DEVELOPMENT

BANKING IN INDIA
Akshay Sharma
18421010
MBA-II ( F1)
 Development Banking In
INDIA
 Development banking was started after the World War II. It provided finance to
reconstruct the buildings and industries which were destroyed in the war.
 In India, development banking was started immediately after independence.
 At that time Indian economy was highly backward and static. So there was a need
to make rapid growth by replacing old technology but there was no such agency
which could make progress at a large scale.
 In 1948 Industrial Financial Corporation of India and in 1955, Industrial Credit and
Investment Corporation of India were stablished. They all were known as
financial institutions. Narasimham Committee (1991) has called them a
development finance institution.
Development Banks in
India
 Examples Of
Development
Banks Of India
 Industrial Finance Corporation
of India (IFCI)

Industrial
Development Industrial Development Bank
of India (IDBI)
Banks
Small Industries
Development Bank of
India (SIDBI)

National Bank for

Agricultural Agriculture & Rural
Development Banks Development
(NABARD)
 Export-Import
Export-Import Bank of India (EXIM
Development Banks Bank).

Housing
Developmen National Housing Bank (NHB).
t Banks
Functions of development banks-
 To promote and develop small-scale industries (SSI)
in India.

 To finance the development of the housing sector

in India.

 To facilitate the development of large- scale industries

(LSI) in India.

 To finance the development of the housing sector

in India.
 To help the development of agricultural sector and
rural India.

 To enhance the foreign trade of India.

 To help to review (cure) sick industrial units.

To encourage the development of Indian

entrepreneurs.

To promote economic activities in backward

regions of the country.

To contribute in the growth of capital markets.

 Structure of
Developmen
t Banks

Industrial Investment Foreign Agriculture Other

Sector Sector Sector Sector Specific
Institutions
 Industrial Development Banks of India
1964

Industrial Finance Corporation of India

1982

National
Level Industrial Credit And Investment
Corporation Of India 1955 Industrial
Development Bank Of India 1964

Small scale Industries Development Bank

Industrial Sector Of India 1990

State Finance Corporation 1951

State
Level
State Industrial Development Corporation
1960
Foreig Agriculture
n Sector
Sector
Import NABARD
Export (1982)
Bank
 Tourism
Finance
Corporation of
India
Other Specific
Institutions
Infrastructure
Lease And
Financial
Services Ltd.
OBJECTIVES OF DEVELOPMENT BANKING

 Rapid industrial growth.

 Encouraging the entrepreneurs.
 Balanced regional development.
 Filling gas.
 Helps the government.