2. DEVELOPMENT BANK
• Development banks are the institutions engaged in the promotion and
development of industry, agriculture and other key Sectors.
• National or regional financial institution designed to provide medium and long –
term capital for productive investment. Such investment is usually accompanied
by technical issues.
• Some development banks are government- owned, while others are private.
Many have been established under the auspices of the World Bank.
• Among the largest are the Inter- American Development Bank, the Asian
Development Bank, and the African Development Bank.
3. DEVELOPMENT BANKS IN INDIA
NABARD ICICI IDBI
IFCI
SIDBI
COMMERCIAL
BANK
STATE
FINANCIAL
COOPERATIONS
4. OBJECTIVES
• Lay Foundations for Industrialization
• Meet Capital Needs
• Need for Promotional Activities
• Help Small and Medium Sectors'
5. FUNCTIONS
• Financial Gap Fillers
• Undertake Entrepreneurial Role
• Joint Finance
• Refinance Facility
• Credit Guarantee
• Underwriting of Securities
6. ROLE OF DEVELOPMENT BANKS IN
FINANCIAL SYSTEM
Providing Funds
Infrastructural
Facilities
Promotional
Activities
Development of
Backward Areas
Planned
Development
Accelerating
Industrialization
Employment
Generation
7. FUNCTIONS OF A DEVELOPMENT BANK
• Increase loans and equity investments to its developing associate countries (DMCs) for 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 for growth and development.
• Responds to requests for assistance in coordinating growth policies and plans of its increasing
member countries.
8. NABARD
• National Bank for Agriculture and Rural Development (NABARD) is an apex
development bank in India having headquarters based in Mumbai (Maharashtra) and
other branches are all over the country.
• It was established on 12 July 1982 by a special act by the parliament and its main focus
was to uplift rural India by increasing the credit flow for elevation of agriculture & rural
non farm sector and completed its 25 years on 12 July 2007.
• It has been accredited with "matters concerning policy, planning and operations in the
field of credit for agriculture and other economic activities in rural areas in India".
• RBI sold its stake in NABARD to the Government of India, which now holds 99% stake
9. INDUSTRIAL CREDIT & INVESTMENT
CORPORATION OF INDIA LTD.
• First Development bank in the World to be set up in the private sector.
• Objective is to provide medium- term & long- term financing to Indian business.
• ICICI Securities & Finance Co. Ltd.
• ICICI Venture Funds Management Co. Ltd.
• ICICI Prudential Life Insurance.
• ICICI Home Finance Co. Ltd.
• ICICI Investment Management Co. Ltd.
10. INDUSTRIAL DEVELOPMENT BANK OF INDIA
• Established in 1964 for coordinating the working of institutions at national level and state
level engaged in financing, promoting and developing industries.
• Provides merchant banking & corporate advisory services as a part of its fee based
activities.
• Provide advice & services for issue management, private placement of equity/ debt
instrument, project evaluation, corporate restructuring etc.
• In 16 February 1976, the ownership of IDBI was transferred to the Government of India
and it was made the principal financial institution for coordinating the activities of
institutions engaged in financing, promoting and developing industry in the country.
11. INDUSTRIAL FINANCE CORPORATION OF INDIA
• The government of India set up the industrial finance corporation of india in july
1948
• Management of IFCI
• 12 directors
• 4 are nominated by the IDBI
• Financial Services and Corporate advisory services.
12. SMALL INDUSTRIAL DEVELOPMENT BANK OF
INDIA
• Established in 1990 under an Act of Indian Parliament.
• Objective: Promotion, Financing & Development of MSMEs and Co-ordinating
Functions of institutions engaged in similar activities.
• Ownership : Public sector banks/FIs/Insurance Cos owned or controlled by the
Government of India.
• Structural Linkage: With Ministry of Finance and Ministry of SSI.
• Nodal Agency : For SME Schemes of Goal
13. EXPORT – IMPORT BANK OF INDIA
• An apex institution which promotes foreign trade.
• Creating export capability by arranging competitive financing at various stages
of export cycle.
• Bank provides export credit on deferred payment terms on exports of Indian
machinery, manufactured goods and technology services.
