Industrial Development Bank of India established in July 1964 by the Govt. of
India To provide financial facilities for
development of industrial units in India.
The Head office of IDBI is located in Mumbai. It is currently 10th largest development bank in
the world in terms of reach, with 3350 ATMs, 1853 branches, including one overseas branch at Dubai, and 1382 centres.
IDBI functions as an apex bank for the development banks engaged in industrial financing and insurance.
IFCIICICI
IRCI
LICUTI
GIC GIC
UTILIC
SFCs
ICICI
IFCI
MANAGEMENT of IDBI 22 members Board of Directors nominated
by the Central Government. Shri Kishor Kharat is MD and CEO of IDBI.
FUNCTIONS of IDBI Direct financial assistance to industrial units Indirect financial assistance to industrial
enterprises As an Apex body Assistance to Backward areas Rediscounting/ discounting bills of exchange
Help entrepreneurs in identifying economically viable project and provided technical assistance
Carries out research work by collecting information about market .
Provides venture capital for new industries Helps in entrepreneurial development through
training programme . Provide consultancy services
SOURCES OF FUNDS Authorised capital rs.3000 crores Issued share capital rs.2058 crores. Its shares are listed in BSE,NSE. IDBI can build its financial resources through shares,
debentures, deposits from companies, borrowings from RBI and the Govt. of India
Diversification of Activities of IDBISince 1990, IDBI has set up number of institutes, including: Small Industries Development Bank of India in 1990. IDBI Investment Management Company (IIMCO)in 1994. IDBI Capital Market Services Ltd. (ICMS)in 1995. IDBI bank Ltd.
IDBI has supported for establishment of National Stock Exchange of India , Infrastructure Development Financial Corp. (IDFC), SEBI, EXIM Bank, Entrepreneurial Development Institute of India, Technical Consultancy Organization (TCO)
PROBLEMS WITH IDBI IDBI is facing big problem of NPAs. In 2004, RBI incorporated IDBI as scheduled
Bank. In July 2016 FM declared there is a chance of
dilution of GOI stake in IDBI to below 50%.
IFCI is an Indian government owned development bank to cater to the long-term finance needs of the industrial sector.
It was the first DFI established by the Indian government after independence.
The Government established the Industrial Finance Corporation of India (IFCI) on 1 July 1948. The IFCI was established to provided access to low-cost funds.
MANAGEMENT of IFCI Chairman is appointed by the Government of
India, for a period of 3 years. 12 directors, nominated by the IDBI,
scheduled banks, cooperative banks, insurance trusts .
FUNCTIONS OF IFCI Soft Loan Assistance Entrepreneur Development Industrial Development in Backward
Areas Subsidised Consultancy
IFCI has provided assistance to all types of industries . 2/3 of assistance was given to 5 major industries and they are:• Cement,• Cotton, Artificial yarn,• Mining industry,• Hotel industry,• Generation or distribution of power
electricity.
PROBLEMS with IFCI The rate of interest which the corporation
charged was extremely high. There was a great delay in sanctioning loans
and in making the amount of the loans available.
The ‘corporation’s insistence on the personal guarantee of managing directors in addition to the mortgage of property was considered wrong.
ICICI Industrial credit and investment corp. of
India. In 1955, as a joint-venture of the World
Bank, India's public-sector banks set up ICICI to provide project financing to Indian industry.
ICICI Bank headquartered in Mumbai, the second largest bank in India in
terms of assets ICICI does not exist any more as a
development financial institution , it is a banking company.
Objectives of ICICI To provide loans to industrial projects in
private sector. To stimulate the promotion of new industries. To assist the expansion and modernization of
existing industries. To provide Technical and managerial aid to
increase production
FUNCTIONS OF ICICI Providing medium and long term loans for
starting private production units Helping in raising the investments by Indians
and foreigners in the private sector production units.
Providing technical and managerial assistance.
Guaranteeing the loans of private sector units.
Providing capital to developmental projects in the private sector
Participating in equity capital and in debentures. Underwriting new issues of shares and
debentures and providing foreign currency loan to such
units. Establishing strong relations with the foreign
financial institutions
o SIDBI is the wholly owned subsidiary of IDBI.
o engaged in meeting financial needs of small scale industrial units.
o The decision to set up SIDBI was announced in the budget of 1988-89 and it actually started working form 2nd April 1990
It functions as an apex institution in the area of SSI finance.
Mr. Susil Muhnot, chairman and managing director of SIDBI.
FUNCTION of SIDBI Supplement efforts of existing
institutions to help financing SSI. Direct lending to SSI sector. Refinancing primary lending
organizations to help them to finance SSI sector.
Bill rediscounting and refinance of bills. Finance export oriented units. Extending seed capital / soft loans to
entrepreneurs. Providing export credit to the SSIs, small
entrepreneurs in the purchase of assets, raw material etc.
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