DEVELOPMENT BANKS
DEVELOPMENT BANKS IN INDIA
NABARD
ICICI
IDBI
COMMERCIAL
BANKS
SIDBI
IFCI
STATE FINANCIAL
COOPERATIONS
WHAT IS DEVELOPMENT BANKS
 A Development Bank is a polygonal development
finance institution devoted to improving the social
and monetary development of its associate
nations.
 It helps improve the value of people's lives by
providing loans and scientific support for a broad
variety of development activities.
OBJECTIVES
Lay Foundations for Industrialization
Meet Capital Needs
Need for Promotional Activities
Help Small and Medium Sectors'
FUNCTIONS
 Financial Gap Fillers
 Undertake Entrepreneurial Role
 Joint Finance
 Refinance Facility
 Credit Guarantee
 Underwriting of Securities
Role of development banks
in financial system
Providing
Funds
Employment
Generation
Accelerating
Industrializat
ion
Infrastructura
l Facilities
Promotional
Activities
Planned
Develop
ment
Development
of Backward
Areas
FUNCTIONS OF A
DEVELOPMENT BANK
 Increase loans and equity investments to its
developing associate countries (DMCs) for their
monetary and social development.
 Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
 Promotes and facilitates speculation of public and
private capital for growth and development.
 Responds to requests for assistance in coordinating
growth policies and plans of its increasing member
countries.
IFCI
 The government of india set up the industrial
finance corporation of india in july
 Management of IFCI
 12 directors
 4 are nominated by the IDBI
OBJECTIVES OF IFCI
 Promoted by new enterpreneurs
 Based on indegenous technology
 Which would result in substitution of imports
 Providing input for incresing agricultural products
FUNCTIONS OF IFCI
DIRECT
FINANCING
JOINT
FINANCING
OPERATIONAL ACTIVITIES
 Concessional finance to projects in less
development areas
 Concessional finance for renewable energy
systems
 Power of attorney scheme
 Bridging loans
 Sub loans in foreign currencies
IDBI
 The Industrial Development Bank of India (IDBI) was
established on 1 July 1964 under an Act of Parliament
as a wholly owned subsidiary of the Reserve Bank of
India.
 In 16 February 1976, the ownership of IDBI was
transferred to the Government of India and it was
made the principal financial institution for
coordinating the activities of institutions engaged in
financing, promoting and developing industry in the
country.
THE PRINCIPAL SOURCE OF FUNDS
OF IDBI
 Share capital and reserves
 Borrowing from government of india and RBI
 Market borrowing by way of bonds
 Deposits and other borrowings
 Repayment of past assitance by borrowers
 Foreign currency borrowings from worid
banks
 Asian development banks and international
markets
OBJECTIVES and FUNCTIONS
 Planning,promoting,developing industries
• Co-ordinating the working in institutions
engaged in financing
• Undertaking market and investment
research
• Providing technical and administrative
assitance
• Subsidiaries
Operational Activities
 Direct Assistance
 Indirect Assistance
 Refinance Schemes
 Refinance Scheme for industrial
rehabilitation
 Automatic Refinance Scheme
 Refinance Scheme for modernisation
 Bills Rediscounting Scheme
contd.
 Soft loan scheme for modernisation
 Seed capital assitance scheme
 SFCs special share capital schemes
 Development assistance fund(DAF)
ICICI
 ICICI (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) Bank Ltd.
 ICICI is an Indian diversified financial services company
headquartered in Mumbai, Maharashtra.
 The Bank has a network of 2,630 branches and 8,003 ATM's in
India, and has a presence in 19 countries, including India.
OBJECTIVES OF ICICI
 Assisting in the creation
 Expansion
 Modernisation of such enterprises
 Encouraging and promoting the
participation private capital
 Encouraging and promoting private
ownership
FUNCTIONS OF ICICI
 Assistance to industries
 Provision of foreign currency loans
 Merchant banking
 Letter of credit
 Project promotion
 Housing loans
 Leasing operations
SIDBI
 Established in 1990 under an Act of Indian Parliament.
 Objective: Promotion, Financing & Development of
MSMEs and Co-ordinating Functions of institutions
engaged in similar activities.
 Ownership : Public sector banks/FIs/Insurance Cos
owned or controlled by the Government of India.
 Structural Linkage: With Ministry of Finance and
Ministry of SSI.
 Nodal Agency : For SME Schemes of GoI
OBJECTIVES
FINANCING
PROMOTION
DEVELOPMENT
CO-ORDINATION
NABARD
 National Bank for Agriculture and Rural
Development (NABARD) is an apex
development bank in India having headquarters
based inMumbai (Maharashtra) and other
branches are all over the country.
 It was established on 12 July 1982 by a special act by
the parliament
 Main focus was to uplift rural India by increasing
the credit flow for elevation of agriculture & rural
non farm sector and completed its 25 years on 12
July 2007.
OBJECTIVES OF NABARD
1 . To give financial assistance for increasing
the agricultural production
2.To supply the long term needs of the rural
areas
3.To supply loans by way of refinance
4.To help small industries ,cottage industries
and also artisans
5.To achieve overall rural development
FUNCTIONS OF NABARD
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Credit functions
Development functions
Regulatory functions
Apex institution for rural finance
Refinance institutions
Contribution of share capital
Investment in securities
Conversion and rescheduling facilities
Financial help to non –agricultural sector
Training programs
Co-ordination of actvities
ACHIEVEMENT OF NABARD
 Short term assistance
 long term assistance
 Schematic lending
 Assistance to less developed states
 Assistance to non-farm sector
 Rehabilitation programme
 Assistance to research and development projects
 Credit plans under the new strategy
 Integrated rural development programme
 Regional rural banks
THANK YOU