INDUSTRIAL

FINANCE
CORPORATIO
N OF INDIA
LIMITED
BY: ANJALI RAWAL
AYUSHI SHARMA
DOLLY JAYAS
ANUSHREE GARG
 INTRODUCTION

 The Industrial Finance Corporation of India Limited was incorporated on July 1, 1948 by the
Government of India
 IFCI was established to overcome the scarcity of long-term finance plans in the industrial sector.
 IFCI is the first Development Financial Institution in India.
 The Corporation provides medium and long-term credits to industrial concerns in India.
 Any public limited company or co-operative society incorporated and registered in India which is in
the manufacturing, preservation or processing of goods, or in the shipping, mining or hotel industry or
in the generation or of distribution of electricity or any other form of power, is eligible for financial
assistance.
 HISTORY

 During the period of independence in 1947, the capital market scenario was terrible.
 In spite of the major requirement of capital market in India, there were no providers for it.
 To add to the problems, there were no merchant bankers and underwriting firms.
 The commercial banks were not well-equipped to render long-term financial plans in the industrial
sector.
 Indian finance market were in great trouble when the Government of India decided to launch the IFCI
with the aim to provide long-term financial plans to all the sectors of Indian industry.
 FORMATION

 The Development Financial Institution in India (DFD was incorporated to make inexpensive funds
easily available for the industrial sector through RBI's Statutory Liquidity Ratio or SER."
 This Statutory Liquidity Ratio enabled the corporate borrowers to take loans at a much concessional
rate
 During the early 1990s, the Government of India realized that the financial system of the country
needs more flexibility.
 The Government also felt that IFCI Led. needed to contact directly the capital market for any kinds of
funds or other financial issues.
 So in 1993, the Govemment of India transferred IFCI from Statutory Liquidity Ratio to a company
registered under the Indian Companies Act, 1956
 Vision and mission

 IFCI's Vision
• "To be the leading development institution for industrial and infrastructure sectors across the spectrum
and be an influential partner in country's economic growth and development".
 IFCI's Mission
• To adopt the best practices in financing industry and infrastructure sectors and leverage core
competencies in promoting sustainable industrial and infrastructure development in the country, To act
as a competitive, customer-friendly and development oriented organization, delivering financial
products and services to the satisfaction of all its stakeholder.
 FUNCTIONS

 Granting loans and advances for the establishment, expansion, diversification and modernisation of
industries in corporate and cooperative sectors.
 Guaranteeing loans raised by industrial concerns in the capital market,both in rupees and foreign
currencies.
 Subscribing or underwriting the issue of shares and debentures by industries. Such investment can
be held up to 7 years
 Guaranteeing credit purchase of capital goods, imported as well aspurchased within the country.
 Providing assistance, under the soft loans scheme, to selected industries such as cement, cotton
textiles, jute, engineering goods, etc.
 OBJECTIVE

 The IFCI bank helps suggest the plans, promote these plans, and, lastly, develop the
industries.
 Financial support and assistance are the main criteria for every entrepreneur, and since the
establishment of IFCL occurred.
 The IFCI is a customer-friendly and focused on the development of the organisations 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.
 BUSINESS FACILITATOR

 In the last few decades, the Industrial Finance Corporation of India has made a significant
contribution to the development of our economy. Also, it is responsible for the growth,
expansion, and modernization of our industrial sector
 The Industrial Finance Corporation of India has also been beneficial for the import and export
industry, the cause of pollution control, energy conservation, import substitution, and many
such initiatives and industries. Some sectors, in particular, have seen a lot of benefits. Some of
these are
 Agricultural Based Industries like paper, sugar, rubber, etc.
 Service Industries like restaurants, hospitals, hotels, etc.
 Basic industries in any economy like steel, cement. Chemicals etc.
 Capital and goods industries like electronics, fibers, telecom services, etc.
 CONCLUSION

 The Industrial Finance Corporation of India (IFCI) was the government’s first financial
institution following independence.
 The main goal of forming IFCI was to provide long-term financing to the country’s
manufacturing and industrial sectors.
 The IFCI’s primary stakeholders are the IDBI, scheduled banks, the insurance industry, and
cooperative banks.
 The IFCI’s authorised capital is 250 crores, and the Central Government has the authority to
enhance it if needed.
 The Industrial Finance Corporation of India has made a substantial contribution to the
development of our economy during the last few decades.
 It is also in charge of our industrial sector’s expansion, modernisation, and growth.