MBA III SEM: MAJ FINANCE
Industrial Finance Corporation of India
t the time of Indian independence there was the lack of adequate industrial financing, especially tomeet the medium to long term requirements of the industries. In such a set up, it became necessary to develop an institutional structure for meeting the large fund requirements of the industry. The first step in this direction was the incorporation of the Institute of Finance Corporation underthe Institute of Finance Corporation
ct, 1948 (IFC
ct). lFCI was converted into a public limitedcompany and was registered under the Companies
ct in July, 1993. It also came up with its publicissue. The IFCI was set up under an
ct of Parliament in 1948, with the share capital subscribed by Government of India (GOl), RBI, Scheduled Commercial Banks, Insurance Companies, Investment Trusts and Cooperative Banks. IDBI holds 30% of IFls equity. The management of IFCI is vested in its BODs, comprising professionals drawn from diverse fieldslike banking, finance, economics, insurance, etc.IFCI is headquartered in New Delhi and has 17 regional offices.
Product profile of IFCI
The main functions of IFCI are to provide various kinds of financial services to the industries.Primarily, its services focus on project finance as it provides assistance to all viable industrial projectsabove Rs.50m.IFCI provides assistance to industrial concerns for their new projects, expansion, diversification andmodernization schemes.Loans are generally extended for a period of 5-7 years with a moratorium of 2-3 years.Loans are extended both in rupee and foreign currency for import of capital equipment.