PROJECT REPORT ON

INDUSTRIAL FINANCE CORPORATION OF INDIA

IN PARTIAL FULFILLMENT OF
THE DEGREE AWARDED AT

B.COM. (BANKING AND INSURANCE)

SEMESTER VI

SUBMITTED TO
UNIVERSITY OF MUMBAI
FOR ACADEMIC YEAR 2023-2024
SUBMITTED BY
NAME: SEJAL JANESH GORULE
ROLL NO.: 31

VIVA COLLEGE OF ARTS, COMMERCE AND

SCIENCE
VIRAR (WEST)
401303
 DECLARATION

I Hereby declare that the project Titled “INDUSTRIAL FINANCE

CORPORATION OF INDIA” is an original work prepared by me and is
being submitted to University of Mumbai in partial fulfillment of
“B.com. (BANKING AND INSURANCE)” degree for the academic year
2023-2024. To the best of my knowledge this report has not been
submitted earlier to the university of Mumbai or any other affiliated
college for the fulfillment of B.com (BANKING AND INSURANCE)”
degree.
 ACKNOWLEDGENT

I MISS SEJAL JANESH GORULE the student of VIVA College

pursuing my “B.COM (BANKING AND INSURANCE)”, would like to
pay the credits, for all those who helped in the making of this project. The
first in accomplishment of this project is our Principal Dr. V.S. Adigal,
Vice principal Prof. Prajakta Paranjape, course Co-Ordinator Dr. Roshani
Nagar and Guide Dr. Roshani Nagar and teaching staff of VIVA College.
I would like to thank all my college friends those who influenced my
project in order to achieved the desired result correctly.

Date:- Place:-

Name:- Signature:-
 INDEX

Sr. No. PARTICULARS Pg. No.

1 INTRODUCTION OF INDUSTRIAL FINANCE
CORPORATION OF INDIA
2 HISTORY OF INDUSTRIAL FINANCE
CORPORATION OF INDIA
3 REVIEW OF LITERATURE
4 STRUCTURE OF INDUSTRIAL FINANCE
CORPORATION OF INDIA
5 FUNCTIONS AND OBJECTIVE OF INDUSTRIAL
CORPORATION OF INDIA
6 PRODUCTS AND SERVICES PROVIDED BY IFCI
7 AWARDS AND RECOGNITION ACHIEVED BY
IFCI
8 FUTURE PROSPECTUS
9 CONCLUSION
10 BIBILOGRAGHY
INTRODUCTION OF INDUSTRIAL FINANCE CORPORATION OF
INDIA
IFCI, previously industrial finance corporation of India, is a development
finance institution under the ownership of ministry of finance,
government of India. IFCI is currently a government-owned corporation,
with the Indian government owning 61.02% of the company’s paid-up
capital. Established in 1948 as statutory corporation, IFCI is currently a
company listed on BSE and NSE. IFCI has seven subsidiaries and one
associate. The industrial finance corporation of India was converted into
public company on 1 July 1993, the main aim of setting up this
development bank was to provide assistance to the industrial sector. IFCI
is also Registered with the Reserve Bank of India (RBI) and is also a
notified Public Financial Institution under section 2(72) of the Companies
Act, 2013. And is registered as a systematically important Non-Deposit
Taking Non-Banking Finance Company with the reserve bank of India
(RBI). At the time of independence in 1947, the Indian capital market
were relatively less developed. The demand for capital was growing
rapidly, however, there was a dearth of providers of capital. The
commercial banks that existed were not equipped well enough to provide
for long term capital needs in any significant manner. The Industrial
Development Bank of India, scheduled banks, insurance companies,
investment trusts and co-operative banks are the shareholders of IFCI.
The Union Government has guaranteed the repayment of capital and the
payment of a minimum annual dividend. The corporation is Authorized
issue bonds and debentures in the open market, to borrow foreign
currency from the World Bank and other organizations, accept deposits
from the public and also borrow from the Reserve Bank. The Authorized
share capital of the IFCI was Rs. 10 crores at the initial stage, according
to the industrial corporation (Amendment) Act, 1986, the Authorized
capital of the corporation has been raised from Rs. 100 crores to Rs. 250
crores (the authorized capital may be fixed by the government of India by
notification from time to time). IFCI is having mandate to provide
financial support for the diversified growth of industries across the
spectrum. The financing activities cover various kind of projects such as
airports, roads, telecom, power, real estate, manufacturing, service sector
and such other allied industries. During its 75 years of existence, mega
projects like Adani Mundra Ports, GMR Goa International Airport,
Salasar Highways, NRSS Transmission, Raichur Power corporation, to
name a few, have been setup with financial assistance of IFCI. IFCI also
provides government advisory services and corporate advisory services.
In government advisory, IFCI is appointed as a project management
agency (PMA) for various production linked Incentive (PLI) schemes
launched under the aegis of “Atmanirbhar Bharat” by the government of
India. These schemes are aimed at boosting domestic manufacturing and
to attract large investment in the identified sectors. IFCI is also the
Verifying and Monitoring agency for various capital subsidy schemes.
Under Corporate advisory, IFCI is offering financial advisory, ESG
advisory and other project advisory services to the Corporate and
Government sectors. IFCI is also the Nodal Agency for monitoring loans
of Sugar Development Fund (SDF) since 1984. The company has played
a pivotal role in setting up various market intermediaries of repute in
several niche areas like stock exchanges, entrepreneurship development
organizations, consultancy organizations, educational and skill
development institutes across the length and breadth of the country. The
government of India has placed a venture capital fund of Rs. 200 crores
scheduled castes (SC) with IFCI with an aim to promote entrepreneurship
among the scheduled castes (SC) and to provide concessional finance.
IFCI has also Committed a contribution of Rs. 50 crores as leas investor
and sponsor of the fund. IFCI Venture capital funds Ltd., a subsidiary of
IFCI Ltd., is the investment manager of the fund. The fund has been
operationalized since FY 2014-15 and IVCF is continuously making
efforts for meeting the stated objective of the schemes. Further, in march
2015, ministry of social justice and empowerment, government of India
has designated IFCI as a nodal agency for implementing the “credit
enhancement guarantee scheme for scheduled castes” with an objective to
encourage entrepreneurship amongst the scheduled castes, by providing
credit enhancement guarantee to member lending institutions viz. banks
who are providing financial assistance to these entrepreneurs belonging
to scheduled castes community. Until the establishment of ICICI in 1991,
IFCI remained solely responsible for implementation of the government’s
n industrial policy initiatives. On 1 July 1993, it was reconstituted as a
company to impart a higher degree of operational flexibility. Because
there was NPA increase, and it was making loss, then government
privatized it. IFCI was allowed to access the capital markets directly.
Management of IFCI
The corporation has 13 members board of directors, including chairman.
The chairman is appointed by government of India after consulting
industrial development bank of India. He works on a whole time basis
and has tenure of 3 years. Out of the 12 directors, four are nominated by
the IDBI, two by scheduled banks, two by co-operative banks and two by
other financial institutions like insurance companies, investment trusts,
etc. IDBI normally nominates three outside persons as directors who are
experts in the fields of industry, labor and economics, the fourth nominee
is the central manager of IDBI. The boards meet once in a month. It
frames policies by keeping in view the interests of industry, commerce
and general public. The board acts as per the instructions received from
the government and IDBI. The central government reserves the power up
to the board and appoints a new one in its place. The board is assisted by
the central committee which consists of the chairman, two directors
elected by nominated directors and the board of directors elected by the
elected directors. This committee assists the boars in discharge of its
functions. It can act on all matters under the competence of the board, so
this committee practically transacts the entire business of the corporation.
IFCI also has standing advisory committee one each for textile, sugar,
jute, hotels, engineering and chemical processes and allied industries. The
experts in different fields appointed on advisory committees. The
Chairman is the ex-officio Member of all advisory committees. All
applications for assistance are first discussed by advisory committees
before the go to central committees. The financial resources of the
corporation consist of share capital, bonds, debentures and borrowings.
IFCI plans its financing policies as per the priorities set by the
government through industrial policy statements. The industries which
are in high priority are given more importance. IFCI does not ordinarily
provide funds for working capital purpose as this function is left to
commercial banks. It does not allow utilizing its assistance for meeting
existing liabilities of the industrial concerns. Similarly, foreign currency
loans can be used for purchasing capital goods only and not of raw
material.
HISTORY OF INDUSTRIAL FINANCE CORPORATION OF INDIA
At the time of independence in 1947, the Indian capital market were
relatively less developed. The demand for capital was growing rapidly,
however, there was a dearth of providers of capital. The commercial
banks that existed were not equipped well enough to provide for long
term capital needs in any significant manner. Against this backdrop and
to any bridge the demand supply gap for capital needs of the economy,
the government of India established The Industrial Finance Corporation
of India (IFCI) on July 1, 1948 by enacting the IFC Act 1948. IFCI was
the first development finance institution of India set up to propel
economics growth through development of infrastructure and industry.
since then, IFCI has contributed significant to the economy through its
incessant support to projects in various spheres of growth and
development viz. manufacturing, infrastructure, services and agriculture
allied sectors.
The liberalization of the Indian economy in 1991 made significant
changes in the Indian capital markets and financial system. To aid raising
of fund directly through capital markets, the constitution of IFCI was
changed from a statutory corporation to a company under the Indian
companies Act, 1956. Subsequently, the name of the Company was
changed to ‘IFCI Limited’ with effect from October 1999. Since its
Inception, IFCI has witnessed and sustained all business economic cycle.
IFCI has been able to maintain the financial sustainability with the
consistent support and cooperation of all its stakeholders and particularly
the Government of India.
In addition to its core competence in long term lending to industrial and
infrastructural sectors, IFCI has also developed competence in providing
advisory services and has been a nodal agency for providing advisory
services to various government of India schemes such as sugar
development fund, M-SIPS, production linked incentive (PLI) scheme
and scheme for promotion of manufacturing of electronic components
and semiconductors (SPECS). Further, IFCI also enhanced its
organizational value through optimizing value of core and non-core assets
and investments. Over the years, IFCI has played a pivotal role in a
establishment of various entities ( including some of its subsidiaries and
associates) that are respected in their fields today, namely stock holding
corporation of India ltd (SHCIL), national stock exchange ltd (NSE), LIC
housing finance, tourism finance corporation of India ltd (TFCI), ICRA
Ltd, among many others. Indian capital market were somewhat
underdeveloped at the time of independence in 1947.
The need for capital was fast increasing, yet capital sources were scarce.
The commercial banks that existed at that time were not well positioned
to meet long-term capital demands in any substantial way. The industrial
finance corporation of India (IFCI) was created on July 1, 1948, by
adopting the IFC Act 1948 in response to this backdrop and to bridge the
demand-supply gap for capital needs in the sector. Since then, IFCI has
made substantial contributions to the economy through its unwavering
support for initiatives in manufacturing, infrastructure, services and
agriculture-related industries. The Indian capital markets and financial
system saw considerable changes after the Indian economy was
liberalized in 1991. The constitution of IFCI was converted from a
Statutory Corporation to a company under the Indian Companies act,
1956, to facilitate raising funds directly through capital markets. The
company’s name was subsequently changed to ‘IFCI Limited’ in October
1999.
In 2002 IFCI Ltd has infirmed that they have executed a negotiated deal
on April 1, 2002 with yield securities and credits Pvt Ltd for sale of
16,46,579 equity shares Indorama Synthetics India Ltd (IRSL) (being
0.99% of the paid up capital) and with virgin securities and credits Pvt
Ltd for the sale of 16,46,580 equity shares of Indorama Synthetic India
Ltd (being 0.99% of he paid up capital) at Rs. 12.0445 per share, in terms
of the share purchase agreement dated March 26, 2001 between IFCI and
Shri. OP Lohia, promoter of IRSL. The shareholders approved the
appointment of Indian Institution of Managements I M Pandey as a new
director on the board, while clearing the reappointment of Ashok Lahiri,
Director National Institute of Public Finance and policy. They also
ratified the appointment of VP Singh as Chairman and Managing Director
on the board. IFCI Ltd has informed that Ministry of Finance,
Department of Economics Affairs (banking division) as the Government
Director on the Board of IFCI Ltd in place of Shri U K Sinha.
In 2003 Jindal strips limited has informed that the IFCI Ltd. has
withdrawn the nomination of shareholder S. Lahiri from the BOD of the
company w.e.f. June 05, 2003. In 2004 IFCI merge with PNB’s to help
each other and in 2007 IFCI Ltd has approved the appointment of Shri
Atul Kumar Rai, as whole times director. In 2008, IFCI limited has
informed that consequent upon change in the posting of Shri. S.P. Arora,
company secretary of IFCI, to another department, Ms. Rupa Sarkar,
Asst. General manager, has been designated company secretary and
compliance officer of the company with effect from March 3, 2008. In
2009, IFCI Ltd has informed BSE that the company has acquired 5%
stake in the present equity share capital of MCX Stock Exchange Ltd
(MCX-SX) from Financial Technologies (India) Ltd ( FTIL) at Rs 35\-
per equity share, subject to the terms & conditions of the Agreement,
entered between the company and FTIL.
In 2010, Industrial Finance Corporation of India (IFCI) is eyeing to
invest Rs. 1000 crore to establish a base in the proposed global financial
district in Bangalore. In 2011, IFCI and Sycamore Ventures to launch
infrastructure fund. Launch (IFCI) partners with Sycamore Ventures. In
2012, IFCI Ltd has informed BSE that the Board of Directors of the
company has re-appointed Shri Atul Kumar Rai, as Chief Executive
officer and managing director of the company for the further period of
five years. The capital market regulator has cleared the government’s
proposal to buy a majority stake in IFCI Ltd through conversion of
debentures and also exempted it from making an open offer to minority
investors, which has been mandatory otherwise.
As per the regulations, any acquire of 25 percent or more has to make an
open offer for a further 26 percent stake from the public shareholders.
IFCI Financial City: IIDL brings India’s first Financial City to Bengaluru.
In 2013, IFCI Ltd has appointed Shri Malay Mukherjee as CEO and MD
of the company. In 2014, IFCI Ltd. acquired IDBI Banks Limited’s
equity shares in Stock Holding Corporation of India Ltd. In 2015, IFCI
now better equipped for make in India Programme. Signing of
Memorandum of Understanding (MOU) between institute of Leadership
Development and IFCI Limited and the Government of Rajasthan. Press
coverage of inauguration function of Vijayawada regional office, Andhra
Pradesh. In 2016, inauguration of news office premises of IFCI
Bhubaneshwar.
REVIEW OF LITERATURE
Abstract
1948, the year of IFCI’s birth, was a seminal year in development
banking, not only in India but also all over the world. The world bank at
that time was just three years old, while kreditanstalt-fur-weirderaufau
(KFW) Germany was born in the same 1 st July 1948 that IFCI opened its
door for business. It was year. It was on incorporated as a company under
the companies Act, 1956 on 21st May, 1993, the name of Industrial
Finance Corporation of India was also changed to “IFCI Ltd.” W.e.f.
October 1999. The main objective of this study is to analyze the working
of IFCI Ltd. A descriptive analytical research methodology is applied.
Various statistical techniques are used in this study. The study reveals
that the performance of IFCI Ltd. Shown a mixed picture. Growing NPAs
is any concern as in case of IFCI Ltd. too is one of the biggest problems.
On the other hand, it significantly contributes in the development of
industrial sector. Some concrete suggestions have to also been given to
improve the financial position so that it may prove itself that old is gold.
It is the review that enables one to have a clear and comprehensive vision
of all the pros and cons of the work, keeps abreast with the latest trends,
methods, tools and techniques, makes aware with the frontier of the
problem, contributes to scholarship of the investigation and develops
deep insight into the problem, points out important aspects, stimulates
thinking, promotes creativity, and provides concepts and data for
evaluation.
Kuchhal, S.C. is acknowledging authority on this subject. First
published1960-1983 is an indispensable reference and has already gone
in several editions. It is dividend in ten parts and 38 chapters. Chapter
third deals with industrial evolution of India Pre and post- independence
period. This book emphasizes on the problem of industrial evolution and
progress in the context of developing countries like India that
industrialization is a process of growth which is originally linked both to
the social and economical past and to the parallel processes of social and
economic development. Development plans for industry cannot be
framed in isolation. They must be coordinated and adjusted with other
sector of the economy. The study analyses the progress, deficiencies and
achievements of Indian industry, various new problems of industrial
growth, emerging as a result of planned economy like regional
development, taxation, institutional financing, capital formation workers
participation in management, industrial productivity, etc.
Srivastava, R.M. book entitled management of Indian financial
institutions, first published in 1984 and revised (in collaboration with
Divya Nigam) in 2001 is an indispensable reference and has already
undergone several editions. It is a mammoth work comprising 42 chapters
three sections, the last one dealing with management of development of
development banks in India including an in-depth study of IFCI Ltd.
Another book by Prof. Srivastava, which merits special mention, is
financial management and policy (2005), which deals with important
aspects of financial management such as investment dividend, long-term
financing decisions, working capital management financial instruments
and analysis and interpretation of financial statements.
Bhole, L.M. Financial institutions and market is a commendable
contribution towards financial institution literature. Apart from history of
Indian financial system in the post 1950 period, this book discusses
systematically the regulatory and promotional institution, banking
institutions, non-banking financial intermediaries and statutory financial
organization market etc. it also makes a survey of the financial system in
India as well financial sector reforms affected from time to time.
Desai, Vasants institutional framework for industries is a very
illuminating and informative reference on the subject. Of special interest
is a detailed account of all the financial institutions in India, central as
well as state level followed by a directory of a useful financial institution
in India given at the end of section 2 vol.
Ramesh babu, G. Indian financial system is a scholarly book written in a
lucid style. It describes the Indian financial system, types of financial
institutions in India, financial market and financial services in an easy-to-
understand language.
Pandey, Shishsir in his research paper entitled “Financial structure and
profitability of IFCI Ltd: An Empirical Analysis” explain that a company
capital structure determination constitutes a difficult decision that
involves several antagonistic factors. The design of capital structure of
any company mainly decides on profitability aspects. This paper is an
attempt to analyze the capital structure of IFCI Ltd. And checks the
impact of present capital structure on shareholders as well as
stakeholders.
Prakash B. Kundaragi et al. (2015) identified time pressure workload,
long working hours, age, personality, family, work itself as the causes of
stress or distress and suggested many stress management techniques such
as undertaking stress audit, spreading awareness about effective dealing
with stress, conducting stress management program using medical officer.
They suggests that converting distress into eustress will make individual
lifestyle as well as organization healthy.
Sabeena Mary et al. (2019) tried to highlight various measures to reduce
the stress of the employees, in order to increase the skill of the employees
adopted by the IT companies to overcome this problem. The study
identified that heavy work overload and job instability is the main
consideration that cause stress. The research suggested that the
organization must attempt to diminish the outstanding task at hand.
Khalid (2012) has found that there is a direct relationship between stress
and job performance in any organization. To improve the performance of
an individual in an organization an employee should receive good support
from their leaders. Therefore, a supportive leader can improve the
performance of an employee even in unfavorable situations.
Vijaya Banu et al. (2010) studies the stress factors of the employees and
recommended the solution for minimizing the stress effects. The findings
state that the employees strongly agree that high target is one of the major
stressors of the organization. It recommends yoga and meditation to keep
them free and fit mentally without stress.
It reveals about the employee’s stress level and the factors that cause
dissatisfaction to the employees. It is helpful in assessing the extent stress
experienced by the employees in IFCI Financial services Ltd. And also to
know how the organization gets affected due to the stress faced by the
employees.
FUNCTONS OF IFCI
IFCI is authorized to render financial assistance in one or more of the
following forms:
1. Granting loans or advances to or subscribing to debentures of
industrial concerns repayable within years, also it can convert part
of such loans or debentures into equity share capital at its option.
2. Underwriting the issue of industrial securities i.e. shares, stocks,
bonds, or debentures to be disposed-off within 7 years.
3. Subscribing directly to the share and debentures of public limited
companies.
4. Guaranteeing of deferred payment for the purchase of capital goods
from abroad or within India.
5. Guaranteeing of loans raised by industrial concerns from
scheduled balls or state co-operative banks.
6. Acting as an agent of the Central Government or the World Bank
in respect of loans sanctioned to the industrial concerns
7. IFCI also provides Government Advisory services and corporates
Advisory services. In Government Advisory, IFCI is appointed as a
Project Management Agency (PMA) for various production linked
incentive (PLI) schemes launched under the aegis of “ Atmanirbhar
Bharat” by the Government of India. These schemes are aimed at
boosting domestic manufacturing and to attract large investment in
the identified sectors. IFCI is also the verifying and monitoring
agency for various capital subsidy schemes. Under corporate
advisory, IFCI is offering financial advisory, ESG advisory and
other project advisory services to the Corporate and Government
sectors. IFCI is also the Nodal Agency for monitoring loans of
Sugar Development Fund (SDF) since 1984.
IFCI provides financial assistance to eligible industrial concerns
regardless of their size. However, now-a-days, it entertains applications
from those Industrial concerns whose project cost is about Rs. 2 crores
because up to project cost of Rs. 2 crores various state level institution
(such as financial corporations, SIDCs and banks) are expected to meet
the financial requirement of viable concerns. While approving a loan
application, IFCI gives due consideration to the feasibility of the project,
it’s important to the nation, development of the backward areas, social
and Economic liability, etc.
The most of the assistance sanctioned by IFCI has gone to industries of
national priority such as fertilizers, cement, power generation, paper,
industrial machinery etc. The corporation is giving a special consideration
to the less developed areas and assistance to them has been stepped up. It
has sanctioned nearly 49 per cent of its assistance for projects in
backward districts. The corporation has recently been participating in sift
loan schemes under which loans on confessional rates are given to units
in selected industries. Such assistance is given for modernization,
replacement and renovation of plant and equipment.
IFCI introduced a scheme for sick units also. The scheme was for the
revival of sick units in the tiny and small-scale sectors, another scheme
was framed for the self-employed young persons. The corporation has
diversified not merchant banking also financing of leasing and hire
purchase companies, hospital, equipment leasing etc. were the other new
activities of the corporation in the last few years.
Promotional Activities
The IFCI has been playing very important role as a financial institution in
providing financial assistance to eligible industrial concerns. However, no
less important is its promotional role whereby it has been creating
industrial opportunities also. It has been taking up directly as well as
indirectly; such steps and activities are regarded necessary for the
acceleration of the process of industrialization in the country. The
promotional role of IFCI has been to fill the gaps, either in the
institutional infrastructure for the promotion and growth of industries, or
in the provision of the much needed guidance in project intensification,
formulation, implementation and operation, etc. to the new tiny, small-
scale or medium scale entrepreneurs or in the efforts at improving the
productivity of human and material resources.
a) Development of backward areas - the main trust of all financial
institutions has been to remover regional imbalances by promoting
industrialization of backward area. IFCI introduce a scheme of
confessional finance for projects set up in backward areas. The
backward-districts were divided into three categories depending
upon he State of development there. All these categories were
eligible for concessional finance. Nearly 50 per cent of total
lending of IFCI has been to develop backward areas.
b) Promotional schemes – IFCI has been operating six promotional
schemes with the object of helping entrepreneurs to set up new
 units, broadening the entrepreneurial base, encouraging the
adoption of new technology, tackling ‘the problem of sickness and
promoting opportunities for self-development and self-employment
of unemployed persons etc. these schemes are such:
1) Subsidy for adopting indigenous technology - The projects
which use indigenously developed technology are entitled to a
concession in the form of subsidy covering interest payment due
o IFCI during the first three years of operations, extendable to
five years.
2) Meeting cost of market studies – The entrepreneurs setting up
medium sized industrial projects for the first can avail 75 per
cent of the cost of market survey/ study subject to a ceiling of
Rs. 15,000 provided it is handled by technical consultancy
organization.
3) Meeting cost of feasibility studies – IFCI provides subsidy for
the fees paid for consultancy assignments relating to feasibility,
project reports etc. The amount allowable is 80 per cent of the
fees of Rs. 8,500 or 100 per cent of the total fees whichever is
less for handicapped or scheduled caste persons.
4) Promoting small scale sector and preparation of feasibility
reports a subsidy of Rs. 0.1 million per annum for technical
consultancy organization is allowed.
5) Revival of sick units – There is a subsidy to the extent of 80
per cent or Rs. 5,000 (whichever is less) for the fees charged by
a technical consultancy organization for carrying out a
diagnostics study or for the implementation of rehabilitation
Program. This facility is allowed to tiny units or units in small
scale sector.
Self-development and self-employment scheme – An unemployed person
in the age group of 21 to 35 years may be allowed a soft loan for
providing margin money for getting a loan from a bank or a financial
institution. The soft loan at interest free rate in first year and has
confessional interest later on. The amount available under this scheme is
25% of margin money subject to Rs. 5000.

OBJECTIVES OF INDUSTRIAL FINANCE CORPORATION OF

INDIA
 One of the significant objectives of IFCI is to issue short-term yet
effective or long-term financial support and assistance to the
projects or plans regarding the industrial and manufacturing
sections, which contributes to the development of the country
economically. It looks into a few factors before granting any loans.
They study the importance of the industry in our national economy,
the overall cost of the project, and finally the quality of the product
and the management of the company. If the above factors
satisfactory results the IFCI will gran the loan.
 The Industrial Finance Corporation of India can also subscribe to
the debenture that these companies issue in the market.
 The IFCI bank helps suggest the plans, promote these plans, and,
lastly, develop the industries.
 When a company is issuing shares or debentures the Industrial
Finance Corporation of India can choose to underwrite such
securities.
 There is a special department the merchant banking and allied
services department. They look after matters such as capital
restructuring, mergers, amalgamations, loan syndication, etc.
 It the process of promoting Industrialization the Industrial Finance
Corporation of India has also promoted three subsidiaries of its
own, namely the IFCI Financial Services Ltd., IFCI Insurance
Services Ltd., and I-Fin. It looks after the functioning and
regulation of these three companies.
 Financial support and assistance are the main criteria for every
entrepreneur, and since the establishment of IFCI occurred, these
significant criteria have been fulfilled.
 The IFCI bank handles all the financial needs of the entrepreneur.
 The IFCI bank does not just provide financial support to new
business individuals but also provides financial support in certain
situations where the accommodation of banking is unfitting or in a
situation where the funds for stock exchange are unfeasible.
 The financial activities of the IFCI bank include projects like the
renovation of roads or making roads, building airports, power
supply to the society, business involving real estate,
telecommunication, manufacturing of various products and
Industrialization.
 The IFCI bank employees are very customer oriented and provide
solutions that focus on the customer’s needs and satisfaction.
  Economically IFCI bank plays a pivotal role in the improvement of
the country.
 The IFCI bank officials are flexible in issuing personalized
solutions regarding the financial necessities to meet the
requirements of the projects such as oil, gas, chemicals, textiles,
airports roads, urban area development, real estate and metals.
 The IFCI bank also gives facilities to customers from small
corporate, mid-corporate or large corporation. The loans provided
by the IFCI can also be short-term which can meet-up the needs of
the business.
 The IFCI is a customer-friendly and focused on the development of
the organizations by dispensing financial necessities and facilities
for the contentment of all the shareholders.
 The IFCI bank takes up all the issues with pure honesty and bias-
free.
 The IFCI bank has a strict rule regarding the commitment to
complete the commitment with devotion.
Objectives of the IFCI which are particularly beneficial for
Entrepreneurs.
 The employee in the IFCI bank are required to deliver fast
responses.
 The IFCI bank provides loans in foreign currency and rupees.
 The IFCI bank ensures the entrepreneur or organization makes all
payments.
 The IFCI bank ensures the raising of money by providing shares.
 The IFCI bank also takes part in the promotional schemes.
 The IFCI bank sanctions loans for companies form the central
government.
 The IFCI also provides consultan0cy to the small-scale
entrepreneurs for deciding the cost management of the project.
In recent years, IFCI has introduced the following new promotional
schemes:
a) Interest subsidy scheme for women entrepreneurs.
b) Consultancy fee subsidy schemes for providing marketing
assistance to small scale units.
c) Encouraging modernization of tiny, small and ancillary units.
d) Controlling pollution of small and medium scale units.
In recent years about 50 per cent of the assistance has been advanced to
industrial projects location in backward districts of country. However, in
recent years, the performance of IFCI is not at all satisfactory. Total
amount of loan sanctioned by IFCI initially increased from Rs. 3,746
crores in 1993-94 to Rs. 6,580 crores in 1995-96 and then it gradually
declined to Rs.1,050.4 crores in 2006-07 and the increased to Rs. 4,015
crores in 2008-09.
But the total amount of loan disbursed by the IFCI which initially
increased from Rs.2.163 crores in 1993-94 to Rs.4,586.5 crores in 1995-
96 and then drastically fell to Rs. 2,164.7 crores in 2000-01 and then to
Rs. 278 crores in 2003-04 and then finally to only Rs. 3,311 crores in
2008-09.
In 2012-13, total amount of financial resources sanctioned and disbursed
by the IFCI stood at Rs. 2,219 crores and Rs.1,504 crores respectively.
Unfortunately, IFCI has been worse affected due to its huge non-playing
assets, willful defaults etc.
The Government of India have also made an attempt at rehabilitate IFCI
by subscribing Rs. 400 crores through long term convertible bonds and
also advised IDBI, SBI and LIC for extending assistance worth Rs. 200
crores each. In order to meet its outstanding liabilities of the Government
of India provided Rs. 2,096 crores as loan during 2002-03 and 2003-04.
Again, the share of non-performing assets (NPAs) in net loans advanced
by IFCI stood at 28.0 percent as at the end of March,2005. Even then the
IFCI is gradually becoming sick. The Government of India is now
seriously considering to merge IFCI with a large PSU bank such as
Punjab National Bank.
IFCI’s ECONOMIC CONTTRIBUTION
IFCI’s economic contribution can be measured from the following:
 Cumulative, IFCI has sanctioned financial assistance of Rs. 462
billion to 5707 concerns and disbursed Rs. 444 billion since
inception.
 In the process, IFCI has catalyzed investment worth Rs. 2,526
billion in the industrial and infrastructure sectors.
 By way of illustration, IFCI’s assistance has been helped create
production capacities of:
6.5 million spindles in the textile industry.
7.2 million tons per annum (TPA) of sugar production.
1.7 million tons per annum paper and paper products.
18.5 million tons per annum of fertilizers.
59.3 million tons per annum of cement.
30.2 million tons per annum of iron and steel.
32.8 million tons per annum of petroleum refining.
14,953 MW of electricity.
22,106 hotel rooms.
5,544 hospital beds.
8 ports projects, 66 telecom projects and 1 bridge project.
 The direct employment generated as a result of its financial
assistance is estimated at almost 1 million persons.
 IFCI haa played a pivotal role in the regional dispersal of industry,
47% of IFCI’s assistance has gone to 2,172 units located in
backward areas, helping to catalyst investment worth over Rs.
1,206 billion.
 IFCI’s contribution to the government exchequer by way of taxes
paid is estimated at Rs. 9 billion.
 IFCI has promoted Technical Consultancy Organization (TCOs),
primarily in less developed states to provider necessary services to
the promoters of small and medium sized industries in
collaboration with other banks and institution.
 IFCI has also provided assistance to self-employed youth and
women entrepreneurs under its Benevolent Reserve Fund (BRF)
and the Interest Differential Fund (IDF).
 IFCI has founded and developed prominent institutions like:
Management Development Institute (MDI) for management
training and development ICRA for credit assessment rating.
 Tourism Finance Corporation of India (TFCI) for promotion
of the hotel and tourism industry.
LIC Housing Finance Ltd.
GIC Grih Vitta Ltd.
Bio-tech Consortium Ltd. (BCL).
 IFCI has also set up chairs in reputed educational management
institution and universities. A major contribution of IFCI has been
in the early assistance provided by it to some of today’s leading
Indian entrepreneurs who may not have been able to start their
enterprise or expand without the initial support from IFCI.

STRUCTURE OF INDUSTRIAL FINANCE CORPORATION OF

INDIA
The head office of the IFCI is in New Delhi. It has also established its
Regional Offices in Mumbai, Chennai, Kolkata, Chandigarh,
Hyderabad, Kanpur and Guwahati. The branch office of IFCI is
located in Bhopal, Pune, Jaipur, Cochin, Bhubaneshwar, Patna,
Ahmedabad and Bangalore.
The IFCI is managed by a Board of Directors, headed by a Chairman,
who is appointed by the Government of India, in consultation with
RBI. The Chairman holds his position for a period of 3 years, subject
to extension.
Of the 12 directors, 4 are nominated by the IDBI, three of whom are
experts in the fields of industry, labor and economics and the fourth is
the general manager of the IDBI. The remaining 8 directors are
nominated. Two directors are nominated for a term of 4 years by each
of the following scheduled banks, co-operative banks, insurance
companies and investment companies making up eight directors.
BOARDS OF DIRECTORS
Shri Manoj Mittal – Managing Director and Chief Executive
Officer.
Shri Manoj Mittal aged about 54 years has a track record of over 3
decades in propelling organizational growth and profitability through
strategic leadership, multi-functional expertise, building/ optimizing
organizational processes. He worked as a Deputy Managing Director
at small Industries Development Bank of India (SIDBI) from January
2016- January 2021. He was closely involved in the development of
SIDBI vision 2.0 and its successful implementation to emerge as a
financially stronger impact institution.
He had played a lead role in restructuring of dues of Banks to MFIs
during the A.P. MFI crisis in 2010 and implementation of responsible
lending initiatives. He also has comprehensive experience in design,
management and impact evaluation of various sustainability and
development program funded by multilateral agencies/ Government of
India. He is a strong votary of Credit Plus approach for holistic
development with expertise in extending capital (Debt and Equity) and
development support to MSMEs / startups, financial intermediaries-
banks/ Non-Banking Finance Companies / Micro Finance Institutions,
Alternate Investment Funds.
Besides IFCI Ltd. Shri Manoj Mittal is also on the Board of Stock
Holding Corporation of India Ltd., IFCI Venture Capital Funds Ltd.
and IFCI Infrastructure Development Ltd. Shri Manoj Mittal is also on
the Board of Governors of Management Development Institute,
Gurgaon, Entrepreneurship Development Institute of India and
Rashtriya Gramin Vikas Nidhi (RGVN).
Shri Rahul Bhave – Deputy Managing Director
Shri Rahul Bhave is a senior banker with 24 years of commercial
banking experience in various capacities and has served across the
country. He has served in national housing bank as executive director
since 2020. He has worked to encourage a sound housing and housing
finance system in the country, through effective supervision of HFCs
and refinance to strengthen the grassroot credit delivery network.
Has experience of heading zone in commercial bank. Apart from his
expertise in retail operation, he also carries experience in the areas of
refinance, supervision, recovery, risk management and IT.
He has also served in committee established by RBI and IBA on
emerging technologies in banking and risk management. Shri Bhave
has an MBA in public management and policy from IIM, Ahmedabad
and a postgraduate in statistics. He is also a qualified CAIIB
professional.
Shri Mukesh Kumar Bansal – Government Director
Shri Mukesh Kumar Bansal, Joint Secretary, Department of Financial
Services, Ministry of Finance, Government of India is an IAS officer
(2005 batch). Shri Bansal is a commerce graduate and also an MBA
form he Sloan School of Management, Massachusetts Institute of
Technology, USA. Prior to his posting as joint secretary, Department
of Financial services, Ministry of Finance in October, 2022, he
worked as a Private Secretary to Hon’ble Minister of Agriculture and
Farmers Welfare, Government of India from March, 2020 to October,
2022.
He is also on the Board of Micro Units Development and Refinance
Agency Limited, Bank of Baroda, National Credit Guarantee Trustee
Company and National Insurance Company Limited. Shri Bansal is
also on the Governing Board National Insurance Academy and
Member of Council of Institute of Actuaries of India and Council for
Insurance Ombudsman.
Shri Kartikeya Misra – Government Director
Shri Kartikeya Misra, Director, Department of Financial Services,
Ministry of Finance, Government of India, is an Officer of Indian
Administrative Services (2009 batch). Shri Misra is a graduate from
BITS Pilani and a postgraduate from the IIM-Ahmedabad. Prior to his
current posting, he was posted in the Ministry of Labor and
Employment Andhra Pradesh as a Commissioner and has also served
in various Ministries / Department of the Government of Andhra
Pradesh.