DEVELOPMENT BANKS

A development bank is a term lending

institution that not only supplies funds but also
provide advisory, promotional and entrepreneurial
services.

• It is a multi-purpose institution that offers a number of

services to industries besides term lending.
• Encourages new & small entrepreneurs to set up new
business units in country.
• Object is to accelerate economic development through
industrial growth in country.
• Provides guidance, training & other facilities to new
entrepreneurs .
BASIC FUNCTIONS OF DEVELOPMENT
BANKS
• To accelerate development.
• Creation & Promotion of enterprise.
• To ensure balanced regional development.
• To enhance industrial productivity.
• To conduct research.
• Promotion of industries.
• The National Housing Bank (NHB), the apex level financial
institution for the housing sector in the country, was
established on July 9, 1988 under the National Housing Bank
Act, 1987.
• is wholly owned by the Reserve bank of India
OBJ:-
• To encourage healthy system for housing finance and which
meets the needs of all the segments of the society
• To encourage housing finance institutions
• To make housing finance/home loans affordable and within
means of common man
• To encourage augmentation of supply of buildable land and
also building materials for housing and to upgrade the housing
stock in the country
 FUNCTIONS-

 NHB has been playing the promotional role issuing guidelines for
participating in the equity of housing finance companies and
guaranteeing the bonds to be issued by the housing finance
companies
 Promoting & Co-ordinating the activities of all institutions
engaged in housing finance.
 Besides the lending operations, they conducts regular training
programs for development of management capabilities of officials
working in the sector.
 Prepare special schemes for housing credit needs of Economically
Weaker Sections.
 National Housing Bank is expected to control the housing
finance system of the country &to extend refinance facilities to
HF Institutions and commercial banks.