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Development Financial Institutions

or
Development banks
Introduction
 Development banks are the institutions engaged in
the promotion and development of industry,
agriculture and other key sectors.
 National or regional financial institution designed to
provide medium- and long-term capital for
productive investment.
 Such investment is usually accompanied by technical
assistance.
 Some development banks are government-owned,
while others are private.
 Many have been established under the auspices of
the World Bank.
ICICI BANK
 Founded :: 1955
 Headquarters:: ICICI Towers, Bandra, Kurla, Mumbai,
India.
 Products:: Loans, Credit Cards, Savings, Investment vehicles,
Insurance
 Revenue:: 59,599.77 crore (US$12.93 billion) (2009)
 Operating Income:: Rs.6578.64 crore (US$ 1.43 billion)
(2010)
 Profit:: Rs. 4843.41 crore (US$ 1.05 billion) (2010)
 Total assets :: US$ 108.7 billion (2010)
 Employees:: 35000 + (2009)
About ICICI Bank
 ICICI Bank is India’s largest private sector
bank by market capitalisation and second
largest in terms of assets.
 The bank also has a network of 1700+
branches and about 4721 ATMs in India and
presence in 18 countries, as well as some 24
million customers.
 It is also the largest issuer of credit cards in
India.
Inception
 The Industrial Credit and Investment
Corporation of India Ltd. Was incorporated
at the initiative of the World Bank, the Govt.
of India and the representatives of Indian
industry, with the objective of creating a
development financial institution for
providing medium-term and long-term
project financing to Indian businesses.
HISTORY
 ICICI was incorporated in 1955 and in 1994 it
established banking corporation as a banking
subsidiary.
 2001:: ICICI acquired Bank of Madura
 2002:: The Boards of Directors of ICICI &
ICICI bank approved the merger of ICICI,
ICICI Personal Financial Services Limited and
ICICI Capital Services Limited, into ICICI
Bank.
Cotd..
 2008 :: The US federal Reserve permitted
ICICI to convert its representative office in
New York into a branch.
 2009 :: ICICI made huge changes in its
organization like elimination of loss making
department and restretching outsourced staff
or renegotiate their charges in consequent to
the recession.
Presence in overseas market
 The Bank currently has subsidiaries in the United
Kingdom, Russia and Canada, branches in United
States, Singapore, Bahrain, Hong Kong, Sri
Lanka,Qatar and Dubai International Finance Centre
and representative offices in United Arab Emirates,
China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany
 ICICI Bank with its customer service has changed
the meaning of Banking services in India
Subsidiaries of ICICI bank
 ICICI Prudential Life Insurance Company
 ICICI Securities
 ICICI Lombard General Insurance Company
 ICICI Prudential AMC & Trust
 ICICI Venture
 ICICI Direct
IDBI Bank
 Founded:: July 1964
 Headquarters::Mumbai, India

 Products:: Finance and Insurance

 Employees:: 8989
About IDBI bank
 IDBI Bank is one of India's leading public sector banks and 4th
largest Bank in overall ratings. RBI categorised IDBI as an "other
public sector bank".
 It is currently 10th largest development bank in the world in terms
of reach with 1300 ATMs, 758 branches and 513 centers.
 IDBI has been instrumental not only in establishing a well-
developed, diversified and efficient industrial and institutional
structure but also adding a qualitative dimension to the process of
industrial development in the country.
Inception
 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 .
Role of IDBI as a DFI
 IDBI has played a pioneering role in fulfilling its
mission of promoting industrial growth through
financing of medium and long-term projects, in
consonance with national plans and priorities.
 Over the years, IDBI has enlarged its basket of
products and services, covering almost the entire
spectrum of industrial activities, including
manufacturing and services.
 IDBI provides financial assistance, both in rupee and
foreign currencies, for green-field projects as also for
expansion, modernisation and diversification purposes.
History
 2003:: IDBI diversified its business domain further by
acquiring the entire shareholding of Tata Finance
Limited in Tata Home finance Ltd., signaling IDBI’s
foray into the retail finance sector.
 29 July 2004, the Board of Directors of IDBI and IDBI
Bank accorded in principle approval to the merger of
IDBI Bank with the Industrial Development Bank of
India Ltd. to be formed incorporated under the
Companies Act, 1956
Transition from IDBI to IDBI bank
 IDBI’s transformation into a commercial bank provided a
gateway to low-cost deposits like Current and Savings Bank
Deposits. This had a positive impact on the Bank’s overall cost
of funds and facilitated lending at more competitive rates to its
clients.
 The new entity offered various retail products, leveraging
upon its existing relationship with retail investors under its
existing Suvidha Flexi-bond schemes.
 IDBI hoped to realize its mission of positioning itself as a one
stop super-shop and most preferred brand for providing total
financial and banking solutions to corporates and individuals,
capitalising on its intimate knowledge of the Indian industry
and client requirements and large retail base on the liability
side.
Subsidiaries of IDBI
 IDBI Capital Market Services
 IDBI Gilts Ltd.
 IDBI Intech Ltd.
 IDBI Home Finance
 IDBI Asset Management
 IDBI Federal Life Insurance Company Ltd.
IFCI:: Inception
 The government established The Industrial Finance
Corporation of India (IFCI) on July 1, 1948, as the
first Development Financial Institution in the country
to cater to the long-term finance needs of the
industrial sector. The newly-established DFI was
provided access to low-cost funds through the central
bank's Statutory Liquidity Ratio or SLR which in
turn enabled it to provide loans and advances to
corporate borrowers at concessional rates.
History:: Change to a company
 The constitution of IFCI was changed in 1993
from a statutory corporation to a company
under the Indian Companies Act, 1956.
Subsequently, the name of the company was
also changed to "IFCI Limited" with effect
from October 1999.
 This was done to provide greater flexibility to
respond to the changing financial system.
Role of IFCI
 Until the establishment of ICICI in 1956 and
IDBI in 1964, IFCI remained solely
responsible for implementation of the
government’s industrial policy initiatives. It
made a significant contribution to the
modernization of Indian industry, export
promotion, import substitution, pollution
control, energy conservation and generation
through commercially viable and market-
friendly initiatives.
Sectors of development
Some sectors that have directly benefited from IFCI
include:
 Agro-based industry (textiles, paper, sugar)
 Service industry (hotels, hospitals)
 Basic industry (iron & steel, fertilizers, basic
chemicals, cement)
 Capital & intermediate goods industry
(electronics, synthetic fibres, synthetic plastics,
miscellaneous chemicals) and Infrastructure
(power generation, telecom services)
Economic Contribution
 Cumulatively, IFCI has sanctioned financial assistance of Rs 462 billion to
5707 concerns and disbursed Rs 444 billion since inception.
 IFCI has catalysed investments worth Rs 2,526 billion in the industrial and
infrastructure sectors
 The direct employment generated as a result of its financial assistance is
estimated at almost 1 million persons.
 IFCI has founded and developed prominent institutions like:
1. Management Development Institute (MDI) for management training and
development
2. ICRA for credit assessment rating
3. Tourism Finance Corporation of India (TFCI) for promotion of the hotel and
tourism industry
4. Institute of Labor Development (ILD) for rehabilitation and training of
displaced and retrenched labor force
5. Rashtriya Gramin Vikas Nidhi (RGVN) for promoting, supporting and
developing voluntary agencies engaged in uplifting rural and urban poor in
east and northeast India.
Subsidiaries
 IFCI Financial Services Ltd.
 IFCI Venture Capital Funds Ltd.
 IFCI Infrastructure Development Ltd.
 Tourism Finance Corporation of India Ltd.
 Assets Care and Reconstruction Enterprise Ltd.
 IFCI Factors Limited
 Institute of Leadership Development
 Management Development Institute

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