Industrial finance is complex but vital for economic development. Long, medium, and short term capital is needed. Various public and private institutions provide industrial financing in India, including IFCI, IDBI, ICICI, EXIM Bank, NABARD, SIDBI, NHB, LIC, GIC, and UTI. These institutions offer financing options tailored to meet long, medium, and short term capital needs through means like loans, refinancing, and investment.
2. 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
1) Long term
2) Medium term
3) Short term
3. 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
4. Term lending
Refinance institutions
Investment institutions
State level institutions
9. 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
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
10. 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
11. 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.
12. 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.
13. 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
14. 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
15. 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
16. Are those which do not give
finance directly but they create
such structure by which the
funds are allocated up to the
minimum level.
17. 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
18. Funds created by NABARD
-rural infrastructural deve fund 28749
crores
-R&d fund
-Soft loan assistance fund
-Credit and financial services fund
19. 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.
20. 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.
21. Are those who invest the money
collected in further securities and
investments outside .LIKE
LIC
GIC
UTI
22. 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
23. -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
24. 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