Banking Awareness

Development Banks
 Banking Awareness
Development Banks

Development Banks

1. Industrial Development Bank of India (IDBI)

2. Industrial finance corporation of India (IFCI)

3. Industrial Investment Bank of India (IIBI)

4. Small Industries Development Bank of India (SIDBI)

5. Industrial credit and Investment Corporation of India (ICICI)

6. Export-Import Bank of India (EXIM)

7. State Financial corporation (SFC)

8. State Industrial Development corporation (SIDCs).

Industrial Development Bank of India:

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 Banking Awareness
Development Banks

● Establishment: 1964

● Headquarters: Mumbai

● Objective: To provide financial assistance to Industrial Enterprises.

 This bank offers financial products & Services such as deposits, loans, payment

services and Investment solutions.

 It has set up a special Development Assistance Fund for assisting deserving projects

which other financial Institutions are not likely to finance.

Industrial Finance Corporation of India:

● Establishment: 1948

● Headquarters: New Delhi

● Objective: To provide long-term finance to the manufacturing and Industrial

sectors of the country.

 This corporation is authorised to issue bonds & debentures on the open market, to

borrow foreign currency from the World Bank and other organisations, accept

deposits from the public and also borrow from RBI.

 Authorized capital: Rs 20 crores

 The corporation can grant loans only to public limited companies and co-operatives

but not to private limited companies or partnership firms.

Industrial Investment Bank of India (IIBI):

● Establishment: 1997

● Headquarters: Kolkata

It offers a wide range of products & Services such as:

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 Banking Awareness
Development Banks

 Equipment Finance

 Investment in capital and money market Instruments

 Equity subscription Asset credit

 Term loan assistance for project finance

Small Industries Development of India (SIDBI):

● Establishment: April 2, 1990

● Headquarters: Lucknow, Uttar Pradesh

● Aim: To aid the growth & development of Micro, Small & Medium scale Enterprises.

● Financial support to MSMEs & Provided by way of Indirect/ refinance to banks for

onward lending to MSMEs and direct finance in areas like risk capital, Sustainable

finance, receivable financing, and Service Sector financing.

● The authorised capital of the Bank is Rs. 1000 crores and the Paid-up capital is Rs.

450 crores.

● To increase and supply money supply to the MSME sector, it operates a refinance

program known as the Institutional Finance Program. Under this Program, SIDBI

extends Term Loan Assistance to Banks, Small Finance Banks & NBFCs.

Industrial Credit and Investment Corporation of India:

● Establishment: 1994

● Headquarters: Mumbai

● Objective: To assist in the formation, development & Modernization of Business

Enterprises in the private sector.

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 Banking Awareness
Development Banks

● It provides finance in the form of long-term or medium-term loans or equity

participation. Sponsoring and underwriting new issues of shares and other

securities. The corporation showed Increasing Interest in the development of new

industries in backward regions.

Export-Import Bank of India:

● Establishment: 1982

● Act: Export-Import Bank of India Act 1981

● Headquarters. Mumbai

● Objective: For coordinating the work of Institutions engaged in Financing exports

& imports.

● The Bank provides financial assistance to Export-oriented Indian companies by

way of term loans in Indian rupees or foreign currencies for setting up new

production facilities, expansion modernisation or upgradation of existing facilities

and for acquisition of production equipment or technology.

● Authorized capital: Rs. 20,000 crores.

State Financial Corporation (SFC):

● Establishment: 1951 under the State Financial Corporation Act

● Aim: To meet the need for financial assistance of micro, Small & Medium scale

Industries.

● At present, 18 states Financial corporations are there in India. The State

Financial Corporation of Punjab - First Financial Corporation in the country in

1953.

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 Banking Awareness
Development Banks

● These SFCs provide loans to Individual trading Concerns, Partnership firms as

well as public &Private listed companies.

State Industrial Development Corporation:

● Establishment: 1995 under the Companies Act 1956

● Aim: To develop Industrial Infrastructure such as Industrial parks and Industrial

Estates along with Providing Financial Assistance.

● At present, there are 28 SIDCs in India.

● The SIDCs undertake various promotional activities such as Conducting techno-

economic surveys, project Identification, preparation of feasibility studies etc.

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