Professional Documents
Culture Documents
Joint Finance
Refinance Facility
Credit Guarantee
Underwriting of Securities
Role of development banks
in financial system
FUNCTIONS OF A
DEVELOPMENT BANK
Increase loans and equity investments to its
developing associate countries (DMCs) for their
monetary and social development.
Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
Promotes and facilitates speculation of public and
private capital for growth and development.
Responds to requests for assistance in coordinating
growth policies and plans of its increasing member
countries.
IFCI
The government of india set up the industrial
finance corporation of india in july 1948
Management of IFCI
12 directors
4 are nominated by the IDBI
OBJECTIVES OF IFCI
Promoted by new enterpreneurs
Based on indegenous technology
Which would result in substitution of imports
Providing input for incresing agricultural
products
FUNCTIONS OF IFCI
OPERATIONAL ACTIVITIES
Concessional finance to projects in less
development areas
Concessional finance for renewable energy
systems
Power of attorney scheme
Bridging loans
Sub loans in foreign currencies
IDBI
The Industrial Development Bank of India (IDBI) was
established on 1 July 1964 under an Act of Parliament
as a wholly owned subsidiary of the Reserve Bank of
India.
In 16 February 1976, the ownership of IDBI was
transferred to the Government of India and it was
made the principal financial institution for
coordinating the activities of institutions engaged in
financing, promoting and developing industry in the
country.
THE PRINCIPAL SOURCE OF FUNDS
OF IDBI
Share capital and reserves
Borrowing from government of india and RBI
Market borrowing by way of bonds
Deposits and other borrowings
Repayment of past assitance by borrowers
Foreign currency borrowings from worid
banks
Asian development banks and international
markets
OBJECTIVES and FUNCTIONS
Planning,promoting,developing industries
• Co-ordinating the working in institutions
engaged in financing
• Undertaking market and investment
research
• Providing technical and administrative
assitance
• Subsidiaries
Operational Activities
Direct Assistance
Indirect Assistance
Refinance Schemes
Refinance Scheme for industrial
rehabilitation
Automatic Refinance Scheme
Refinance Scheme for modernisation
Bills Rediscounting Scheme
contd.
Soft loan scheme for modernisation