TABLE OF CONTENTS

• MEANING
• FUNCTION OF FINANCIAL INSTITUTION
• TYPE OF FINANCIAL INSTITUTION
• BANKING INSTITUTION
• NON BANKING INSTITUTION
• CONCLUSION
• BIBILOGRAPHY
MEANING
Financial institution is an institution or
organization that provides f inancial
services for its clients, members and
society. Probably the most important
f inancial service provided by f inancial
institutions is acting as f inancial
intermediaries . Most f inancial institutions
are regulated by the government
FUNCTION OF
FINANCIAL
INSTITUTION
• Financial institutions include banks,
credit unions, asset management f i rms,
building societies, and s tock brokerages,
among others. These institutions are
responsible for distributing f inancial
resources in a planned way to the
potential users.
• These function performed in following
ways……
CONTINUE…
A. Accepting Deposits
B. Providing Agricultural Loans
C. Providing Commercial Loans
D. Providing Real Estate Loans
E. Providing Mortgage Loans
F. Issuing Share Certificates
TYPE OF
FINANCIAL
INSTITUTION
We can divide financial institution in two major parts
as following….
1. Banking financial company(BFCs)
2. Non banking financial company(NBFCs)
Banking institution can use banking instruments like
cheque ,draft ,pay order but non banking institution can
not use these instruments.
BANKING INSTITUTION
• Banking institution are those institution who is
provide banking and other financial services to
their customers and society such as …..
• Accept deposits
• Provide loans
• Cash management services
• Portfolio management services
CONTINUE…
• We can divide Indian banking system in
following ways
• Commercial bank
A)Public sector bank
1) State bank
2) Nationalized bank
B)Private sector bank
a)Indian private bank
b)Foreign private bank
C) Co-operative bank
1)Urban cooperative banks
2) State cooperative banks
3) Central cooperative banks
D) Regional rural banks
CONTINUE…
A) Public sector bank- public sector bank is
divided into two group
State bank of India- State bank of India was
established under SBI act 1955,initialy 100% stake of
SBI owner was Reserve bank of India .
Nationalized banks- Nationalized bank was established
under banking company act 1970,1980, initially 100%
ownership of 20s nationalized bank was hold by
government of India
CONTINUE…
B) Private sector bank- Private bank can be divided
into two parts
1)Indian private bank- This type of bank governed
by Indian financial institution like ICICI bank
,HDFC bank
2)Foreign private bank- this type banks governed
by foreign institution like STANDARD
CHARTED(USA) bank , HSBC
CONTINUE
C) Co-operative bank- These type bank are governed
by co-operative societies
1)Urban co-operative societies- These type bank
are governed by urban co-operative society.
2)State co-operative banks- These type bank work on
state level,
3)Central co-operative banks- These type bank
work on district level
CONTINUE…
D) Regional rural banks- RRB banks were established
under RRB act 1976 these bank are closely related
with the commercial bank which are specified by the
central government with lead bank scheme.
Non banking financial company(NBFCs)
NBFIs at present consist of a heterogeneous group of
institutions that cater to a wide range of financial
requirements. These type company are involved in
promoting new company ,expansion and meeting the
financial requirement of the company for economic
development
NABARD (National bank for agriculture and rural
development) – Nabard is working in India to promote
agriculture and rural development.
CONTINUE
Industrial development bank of India(IDBI)- It is
apex institution in the field of long term industrial
finance it was set in 1964 as wholly subsidiary of
RBI
Industrial finance corporation of India(IFCI)-It
was established in 1948, it provide assistance in
long term loan, underwriting of equity and
guarantee of loans in foreign exchange.
Export Import Bank of India (EXIM Bank)-it
facilitates export and import trading in India.
Small Industries Development Bank of
India (SIDBI)-It provide assistance in small scale
industry
Life insurance corporation of India(LIC)-It provide
all type insurance.
Security and exchange board of India(SEBI)- It
regulate all the activity in the Indian capital market
CONCLUSION….
• Financial institution is very essential part of financial
system.
• Financial institution play a vital role in economic
development
• Indian financial institutions are very strong but its
operation is very poor quality we, Indian make very
good plan but in implication we are lacking in
somewhere.
• We have full range of financial institution bur we can
not use in effective manner.
BIBILOGRAPHY
• WWW.WIKIPEDIA.COM
• THE INDIAN BANKING SECTOR ON THE
ROAD TO PROGRESS- G. H. DEOLALKAR
• COUNCIL ON FOREIGN RELATIONS, IIGG
INTERACTIVE GUIDE TO GLOBAL FINANCE
–ARTICLE
• NON BANKING INSTITUTION –PROJECT
REPORT