1. Ranika Chaudhary
FINANCIAL INSTITUTION IN INDIA

2. DEVELOPMENT FINANCIAL INSTITUTIONS
A financial agencies that provide medium
and long-term financial assistance and
engaged in promotion and development of
industry, agriculture and other key sectors.
 Ex: International Bank for reconstruction
and Development (IBRD) also known as
World Bank & International Monetary Fund
(IMF)


3. INTRODUCTION
Industrial finance is a very complicated
problem. It is of vital importance as
development of any country depends on
industrial development of that country „s
economy.
Why there is need of finance
1) Long term
2) Medium term
3) Short term

4. CONTINUE….
Long term capital is also known as block
capital or fixed capital. it is needed to acquire
-fixed and permanent assets
 Medium term capital is required for repairs,
replacements, maintenance of machines and
building etc.
 Short term capital is needed for purchase of
raw material , and to meet day to day
expenses


5. TYPES OF FINANCIAL INSTITUTIONS IN INDIA
Term lending
 Refinance institutions
 Investment institutions
 State level institutions


6. TERM LENDING

A term loan is a monetary loan that is repaid in
regular payments over a set period of time. Term
loans usually last between one and ten years, but
may last as long as 30 years in some cases. A term
loan usually involves an unfixed interest rate that will
add additional balance to be repaid.

IFCI
IDBI
ICICI
EXIM




7. IFCI (INDUSTRIAL FINANCE CORPORATION OF
INDIA)
It was established in 1948
 First development bank of India
 Objective was to make medium and long
term credits more readily available
 Management
- BOD total 12 members(4 by idbi,2 by center
govt, 6 by shareholders)
- -full time chairperson


8. CONTINUE….
Resources of IFCI
-ownership capital
-Issue of shares and bonds
-borrowing from RBI,IDBI AND CENTER
GOVT
-accepting deposits from public, state govt and
local authorities


9. FINANCIAL ASSISTANCE BY IFCI/IDBI
Purpose
New projects
sanction(crores) IDBI
15919.6 67498
Expansion /acquisition
Rehabilitation
Modernization
Working capital
5138
6649.2
50627
115.7
1415
5459.7
12976
837

10. IDBI (INDUSTRIAL DEVE. BANK OF INDIA)
Set up in 1964
 It was fully owned subsidiary of RBI but in
1976 delinked from RBI and made as
autonomous body of GOI
 H.O in Mumbai 11 branch offices
 It is managed by a chairman and MD
appointed by central govt, a deputy governor
nominated of RBI, 20 other directors.


11. CONTINUE..
With effect from 1 oct,2004 it has renamed
as IDBIL. It has been accepted as a deemed
banking co under banking regulation act. The
govt holds the majority (58.47%) shares of
IDBI LTD.
 During last 40 years IDBI has given a
qualitative dimension to the process of
industrial development of the country.


12. I.C.I.C.I. (INDUSTRIAL CREDIT & INVESTMENT CORPORATION
OF INDIA)
Established in 1955 As a public ltd co, at the
initiative of world bank
 Authorized capital of 60 crores and issued
capital 22 crores
 The objectives of icici are to encourage
establishment of new industries, to help in
expansion and modernization, technical and
managerial aid to increase production and
employment.


13. CONTINUE…
In October 2001 .BOD Approved ICICI LTD AND
ICICI BANK LTD. With effect from MAY 2002 IT
IS SIMPLY ICICI bank .
 ICICI is now the largest bank with total assets of
more than 3000 billions
 More than 700 branches and over 2200 ATM
spread all over the country
 It mainly deals in
 Retail banking, wholesale banking, project
finance, international business and special
assets mgt


14. CONTINUE…







Icici is known for its many firsts.
-it was first Indian co to listed in New york stock
exchange.
Foreign financial investor own around 38% shares .
Technology, strategy, low cost branches innovations
are key reasons of icici success.
They are the first to introduce mobile banking, on line
financial information, portals to allow accounts and
information on line.
It was the first to introduce e-commerce.
It has the largest no of call centers.

15. EXIM
Established on1st JAN,1982.
 Authorized capital 1000 crores and paid up is
650 crores.
 Exim bank came into existence when
international finance division of idbi was
transferred to exim bank in 1982.
 Exim started its working from march 1982
 The issued capital is wholly subscribed by
center govt


16. CONTINUE…









The main objective of exim is to provide financial assistance to
exporters and importers. It has to coordinate the working of those
institutions which can promote international trade.
Management is MD+17 other directors representing
govt,RBI,ECGC,public sector banks
Resources of EXIM
-GOI
-RBI
-any organization approved by GOI
TYPES OF ASSISTANCE
-fund based
-non fund based

17. ASSITANCE BY EXIM







Fund based
Pre shipment credit
Foreign currency
Post shipment credit
Deemed exports
Loans to commercial
banks for bills
discounting
Finance for
consultancy and
technology


Non fund based
Guarantees

18. REFINANCING INSTITUITIONS
 Are
those which do not give finance
directly but they create such
structure by which the funds are
allocated up to the minimum level.
 N.A.B.A.R.D.
 S.I.D.B.I.
 N.H.B

19. NABARD-NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT






Started functioning from 1july 1982
Set up with an initial capital of 100 crores, now it is
2000 crores fully subscribed by GOI AND RBI.
H.O IN Mumbai, with 28 regional and 391 district
offices
It is an apex orga for policies, planning and
operations of agriculture ,ssi ,handicraft and village
industries
It mainly deals in three types of functions
-credit ,developmental ,regulatory functions

20. CONTINUE……





Funds created by NABARD
-rural infrastructural deve fund 28749 crores
-R&d fund
-Soft loan assistance fund
-Credit and financial services fund

21. SIDBI
Set up in oct 1989
 Wholly owned subsidiary of IDBI
 It is the principal financial institution for
promotion ,financing and deve of small scale
industries
 In sep 2000 IDBI transferred 51% in favor of
banks and other institutions in the first phase.


22. 1) Its Functions are:
A) SSI units for new/ expansion/ diversification/
modernization projects.
B) Marketing development projects which expand
the domestic and international marketability of
SSI products.
C) Existing well run SSI units and ancillaries/
subcontracting units/ vendor units for
modernization and technology up gradation.
D) Infrastructure
development agencies for
developing industrial areas.

23. NHB-NATIONAL HOUSING BANK
Set up in July 1988
 A principal agency to promote housing
finance
 Wholly owned subsidiary of RBI
 Registered With capital of 350 crore which
can be increased to 2000 crores. The board
is authorized to issue increased capital to
RBI, center govt.


24. INVESTMENT INSTITUITIONS
 Are
those who invest the money
collected in further securities and
investments outside .LIKE
 LIC
 GIC

25. LIC
Set up in 1956
 Lic was formed by nationalizing 245 life
insurance companies
 The main aim was to
1. spread insurance
2. Mobilize savings
3. Investing funds
4. Act as trustees


26. CONTINUE…..
-promoting a sense of pride and job
satisfaction among agents and employees
 Diversification by LIC
-LIC HOUSING FINANCE
-LIC MUTUAL FUNDS
-Jeevan bima sahyog assets mgt co(JBSAMC)
-LIC International EC

27. VISION & MISSION
Mission
"Explore and enhance the quality of life of
people through financial security by providing
products and services of aspired attributes with
competitive returns, and by rendering resources
for economic development."
 Vision
"A trans-nationally competitive financial
conglomerate of significance to societies and
Pride of India."


28. TYPES OF INSURANCE SCHEMES










Whole life schemes
Endowment policies
Money back policy
Plans for children
Medical benefits linked insurance
Plans to cover housing loan
Joint life plans
Group schemes
Pension plans
Social security schemes

29. G.I.C.
It was incorporated on 22 November 1972.
 The Government of India (GOI), through
Nationalisation took over the shares of 55 Indian
insurance companies and the undertakings of 52
insurers carrying on general insurance business.
Main objective: GIC was formed for the purpose of
superintending, controlling and carrying on the
business of general insurance.


30. VISION & MISSION
Vision
 “To be a leading global reinsurance and risk solution provider”
Mission: Building long-term mutually beneficial relationship with business
partners
 Practicing fair business ethics and values
 Applying “state-of-art” technology, processes including enterprise
risk management and innovative solutions.
 Developing and retaining highly motivated professional team of
employees
 Enhancing profitability and financial strength befitting the global
position

31. STATE LEVEL INSTITUTION