2. INTRODUCTION
 Development banks are those financial institutions
engaged in the promotion and development of
industry, agriculture and other key sectors.
 They may be publically or privately owned and
operated.
 An example of a successful private development bank
is Grameen Bank founded in 1976 to serve small
borrowers in Bangladesh.

3. GRAMEEN BANK

4. ROLE OF DEVELOPMENT BANKS IN
FINANCIAL SYSTEM
PROVIDING
FUNDS
ACCELERATING
INDUSTRIES
PLANNED
DEVELOPMEN
T
PROMOTION
AL
ACTIVITIES
EMPLOYMENT
GENERATION

5. DEVELOPMENTAL BANKS
ALL INDIA LEVEL
STATE LEVEL
SIDBI,IFCI
SFCs,SIDCs,SIICs

6. SIDBI
 Small industries developmental bank of India.
 Set up on April 2, 1990.
 It is aimed to aid the growth and development of
micro, small and medium-scale enterprise (MSME) in
India.
 SIDBI has initiated various schemes for upliftment of
MSME sector.

9. IFCI
 IFCI stands for Industrial finance corporation of India.
 Established on July 1, 1948 as the first development
institution.
 It was formed to fulfill the long term finance needs of
the industrial sector.
 Constitution of IFCI was changed in1993 from a
statutory corporation to a company under the Indian
company act 1956.
 Subsequently the name of the company was also
cahnged to IFCI LTD with effect from 1999.

10. FUNCTIONS OF IFCI
 For setting up a new industrial undertaking.
 For expansion and diversification of existing industrial
undertaking.
 For renovation and modernization of existing
concerns.
 For meeting the working capital requirements of
industrial concerns in some exceptional cases.
 Direct financial support to industrial units for under
taking new projects, expansion, diversification etc.

11. SFCs
 SFCs stands for State Financial Corporations.
 To meet the financial requirements of small scale and
medium sized industries, there was a need of special
financial institution.
 With this view the central government passed the state
financial corporation act on 28th September, 1951.
 Till now 18 financial corporation have been
established.

12. OBJECTIVES
 To establish uniformity in regional industries.
 To provide incentives to new industries.
 To provide finance to small-scale, medium sized and
cottage industries in the state.
 To develop financial resources.

13. SIDCs
 SIDCs stands for state industrial development
corporation
 The SIDC were set up under the companies act,1956 for
promotion and development of medium and large
industries.
• It exists in all the states and have developed
infrastructure facilities
• The interest rate ranges between 13.5% to 17%
depending upon the size of the loan.

14. FUNTIONS
 To promote industrial development.
 28 SIDCs are functioning in the country.
 Granting of financial assistance to industrial concerns
in the form of direct investments, loans and
identification of project ideas.

15. SIICs
 SIICs stands for state industrial infrastructure and
investment corporation.
 Set up under the companies act under the overall
control of the state government to develop industrial
infrastructure in the states.
 Infrastructure projects undertaken by the corporation
include developing growth centers.
 Only 10 corporations have been set up in the different
states.

16. FUNCTIONS OF SIICs
 Granting of financial assistance to industrial concerns
in the form of loans.
 Promote industrial development of respective state or
union territory.
 28 SIICs are functioning in the country.