Jyoti Presentation

8/2/2019 Jyoti Presentation

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PRESENTED BY,

JYOTI

DEEPIKA


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INTRODUCTIONDevelopment banks are the institutions engaged in the promotionand development of industry, agriculture and other key sectors.National or regional financial institution designed to providemedium- and long-term capital for productive investment. Suchinvestment is usually accompanied by technical assistance.

Some development banks are government-owned, while others areprivate. Many have been established under the auspices of theWorld Bank.Among the largest are the Inter-American Development Bank, theAsian Development Bank, and the African Development Bank.


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DEFINITIOND.M. Mithani:A development bank may be defined as afinancial institution concerned with providingall types of financial assistance (medium as

well as long-term) to business units in the formof loans, underwriting,investment andguarantee operations and development in

general and industrial area.


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FEATURESA development bank does not accept deposits from the

public like commercial banks and other financialinstitutions who entirely depend upon savingmobilization.It is a specialized financial institution which provides

medium term and long-term lending facilities.It is a multipurpose financial institution. Besidesproviding financial help it undertakes promotionalactivities also. It helps an enterprises from planning tooperational level.It provides financial assistance to both private as well aspublic sector institutions.


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CONTDThe role of a development bank is of gapfiller, when assistance from other

sources is not sufficient then this channelhelps. It does not compete withnormal channels of finance.Development banks primarily aim toaccelerate the rate of growth. It helpsindustrialization specific and economicdevelopment in general.The objective of these banks is to servepublic interest rather than earningprofits.Development banks react to the socio-economic needs of development.


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OBJECTIVES L

ay Foundations forIndustrialization

Meet Capital Needs

Need for Promotional

Activities

Help Small andMedium Sectors


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FUNCTIONS

Financial Gap FillersUndertakeEntrepreneurial Role

Joint FinanceRefinance FacilityCredit GuaranteeUnderwriting ofSecurities


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DEVELOPMENT BANKING ININDIAThe recommendation for setting up industrial financinginstitutions was made in 1931 by Central Banking EnquiryCommittee but no concrete steps were taken.In 1949, Reserve Bank had undertaken a detailed study to find out

the need for specialized institutions.It was in 1949 that the first development bank i.e. IndustrialFinance Corporation of India (IFCI) was established.In 1951, Parliament passed State Financial Corporation Act. Underthis Act state governments could establish financial corporations for

their respective regions.


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Role of developmentbanks in financial

systemProviding FundsInfrastructural Facilities

Promotional ActivitiesDevelopment ofBackward AreasPlanned Development

AcceleratingIndustrializationEmployment Generation


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ALL INDIA DEVELPOMENTS BANKSIn India, various financial institutions were set up afterindependence only. The Government of India has taken steps to setup institutions which assist various sectors of the economy. Atpresent the country has 12 institutions at the nationallevel and 46 at the state level. The All India Financial Institutionscomprise All-

India Development Banks, namely:Industrial Development Bank of India,Industrial Finance Corporation of India Ltd.,Industrial Credit and Investment Corporation of India Ltd.,

Small Industries Development Bank of India,Industrial Reconstruction And Development Bank of India,NABARD


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There are three investmentinstitutions:Life Insurance Corporation of India Ltd.,Unit Trust of India andGeneral Insurance Corporation of India.At state level there are 18 State FinanceCorporationsand 28 state industry development

corporations


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THEINDUSTRIAL

FINANCECORPORATION OF

INDIA (IFCI)


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Mr.AtulKumar RaiCEO and ManagingDirector


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INTRODUCTION

The Government of India set up the IFCIunderIFCIAct in July 1948.It is the first development financial

institutionin the county to cater to thelong-term financeneeds of the industrialsectors.

The main objective of IFCI is tomakingmedium & long term credits morereadilyavailablefor industrial concerns inIndia.


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CAPITAL

The authorized capital of thecorporation asper IFCI Act 1948, wasRs.10 crores. It wasraised to Rs.20

crores by the Amendment Act1972.50% of the share capital is held by theIDBI &remaining 50% by banks,

cooperative banks,insurancecompany, investment trusts etc.,


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ACTIVITIES

Direct Financing

Incidental ActivitiesPromotional

Activities


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AREAS OFASSISTANCE

Assistance from IFCI singleor jointly with

otherinstitutions is availablefor:Setting up of newindustrialprojects.Expansion ofexisting units/diversification intonew linesof activity.Renovation /

rehabilitation /


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Resources are in the formof:Loans from RBIShare capitalRetained earningsRepayment of loan

Issue of bondsLoans from governmentLines of credit from foreign lending agencies


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National Bank for Agriculture and

Rural Development (NABARD)

Logo of NABARD


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HEADQUARTERS IN

MUMBAI


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yHeadquartersy Mumbai, Maharashtra, India

y Establishedy 12 July 1982

y Managing Directory Dr K G Karmakar

y Currencyy (Rupees)

y Reservesy 81,220 crore(US$18.11 billion) (2007)


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NABARD

y Established in 1982, by an Act of Parliament

y functions can be classified into 2 major categories

y Credit Planning,y Financial Services,


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y Under Credit Planning

y prepares Potential Linked Credit Plan (PLP) annually for

each district of the country by assessing potentialavailable in agriculture and rural sector.

y Under its Financial services

y it refinances commercial, co-operative and regional

rural banks for lending to on farm and non-farmactivities.


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Organisation Structurey board of directors

y chairman

y

y

y

executive directors 5

y head office dept regienal office trainig establisahment

y

y

y sub office special cell (shrinagar) district development offices

y

y

y

managing director


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ASSOCIATED WITH NABARD

y Bank-affiliated organizations to global developmentalagencies working in the field of agriculture and ruraldevelopment.


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Role

y the institutions providing investment and productioncredit for promoting the various developmental

activities in rural areasy takes measures towards institution building for

improving absorptive capacity

y co-ordinates the rural financing activities of all

institutions engaged in developmental work at thefield level

y undertakes monitoring and evaluation of projectsrefinanced by it.


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Rural innovation

y The credit flow to agriculture activities sanctioned byNABARD reached Rs 1,574,800 million in 2005-2006.The overall GDP is estimated to grow at 8.4 per cent.

y Rural Infrastructure Development Fund.(RIDF)scheme Rs. 512830 million have been sanctioned for2,44,651 projects covering irrigation, rural roads andbridges, health and education, soil conservation,

water schemes etcy The purpose of RIDF is to promote innovation in

rural & agricultural sector through viable means.


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