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Financial Assistance Institutions

Commercial Banks Industrial Development Bank of India (IDBI) Industrial Finance Corporation of India (IFCI) Industrial Credit and Investment Corporation of India (ICICI)

Industrial Reconstruction Bank of India(IRBI)


Unit Trust of India (UTI) State Financial Corporations(SFCs) Small Industries Development Bank of India (SIDBI) State Industrial Development Corporations (SIDCs) Export-Import Bank of India (EXIM Bank)
Entrepreneurship Management

Commercial Banks
Scheduled Commercial Banks (SCBs) 288 -SBI and its associates banks (8) -Nationalized banks (19) -Private sector banks (32) -Regional Rural banks RRBs (196) and -Foreign banks(23) In 1995-62,067 SCB branches and 56.5% were in rural areas.

Established on July 1, 1948 to cater to the long-term finance needs of the industrial sector Until the establishment of ICICI in 1956 and IDBI in 1964, IFCI remained solely responsible for implementation of the governments industrial policy initiatives Some sectors that have directly benefited from IFCIs disbursals include:
Consumer goods industry (textiles, paper, sugar) Service industries (hotels, hospitals) Basic industries (iron & steel, fertilizers, basic chemicals, cement) Capital & intermediate goods industries (electronics, synthetic fibers, synthetic, plastics, miscellaneous chemicals) Infrastructure (power generation, telecom services)

IFCI has sanctioned financial assistance of Rs 462 billion to 5707 concerns IFCI has promoted Technical Consultancy Organizations (TCOs)
Entrepreneurship Management

Incorporated in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry Objective of creating a development financial institution for providing medium-term and long-term project financing ICICI Bank, ICICI Venture, ICICI Securities Limited (i-SEC), ICICI Prudential Life Insurance Company, ICICI Lombard General Insurance Company Limited Activities:
Underwriting of shares, bonds, stocks Provision of loans in foreign currency to pay for imported equipment

Entrepreneurship Management

Incorporated in 1964 National Stock Exchange of India (NSE), National Securities Depository Services Ltd. (NSDL), Stock Holding Corporation of India (SHCIL) are built by IDBI

Services offered:
Loans against securities Underwriting Loans for modernisation, renovation Assist financial institution by subscription to shares, bonds Direct financing of exports Refinancing industrial loans granted by banks, financial institutions
Entrepreneurship Management

Industrial Reconstruction Bank of India(IRBI)


Set up in April 1971under Companies Act Focus is on Sick unit and speedy reconstruction and rehabilitation. 1994-95 IRBI had sanctioned Rs.778 cr for form of term loans for modernization, diversification, expansion , Renovations. IRBI had diversified its activities into ancillary lines such as consultancy services, Merchant banking and equipment leasing.

Unit Trust of India (UTI)


Esbd. under act of Parliament in 1964. Mobilizes saving of small investors through sale of units and channelizes them into corporate investments. It launched several new schemes like retirement benefit plan, Primary equity fund, Unit scheme etc., Overall assistance sanctioned to corporate sector stood at Rs.7,677 cr in 1994-95.

The first SFC was set up in Sep-1951 in Punjab Now every state and UT has a SFC

State Financial Corporations(SFCs)

The main functions are

-Providing long term finance to small and medium sized proprietorship, partnership, private & pubic concern. -Undertakes issues of shares, bonds and debentures. -Grants loans and advances repayable not exceeding 20 years. Total assistance sanctioned by SFCs during 1994-95 was Rs.2760 crores.

Small Industries Development Bank of India (SIDBI)

It was set up under special Act of Parliament in 1989 as a wholly owned subsidiary of IDBI. SIDBI has taken over outstanding of IDBI relating to SSI worth Rs.4000 cr.

Important functions are,

-Initiates steps for technological upgradations and modernization of existing units -To expand the channels for marketing the products of SSI -To promote employment oriented industries especially in semi-urban areas.

Up to March 1995, cumulative financial assistance sanctioned and disbursed by SIDBI aggregated Rs.16216cr and Rs.12068 respectively

State Industrial Development Corporations (SIDCs)

SIDCs were set up early 70s under Companies Act, 1956 as wholly-owned State Government Undertakings The main functions are -Assistance in the form of term loan, direct subscription of shares/debentures -Other promotional activities like preparation of feasibility report, conducting industrial potential survey, EDPs, Developing Industrial Estate. There are 28 SIDCs in the country. Aggregate to assistance sanctioned by all SIDCs during 199495 amounted Rs.1511crs.

Export-Import Bank of India (EXIM Bank)


Set up in Jan 1981 of IDBIs International Fin wings. Main functions are, -Financing of export and import of goods and services both of India and outside India - Provide finance for Joint venture of the country - Undertaking merchant banking services - Providing technical and administrative assistance to the exporters - Offering buyers credit to foreign banks - Providing advance information and business advisory services.

Insurance Companies
LIC United India Insurance Oriental Insurance

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