Develop Bank

8/8/2019 Develop Bank

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DEFINITIOND.M. MITHANI

A developed bank may be defined as a financial institutionconcerned withProviding all types financial assistance (medium as well as

long term) to bus-siness unit in the form of loans, underwriting, investmentand guaranteeoperation and development in general and industrial area



CONCEPTy The concept of development banking originated

during the post Second World War period. The

International Bank for Reconstruction andDevelopment (IBRD) known as the World Bank andthe International Monetary Fund (IMF) are examplesof development banks at international level.



OBJECTIVEa) To serve as an agent of development in various sectors, namely,

industry, agriculture and international trade.b) To accelerate the growth of the economy.c) To allocate resources to high priority areas.d) To foster rapid industrialization, particularly in the private sector,

so as to provide employment opportunities as well as higherproduction.

e) To develop entrepreneurial skills.f) To promote the development of rural areas.g) To finance the housing, small scale industries, infrastructure, and

social utilities



Functions of development bankIncrease loans and equity investment to its developing associate

countriesfor 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 forgrowthand development.

Responds to request for assistance in coordinating growth policies andplans

of its increasing countries.



IFC Iy It is India s first DFI.y It was established on 1 july 1948, under the Industrial

Finance Corporation Act as a statutory corporation.y It was set up to provide institutional credit to medium

and large industries.



ID E Iy It was established in 1964 by parliament as a wholly

owned subsidiary of the RBI.y In 1976, the bank s ownership was transferred to thegovernment of India.y It was accorded the status of the principal financial

institution for coordinating the working of institutions

at state level engaged in financing, promoting anddeveloping industries.



IIBIy It was set up as a company under the companies act,

1956, in march 1977 by converting the erstwhile

Industrial Reconstruction Bank of India.y It is the only all India financial institution wholly

owned by the government of India.



S IDBIy It was set up in 1990 under an act of Parliament the

SIDBI act 1989.y

The charter establishing SIDBI envisaged SIDBI to bethe principal financial institution for promotion,financing and development of industries in small scalesector and to coordinate the functions of other

institutions engaged in similar activities.y It is among top 30 development bank of the world.



IDF Cy It was set up on the recommendation of the expert

group of commercialisation of infrastructure projects.y

It was set up to facilitate the flow of private finance tocommercially viable infrastructure projects.



NA BAR Dy It is an apex institution set up for providing and

regulating credit and other facilities for thedevelopment and promotion of agriculture, small scaleindustries , cottage and village industries, handicraftsand other rural crafts, and other allied economicactivities in rural areas with a view to promotingintegrated rural development and securing prosperity

of rural areas and matters connected therewith orincidental thereto.y It also operates various schemes such as Kisan Credit

Card, Watershed Development scheme, etc.



IC IC Iy It was among the first development banking the world

to be set up in the private sector.y

It w2as formed in 1955 at the initiative of World Bankand Govt. of India and representative of IndianIndustry.

y The principal objective was to create a development

financial institution for proving medium and longterm financing of Indian business.



S ID Cy It was established under the companies act 1956, as

wholly-owned undertaking of the state governments.y

They act as nodal agencies of state government forpromotion of industrial growth and development of infrastructure facilities.

y There are 28 SIDC s in the country.



S FCy Presently there are 18 SFC s operating in their

respective state or union territories, of which 17 were

set up under the SFC s Act 1951.



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Develop Bank

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