INTRODUCTION TO

INSTITUTIONAL FINANCE

JINS
09MBA20
INTRODUCTION
 Over the years financial institutions are
providing a key role in providing finance and
counselling to the entrepreneurs to start new
ventures as well as modernise, diversify and
even rehabilitate sick enterprises. In this
context, we shall discuss the scale and scope
of various development corporations, which
have been rendering financial assistance
directly or indirectly to entrepreneurs and
their ventures.
NEED AND IMPORTANCE
Finance is one of the most essential input for
all types of business organizations,
irrespective of whether running organizations
or to be started .
 growth
 development
 diversification
Contd.
 For this the companies depend on various
financial institutes and private financiers.
Repayment period of loans varied from 1 year
to 10 years
TYPES OF INDUSTRIAL FINANCE
 Financial requirements of various industries
are broadly classified as
long term finance
short term finance
SOURCES OF FINANCE
Short term needs are satisfied by
 Commercial banks
 Trade credit from vendors
 Advance from customers and dealers
 Private financers
Contd.
Long term needs
 By issue of share, debentures
 Collecting public deposits
 Utilization of profit surplus
 Loan from financial institutions
FIXED CAPITAL WORKING CAPITAL

ICICI Commercial
banks
SFC
Co-operative
NSIC Business banks

…….
SSICS organizations Private finance
SIDCS State industrial
Commercial and investment
banks corporation
THANKYOU