INDIA - FINANCIAL INTERMEDIARIES

SPECIALISED FINANCIAL INSTITUTIONS

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 cental govt, 6 by shareholders)

IDBI (INDUSTRIAL DEVELOPMENT 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 and 11 branch offices

It is managed by a chairman and MD appointed by central government, a deputy governor nominated by RBI, 20 other directors.

ICICI
Established in 1955 as a public limited company. Authorized capital - 60 crores

Issued capital - 22 crores

Objectives to encourage establishment of new industries, to help in expansion and modernization, technical and managerial aid to increase production and employment.

 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 management.

 It was first Indian company to listed in New York stock exchange. Foreign financial investor own around 38% shares .

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.

STATE FINANCIAL CORPORATION OF INDIA (SFCI)

Govt. of India passed State Financial Corporation bill in 1951 and State Financial Corporation of India (SFCI) came into the existence as Govt. body.
18 states governments have established state financial corporation under the rules and regulation of SFCI Act 1951.

FINANCIAL RESOURCES OF THE SFCS

Their own Share capital Income from investment and repayment of loans Sale of bonds Loans from the IDBI Borrowings from the Reserve Bank of India. Deposits from the Public Loans from State Governments

The Industrial Investment Bank of India Ltd (IIBI)

Indias only all-India public financial institution . headquartered in Kolkata. Provides various services : deferred payment guarantee Loan Syndication Merchant Banking services

COMMERCIAL BANKS

Indian Banking System

Central Bank (Reserve Bank of India) Commercial banks (222) Co-operative banks Banks can be classified as:
Scheduled (Second Schedule of RBI Act, 1934) - 218 Non-Scheduled - 4

Scheduled banks can be classified as:

Public Sector Banks (28) Private Sector Banks (Old and New) (27) Foreign Banks (29) Regional Rural Banks (133)

Progress of banking in India

Nationalisation of banks in 1969: 14 banks were nationalised Branch expansion: Increased from 8260 in 1969 to 71177 in 2006 Population served per branch has come down from 64000 to 16000 A rural branch office serves 15 to 25 villages within a radius of 16 kms However, at present only 32,180 villages out of 5 lakh have been covered

Progress of banking in India

Diversification in banking: Banking has moved from deposit and lending to
Merchant banking and underwriting Mutual funds Retail banking ATMs Internet banking Venture capital funds Factoring

MERCHANT BANKER

Financial Intermediaries

MERCHANT BANKING
Bank that deals mostly in international finance, longterm loans for companies and stock underwriting. Merchant banking primarily involves financial advice and services for large corporations and wealthy individuals. Merchant banks do not provide regular banking services to the general public. Merchant banks invest their own capital in client companies & provide services for mergers and acquisitions.

 A merchant bank is sometimes said to be a wholesale bank, or in the business of wholesale banking. Its because merchant banks tend to deal primarily with other merchant banks and other large financial institutions. As of today there are 135 Merchant bankers who are registered with SEBI, India. This includes Private, Public & Foreign players.

MUTUAL FUNDS

Mutual Funds defined.a flow cycle

ORGANISATIONAL STRUCTURE

BANK PERFORMANCE

GROWTH OF SCBS IN LAST 5 YEARS

Credit and Deposits of SCBs

FINANCIAL INTERMEDIATION