DEVELOPMENT FINANCIAL INSTITUTIONS

PRESENTED BY: Click to edit Master subtitle style AGARWAL & SINGH MONIKA SWAPNIL

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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 usuallyaccompanied by technical assistance. Some development banks are governmentowned, while others are private.Many have been established under the auspices of the World Bank.

Among the largest are the Inter-American Development Bank, the Asian Development 3/30/12 Bank, and the African Development Bank.

DEFINITION
D.M. Mithani: “A development bank may be defined as a financial institution concerned with providing all types of financial assistance (medium as well as long-term) to business units in the form of loans, 3/30/12underwriting, investment and

was felt very strongly immediately after India attained independence. The country needed a strong capital goods sector to support and accelerate the pace of industrialization. The existing industries required long term funds for their reconstruction, modernization, expansion & diversification programs while the new industries required enormous investment for setting up projects in the capital good sectors.

DEVELOPMENT FINANCIAL INSTITUTIONS (DFIs) IN INDIA financial institutions The need for development

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All Financial Institutions

All India Development banks IDBI (1964) •ICICI (1955) •SIDBI (1990) •IIBI (1997) •IFCI (1948)

Specialized Financial Institutions
EXIM Bank (1982) •ICICI Venture ( formerly TDICI) (1988) •TFCI (1989) •IDFC (1997)

Investment Institutions

Refinance Institutions

UTI (1964 •UC (1956) •GIC & SUBSIDIARI ES (1972)

NABARD (1982) •NHB (1980)

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INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)
IDBI was established under the IDBI Act, 1964, as a wholly owned subsidiary of the Reserve Bank of India. The ownership of IDBI has since been transferred to central govt from Feb 16, 1976. The main objective establishing IDBI was to setup an apex institution to co-ordinate the activities of other financial institution & to act as a reservoir on which the other financial institution can draw.

MANAGEMENT OF IDBI:
The management of IDBI is vested with the BOD consisting of 22 members nominated by the central govt. The board constitutes different Committees in order to assist in its operations.
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OBJECTIVES OF IDBI

To coordinate, supplement & integrate the activities of other existing financial institutios. To provide term finance to industry. To provide direct financial assistance to industrial concerns.

MODE OF ASSISTANCE:
CHANGE AGENT REGIONAL DEVELOPM ENT

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INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA (IFCI)

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