DEVELOPMENT BANKS

DEVELOPMENT BANKS

MAMTA
HARSITA
KULDEEP
LOVELESH
HARIKESH

WHAT IS DEVELOPMENT
BANKS
A Development Bank is a polygonal development
finance institution devoted to improving the social
and monetary development of its associate nations.
Its main emphasis is the welfare of the people. For
example the Asian Development Bank's overarching
goal is to decrease poverty in Asia and the Pacific.
 It helps improve the value of people's lives by
providing loans and scientific support for a broad
variety of development activities.

OBJECTIVES

Lay Foundations for Industrialization

Meet Capital Needs

Need for Promotional Activities

Help Small and Medium Sectors'

FUNCTIONS
 Financial Gap Fillers

 Undertake Entrepreneurial Role

 Joint Finance

 Refinance Facility

 Credit Guarantee

 Underwriting of Securities

Role of development banks
in financial system

FUNCTIONS OF A
DEVELOPMENT BANK
 Increase loans and equity investments to its
developing associate countries (DMCs) for their
monetary and social development.
 Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
 Promotes and facilitates speculation of public and
private capital for growth and development.
 Responds to requests for assistance in coordinating
growth policies and plans of its increasing member
countries.

IFCI
The government of india set up the industrial
finance corporation of india in july 1948
Management of IFCI
12 directors
4 are nominated by the IDBI

OBJECTIVES OF IFCI
Promoted by new enterpreneurs
Based on indegenous technology
Which would result in substitution of imports
Providing input for incresing agricultural
products

OPERATIONAL ACTIVITIES
Concessional finance to projects in less
development areas
Concessional finance for renewable energy
systems
Power of attorney scheme
Bridging loans
Sub loans in foreign currencies

IDBI
The Industrial Development Bank of India (IDBI) was
established on 1 July 1964 under an Act of Parliament
as a wholly owned subsidiary of the Reserve Bank of
India.
In 16 February 1976, the ownership of IDBI was
transferred to the Government of India and it was
made the principal financial institution for
coordinating the activities of institutions engaged in
financing, promoting and developing industry in the
country.

THE PRINCIPAL SOURCE OF FUNDS
OF IDBI
Share capital and reserves
Borrowing from government of india and RBI
Market borrowing by way of bonds
Deposits and other borrowings
Repayment of past assitance by borrowers
Foreign currency borrowings from worid
banks
Asian development banks and international
markets

OBJECTIVES and FUNCTIONS

Planning,promoting,developing industries
• Co-ordinating the working in institutions
engaged in financing
• Undertaking market and investment
research
• Providing technical and administrative
assitance
• Subsidiaries

Operational Activities
Direct Assistance
Indirect Assistance
Refinance Schemes
Refinance Scheme for industrial
rehabilitation
Automatic Refinance Scheme
Refinance Scheme for modernisation
Bills Rediscounting Scheme

contd.
Soft loan scheme for modernisation

Seed capital assitance scheme

SFCs special share capital schemes

Development assistance fund(DAF)

ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) Bank Ltd.
ICICI is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra.
It is the second largest bank in India by assets and third
largest by market capitalization. It offers a wide range of
banking products and financial services to corporate and
retail customers through a variety of delivery channels and
through its specialized subsidiaries in the areas of investment
banking, life and non-life insurance, venture capital and asset
management.
The Bank has a network of 2,630 branches and 8,003 ATM's in
India, and has a presence in 19 countries, including India.

OBJECTIVES OF ICICI
Assisting in the creation
Expansion
Modernisation of such enterprises
Encouraging and promoting the
participation private capital
Encouraging and promoting private
ownership

FUNCTIONS OF ICICI
Assistance to industries
Provision of foreign currency loans
Merchant banking
Letter of credit
Project promotion
Housing loans
Leasing operations

SIDBI
Established in 1990 under an Act of Indian Parliament.
Objective: Promotion, Financing & Development of
MSMEs and Co-ordinating Functions of institutions
engaged in similar activities.
Ownership : Public sector banks/FIs/Insurance Cos
owned or controlled by the Government of India.
Structural Linkage: With Ministry of Finance and
Ministry of SSI.
Nodal Agency : For SME Schemes of GoI

SIDBI : Sphere of activities
• Direct Finance Operations : MSMEs, Service sector,
Infrastructure etc.
• Indirect Finance : Resource support to Banks, NBFCs, SFCs,
other
State & central financing/ development agencies.
• Micro Credit operations : Pioneers in micro credit movement
in the
country. Developed several leading MFIs.
• Associate Institutions ISTSL & Credit Guarantee Fund,
India SME Asset: SIDBI Venture Capital Ltd,
MSME Rating Agency,

Reconstruction Company Ltd.
• Nodal Agency : For several GoI schemes like
TUFS, CLCSS and IDLSS
Food Processing and Devp. Of Integrated Infrastructure

Promotional activities
Enterprise promotion
Human resource development
Technology upgradation
Environmental and quality
management
Information dissemination
Market promotion

NABARD
National Bank for Agriculture and Rural
Development (NABARD) is an apex development bank
in India having headquarters based
inMumbai (Maharashtra) and other branches are all over
the country.
It was established on 12 July 1982 by a special act by the
parliament and its main focus was to uplift rural India by
increasing the credit flow for elevation of agriculture &
rural non farm sector and completed its 25 years on 12 July
2007.
 It has been accredited with "matters concerning policy,
planning and operations in the field of credit
for agriculture and other economic activities in rural areas
in India".
 RBI sold its stake in NABARD to the Government of
India, which now holds 99% stake

OBJECTIVES OF NABARD
1 . To give financial assistance for increasing
the agricultural production
2.To supply the long term needs of the rural
areas
3.To supply loans by way of refinance
4.To help small industries ,cottage industries
and also artisans
5.To achieve overall rural development

FUNCTIONS OF NABARD
Credit functions
Development functions
Regulatory functions
Apex institution for rural finance
Refinance institutions
Contribution of share capital
Investment in securities
Conversion and rescheduling facilities
Financial help to non –agricultural sector
Training programs
Co-ordination of actvities

ACHIEVEMENT OF NABARD
Short term assistance
long term assistance
Schematic lending
Assistance to less developed states
Assistance to non-farm sector
Rehabilitation programme
Assistance to research and development projects
Credit plans under the new strategy
Integrated rural development programme
Regional rural banks

DEVELOPMENT BANKS

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