DEVELOPMENTAL BANKING

INSTITUTIONS
Course Code: MBAD16F33B4
MBA III - Section E ,ODD Semester
Prof. Siju Nair
Introduction

What are developmental banking Institutions ?

Development banks are those which have been set up mainly to provide
infrastructure facilities for the industrial growth of the country. They
provide financial assistance for both public and private sector
industries.
ie. it finances for any sort of developmental activities like agricultural,
infrastructure.
WHY ? If a country level development has to be taken up, then small
banks cannot do it. It can be done only by DBI.
Example: NABARD,MUDRA(National level),WORLD BANK,ADB,
AIIB(International level), SIDBI(state level)
Introduction continued…
When it started ?The recommendation to start development banks had
come in 1931(during great depression) from BEC(banking enquiry
committee). Nothing happened though as government didn't act. In
1949, RBI did a detailed study (recommended to start national and state
level DBI immediately) and started IFCI(Industrial finance corporation of
India).
Subsequently in 1995, ICICI was established. In 1958 ,RCI (refinance
corporation of India) was established with RBI,LIC and commercial
banks holding shares.
Then in 1964, the mother of all developmental banks came into picture
ie IDBI.RCI also got merged with IDBI.IDBI's role is very important(like
developing NSE/NSDL/SIDBI etc. Subsequently IDBI's ownership was
transferred to government. In 1982, NABARD and EXIM bank was also
established.
 Objectives of DBI’s
1. to promote industrial growth,
2. to develop backward areas,
3. to create more employment opportunities,
4. to generate more exports and encourage import substitution,
5. to encourage modernization and improvement in technology,
6. to promote more self employment projects,
7. to revive sick units,
8. to improve the management of large industries by providing training,
9. to remove regional disparities or regional imbalance,
10. to promote science and technology in new areas by providing risk
capital,
11. to improve capital market in the country.
Developmental banks in India
Working capital requirements are provided by commercial banks, indigenous
bankers, co-operative banks, money lenders, etc. The money market provides
short-term funds which mean working capital requirements.
The long term requirements of business concerns are provided by industrial
banks, and the various long term lending institutions which are created by
government. In India these long term lending institutions are collectively
referred as development banks. They are:
Industrial Finance Corporation of India (IFCI), 1948
Industrial Credit and Investment Corporation of India (ICICI), 1955
Industrial Development of Bank of India (IDBI), 1964
State Finance Corporation (SFC), 1951
Small Industries Development Bank of India (SIDBI), 1990
Export Import Bank (EXIM)
Small Industries Development Corporation (SIDCO)
National Bank for Agriculture and Rural Development (NABARD).
Commercial banks Vs Developmental
banks
COMMERCIAL BANKS DEVELOPMENT BANKS
Provide short term loans. Provide long term loans.
Accept deposits from commercial banks, Central and State
Accept deposits from the public. governments.
Direct finance to customers. Provide refinancing facilities to commercial banks.
Play an important role in hire purchase, lease finance, housing
Plays an important role in the money market. loan.

Public sector banks have their share capital

contributed by the government while private sector
banks have share capital contributed by the public. Central and Statement governments contribute capital.
Promote savings among the public and help
commercial activities. They promote economic growth of the country.
Financial Intermediaries

What?
Financial intermediaries serve as a middleman between saver and borrower.

Examples:
Commercial banks,Regional rural banks (RRB),Cooperative banks/ societies,
Development banks and All India finance institutions (IDBI, NABARD, SIDBI, NHB
etc.),Pension/provident funds (NPS, EPFO etc.),Mutual funds (UTI and private
sector mutual funds),Insurance companies (LIC, GIC etc.),Non banking financial
companies (NBFC, eg. Mannapuram gold loans, Muthoot finance)
Functions of Financial Intermediaries
• Facilitation of flow of funds.
• Efficient allocation of funds.
• Assistance in price discovery.
• Enhanced liquidity for lender.
• Price risk lessened for the ultimate lender
• Economies of scale.
• Payments system.
• Risk alleviation.
• Monetary policy function.
Small scale industries

Definition:
Small-scale sector is defined in terms of investment ceilings on the
original value of the installed plant and machinery. But in the earlier
times the definition was based on employment. In the Indian context,
the parameter are as follows:
The Fiscal Commission, Government of India, New Delhi, 1950, for the
first time defined a small-scale industry as, one which is operated
mainly with hired labour usually 10 to 50 hands. The Small Scale
Industries Board in 1955 defined, "Small-scale industry as a unit
employing less than50 employees if using power and less than 100
employees if not using power and with a capital asset not exceeding Rs.
5 lakhs"
 Role of Small Scale Industries in
Indian Economy
1. SSI’s provides employment
2.Facilitates women’s growth
3.Brings balanced regional development
4.Helps mobilization of local resources
5.Paves for optimization of capital
6.Promotes exports
7.Complements large scale industries
8.Meets consumer demands
9.Ensures social advantage
10.Develops entrepreneurship
Micro, Small and Medium
Enterprises
The Government of India has enacted the Micro, Small and Medium
Enterprises Development (MSMED) Act, 2006 in terms of which the
definition of micro, small and medium enterprises is as under:
Enterprises engaged in the manufacture or production, processing or
preservation of goods as specified below:
◦ A micro enterprise is an enterprise where investment in plant and machinery
does not exceed Rs. 25 lakh;
◦ A small enterprise is an enterprise where the investment in plant and
machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore;
◦ A medium enterprise is an enterprise where the investment in plant and
machinery is more than Rs.5 crore but does not exceed Rs.10 crore.

Service Enterprises – Investment in Equipments

Micro Enterprises : upto Rs. 10Lakh
Small Enterprises : above Rs. 10 Lakh & upto Rs. 2 Crore
Medium Enterprises : above 2 cr and upto 5 crore
Role of MSME
In the Indian context SMEs can be considered as the backbone of
national economy and as a significant solution for our development
issues as they:
Provide resilience in the economy and foster an entrepreneurial culture
Creates more jobs
Contributes to export
Reduces poverty
Provide more employment at lesser capital costs compared to large
enterprises.
Reduces inequalities in the economy by contributing in distribution of
wealth
Facilitate learning across the sectors as well as geographically
SIDBI

SIDBI, a wholly owned subsidiary of Industrial Development Bank of

India, was established in April 1990 as the principal financial institution
for promotion, financing and development of SSI sector, under an Act of
Parliament namely the SIDBI Act, 1989.
SIDBI also co-ordinates the functions of other financial institutions
engaged in similar kind of activities and, therefore, it has been receiving
special attention in Central and State governments policies
The Bank has been rated as one ofthe top 25 Development Banks ofthe
world by ‘The Banker’, London.

Video : SIDBI
SIDBI - Objectives

SIBDI’s statue provides that it should serve as the principal financial

institution for:
- promoting,
- financing,
- developing the industries in the small-scale sector, and
- co-ordinating the functions of the other institutions engaged in similar
activities
SIDBI - Functions

The major functions of SIDBI include :

1. Refinancing of loans and advances (extended by PLIs);
2. Discounting and rediscounting of bills;
3. Extending seed capital / soft loan assistance under National Equity
Fund, Seed Capital under Mahila Udyam Nidhi Scheme;
4. Direct assistance and refinance for financing exports of SSI sector;
5. Providing factoring and leasing services;
6. Extending financial support to SSIDC and NSIC
SIDBI 2.0

An Integrated Approach to Development of MSE’s

SIDBI Vision 2.0 is a strategic initiative by SIDBI aimed at further
accelerating this effort by transforming its current role to that of an All
India Financial Institution that can create an integrated credit and
development support ecosystem for Indian MSEs, thus promoting their
inclusive growth.
The initiative is dedicated to meet both, credit and non-credit needs of
MSEs, enabling them to be globally competitive businesses. The SIDBI
2.0 is designed to bring about sustainable development of MSE sector in
India, based on the Triple Ps front, namely – Profit (economic), People
(Social) & Planet (Environment).
Associate and subsidiary Institutions
established under SIDBI:
Some of these are independent SIDBI initiatives, there are others that
have been formed through alliances with several state and international
entities, all driven by a single point focus to create value, accelerate
growth and generate maximum financial, social and environmental
benefits to all stakeholders involved.
1)MUDRA - Micro Units Development & Refinance Agency Ltd
2) SVCL - SIDBI Venture Capital Limited
3)CGTMSE - Credit Guarantee Scheme (CGS) for Micro and Small
Enterprises (MSEs)
4)RXIL - Receivables Exchange of India Ltd
5)ACUITE -ACUITE Ratings & Research Ltd.
6)ISARC -India SME Asset Reconstruction Company ltd
7)ISTSL -India SME Technology Services Limited
Associate and subsidiary Institutions
established under SIDBI:
SIDBI – Products and services
Start-ups lifecycle along with SIDBI’s interventions
SIDBI – Products and services

( A) For Nurturing startups:

1)Fund of Funds for Start-ups
2) Aspire Fund -A Scheme for Promotion of Innovation, Rural Industry
and Entrepreneurship [ASPIRE FUND]
3) India Aspiration Fund
4) SIDBI Startup Mitra
5) Incubation Centres
6) TIFAC-SRIJAN Scheme
SIDBI – Products and services

(B) Helping MSME's:

1) Financial assitance:- Assistance through Banks, NBFCs, SFBs -
Assistance to NBFCs, Micro and Small Enterprises Refinance Scheme
(MSERS), Assistance to Small Finance Banks (SFBs) ,SMILE,Equipment
Finance Scheme under SMILE (SEF),Receivable Finance Scheme
2) Service Sector Financing
3)Financing Schemes for Sustainable Development
4) Government Sponsored Schemes
5)Other Schemes
SIDBI – Products and services

(c)Structural Interventions
The launch of CRiSidEx, a MSE Sentiment Index, and MSME PULSE, a quarterly
report tracking the health of MSMEs, are the recent structural interventions in
this direction. While CriSidEx is aimed at tapping MSME sentiments i.e. their
expectations and aspirations on periodical basis, MSME PULSE aims to be a
‘Periodical health tracker’ of MSME segment and convert the pains, if any, into
gains.
1) CriSidEx - The MSE sentiment index

2) MSME Pulse
SIDBI – Products and services

(D)Nurturing Microfinance
1) SIDBI Foundation for Micro Credit
2) Developing MFIs
3) India Microfinance Equity Fund
4) PSIG Programme
MICROFINANCE
Meaning :-
“Microfinance is the provision of a broad range of financial services such
as deposits, loans, payment services, money transfers and insurance to
the poor and low income households and their micro-enterprises.”

Microfinance is defined as “Financial Services (savings, insurance, fund,

credit etc.)

It is provided to poor and low income clients so as to help them raise

their income thereby improving their standard of living”.

Video: Grameen Bank

Microfinance -Purpose

The purpose of microfinance is to assist low-income people who have

the enthusiasm to make their lives better.
It provides the right amount of capital to low-income people to start a
new small business activity or to finance their child’s education or to
buy a small piece of land for carrying out agricultural operations.
Microfinance not only supports an individual in starting something new
to earn better, it also helps in sustaining their income to have a decent
standard of living throughout their life.
How does Microfinance Work in India?
Overview :
Both banks and non-banking financial corporations (NBFCs) offer microfinance
in India. There are also microfinance institutions in the country that are
exclusively dedicated to offering microfinance to people. Microfinance
institutions aim at getting people out of poverty and improving poor people’s
financial conditions. Microfinance institutions target poor people who are
unemployed, who are or want to be entrepreneurs, and who are into farming.
Microfinance is usually procured by loan applicants through 3 modules and they
include:
1) Through banks, non-banking financial corporations, and microfinance
institutions.
2) By establishing good relations with banks or other financial institutions.
3) By getting together as a group with a common goal of obtaining finance to
create and develop new small business ventures or to make a living.
List of Microfinance Institutions in India

In our country, there are a number of institutions that offer

microfinance exclusively. We will take a look at only a few select
microfinance institutions in the country:
Annapurna Microfinance Pvt Ltd
BSS Microfinance Pvt Ltd
Asirvad Microfinance Pvt Ltd
Disha Microfin Pvt Ltd
Fusion Microfinance Pvt Ltd
Arohan Financial Services Pvt Ltd
Cashpor Micro Credit

Assignment – list of all microfinance institutions in India

The Need for Microfinance in India
When an individual belonging to an underprivileged section of the
society borrows microfinance from a bank or an NBFC, he or she can
make use of the funds for being financially independent. It can help the
borrower to be involved in a variety of activities that he or she could not
have done without the microfinancing.
Many poor adults in the country may not have had sufficient funds
during the early stages of their lives to be educated. Hence, they tend to
miss out on the various employment options that are offered to
educated people. Therefore, many of them remain unemployed.
There is another category of poor adults who are not educated, but are
involved in unskilled labour. Unskilled labour refers to working in the
segment that requires limited skills and that offers low wages to the
labourers. Unskilled labourers have limited qualification such as high
school or diploma or no qualification. Unskilled labour can include
construction work, domestic help, security work, laundry, etc.
The Need for Microfinance in India

There is also a category of individuals who live in rural areas and semi-
urban areas who are dedicated to farming. They are agriculturists and
many of them earn very low incomes. Many of these farmers do not
earn enough money for the hard work they put in. They do not have
adequate funds to buy a land for sowing crops. They have to rely on rich
landlords for renting land and they are forced to pay the little money
that they make, to the landlords.
There are also many people who are originally from rural India who
move to urban areas for alternative sources of employment apart from
agriculture. They get into fields such as cooking, construction,
restaurants, housekeeping, etc. and earn low incomes
Features of Microfinance
Microfinance is typically offered to anyone who does not have a stable
source of income due to unemployment.
It is also given to anyone who does not have a proper credit history that
can be verified.
Microfinance typically does not require loan applicants to submit any
collateral while applying for the loan. These loans are usually unsecured
in nature.
Microfinancing promotes simplified and small savings among poor
people. It encourages them to build their funds step-by-step.
Microfinancing offers repeat loans to applicants. A repeat loan is always
offered to someone who has already borrowed and shown their
capability in repaying it on time.
Microfinance also intends to assist to individuals in securing good
medical treatment when they have health issues.
Features of Microfinance
Generally, microfinance institutions approach clients instead of waiting
for clients to approach them. They want impoverished people to be
aware that there are inexpensive forms of financing.
Microfinance institutions have easy and quick loan application
processes.
The interest rate for microfinance is very low.
When a micro loan is offered, the lender does not ask the applicant for
the purpose of lending. The loan can be utilised for any purpose.
Microfinance helps in creating more and more jobs.
Microfinance institutions aim to eliminate interest rate ceilings as they
believe that these ceilings can restrict poor people from securing
finance.
Microfinance focuses on offering financial transparency by offering
loans to individuals without any hidden costs or fees or charges.
.
Different Microfinance Models in India

The main six categories of microfinance models that are followed in

India include:
1. Self-help group model : A self-help group (SHG) is described as a group of 5 to 20
individuals who belong to the low-income class. Each group member typically contributes
funds from their own savings and then this money is pooled in together. These funds are
then utilised to support their common goal of improving their lifestyles and to make
themselves financially secure.
In the self-help group model for microfinance, the members of the group are encouraged
to meet on a regular basis to discuss their savings, new developments, and credit
operations. The members can also plan future activities for achieving their big goals step
by step.
Different Microfinance Models in India
2. Grameen model : The Grameen model to distribute microfinance
originated in Bangladesh. A few of the institutions that acquired the principles
of the Grameen model in India are CASHPOR Financial and Technical Services
Limited, SHARE Microfinance Limited, Activists for Social Alternatives (ASA).
This particular model believes in providing a mandatory training course to the
group members for at least 7 days. The model will offer microfinance to an
applicant without asking for any collateral at low costs. The loan application
process has minimum or zero paperwork and is processed very quickly keeping
in mind the urgency for funds.
Some groups that apply the Grameen model have a Group Recognition Test
(GRT) that refers to a screening process to divide group members into serious
and non-serious groups. Every member must compulsorily save some money
every week. This model is very particular about group discipline. This is
generally achieved with the help of peer pressure. Each group member
motivates the other to be very careful with the money that they borrow from
their lender. Under this model, a loan typically ranges from Rs.4,000 to
Rs.10,000.
Different Microfinance Models in India

3. Co-operative credit union model

These organisations apply the co-operative model to offer microfinance in rural areas. The
Cooperative Development Forum (CDF), Hyderabad has applied the co-operative credit
union model successfully by giving primary importance to savings. The main entities in the
CDF are women’s or men’s thrift co-operatives (WTCs and MTCs). They have small groups
of individuals wherein each group has a particular leader who heads group meetings,
accumulates the savings of each group member, and looks into the repayment of loans.
The group leader is responsible for making sure all small loans are repaid promptly by
each member.
The Cooperative Development Forum (CDF), Hyderabad began functioning with units of
small size. Soon, they started to create larger units in order to increase the impact. The
CDF encourages members to focus more on their thrift cooperatives instead of the group
goals. Each group’s size can differ. This will depend on the group leader’s ability and the
leader will be appointed according to the votes of group members.
Different Microfinance Models in India

4. Federated self-help groups (SHGs) or SHG Federation model

A federated self-help group refers to a large scale self-help group with a
large number of members. It is a federation of multiple self-help groups.
A federation of self-help groups will have around 1000 to 2000
members whereas a single self-help group will have only up to 20
members.
A federated self-help group model has a very interesting arrangement
where there are 3 levels. The main and basic level is the self-help group.
The middle level in this arrangement is a cluster. The highest unit in this
arrangement is a top body that indicates the complete self-help group.
Different Microfinance Models in India

5. Rotating Savings and Credit Associations (ROSCAs) model

Under this model, funds are offered to groups of individuals through
unconventional means. The members of such associations include individuals
who have certain common features such as ethnicity, community, language,
professions, occupations, etc. These members contribute funds on a regular
basis and utilise them for attaining a common goal.
The whole model works according to a systematic way where every member
receives funds within a particular time frame and he or she is required to repay
it before the deadline. After this member, another member will start the whole
micro loan process. It functions in the form of a cycle. Unless one member
completes the repayment cycle on time, a new member cannot procure a loan.
Hence, with the help of peer pressure and efficient monitoring skills from the
association’s leaders, each member will make sure that the loan is repaid
promptly without any delay. Due to fear if the loan cycle will stop because of
any one person, every member ensures that each loan is repaid on time.
Different Microfinance Models in India
6. Microfinance companies
In India, microfinance companies can be registered as a non-banking financial company
(NBFC) under Companies Act or Reserve Bank of India (RBI). An NBFC engages in
accumulating funds and using them for offering credit and other financial services to other
people. An NBFC generally provides personal loans car loans, two-wheeler loans, crop
loans, agricultural loans, and lots more. Non-banking financial companies can offer both
regular loans as well as micro loans to the less fortunate people of the society. These
NBFCs can be regulated by the Reserve Bank of India (RBI) or the Companies Act.
Microfinance companies function as separate legal entities that offer microfinance to the
needy. Nowadays, microfinance companies are not seen as organisations that are only
involved in social service. They are seen as proper business entities that work towards
offering concrete financial solutions to the impoverished people of the society. These
companies hold that the poor people do not need charity but ways to be financially
independent. They are committed to improving the socio-economic situation of the poor
individuals of the society.
Microfinance companies can be non-profit organisations, profit organisations, or mutual
benefit institutions. Non-profit organisations work solely for empowering the needy by
concentrating on their economic and societal conditions. Profit organisations work by
registering themselves as an investment trust, an association of persons, or a company
that will be a bank or an NBFC. Mutual benefit institutions function for the purpose of
helping only its members.
Example of how Micro Finance
helps
UNIT 2
Agricultural Banking

Agricultural banks :A bank that lends money to farmers, often over a long period of
time and at low rates of interest.
Agricultural Financing :“an economic study of borrowing funds by farmers, the
organization and operation of farm lending agencies and of society‟s interest in credit for
agriculture.”

Importance : Finance in agriculture is as important as other inputs being used in

agricultural production. Technical inputs can be purchased and used by farmer only if he
has money (funds). But his own money is always inadequate and he needs outside finance
or credit. Agricultural finance capitalizes farmers to undertake new investments and/or
adopt new technologies. The importance of agricultural credit is further reinforced by the
unique role of Indian agriculture in the macroeconomic framework along with its
significant role in poverty alleviation.
NABARD- National bank for
Agriculture and Rural Development

Origin :NABARD came into existence on 12 July 1982 by transferring the agricultural
credit functions of RBI and refinance functions of the then Agricultural Refinance and
Development Corporation (ARDC).
It was dedicated to the service of the nation by the late Prime Minister Smt. Indira Gandhi
on 05 November 1982. Set up with an initial capital of Rs.100 crore, its’ paid up capital
stood at Rs.10,580 crore as on 31 March 2018.
Consequent to the revision in the composition of share capital between Government of
India and RBI, NABARD today is fully owned by Government of India.
VISION
Development Bank of the Nation for Fostering Rural Prosperity.
MISSION
Promote sustainable and equitable agriculture and rural development through
participative financial and non-financial interventions, innovations, technology and
institutional development for securing prosperity.
Products and Functions
DIRECT FINANCE:
Loans for Food Parks and Food Processing Units in Designated Food Parks
Loans to Warehouses, Cold Storage and Cold Chain Infrastructure
Credit Facilities to Marketing Federations
Rural Infrastructure Development Fund
Direct Refinance Assistance to Co-operative Banks
Financing and supporting Producer Organisations
Alternative Investment Funds (AIFs)
Long Term Irrigation Fund
Pradhan Mantri Aawas Yojana - Grameen (PMAY-G)

REFINANCE:
Short Term Refinance
Long Term Refinance
Functions of NABARD
Credit Policy and refinance:

Apex financing agency for the institutions providing investment and production credit developmental
activities in rural and agriculture development

Frame policy for rural finance, monitor the flow of ground level rural credit

Prepare ACP (Annual Credit Plan) for all districts to identify the credit potential

Refinances the financial institutions which finances the rural

Development Functions:

Coordinate between Sate Governments and banks to prepare credit deployment actions plans

Training to cooperative banks, commercial banks and RRBs, financial assistance to cooperative banks
for computerization and modernization

Supervisory Functions:

Inspect RRBs and Cooperative Banks (other than urban/primary cooperative banks)

Recommend to RBI for issue of licenses to Cooperative Banks, and for opening of new branches of RRBs

Video : NABARD
Infrastructure Development
IDFC -Infrastructure Development
Finance Company
IDFC was incorporated on 30 January 1997 with its registered office in Chennai and started operations on 9 June 1997. In 1998 the
company registered with the Reserve Bank of India (RBI) as a non-banking financial company and in 1999 it formally became a
Public Financial Institution.

In 2002, the company incorporated IDFC Asset Management Company Ltd as a subsidiary company and Uttaranchal Infrastructure
Development Company Ltd, a joint venture with the Government of Uttarakhand. In 2003 it became an investor in and sponsor of
the India Development Fund.

In August 2005 the company's equity shares were listed at the National Stock Exchange of India (NSE) and Bombay Stock
Exchange(BSE) after an initial public offering.

In January 2009, IDFC Projects Ltd signed a Memorandum of Understanding with Gujarat State Energy Company Ltd and Bharat
Heavy Electricals Ltd (BHEL) to establish a 1600 MW Thermal Power plant at Sarkhadi based on supercritical technology. During the
year 2010-11, Jetpur Somnath Highway Ltd (earlier known as IDFC Capital Company Ltd and a direct subsidiary of IDFC) became a
subsidiary of IDFC Projects Ltd. A company under the name of Jetpur Somnath Tollways Ltd was incorporated as a Subsidiary of
IDFC Projects Ltd. IDFC Projects, along with the other companies, further floated Dheeru Powergen Ltd, which was converted
from Private Limited Company to a Public Limited Company. IDFC Asset Management Company Ltd further floated IDFC Pension
Fund Management Ltd, one of the Pension Fund Managers appointed by the Pension Fund Regulatory and Development Authority
(PFRDA) to manage retirement funds under the New Pension Scheme (NPS) open to individuals in the private sector, and IDFC
Investment Advisors Ltd. A company under the name of IDFC Investment Managers (Mauritius) Ltd has been incorporated as a
Subsidiary of IDFC Asset Management Company Ltd.

company of IDFC Securities Ltd.

April 2, 2014: RBI grants in-principle approval to IDFC to set up banks. The in-principle approval will be valid for 18 months. RBI gets
green signal to issue bank licences.

June 24, 2015;RBI officially granted a banking licence to IDFC

IDFC Bank started operating banking services on 1 October 2015.[2

IL & FS- Infrastructure Leasing and
Financial Services Limited
Infrastructure Leasing & Financial Services Limited is one of India's leading
infrastructure development and finance companies. Its central mandate is
catalysing the development of innovative world-class infrastructure in the
country.
Widely acknowledged as the pioneer of Public Private Partnership (PPP) in India,
the IL&FS Group has, through a variety of projects, benchmarked the private
sector’s role in and commitment towards infrastructure development in India.
IL&FS was incorporated in 1987, initially promoted by the Central Bank of
India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit
Trust of India (UTI). Over the years, we have broad-based our shareholding and
inducted institutional shareholders including State Bank of India, Life Insurance
Corporation of India, ORIX Corporation Japan, and Abu Dhabi Investment
Authority (ADIA).
Its international presence includes offices in Singapore, Spain, London and
Dubai, as well as strong network partners in the USA, Tokyo, Philippines and
Abu Dhabi.