finance
Corporations (sfcs) and the State Industrial Development Corporations (sidcs). All borrowers have to submit
their proposals, through their respective sfcs and sidcs. This assistance carries interest as low as one percent,
and can be payable on easy terms, subject to the applicability of certain conditions.
Risk capital assistance:
Risk capital assistance is almost the same as seed capital assistance. It is offered by the IFCI through a
society formed under the Society Registration Act. Loans under this scheme are generally interest free and
range between Rest. 15-40 lakhs, depending on the number of the promoters and the cost of the project.
Indirect
assistance
Deferred Payment Guarantee:
Financial institutions provide this deferred credit facility to the equipment suppliers on behalf of their
clients and charge guarantee commission to the client. Guarantee is provided for the purchase of both
indigenous and imported equipment. Most scheduled banks and co-operative banks provide this facility.
Guarantee for Foreign Currency Loans:

This kind of guarantee is provided to the client as raised term loans from overseas market, directly.
Institutions stand guarantee to the borrower, who is yet to establish him in the overseas market or does not
have high credit standing.
Underwriting:
Institutions usually underwrite the public issue of those clients, who have invested in the project cost,
through term loans.
CONTD
Bill Rediscounting Scheme:
This scheme has been introduced by IDBI to help domestic producers and dealers of capital goods.
Under this scheme, deferred payment facility is available for the purchase of machinery in all
categories forms of businesses such as proprietary concerns, partnerships, private and public
companies, co-operative societies and corporations.
Suppliers Line of Credit:

This scheme has been floated by ICICI to enable domestic manufacturers and dealers increase
their sales by offering deferred credit to their buyers. This scheme is similar to the Bill Rediscounting
Scheme of IDBI.
Equipment Finance Scheme:

This scheme has been offered by the two institutions- IDBI and IFCI. They provide assistance to
existing units to acquire indigenous/imported equipment
CONCLUSION
State financial corporations have not been able to become popular due to poor implementation
and poor investments that they have undertaken.
As they invest in small scale industries the returns will be lower as gestation period for small
scale industries is very long.
Losses are bound occur but as a business and financial organisation the government and
the state must find ways of minimizing their losses and earning a moderate profit which can be
recycled back to promote sfcs .
Business decisions must be taken with a purely business perspective in mind and political,
emotional factors should not play the major factors while making business decisions.
As only then can there and will there exist a difference between what is viable and what is not
Export Import Bank of India
Export-Import Bank of India is the premier export

finance institution of the country, set up in 1982 under
the Export-Import Bank of India Act 1981.
Government of India launched the institution with a
mandate, not just to enhance exports from India, but to
integrate the countrys foreign trade and investment
with the overall economic growth.
Since its inception, Exim Bank of India has been both
a catalyst and a key player in the promotion of cross
border trade and investment.
Export Import Bank of India
Commencing operations as a purveyor of export credit, like

other Export Credit Agencies in the world, EXIM Bank of
India has, over the period, evolved into an institution that
plays a major role in partnering Indian industries,
particularly the Small and Medium Enterprises, in their
globalization efforts, through a wide range of products and
services offered at all stages of the business cycle, starting
from import of technology and export product development
to export production, export marketing, pre-shipment and
post-shipment and overseas investment.
Export Import Bank of India - OBJECTIVES
for providing financial assistance to exporters and

importers, and for functioning as the principal financial
institution for coordinating the working of institutions
engaged in financing export and import of goods and
services with a view to promoting the countrys
international trade.
shall act on business principles with due regard to public

interest : The Export-Import Bank of India Act, 1981
Export Import Bank of India - Genesis
Set up by an act of parliament in September 1981

Wholly owned by Government of India
Commenced operations in March 1982
Apex financial institution
Export Import Bank of India Services
Export Credits
Finance for Export Oriented Units
Overseas Investment Finance
Lines of Credit
SME & Agri Finance
Film Finance
Rural Initiatives
Export Services
1. Export Credits
Exim Bank offers the following Export Credit facilities, which can be
availed of by Indian companies, commercial banks and overseas entities.
For Indian Companies executing contracts overseas
Pre-shipment credit:
Exim Bank's Pre-shipment Credit facility, in Indian Rupees and foreign
currency, provides access to finance at the manufacturing stage - enabling
exporters to purchase raw materials and other inputs. Eg. boe
Supplier's Credit:
This facility enables Indian exporters to extend term credit to importers
(overseas) of eligible goods at the post-shipment stage.
For Project Exporters:
Indian project exporters incur Rupee expenditure while executing
overseas project export contracts i.e. costs of mobilization/acquisition of
materials, personnel and equipment etc. Exim Bank's facility helps them
meet these expenses.
1. Export Credits
For Exporters of Consultancy and Technological Services:
Exim Bank offers a special credit facility to Indian exporters of consultancy and
technology services, so that they can, in turn, extend term credit to overseas
importers.
Guarantee Facilities:
Indian companies can avail of these to furnish requisite guarantees to facilitate
execution of export contracts and import transactions.
For commercial Banks:
Exim Bank offers Rediscounting Facility to commercial banks, enabling them to
rediscount export bills of their SSI customers, with usance not exceeding 90 days.
It also offers Refinance of Supplier's Credit, enabling commercial banks to offer
credit to Indian exporters of eligible goods, who in turn extend them credit over 180
days to importers overseas.
Other Facilities for Indian Companies
Indian companies executing contracts within India, but which are categorized as
Deemed Exports in the Foreign Trade Policy of India or contracts secured under
international competitive bidding or contracts under which payments are received in
foreign currency, can avail of credit under Finance for Deemed Exports facility,
aimed at helping them meet cash flow deficits.
1. Export Credits
For Overseas Entities
Buyer's Credit
Overseas buyers can avail of Buyer's Credit from Exim Bank, for
import of eligible goods from India on deferred payment terms.
Eligible Goods
Capital goods, plant and machinery, industrial manufactures,

consumer durables and any other items eligible for being exported
under the 'Exim Policy' of the Government of India.
2. Finance for Export Oriented Units
Term Finance (For Exporting Companies)

Project Finance
Equipment Finance
Import of Technology & Related Services
Domestic Acquisitions of businesses/companies/brands
Export Product Development/ Research & Development
General Corporate
Working Capital Finance (For Exporting Companies)
Funded
Working Capital Term Loans [< 2 years]
Long Term Working Capital [upto 5 years]
Export Bills Discounting
Export Packing Credit
Cash Flow financing
Non-Funded
Letter of Credit Limits
Guarantee Limits
Working Capital Finance (For Non- Exporting Companies)
Bulk Import of Raw Material
Term Finance (For Non- Exporting Companies)
Import of Equipment
Export Finance
Pre-shipment Credit
Post Shipment Credit
Buyers' Credit
Suppliers' Credit [including deferred payment credit]
Bills Discounting
Export Receivables Financing
Warehousing Finance
Export Lines of Credit (Non-recourse finance)
Equity Participation (In Indian Exporting Companies)
To part finance project expenditure(Project, inter alia, includes new
project/ expansion/ acquisition of business/company/ brands/research
& development)
Note:-
a. Exim Financing is available in Indian Rupees and in Foreign
Currency
b. Term finance, except for long term working capital, is available for
periods up to 10 years [in select cases 15 year finance can also be
made available]
c. Interest: Fixed & Floating options [Benchmarks for floating rates -
LIBOR/G-Sec/MIBOR]
d. Repayments: Amortizing/ Ballooning ..\Additional reading\Ballon
payment.pdf / Bullet [As per cash flows]
3. Overseas Investment Finance
Finance for Indian Company's equity participation in the overseas Joint Venture
(JV)/ Wholly Owned Subsidiary (WOS)
Direct Finance (Term & Working Capital) to the overseas JV / WOS
Finance (for equity/debt component) for acquisition of overseas businesses /
companies including leveraged buy-outs including structured financing options
Direct Equity by Exim Bank in the overseas JV/ WOS of an Indian Company
4. Lines of Credit
Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions,

regional development banks, sovereign governments and other entities overseas,
to enable buyers in those countries, to import goods and services from India on
deferred credit terms.
The Indian exporters can obtain payment of eligible value from Exim Bank,
without recourse to them, against negotiation of shipping documents.
LOC is a financing mechanism that provides a safe mode of non-recourse
financing option to Indian exporters, especially to SMEs, and serves as an
effective market entry tool.
5. SME & Agri Finance
EXIM Bank of India has been endeavoring to provide a suite of

services to its SME clients.
These include providing business leads, handholding during the
process of winning an export contract and thus assisting the generation
of export business on success fee basis, countries/ sector information
dissemination, capacity building in niche areas such as quality, safety,
export marketing, etc. and financial advisory services such as loan
syndication, etc.
5. SME & Agri Finance
Exim Bank has a dedicated Agri Business Group to cater to the financing
needs of export oriented companies dealing in agricultural products.
Financial assistance is provided by way of term loans, pre-shipment/post-
shipment credit, overseas buyers' credit, bulk import finance, guarantees
etc.
Term loans with varying maturities are provided for setting up processing
facilities, expansion, modernization, purchase of equipment, import of
equipment/technology, financing overseas joint ventures and acquisitions
etc.
The Bank has strong linkages with other stakeholders in agri sector such
as Ministry of Food Processing Industries, GoI, NABARD, Agricultural
and Processed Food Products Export Development Authority( APEDA),
Small Farmers' Agri-Business Consortium (SFAC), National Horticultural
Board etc. Apart from financing, the Bank also provides a range of
advisory services to agri exporters.
6. Film Finance
The Bank has till date sanctioned loans more than Rs 33.15
crores for film production. The first three films financed by
Exim Bank have been commercially successful across India
and overseas markets.
Nature of Finance
Cash flow financing for film production

Cash flow financing for film distribution/exhibition in overseas
markets
Term loans for fixed assets finance
Term financing for export market development
Films financed by Exim Bank
Released
Honeymoon Travels Pvt. Ltd.
Kabul Express
Dhoom -2
Don - The Chase Begins Again
Fanaa
Bunty Aur Babli
Salaam Namaste
Veer Zaara
The Rising
Dhoom
Hum Tum
Cheeni Kum
7. Rural Initiatives
Exim Bank, leveraging its presence in both India as well as overseas,

is facilitating linkage between rural grassroot enterprises and
corporates and with overseas buyers and agencies with the objective of
bringing the benefits of globalization to the rural population.
..\Additional reading\EXIM.pdf
INTRODUCTION OF ICICI
Industrial Credit and Investment Corporation of India (ICICI) ,
ICICI Bank is India's second-largest bank
It was incorporated in Baroda on 5th jan1994
Headquarters :- ICICI Bank Ltd., ICICI Bank Towers, Bandra Kurla,
Mumbai, India
Listed on BSE & NSE, NYSE(Non Japanese)
The chairman of the company is Mr. K.V. Kamath MD & CEO: Mrs.Chanda
Kocchar
HISTORY
ICICI was originally promoted in 1994 by ICICI ltd.
ICICIs shareholding in ICICI bank was reduce to 46% through a
public offering of shares in India in 1998.
ICICI was formed 1955 at the initiative of world bank, the government
of India and representative of Indian industry.
ACQUISITIONS
1996: SCICI Ltd. A diversified financial institution with headquarters in Mumbai
1997: ITC Classic Finance. Incorporated in 1986, ITC Classic was a non-bank financial firm that
engaged in hire, purchase, and leasing operations. At the time of being acquired, ITC Classic had eight
offices, 26 outlets, and 700 brokers.
1998: Anagram(ENAGRAM) Finance. Anagram had built up a network of some 50 branches in
Gujarat, Rajasthan, and Maharashtra that were primarily engaged in retail financing of cars and
trucks. It also had some 250,000 depositors.
2001: Bank of Madurai
2002: The Darjeeling and Shimla branches of Grindlays Bank
2005: Investitsionno-Kreditny Bank (IKB), a Russian bank
2007: Sangli Bank. Sangli Bank was a private sector unlisted bank, founded in 1916, and 30% owned
by the Bahte family. Its headquarters were in Sangli in Maharashtra, and it had 198 branches. It had
158 in Maharashtra and 31 in Karnataka, and others in Gujarat, Andhra Pradesh, Tamil Nadu, Goa,
and Delhi. Its branches were relatively evenly split between metropolitan areas and rural or semi-
urban areas.
2010: The Bank of Rajasthan (BOR) was acquired by the ICICI Bank in 2010 for 30 billion. RBI was
critical of BOR's promoters not reducing their holdings in the company. BOR has since been merged
with ICICI Bank.
OBJECTIVES OF ICICI
Broad objectives of the ICICI are:
to assist in the creation, expansion and modernization of

private concerns;
to encourage the participation of internal and external
capital in the private concerns;
to encourage private ownership of industrial investment.
Banking Facilities Available :
Personal Banking
Wealth Management
NRI Banking
Corporate Banking
Business Banking
Personal Banking
Accounts & deposits
1. Dream Deposits
2. Fixed Deposits
3. Recurring Deposits
4. Saving Accounts
5. Privilege Banking
6. Salary Accounts
7. Silver Saving Account(lower locker rental, waiver of DD/PO charges and
SMS alert facility)
8. Special Saving Account
9. Life Plus Senior Citizen Services(Get complete waivers on DD/ PO up to
Rs. 1, 50, 000/ day and Anywhere Banking charges across all ICICI
Bank branches)
10. New Pension System of Government of India
Security Deposits
ICICI Bank Tax-Saver Fixed Deposit
Young Stars
Child Education Plan
Bank@Campus
Advantage Woman Savings Account
EEFC Account(Valuable Banking Facilities for Exporters)
No Frills Account ( maintain without any minimum or
average balance requirement.)
Outward Remittance
Freedom Savings Account(Avail benefits such as Mobile
Banking, Internet Banking, Money Multiplier Facility,
Anywhere Banking)
Family Banking(Bank together and Benefit together)
Loans
1. Home Loans
2. Car Loans
3. Personal Loans
4. Commercial Vehicle Loans
5. Loans Against Securities
6. Loans Against Properties
7. Two-wheelers loans
8. Loans Against Gold Ornaments
9. Construction Equipments
10.Pre-approved Loans
11.Flexicash
12.Online Loans
Cards
Credit Cards
Debit Cards
Prepaid Cards
Corporate Cards
Investments
ICICI Bank Bonds
GOI Bonds
ICICI Bank Pure Gold
Forex Services
Mutual Funds
Initial Public Offerings (IPO)
Senior Citizens Savings Scheme
Application Supported by Blocked Amount
(ASBA)
Home Finance Fixed Deposits
DEMAT
Agri & Rural Banking
Mobile Banking
Internet Banking
Wealth Management
Experts for Every Need
Exclusive Priority Service
Customised Investment Planning
Special Privileges, Just For You

NRI Banking
Money Transfer
Bank Account
Investments
Home Loans
Insurance
Loans Against FDs
Corporate Banking
Commercial Banking
General Banking
Roaming Current Account
Escrow Account
Cash Management Service
Global Trade Service
Corporate Internet Banking
Global Market
Forex Desk
Remittance Through FX Channel
Derivative Desk
Investment Banking
Mergers and Acquisition Advisory
Group
international syndicate Group
Financial Institutions, Capital Markets &
Custodial Services
Business Banking
Current Accounts & Service
Roaming Current Account
Cluster Current Account
Prepaid Current Account
Business Loans
Secured Loans
Business Loans Backed by CGTMSE
Trade Services
Letter Of credit
Bank Guarantee
Export Bill Negotiation
Export Finance
ICICI Allied Services
ICICI Prudential Life Insurance Ltd.
ICICI Lombard General Insurance Ltd.
ICICI Securities Ltd.
ICICI Direct
ICICI Venture
ICICI Foundation
ICICI branches
ICICI branches are open at the
following states:
Assam Himachal Pradesh Meghalaya

Andhra Pradesh Jammu & Kashmir Orissa
Jharkhand Pondicherry
Bihar
Karnataka Punjab
Chandigarh Kerala Rajasthan
Chhattisgarh Madhya Pradesh Tamil nadu
New Delhi Maharashtra
Goa Manipur
Gujarat
Haryana
Global Reach
GROWTH AND DEVELOPMENT
Total assets: Rs. 6,461.29 billion at March 31, 2015

Profit After Tax: Rs. 111.75 billion at March 31, 2015
Branches: 4,050
ATMs:12,921
Subsidiaries: 19 counties
Head Quarter: Mumbai
Life Insurance
What is Life Insurance?
Life Insurance can be termed as an
agreement between the policy owner and
the insurer, where the insurer for a
consideration agrees to pay a sum of
money upon the occurrence of the insured
individual's or individuals' death or other
event, such as terminal illness, critical
illness or maturity of the policy.
3/24/17 96
Reva Institute of Science and Management
History of Life Insurance
Insurance in India can be traced back to the Vedas.
For instance, yogakshema, the name of Life
Insurance Corporation of India's corporate
headquarters, is derived from the Rig Veda.
Bombay Mutual Assurance Society(BMAS), the first

Indian life assurance society, was formed in 1870.
Other companies like Oriental, Bharat

and Empire of India were also set up
in the 1870-90s.
3/24/17 97
By the mid-1950s, there were around 170 insurance
companies and 80 provident fund societies in the country's
life insurance scene. However, in the absence of regulatory
systems, scams and irregularities were prevalent in most of
these companies.
As a result, the government decided to nationalize the life

assurance business in India. The Life Insurance Corporation
of India was set up in 1956 to take over around 250 life
insurance companies.
It was during the swadeshi movement in the early 20th
century that insurance witnessed a big boom in India with
several more companies being set up.
3/24/17 98
For years thereafter, insurance remained a
monopoly of the public sector. The sector was
finally opened up to private players in 2001.
The Insurance Regulatory & Development

Authority, an autonomous insurance regulator set
up in 2000, has extensive powers to oversee the
insurance business and regulate in a manner that
will safeguard the interests of the insured.
3/24/17 99
Why to have a Life Insurance?
Protection
Liquidity
Tax Relief
Money when you need it
3/24/17 100
Types of Life Insurance
I n s u rance licies
L i f e rm p o
Term g / D e c re asing t e
Policy
s in ra n c e
Increa rm A s s u
o n v e r tible Te ra n c e
C fe I n s u
Le v e l T erm Li I n s u r an c e
e

w a b l e term lif
Rene
n s u r a nce
o wm e nt I n
End n d ow m e n t p la
Jo i nt l
if e e
o w m e nt plan
n e y b a c k e nd p la n
Mo m e n t
i a g e e n d ow
M a rr
su ran ce
o l e ) Li fe I n
an e n t (Wh
Perm h o l e lif e
p la n
n
d i n a r yw le l i f e p la
O r e nt w h o
d p a y m
L im it e
3/24/17 e d P ns
laInstitute 101
n k
Unit Li
Reva of Science and Management
Term Life Insurance
Sum assured is payable only in the event of death during the term.
In case of survival, the contract comes to an end at the end of term.
Term Life Insurance can be for period as long as 40 years and as short as 1 year.
No refund of premium
Non-participating policies
Low premium as only death risk is

covered.
3/24/17 102
Types of Term Insurance
Increasing Term Insurance
Life insurance cover under
this plan goes on increasing
periodically over the term in
a predetermined rate. (Riders)
Decreasing Term Insurance

The sum assured decreases with the
term of the policy. Normally decreasing
term assurance plan is taken out for
mortgaged protection, under which
outstanding loan amount decreases
as time passes as also the sum assured.
3/24/17 103
Convertible term assurance policy
Under this plan a policyholder
is entitled to exchange the term
policy for an endowment
insurance or a whole life policy.
Conversion can be done at any

time during the term except last
2 years.
Level Term Life Insurance

The sum assured throughout the term of the policy does not change.
3/24/17 104
Renewable Term Life Insurance
With renewable term insurance, the

insurance companyautomaticallyallows
you to renew your coverage after the term
of the policy is over (generally 5 to 20
years)
3/24/17 105
Endowment Insurance
Endowment insurance plans is an investment oriented plan
which not only pays in the event of death but also in the
event of survival at the end of the term.
Is a contract underwritten by a life insurance company to pay

a Fixed term plus Accumulated profits that are declared
annually.
Premium includes 2 elements

-mortality element & investment element
Minimum age at entry : 12years

Maximum age at entry: 65years
Maximum age at
3/24/17 maturity
Reva Institute of :Science
75yearsand Management 106
Types of Endowment Insurance
Joint Life Endowment Plan:
Under this plan, two lives can be insured under one contract.
The sum assured is payable at the end of the endowment term or death of
either of the two.
Money Back Endowment Plan:
In this plan, there is an additional advantage of receiving a certain amount

of money at periodic intervals during the policy term.
3/24/17 107
Marriage Endowment Plan:
This plan has the specific condition that the sum assured is
payable only after the expiry of the term even if death of the
life assured takes place earlier.
Educational Endowment Plan:
These plans are specially designed to meet educational

expense of children at a future date. If the insured parent dies
before the date of maturity the installment is paid in lump
sum with immediate effect which helps to meet the
educational expenses.
3/24/17 108
Permanent(Whole) Life Insurance
Whole life plans are another type of endowment plan, which
cover death for an indefinite period.
When the policy holder dies, the face value of the policy,
known as a death benefit, is paid to the person or persons
named in the life insurance policy (the beneficiary or
beneficiaries).
It can be with or without profits.
If you cancel the policy after a certain amount of time has

passed, the insurance company will surrender the cash value
to you.
3/24/17 109
Types of Whole Life Insurance
1. Ordinary Whole Life Plan:

.This is a continuous premium payment plan. The
insured pays premium throughout his life. It provides
dual facility of protection plus savings.
2. Limited Payment Whole Life Plan:

.It provides the same benefit as above but premiums
are paid for a limited period. Premiums are sufficiently
higher to cover the risk.
3/24/17 110
Childrens Life Insurance
Since last few years insurance companies have started
offering risk cover plans like limited payment whole life,
and endowment assurance plan from the age of 12years
and money back plan from age of 13 years(completed).
New plans have been specifically designed for children

where the risk of the child starts much earlier say 7 years.
3/24/17 112
Policies on the lives of children are taken
out by other elders. After some time
when the child becomes major and is
competent to contract, the child may
assume the ownership of the policy. The
policy is then said to vest in child.
The date on which this happens is called

the testing date.
The risk begins when the child attains 18

years of age. This is called the deferred
date and the period between the
deferred date and the date of
commencement of policy is called the
deferred period.
3/24/17 113
Unit Linked Plans
It has emerged as one of the fastest
growing insurance products.
It is a combination of an investment
fund( such as mutual fund) and an
insurance policy.
The premium amount is invested in

the stock market and returns better
income on the maturity period.
3/24/17 114
Better for long-term investment option.
ULIPs generally provide higher returns as large

portion of the funds are invested in equities.
There is also flexibility and the assured can choose

levels and extent of cover needed.
There is also option of switching over from one fund

to another if it does not seem to be profitable.
ULIPs can be classified as

Unit linked equities, bonds, real estate & money market
instruments
Equity linked only in equities
Index linked equity, bonds or money market instruments.
3/24/17 115
Policy Claim
Life insurance claim can arise either:
On the maturity of the policy Maturity Claim

On death of the policy holder Death Claim
Survival up to specified period during the term
Survival benefits
3/24/17 116
Maturity Claim
In case of Endowment type of Policies, amount is payable at the end
of the policy period.
Discharge Form & Policy Document
On receipt of these two documents post dated cheque is sent by

post so as to reach the policyholder before the due date
The gross amount consists of Basic sum assured and bonus if any.
3/24/17 117
Survival Claims
Same as maturity claims, sum assured becomes
payable on expiry of full term but on survival of
the insured.
In policies like, money back plan for 15 years

term, 1/4th of the sum assured becomes payable
on the life assured on surviving 5 year, further
1/4th becomes payable after additional 5 years
and rest balance at the end of 15 years.
3/24/17 118
Death Claim
2 Types:
Premature death claim within 3 years
Other claim after 3 years
Intimation of death is to be given by a proper person in writing.

1. Original Policy Bond
2. Death Certificate
3. Proof of relationship with the deceased person
In case of Accidental Death
Postmortern Report, FIR Copy , Final Police Report is also required
3/24/17 119
Exclusions in Accident
Benefits
Suicide or attempted suicide or
intentional self-inflicted injury
Under influence of drugs or alcohol,
narcotics or psychotropic substance
not prescribed by a Medical
Professional.
War, Invasion, Civil War, Riots,
Revolution or any war like operation.
Criminal or unlawful act
Service in the military or police
Flying activity other than as a
paying passenger.
Racing vehicle.
3/24/17 120
Permanent disability benefits
An additional sum equal to the sum assured will be paid
in monthly installments spread over10 years.
Future premiums are waived
Max. limit of additional benefit is 5,00,000 or 10,00,000

depending upon the insurer.
3/24/17 121
Pre-condition for granting such
benefit are:
Disability should be solely and directly as a

result of accidental injury.
Disability must be permanent
Injury and disability must occur before the

insured attains 60 years of age.
3/24/17 122
Tax benefit from Life
Insurance Policies
The Indian Income Tax Act, make buying insurance cheaper
as well as an efficient investment for long term savings.
On Premiums:
Section 80D of the Insurance Act is an effective way for the
salaried person to reduce tax liability through life insurance
policy.
Investments in Life Insurance premium is subject to rebate.
Premium:
Paid by an individual in respect of:
himself/herself,
his/her spouse, and
any of his/her children.

Premium amount paid should not exceed 20%

3/24/17 of the sum
Revaassured.
Institute of Science 123
and Management
Premiums paid for Health Related Riders:
Some of the critical illness, hospitalization cash and other
health related riders attached to a Life Insurance policy may
also be eligible for rebate under section 80D of the
Insurance Act.
This deduction is available to both Individuals & HUF.
Rs.15,000 is the maximum amount deductible during the

year for an individual as well as a senior citizen.
Condition for applicability of deduction is that the premium
3/24/17
must be paid by cheque in the previous year out of the
Reva Institute of Science and Management 124
Death Claims and Maturity Benefits:
Life Insurance Policiesare under anEEE (Exempt-Exempt-
Exempt) regimei.e. that the Premiums Paid, Income earned
by the Investments, and payment of Maturity proceeds or
claim are all exempt E from tax under section 10(10)(D)
of the Income Tax Act.
The only policies that are not eligible for exemption on

payment on maturity or claim are Single Premium Policies
or Policies where the sum assured was less than 5 times
the Premium paid.
3/24/17 Reva Institute of Science 125

and Management
Ratings Of Insurance
Companies In India - Top 5
Companies Market Share Market Share
(2013) (2013)
LIC 64% 74%
ICICI Prudential Life

Insurance Co Ltd 11.8% 8.93%
SBI Life Insurance Co

Ltd 15% 6.99%
Bajaj Allianz Life

Insurance Co Ltd 13.1% 7.36%
Reliance Life Insurance

Co Ltd 9.8% 2.96%
(Source: Insurance review)

3/24/17 Reva Institute of Science and Management 126
How Much Life Insurance
Coverage Should Be Purchased?
The Rule of Thumb is-
Coverage should equal to 6 to 10 times annual
income.
The other Rule is-

Coverage to cover his family consumption need.

Functions of an Actuary in Life
Insurance Business
Main function of an actuary in life insurance is to do
assessment and valuation of mortality risk.
Due to medical advancement now the life span of an

individual can be determined which reduce the uncertainty
of death.
Due to which medical selection by the insurer is

necessary and desirable both on the grounds of actuarial
fairness i.e. charging premiums to different lives on the
3/24/17
basis of their different levels of risk and for financial
Reva Institute of Science and Management 128
Current News in Life
Insurance Sector
Life insurance premium collection down by 22%
- LIC premium collection down by 20.5% and 22 private
life insurance premium down by 25%.
AUM of life insurer cross Rs. 15 lakh crore, due to rise

in renewal premium which means that increasing number
of policy holder are renewing their policies.

GET
INSURED
Thank You
National Industrial Development
Corporation of India
Established on 20th October 1954 by the Central Government
Management of NIDC:
Board of Directors Consisting of 8 members
Chairman and Managing Director
All the appointments are made by the central government.
Source of Funds:
The corporation was set up with the authorized capital of Rs. 1 crore out of which Rs. 10 lakhs
have been issued and paid up by the government which was increased to 50 lakhs by the end of
March 1963.
It can also borrow from the government.
It is also empowered to issue shares and debentures to enlarge its financial base.
National Industrial Development
Corporation of India
National Industrial Development Corporation of India has been
regarded mainly as the instrument to achieve a balanced development
of Industries in the private as well as the public sector.
The NIDC plans and formulates projects for setting up new Industries
or for developing new lines of production.
It undertakes establishment of such undertakings which in the opinion
of the central government would contribute to the industrial
development of the country
Objectives of NIDC
The main objective of the corporation is promotion of
industries rather than granting of finance.
It builds up industrial schemes of its own or collaborates
with the private industry.
It also renders assistance for the modernization of
industries.
Assistance by NIDC
NIDC has established a consultancy in private and public Industrial
sector.
The NIDC has been started for providing assistance to cotton, jute, and
sugar industries for modernization.
In the year 1970 it rendered consultancy services worth Rs. 69 lakhs.
The services of the NIDC are being availed of by Indian and foreign
entrepreneurs as well as by United Nations organization
National Small Industries Corporation
TRADING
NAME NSIC
INDUSTRY Manufacturing, Marketing, Finance, Technology,etc
FOUNDED 1955
HEAD
QUARTERS NSIC Bhavan, Okhla Industrial Estate, Delhi
WEBSITE www.nsic.co.in
NSIC Technical Services Centers/ Branches
Name of the Centre Focus Area
Chennai Leather & Footwear
Howrah General Engineering
Hyderabad Electronics & Computer application
New Delhi Machine Tools and related activities
Rajkot Energy Audit and Energy Conservation activities
Rajpura Domestic Electrical Appliances
Ramnagar Electronics & Computer Hardware and application
National Small Industries Corporation
NSIC was established in 1955 to promote and develop micro and

small scale industries and enterprises in post independent INDIA.
It was decided to establish a government agency which can mediate
and provide help to small scale industries
It was originally founded as a government of INDIA agency later
made into a fully owned government corporation
OBJECTIVES OF NSIC
To promote small and budding entrepreneurs of post independent
INDIA
To provide machinery on hire purchase basis and marketing in exports.
FUNCTIONS OF NSIC
NSIC enables SSIs by providing facility of free participation in government
tendered purchases.
Provides assistance for modernizing the small industries.
NSIC helps in organizing supply of raw materials like coal, iron, steel, other
materials and machines needed by small scale private industries by mediating
with government companies like Coal India Ltd, SAIL, Hindustan copper
Limited.
NSIC provides assistance to SSIs by taking orders from GOCCs and procures
these machineries from SSI units registered with them.
It helps SSIs by mediating with the government owned banks to provide cheap
finance and loans to budding small private industries of INDIA.
FUNCTIONS OF NSIC
It provides assistance by setting up incubation centers in other
continents and also international technology fairs to provide aspiring
entrepreneurs and emerging enterprises a platform to,
Develop Skills,
Identify appropriate technology,
Provide hands on experience on the working projects,
Manage funds through banks,
Practical knowledge on how to set up an enterprise.
FUNCTIONS OF NSIC
Thus NSIC provides a complete assistance right from financing,
training, providing raw materials for manufacturing and marketing of
finished products of small scale industries,
Which would otherwise not be able to survive in the face of
competition from large and big business conglomerates.
MSME DEFEXPO 2015
MSME DEFEXPO 2015 scheduled during December 10 12, 2015
at Bengaluru is a prestigious MSME Sub-contracting & Supply
Exhibition for Defence, Aerospace and Homeland Security. It aims
to be a platform for finding right partners, subcontracting
opportunities and forging alliances. This 3-day intensive
interaction of MSMEs for business development with the leaders of
defence and aerospace industry supply-chain together with
industry partners, suppliers and technologists provides a setting
that cannot be missed.
Techmart India 2015
Techmart India 2015
To discover new market opportunities and technologies through

organized meetings with potential customers and suppliers from
India and abroad.
To exhibit the capabilities and export potential of Indian MSMEs as
well as their goods & services.
To forge closer linkages and networking amongst MSMEs, through
exchange and sharing of experiences as well as know-how on best
business practices and strategies.
Techmart India is always visited by dignitaries and decision makers
from the Govt. and the industry from more than 40 developing
countries.
Tried & tested platform for business transactions.

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II.1What are Financial Institutions ?

Financial intermediaries are firms that collect the funds

Financial intermediaries are firms whose primary

Organized Sector Unorganized Sector

Money Lenders Indigenous Bankers Pawn Brokers Traders & Landlords

Capital Market Institutions Money Market Institutions

RBI Com Banks Co-op Banks P.O. SB Govt(T-Bills)

Hire Purchase Cos Leasing Cos Investment Cos Finance Cos

Capital Market Institutions:

Money Market Institutions:

National Savings Certificates, popularly known as NSC, is an Indian

A Provident fund is a form of social safety net into which workersmustcontributea

A Bank that offers services to the general public and to companies.

Cooperative banking is retail and commercial banking organized on

Post offices operated or continue to operate postal savings systems to

At the time of independence in 1947, India's capital market was relatively

I. Project finance: The product range includes following credit products:

II. Nodal agency for Sugar Development Fund

As a nodal agency, IFCI undertakes loan documentation, creation

III. Corporate advisory services:

Bill Finance facility

Guarantee for Foreign Currency Loans:

Suppliers Line of Credit:

Equipment Finance Scheme:

Export-Import Bank of India is the premier export

Commencing operations as a purveyor of export credit, like

for providing financial assistance to exporters and

shall act on business principles with due regard to public

Set up by an act of parliament in September 1981

Capital goods, plant and machinery, industrial manufactures,

Term Finance (For Exporting Companies)

Exim Bank extends Lines of Credit (LOCs) to overseas financial institutions,

EXIM Bank of India has been endeavoring to provide a suite of

Cash flow financing for film production

Exim Bank, leveraging its presence in both India as well as overseas,

to assist in the creation, expansion and modernization of

Exclusive Priority Service

Customised Investment Planning

Special Privileges, Just For You

ICICI Lombard General Insurance Ltd.

ICICI Securities Ltd.

Assam Himachal Pradesh Meghalaya

Total assets: Rs. 6,461.29 billion at March 31, 2015

Bombay Mutual Assurance Society(BMAS), the first

Other companies like Oriental, Bharat

As a result, the government decided to nationalize the life

The Insurance Regulatory & Development

In case of survival, the contract comes to an end at the end of term.

Low premium as only death risk is

Decreasing Term Insurance

Conversion can be done at any

Level Term Life Insurance

With renewable term insurance, the

Is a contract underwritten by a life insurance company to pay

Premium includes 2 elements

Minimum age at entry : 12years

Joint Life Endowment Plan:

Money Back Endowment Plan:

In this plan, there is an additional advantage of receiving a certain amount

Educational Endowment Plan:

These plans are specially designed to meet educational

It can be with or without profits.

If you cancel the policy after a certain amount of time has

1. Ordinary Whole Life Plan: