Financial institution in India

Financial institution in India : 

Financial institution in India Ranika Chaudhary

introduction : 

introduction Industrial finance is a very complicated problem. It is of vital importance as development of any country depends on industrial development of that country ‘s economy. Why there is need of finance Long term Medium term Short term

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Continue…. Long term capital is also known as block capital or fixed capital. it is needed to acquire -fixed and permanent assets Medium term capital is required for repairs, replacements, maintenance of machines and building etc. Short term capital is needed for purchase of raw material , and to meet day to day expenses

Types of financial institutions in india : 

Types of financial institutions in india Term lending Refinance institutions Investment institutions State level institutions

Term lending : 

Term lending IFCI IDBI ICICI IIBI EXIM TFCI

REFINANCE INSTITUIONS : 

REFINANCE INSTITUIONS NABARD SIDBI NHB

INVESTMENT INSTITUITIONS : 

INVESTMENT INSTITUITIONS LIC GIC UTI

STATE LEVEL INSTITUTIONS : 

STATE LEVEL INSTITUTIONS SFC

IFCI (INDUSTRIAL Finance CORPORATION OF INDIA) : 

IFCI (INDUSTRIAL Finance CORPORATION OF INDIA) It was established in 1948 First development bank of India Objective was to make medium and long term credits more readily available Management BOD total 12 members(4 by idbi,2 by center govt, 6 by shareholders) -full time chairperson

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Continue…. Resources of IFCI -ownership capital -Issue of shares and bonds -borrowing from RBI,IDBI AND CENTER GOVT -accepting deposits from public, state govt and local authorities

Financial assistance by ifci/idbi : 

Financial assistance by ifci/idbi Purpose sanction(crores) IDBI New projects 15919.6 67498 Expansion /acquisition 6649.2 50627 Rehabilitation 115.7 1415 Modernization 5459.7 12976 Working capital 837 5138

Idbi (industrial deve. bank of india) : 

Idbi (industrial deve. bank of india) Set up in 1964 It was fully owned subsidiary of RBI but in 1976 delinked from RBI and made as autonomous body of GOI H.O in Mumbai 11 branch offices It is managed by a chairman and MD appointed by central govt, a deputy governor nominated of RBI, 20 other directors.

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With effect from 1 oct,2004 it has renamed as IDBIL. It has been accepted as a deemed banking co under banking regulation act. The govt holds the majority (58.47%) shares of IDBI LTD. During last 40 years IDBI has given a qualitative dimension to the process of industrial development of the country.

ABOUT ICICI : 

ABOUT ICICI Established in 1955 As a public ltd co, at the initiative of world bank Authorized capital of 60 crores and issued capital 22 crores The objectives of icici are to encourage establishment of new industries, to help in expansion and modernization, technical and managerial aid to increase production and employment.

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Continue… In October 2001 .BOD Approved ICICI LTD AND ICICI BANK LTD. With effect from MAY 2002 IT IS SIMPLY ICICI bank . ICICI is now the largest bank with total assets of more than 3000 billions More than 700 branches and over 2200 ATM spread all over the country It mainly deals in Retail banking, wholesale banking, project finance, international business and special assets mgt

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Continue… Icici is known for its many firsts. -it was first Indian co to listed in New york stock exchange. Foreign financial investor own around 38% shares . Technology, strategy, low cost branches innovations are key reasons of icici success. They are the first to introduce mobile banking, on line financial information, portals to allow accounts and information on line. It was the first to introduce e-commerce. It has the largest no of call centers.

EXIM : 

EXIM Established on1st JAN,1982. Authorized capital 1000 crores and paid up is 650 crores. Exim bank came into existence when international finance division of idbi was transferred to exim bank in 1982. Exim started its working from march 1982 The issued capital is wholly subscribed by center govt

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Continue… The main objective of exim is to provide financial assistance to exporters and importers. It has to coordinate the working of those institutions which can promote international trade. Management is MD+17 other directors representing govt,RBI,ECGC,public sector banks Resources of EXIM -GOI -RBI -any organization approved by GOI TYPES OF ASSISTANCE -fund based -non fund based

Assitance by exim : 

Assitance by exim Fund based Pre shipment credit Foreign currency Post shipment credit Deemed exports Loans to commercial banks for bills discounting Finance for consultancy and technology Non fund based Guarantees

Refinancing instituitions : 

Refinancing instituitions Are those which do not give finance directly but they create such structure by which the funds are allocated up to the minimum level.

Nabard-national bank for agriculture and rural development : 

Nabard-national bank for agriculture and rural development Started functioning from 1july 1982 Set up with an initial capital of 100 crores, now it is 2000 crores fully subscribed by GOI AND RBI. H.O IN Mumbai, with 28 regional and 391 district offices It is an apex orga for policies, planning and operations of agriculture ,ssi ,handicraft and village industries It mainly deals in three types of functions -credit ,developmental ,regulatory functions

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Continue…… Funds created by NABARD -rural infrastructural deve fund 28749 crores -R&d fund -Soft loan assistance fund -Credit and financial services fund

Sidbi : 

Sidbi Set up in oct 1989 Wholly owned subsidiary of IDBI It is the principal financial institution for promotion ,financing and deve of small scale industries In sep 2000 IDBI transferred 51% in favor of banks and other institutions in the first phase.

Nhb-national housing bank : 

Nhb-national housing bank Set up in July 1988 A principal agency to promote housing finance Wholly owned subsidiary of RBI Registered With capital of 350 crore which can be increased to 2000 crores. The board is authorized to issue increased capital to RBI, center govt.

Investment instituitions : 

Investment instituitions Are those who invest the money collected in further securities and investments outside .LIKE LIC GIC UTI

LIC : 

LIC Set up in 1956 Lic was formed by nationalizing 245 life insurance companies The main aim was to spread insurance Mobilize savings Investing funds Act as trustees

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Continue….. -promoting a sense of pride and job satisfaction among agents and employees Diversification by LIC -LIC HOUSING FINANCE -LIC MUTUAL FUNDS -Jeevan bima sahyog assets mgt co(JBSAMC) -LIC International EC

TYPES OF INSURANCE SCHEMES : 

TYPES OF INSURANCE SCHEMES Whole life schemes Endowment policies Money back policy Plans for children Medical benefits linked insurance Plans to cover housing loan Joint life plans Group schemes Pension plans Social security schemes