14 NBFCs

A CLASS PRESENTATION MBA 2 ND YEAR 2016-18

 Difference between Banks and NBFCs
Unlike banks, NBFCs can not issue cheques drawn upon themselves.
Unlike banks, NBFCs can not accept demand deposits.
Unlike banks, NBFCs are not a part of the payment and settlement system of the
country.
Unlike banks, DICGC is not available for NBFC deposits unlike banks.
NBFCs are not required to maintain SLR/CRR.
NBFC are governed by Companies Act, 1956, whereas banks are regulated by the
Banking Regulation Act, 1949.
100% FDI is allowed in NBFCs, whereas its limited to 74% for banks.
 Discussion about the Objective, Functions, History, Role
& Recent Developments of the following Institutions
1. Unit Trust of India (UTI) 9. Small Industries Development Bank of
India (SIDBI)
2. Industrial Development Bank of India
(IDBI) 10. Housing & Urban Development Bank of
India (HUDCO)
3. National Housing Bank (NHB)
11. Industrial Finance Corporation of India
4. Export Import Bank of India (EXIM Bank) (IFCI)

5. Industrial Reconstruction Bank of India 12. Industrial Credit & Investment Corporation
(IRBI) of India (ICICI)

6. National Bank for Agriculture & Rural 13. Housing Development Finance
Development (NABARD) Corporation (HDFC)

7. Life insurance Corporation of India (LIC) 14. Securities Trading Corporation of India
(STCI)
8. General Insurance Corporation of India
(GIC)
1. UNIT TRUST OF INDIA (UTI)
OBJECTIVE:
It was formed to increase the prosperity of Middle Income and Lower Income Group by helping
them develop habit of saving and investing. The basic objective of the UTI is to offer both small
and large investors the means of acquiring shares in the widening prosperity resulting from the
steady, industrial growth of the country.
Primary Objective:
To promote and pull the small savings
To give them an opportunity to share the benefits of industrial growth
Other Objective
To Encourage the savings of the savings of the people
To mobilize savings from the small savers
To channelize savings to industrial growth.
To allow investors to participate.
UNIT TRUST OF INDIA (UTI) (Cont..)
FUNCTIONS:
To sell units to investors in different parts of the country.
To cover the small savings into industrial finance.
To provide liquidity to industrial units via sale of small units
To mobilize the savings of the community through sale of units.
To Underwrite the issue of shares and debentures
To serve unit holders along the length and breadth of the country.

HISTORY
It came into Existence in 1963, to channelize the savings of the community into equity markets to
make them available for the companies to speed up the process of industrial growth.
UTI was the idea of Finance Minister T.T. Krishnamachari.
US 64 being the most popular scheme, was launched in 1964, the initial capital of ` 5 crore for
this scheme was contributed by RBI, LIC, SBI, and many other Financial Institutions.
In 1978, it was delinked from RBI and IDBI took the regulatory and administrative control.
In 2001, UTI suspended sale & purchase of US 64 units for 6 months and it ended in 2003.
UNIT TRUST OF INDIA (UTI) (Cont..)
HISTORY
Non declaration of NAV and Declaration of High Dividend led to the fall of US 64 mutual funds.
Lack of proper corporate governance in transparency, accountability, integrity being the other
reasons for failure.

ROLE
UTI have relied extensively on intermediaries to market their schemes to investors.
With the help of UTI recently banks finance companies, secondary market brokers and even post
offices have also begun to market mutual funds to their existing and potential client basis.
UTI played the role in establishing the need of all types of intermediaries for the growth of the
industry.

Distribution of Helps mobilize

Assistance Savings

Operational
Practice

Financial Assistance to Channelization

Corporate Enterprise of Funds
UNIT TRUST OF INDIA (UTI) (Cont..)
RECENT DEVELOPMENTS
Beside Mutual Funds UTI Asset Management Company also works on portfolio management.
In 2016, it has launched the Mobile App on Android and iOS platform to expand its operation.
2. INDUSTRIAL DEVELOPMENT
BANK OF INDIA (IDBI)
OBJECTIVE:
The Main Objective is to serve as the apex institution for term finance for industry in India. Its
objective includes:
Coordination, regulation and supervision of the other financial institution such as IFCI, ICICI, UTI LIC
Commercial banks and SFCs.
Supplementing the resources of other financial institution and thereby widening the scope of their
assistance.
Planning, Promotion and Development of key industries and diversification of industrial growth.
Devising and enforcing a system of industrial growth that conforms to national priorities.
FUNCTION:
To grant loans and advances to IFCI, SFCs on any other financial institution by way of refinancing of
loans granted by such institution which are repayable within 25 years.
To grant loans and advances to schedules banks or state cooperative banks by way of refining of
loans granted by such institute which are repayable in 15 years.
To grants loans and advances to IFCI , SFCs , other institutions scheduled banks by way of
refinancing of loans granted by such institution to industrial concern for exports.
To discount or rediscount bills of industrial concerns.
INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI) (Cont)
FUNCTION:
To subscribe to or purchase stock, shares, bonds and debentures of other FIs
To grant letter of Credit or loans and advances to other FIs such as IFCI, SFCs, etc.
To guarantee deferred payment due from any industrial concern.
To guarantee loans raised by industrial concerts in the market or from institutions.
To provide consultancy and merchant banking service in or outside India.
To provide technical, legal, marketing and administrative assistance to any industrial concerns or
persons for promotion management or expansion of any industry.
Planning, promoting and developing industries to fill up gaps in the industrial structure I India.
To act as trustee for the holders of debentures and other securities.

FUNCTION:
IDBI was established in 1964 under the Act of Parliament was a wholly owned subsidiary of RBI.
In 1976, the ownership of IDBI was transferred to Govt of India and made the principal financial
institution for coordinating the activities of institutions engaged in Industrial Finance.
Some of the institutions built with help of IDBI during pre-reform era (1964-91) are SEBI, NSE,
NSDL, SHCIL, EXIM Bank, SIDBI and the Entrepreneurship Development Institute of India.
 INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI) (Cont)
Role of IDBI:
As an APEX financial institution, it co-ordinates the working of other financial institutions.
It assists in the development of other financial institutions.
It provides credit to large industrial concerns directly.
It undertakes other activities for the development of Industry

Recent Development of IDBI Bank:

Promotional Activities
Bank continues to perform a wide range of promotional activities relating to developmental
programmes for new entrepreneurs, consultancy services for small and medium enterprises and
programmes designed for accredited voluntary agencies for the economic development and
upliftment of the underprivileged.
This include entrepreneurship development, self employment and wage employment in the
industrial sector for the weaker sections of society through voluntary agencies, support to science
and technology, energy conservation.
INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI) (Cont)
Technical Consultancy Organisations:
To make available at a new reasonable cost, consultancy and advisory services to entrepreneurs
particularly to new and small entrepreneurs, IDBI in collaboration with other All India Financial
Institutions, has set up a network of Technical Consultancy Organisation (TCO) convey the entire
country.
They offer diversified services to Small and Medium Enterprises in the selection formulation and
appraisal of projects, their implementation and review.

Entrepreneurship Development Institute:

Realising that entrepreneurship development is the key to the Industrial Development; IDBI played
a prime role in setting up the Entrepreneurship Development institute of India for fostering
entrepreneurship in the country.
It has also established similar institutes in Bihar, Orissa, MP and UP.
IDBI also extends financial support to various organisation in conducting studies or surveys of
relevance to industrial development.
3. NATIONAL HOUSING BANK (NHB)
OBJECTIVE:
To promote a sound, healthy, viable and cost effective housing finance system to cater to all
segment of population and to integrate the housing finance system with the overall financial
system
To promote a network of dedicated housing finance institute to adequately serve various region
and different income group.
To augment resources for the sector and channelize them for housing.
To make housing credit more affordable
To regulate the activities of housing finance companies based on regulatory and supervisory
authority derived under the act.
To encourage augmentation of supply of buildable land and also building materials for housing and
to upgrade the housing stock of the country.
To encourage public agencies for emerge as facilitate and housing stock in the country.

FUNCTION:
To promote and develop specialised housing finance institutions for mobilising and extending
credit for housing.
NATIONAL HOUSING BANK (NHB)
FUNCTION:
To provide refinance facilities to housing finance institutions and scheduled banks.
To provide guarantee and underwriting facilities to housing finance institutions.
To formulate schemes for mobilisation of resources and extension of credit for housing especially
catering to the needs of for Economically Weaker Sections of society (EWS).
To provide guidelines to housing finance institutions to ensure their healthy growth.
To co-ordinate the working of agencies connected with housing.

HISTORY:
NHB, a wholly owned subsidiary of RBI, was set up on 9th July, 1988, under the National Housing
Bank Act, 1987.
NHB is an Apex financial institution for housing.
Housing finance is streamlined an the institutions dealing in housing finance are regulated by
creation of National Housing Bank.
NATIONAL HOUSING BANK (NHB)
FUNCTION:
Works as a regulator of Housing Finance Companies (HFCs), keeps surveillance through on site
and offsite mechanism and co-ordinated with other regulators. Its main role is in growth and
promotion activity.
Growth Activity:
1. Promotes, establishes and supports housing finance institutions.
2. Grants loans and advances loans are granted against assets, advances are given for specific
purpose sanctioned periodically for that purpose only.
Granter for loan: provides guarantees for the loan taken by housing finance companies from the
open market.
Works as underwriter for housing finance institutions.
NHB buys seller deals in mortgage of immovable properties belonging to housing finance
institutions.
NHB promotes mortgage banks as societies for providing housing finance.
NHB undertakes housing mortgage insurance.
NHB undertakes different R&D work in housing finance.
NHB formulate various schemes for extension of housing credit.
NATIONAL HOUSING BANK (NHB)
FUNCTION:
NHB formulates housing schemes for Economically Weaker Sections of society (EWS).

RECENT DEVELOPMENTS:
In July 10, 2017, NHB launched mobile app (PMAY CLSS) to better utilise CLSS schemes
The French Development Agency (AFD) and NHB supported by EU launched 112 Million Euro green
housing program SUNREF Housing India.
NHB decided to give break on reverse mortgage facility to make it more attractive.
4. EXPORT IMPORT BANK OF INDIA (EXIM)
Objectives :
To ensure integrated and co-ordinated approach in solving the allied problems encountered by
exporters in india.
Export projection and to pay specific attention to the export of capital goods.
To facilitate and encourage joint ventures in export of technical services and international and
merchant banking.
To extend buyers credit and lines of credit
To tap domestic and foreign markets for resources for undertaking development and financial
activities in the export sector
Functions :
It provides direct financial assistance to exporters of plant, machinery and related services in the
form of medium term credit.
Underwriting the issue of shares, stocks, bonds, debentures of any company engaged in exports.
It provides rediscount of export bills for a period not exceeding 90 days against short-term issuance
exprort bills discounted by commercial banks.
EXPORT IMPORT BANK OF INDIA (EXIM)
Functions (contd.) :
It gives overseas buyers credit to foreign importers for import of Indian Capital goods and related
services.
Developing and financing export oriented industries.
Collecting and compiling the market and credit information about foreign trade.

History :
EXIM Bank was established on 1st Jan 1982. It is the apex bank for institutions involved in financing
export and import trade.
In 1983 it introduced EXIM Syndicate Facility to attract participants in export credit.
In 1987, it started a program to finance Computer software export. For that :
Facilitating organization with working finance and clearance under EXIM tract takes 350% of
export obligation
Banks provided financial assistance for setup.
EXPORT IMPORT BANK OF INDIA (EXIM)
Role of EXIM :
Financing export and import in India and 3rd world countries
Financing of EXIM machinery and equipment on lease
Financing Joint ventures in foreign countries
Loans to Indian parties to enable them to contribute to the share capital of joint venture in foreign
countries
Undertake limited merchant services and underwriting of stocks, shares, bonds and debentures of
companies engaged in export and import.

Recent Developments :
Started R&D activities of export oriented companies to promote high tech export
In 2015 issued Indias 1st USD denominated green bond with benchmark size of US$ 500 million
In 2015, established Export Development Fund (EDF) to provide loan in the interest of international
trade
Entered into corporate agreement on innovation with major development banks of BRICS
countries.
IRBI Industrial Investment Bank of India
Objective

To provide financial assistance as well as to revive and revitalise sick industrial units in public/private
sectors, an institution called the Industrial Reconstruction Corporation of India (IRCI) was set up in
1971 with a share capital of Rs. 10 crores.

In March 1985, it was converted into a statutory corporation called the Industrial Reconstruction Bank
of India (IRBI), with an authorised capital of Rs. 200 crores and a paid-up capital of Rs. 50 crores.
Functions

The following functions were laid down for the IRBI:

i. To provide financial assistance to sick industrial units.
ii. To provide managerial and technical assistance to sick industrial units,
iii. To secure the assistance of other financial institutions and
government agencies for the revival and revitalization of sick industrial
units,
iv. To provide merchant banking services for amalgamation, merger,
reconstruction, etc.,
v. To provide consultancy services to the banks in the matter of sick
units, and
vi. To undertake leasing business.
Role
The IRBI is to function as the principal credit and reconstruction agency for industrial
revival and co-ordinate the activities of other institutions engaged in the revival of
industries and also to assist and promote industrial development and rehabilitation
of industrial concerns.
The IRBI is empowered to take over the management of assisted sick industrial units,
lease them out or sell them as running concerns or to prepare schemes for
reconstruction-by scaling down the liabilities with the approval of the Government
of India.
Recent Development
Bad bank concept was tried with the setting up of Industrial Reconstruction
Corporation of India in 1971, for the rehabilitation of sick industrial undertakings.
It was later rechristened to Industrial Reconstruction Bank of India (IIBI) in 1985, and
tasked to buy bad loans of commercial banks and recover the debt.
But absence of stringent recovery laws made IIBI sick. Between 2004-05 and 2005-
06, the government paid close to Rs 263 crore to IIBI as grants so that it can service
its debt.
There was also a proposal to merge IIBI and another other institutions IFCI and IDBI,
but it was rejected. Finally, IIBIs closure was announced in the Budget 2012.
NATIONAL BANK FOR AGRICULTURE AND
RURAL DEVELOPMENT
Objectives :
NABARD provides refinance assistance for agriculture promoting rural development activities. It
also provides all necessary finance and assistance to small scale industries.
NABARD in co-ordination with the state government provides agriculture loans
It undertakes R&D in agriculture, rural industries.
Thus, objective of NABARD is can be brought under three major heads
Credit function
Development function
Promotional function
Functions :
NABARD provides refinance facility to commercial banks, state cooperative banks, central
cooperative banks, RRBs.
NABARD provides refinance facility to agriculture ad small scale industries
NABARD promotes rural industries, small scale and cottage industries
NABARD promotes rural development and to help the wealer sections, the bank refinances
specifically the RRBs which are set up in backward areas of states.
NATIONAL BANK FOR AGRICULTURE AND
RURAL DEVELOPMENT
Functions (contd.) :
NABARD implements the central government and RBI policies with regards to agricultural credits.
NABARD strengthens the cooperative structure in the states by providing loans to cooperative
banks
Undertaking inspection of cooperative banks and RRBs
During national calamities viz. draughts, crop failures and floods, NABARD helps by refinancing
commercial and cooperative banks so that the farmers tide over the difficult period

History :
NABARD was established on the recommendation of the B. Srinivasan Committee (By Act 61, 1981
of Parliament) on July 1982to implement the NABARD Act, 1981.
It replaced the Agriculture Credit Department (ACB) and Rural Planning and Credit Cell (RPCC) of
RBI and Agriculture Refinance and Development Corporation (ARDC)
Initial corpus of NABARD was Ra. 100 crores. The paid-up capital on end of FY17 sttod at Rs.
30,000 crores with GoI holding 100% share.
NATIONAL BANK FOR AGRICULTURE AND
RURAL DEVELOPMENT
Role of NABARD :
1. Primary Role
Providing refinance facility to leading institutions in rural areas
Promoting institutional development
Evaluating, monitoring and inspecting the client base
2. Secondary Role
Act as coordinator in the operations of rural credit institutions
Extends assistance to the government, RBI and other organizations working for rural
development
Training and research facilities for banks, cooperatives and organizations working in the
field of rural development
Regulator for RRBs and cooperatives
Open institution accredited with matters concerning policy, planning and operations in the
field of credit for agriculture and activities in rural ares.
NATIONAL BANK FOR AGRICULTURE AND
RURAL DEVELOPMENT
Recent Development :
NABARD has set up NDA NABARD Infrastructure Development Assistance, a new line of credit
support for funding rural infrastructure projects. Sanctions under NDA during the year 2012-13 was
2818.46 crore and disbursement was 859.70 crore
Direct refinance assistance to CCBs was conceived and additional line of finance for CCBs in light of
recommendation of the tsk force on revival of short term rural cooperative credit scheme
NABARD has launched some schemes recently:
Pradhan Mantri Fasal Bima Yojana Oct 11, 2014
Pradhan Mantri Gramin Sinchai Yojana 2015
Paramparagat Krishi Vikas Yojana 2015
Dindayal Upadhyay Grameen Kaushal Yojna - 2015
 6. LIFE INSURANCE CORPORATION OF INDIA
(LIC)
Objective:
To extend the sphere of life insurance and to cover every person eligible for insurance under
insurance umbrella.
To mobilize maximum savings of the people by making insured savings more attractive.
To act as transfer of insured public in their individual capacity and collective capacity and to insure
economic use of resources collected from policy holders.
To conduct business with utmost economy with th full realization that the money belongs to the
policy holders.

Functions:
To carry on Capital redemption business, annuity certain business or reinsurance business is so far
as such reinsurance business relating to life insurance business.
To invest the funds of the corporation in such a manner as the corporation may thing fit and to
take all such steps as many be necessary to expedite for the protection or realisation of any
investment, including the taking of and administering.
To transfer the whole or ay part of the life insurance business carried on outside India to any other
person on persons, if the interest of the corporation, it is entitled to do so.
 LIFE INSURANCE CORPORATION OF INDIA
(LIC)
Functions:
To advance or lend money upon the security of any immovable property or otherwise.
To carry on any other business which may seen to the corporation to be capable of being
conveniently carried on or indirectly to render profitable business of the corporation.

History:
The LIC was founded on 1956, when the Parliament of India passed the Life Insurance of India Act
that nationalised the Private Insurance Industry in India.
Over 245 insurance companies and provident securities were merged to create the state owned
Life Insurance Corporation.
The nationalization of the insurance business in India was a result of the industrial policy
Resolution of 1956, which had created a policy framework for extending state control over at least
17 sectors of the economy including life insurance.
LIFE INSURANCE CORPORATION OF INDIA
(LIC)
Role :
LIC has the biggest role in nation building plan. It is a corporation and funds are invested in nation
building. Eg : infrastructure building funds for 5 years plans
LIC investment figure has gone to hundreds of crores if we talk about the financial institution and
industry investment
It is the most stabilizing institution of the Indian stock market. All of its subsidiaries like LIC Housing
Finance Ltd. and LIC International contribute to the growth of the country
Recent Developments :
LIC has set up a cell for its lending, NPA resolution and One Time Settlement (OTS)
LIC has set up 8 call centers, managed by skilled employees to provide information about the
product policy services. Branch address and other organizational information
LIC has raised its stake in Tata, Mahindra and Maruti this year after considerable increase in sale
of passenger vehicles in the FY16
LIC purchased shares of SIDBI when IDBI was facing financial stress.
General Insurance Corporation of India
History in Brief
The entire general insurance business in India was nationalized by General Insurance Business (Nationalization) Act,
1972 (GIBNA).
The Government of India (GOI), through Nationalization took over the shares of 55 Indian insurance companies and
the undertakings of 52 insurers carrying on general insurance business.
General Insurance Corporation of India (GIC) was formed in pursuance of Section 9(1) of GIBNA.It was incorporated
on 22 November 1972 under the Companies Act, 1956 as a private company limited by shares.
GIC was formed for the purpose of superintending, controlling and carrying on the business of general insurance.
As soon as GIC was formed, GOI transferred all the shares it held of the general insurance companies to GIC.
Simultaneously, the nationalized undertakings were transferred to Indian insurance companies.
After a process of mergers among Indian insurance companies, four companies were left as fully owned subsidiary
companies of GIC
National Insurance Company Limited.
The New India Assurance Company Limited.
The Oriental Insurance Company Limited.
United India Insurance Company Limited.
The next landmark happened on 19th April 2000, when the Insurance Regulatory and Development Authority
Act, 1999 (IRDAA) came into force.

This Act also introduced amendment to GIBNA and the Insurance Act, 1938. An amendment to GIBNA removed
the exclusive privilege of GIC and its subsidiaries carrying on general insurance in India.

In November 2000, GIC was renotified as the Indian Reinsurer and through administrative instruction, its
supervisory role over the four subsidiaries was ended.

With the General Insurance Business (Nationalisation) Amendment Act 2002 (40 of 2002) coming into force
from March 21, 2003; GIC ceased to be a holding company of its subsidiaries.

The ownership of the four erstwhile subsidiary companies and also of the General Insurance Corporation of
India was vested with Government of India.

GIC Re is a wholly owned company of Government of India.

Small Industries Development Bank of India
Objective

Four basic objectives are set out in the SIDBI Charter. They are:

Financing

Promotion

Development

Co-ordination

for orderly growth of industry in the small scale sector. The Charter has provided SIDBI considerable flexibility
in adopting appropriate operational strategies to meet these objectives. The activities of SIDBI, as they have
evolved over the period of time, now meet almost all the requirements of small scale industries which fall into
a wide spectrum constituting modern and technologically superior units at one end and traditional units at the
other.

To meet this objective, the immediate thrust of the SIDBI was on the following measures:

(i) initiating steps for technological up gradation and modernization of existing units;

(ii) expanding the channels for marketing the products of the small scale sector; and

(iii) promotion of employment-oriented industries, especially in semi- urban areas to create more employment
opportunities and thereby checking migration of population to urban areas.
Functions
The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs), which
contribute significantly to the national economy in terms of production, employment and exports.
The major functions of SIDBI are given below:
(i) It refinances loans and advances provided by the existing lending institutions to the small-scale
units.
(ii) It discounts and rediscounts bills arising from sale of machinery to and manufactured by small-scale
industrial units.
(iii) It extends seed capital/soft loan assistance under National Equity Fund, Mahila Udyam Nidhi and
Mahila Vikas Nidhi and seed capital schemes.
(iv) It grants direct assistance and refinance loans extended by primary lending institutions for
financing exports of products manufactured by small-scale units.
(v) It provides services like factoring, leasing, etc. to small units.
(vi) It extends financial support to State Small Industries Corporations for providing scarce raw
materials to and marketing the products of the small-scale units.
(vii) It provides financial support to National Small Industries Corporation for providing; leasing, hire
purchase and marketing help to the small-scale units.
History
Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under
an Act of Indian Parliament, acts as the Principal Financial Institution for the
Promotion, Financing and Development of the Micro, Small and Medium Enterprise
(MSME) sector and for Co-ordination of the functions of the institutions engaged in
similar activities.

Role
In order to promote and develop the MSME sector, SIDBI adopts a Credit Plus
approach, under which, besides credit, SIDBI supports enterprise development, skill
up-gradation, marketing support, cluster development, technology modernization,
etc., in the MSME sector through its promotional and developmental support to
MSMEs. These P&D support have benefitted more than 2.3 lakh persons in the
MSME sector, created more than 1.5 lakh employment and helped in setting up
more than 80,000 units, mostly rural enterprises.

Recent Development
Sidbi was originally 100 per cent owned by IDBI, when it was a term lending
institution. Later in 2000, it divested 51 per cent stake in favor of government
HOUSING AND URBAN DEVELOPMENT
FINANCE CORPORATION PRIAVTE LIMITED

HUDCO was incorporated as The Housing and Urban Development Finance

Corporation Private Limited on April 25, 1970, as a private limited company under the
Companies Act, 1956, and was granted a certificate of incorporation by the then
Registrar of Companies, Delhi.
Subsequently, the name of the Company was changed to its present name, Housing
and Urban Development Corporation Limited and a fresh certificate of incorporation
dated July 9, 1974, was issued by the then Registrar of Companies, Delhi & Haryana.
HUDCO was notified as a public financial institution under Section 4A of the Companies
Act, 1956 on December 9, 1996, by the Department of Company Affairs, Ministry of
Finance, GoI.
Further, the NHB issued a certificate of registration to HUDCO on July 31, 2001,
permitting HUDCO to carry on the business of a housing finance institution.
The objectives of HUDCO

To provide long term finance for construction of houses for residential purposes or
finance or undertake housing and urban development programmes in the country;
To finance or undertake, wholly or partly, the setting up of new or satellite towns;
To subscribe to the debentures and bonds to be issued by the State Housing (and/or
Urban Development) Boards, Improvement Trusts, Development Authorities etc.,
specifically for the purpose of financing housing and urban development programmes;
To finance or undertake the setting up of industrial enterprises of building material;
To administer the money received, from time to time, from the Government of India
and other sources as grants or otherwise for the purposes of financing or undertaking
housing and urban development programmes in the country;
The objectives of HUDCO

To promote, establish, assist, collaborate and provide consultancy services for the
projects of designing and planning of works relating to Housing and Urban
Development programmes in India and abroad;
To undertake the business of Venture Capital Fund in Housing and Urban Development
Sectors facilitating Innovations in these sectors and invest in and/or subscribe to the
units/shares etc. of Venture Capital Funds promoted by Government/Government
Agencies in the above areas; and
To set up HUDCOs own Mutual Fund for the purpose of. Housing and Urban
Development programmes and/or invest in, and/or subscribe to the units etc. of
Mutual Funds, promoted by the Government/Government Agencies for the above
purpose.
HUDCO
Resource Base of Hudco
HUDCO was established with an
equity base of Rs. 2 crores. Over
the years, the equity base has been
expanded by the Government. The
present authorised capital base of
HUDCO is Rs. 2500 crores and
paid up capital is Rs. 2001.90
crores.
HUDCO is a Mini Ratna,Schedule A PSU
conferred the status of Miniratna
(Category-I Public Sector Enterprise) by
the GoI.
more than 46 years experience in providing
loans for housing and urban infrastructure
projects in India.
HUDCO has received ISO 9001:2000
certification for quality management, for the full
range of its activities covering project and retail
financing services, resource mobilization
Programmes of HUDCO?

HUDCO extends assistance benefiting the masses in urban and rural areas under a
broad spectrum of programmes as listed below:

Housing
Urban Infrastructure
Building Technology
Consultancy Services
Research And Training
various categories of projects under Housing Finance?
1. Rural Housing
2. Urban Housing
3. Co-operative Housing
4. Community Toilets
5. Slum Upgradation
6. Staff Housing including Police Housing
7. Repairs and Renewal
8. Housing by NGOs
9. Private Sector Housing
10. Takeout finance
11. Land Acquisition cum Construction schemes
Real Estate such as Malls, Market Complex, Office Complex, IT Parks, Hotels, Resorts,
Entertainment, SEZ, Spa, Health Club, Wellness Centres.
Projects relating to Urban Infrastructure Finance

Construction, Augmentation and Improvement of the following

1.water supply Projects

2.Transportation Roads, Bridges, Bus terminals, Ports, Airports etc.
3.Power - Generation, Transmission and Distribution
4.Emerging sectors, which includes SEZs (special economic zones), industrial
infrastructure, gas pipelines, oil terminals and telecom sector projects
5.commercial infrastructure and others, which includes shopping centres, market
complexes, malls-cum-multiplexes, hotels and office buildings
6.social infrastructure and Integrated Area Development Schemes
7.sewerage, drainage and solid waste management (collectively, Urban Infrastructure
Finance).
8.Low Cost Sanitation & Ecologically Appropriate Infrastructure Projects.
Building Technology
1. Building Centres for Technology Transfer at the Grass-roots
2. Building Material Industries
Consultancy Services
Architectural designs and detailed working drawings,
Structural design, project estimates, Design of internal and external
services, Landscape planning and design,
Preparation of project reports and feasibility studies for housing,
urban and regional planning
Disaster Mitigation
Research And Training
Capacity Building and Technical Assistance to all Borrowing
Agencies, Research Training and Networking in Human Settlement
Planning and Management.
The Eligible borrowers for HUDCO loan assistance?

1. State level financing institutions / Corporations

2. Water Supply and Sewerage Boards
3. Development Authorities
4. State functional borrowers for housing & urban development
5. New town development borrowers
6. Regional planning boards
7. Improvement trusts
8. Municipal corporations / councils
9. Joint sector companies
10. Cooperative societies / trusts
11.NGOs
12. Private companies/borrowers including BOT operators, concessionaires
 PRESENTATION ON

Objective, Function, History, Role & Recent developments

OF

INDUSTRIAL FINANCE CORPORATION OF INDIA LIMITED

(IFCI)
INTRODUCTION:

IFCI, previously Industrial Finance Corporation of India, is an

Indian government owned development bank to cater to the long-
term finance needs of the industrial sector. It was the first
development finance institution established by the Indian
government after independence.

OBJECTIVES:

The main objective of IFCI is to provide medium and long-term

financial assistance to large scale industrial undertakings,
particularly when ordinary bank accommodation does not suit the
undertaking or finance cannot be profitably raised by the concerned
issue of shares.
FUNCTIONS:

The functions of the IFCI base are as follows:

The corporation grants loans and advances to industrial concerns.

Granting of loans both in rupees and foreign currencies.

The corporation underwrites the issue of stocks, bonds, shares

etc.

The corporation can grant loans only to public limited companies

and co-operatives but not to private limited companies or
partnership firms.
 IFCI provides a wide range of financial products to the target
customer segments to satisfy their financial needs.

IFCI provides specialized advisory services to Indian corporate

sector in their efforts towards Industrial advancement.

IFCI acts as a nodal agency for government of India for sugar

development fund.

IFCI provides credit enhancement facility for young and start-up

enterprises belonging to scheduled castes.
HISTORY:

At the time of independence in 1947, India's capital market was relatively

under-developed. Although there was significant demand for new capital,
there was a dearth of providers. Merchant bankers and underwriting firms
were almost non-existent and commercial banks were not equipped to
provide long-term industrial finance in any significant manner.

It is against this backdrop that the government established The Industrial

Finance Corporation of India (IFCI) on July 1, 1948, as the first Development
Financial Institution in the country to cater to the long-term finance needs of
the industrial sector. The newly-established DFI was provided access to low-
cost funds through the central bank's Statutory Liquidity Ratio or SLR which in
turn enabled it to provide loans and advances to corporate borrowers at
concessional rates.
 By the early 1990s, it was recognized that there was need for
greater flexibility to respond to the changing financial system. It
was also felt that IFCI should directly access the capital markets
for its funds needs. It is with this objective that the constitution of
IFCI was changed in 1993 from a statutory corporation to a
company under the Indian Companies Act, 1956. Subsequently,
the name of the company was also changed to "IFCI Limited" with
effect from October 1999.
ROLE OF IFCI:
Since its inception on 1st July 1948 as a Public Financial Institution, IFCI has made a
significant contribution to the modernization of Indian industry, export promotion,
import substitution, pollution control, energy conservation and generation through
commercially viable and market-friendly initiatives. Some sectors that have directly
benefited from IFCI include:

Some sectors that have directly benefited from IFCI include:

Agro-based industry (textiles, paper, sugar)

Service industry (hotels, hospitals)
Basic industry (iron & steel, fertilizers, basic chemicals, cement)
Capital & intermediate goods industry (electronics, synthetic fibres, synthetic
plastics, miscellaneous chemicals) and Infrastructure (power generation,
telecom services)
IFCI's Economic Contribution:
IFCI has played a key role in the development of cooperatives in the sugar and
textile sectors, besides acting as a nodal agency in both sectors. 371
cooperative societies in these sectors have been assisted by IFCI.

IFCI has promoted Technical Consultancy Organizations (TCOs), primarily in less

developed states to provide necessary services to the promoters of small and
medium-sized industries in collaboration with other banks and institutions.

IFCI has also provided assistance to self-employed youth and women

entrepreneurs under its Benevolent Reserve Fund (BRF) and the Interest
Differential Fund (IDF).
 IFCI has founded and developed prominent institutions like:

Management Development Institute (MDI) for management training and

development
ICRA for credit assessment rating

Tourism Finance Corporation of India (TFCI) for promotion of the hotel and
tourism industry

Institute of Leadership Development (ILD) for rehabilitation and training of

displaced and retrenched labor force

Rashtriya Gramin Vikas Nidhi (RGVN) for promoting, supporting and

developing voluntary agencies engaged in uplifting rural and urban poor in east
and northeast India
RECENT DEVELOPMENTS AT IFCI:
The Government of India converted its OCDs worth Rs. 923 crores into equity
in December 2012 and further acquired preference shares of Rs. 60 crores
from PSU Banks in April 2015. IFCI has become a Government of India
Undertaking with effect from 7th April 2015.

The Govt. of India has placed a Venture Capital Fund of Rs. 200 crore for
Scheduled Castes (SC) with IFCI with an aim to promote entrepreneurship
among the Scheduled Castes (SC) and to provide concessional finance. IFCI has
also committed a contribution of Rs.50 crore as lead investor and Sponsor of
the Fund. IFCI Venture Capital Funds Ltd., a subsidiary of IFCI Ltd., is the
Investment Manager of the Fund. The Fund has been operationalized during FY
2014-15 and IVCF is continuously making efforts for meeting the stated
objective of the scheme
 Further, Government of India has recently designated IFCI as a nodal agency
for Scheme of Credit Enhancement Guarantee for Scheduled Caste (SC)
Entrepreneurs in March, 2015 with an objective to encourage
entrepreneurship in lower strata of the societies. Under the Scheme IFCI
would provide guarantee to banks against loans to young and start-up
entrepreneurs belonging to scheduled castes.

Apart from emphasis from recovery from NPAs, the Company has also taken
other major steps like reduction in single borrower and group exposure to the
RBI prescribed levels to avoid concentration risks, reduction in its lending
benchmark rate to improve portfolio quality.
 INDUSTRIAL CREDIT AND INVENSTMENT
CORPORATION OF INDIA
OBJECTIVE
The major objective of the ICICI was to meet the needs of the industry for permanent and long
term funds in the private sector.
FUNCTIONS
1. Providing finance in the form of long-term or medium term loans or equity participation.

2. Sponsoring and underwriting new issues of shares and other securities,

3. Guaranteeing loans from other private investment sources.

4. Making funds available for reinvestment by revolving investment as rapidly as possible.

5. Providing project advisory services i.e. offering advice

to private sector companies in the pre-investment stages on Government policies and procedures,

feasibility studies and joint venture search, and

to Central and State Governments on specific policy related issues.

 INDUSTRIAL CREDIT AND INVENSTMENT
CORPORATION OF INDIA
HISTORY
The creation of Industrial Credit and Investment Corporation of India (ICICI) is another milestone in the
growth of the Indian Capital Market. It was incorporated in the year 1955, as a company registered
under the Companies Act.

The ICICI was incorporated to finance small scale and medium industries in the private sector.

The IFCI and SFCs confined themselves to lending activity and kept away from underwriting and
investing in business though they were authorized to subscribe for the shares and debentures of the
companies and to undertake underwriting business. Therefore, a large number of up and coming
enterprises faced continuous problems in raising funds in the capital market.

Besides, they were not in a position to secure the desired amount of loan assistance from the financial
institutions due to their thin equity base. To encourage industrial development in the private sector, a
considerable provision of underwriting facility was considered necessary to accelerate the phase of the
industrialization. To fill these gaps, the ICICI was established.
 INDUSTRIAL CREDIT AND INVENSTMENT
CORPORATION OF INDIA
ROLE
It has set up Venture Capital Funds for the promotion of green field companies and risk capital
investment and joined the other financial institutions in setting up SHCIL, CRISIL and OTC Exchange
of India Ltd. It has recently set up its own bank and a mutual fund like the UTI.

It has set up ICICI Brokerage Services Limited. It is a 100% subsidiary of I-SEC. It commenced its
securities brokerage activities which is registered with the National Stock Exchange of India Limited
and The Mumbai Stock Exchange.

The Corporations vision has been extending far beyond its immediate function of funding industrial
projects. It has been looking at all sectors of the economy and wherever a need was perceived, has
designed either a new concept or a new instrument, or even a new institution to cater to it.
 INDUSTRIAL CREDIT AND INVENSTMENT
CORPORATION OF INDIA
RECENT DEVELOPMENTS
Digital channels recorded over 5 trillion worth of transactions in fiscal 2017

Enabled digitization of transactions as well as provided vocational training, credit facility and
market linkage to villagers to help them earn a sustainable livelihood.

Undertook a number of technology initiatives including continuous enhancement of services

available on iMobile, launch of Unified Payments Interface (UPI) based payments, the Eazypay
mobile application for rural customers.

In fiscal 2017, the Bank and ICICI Foundation undertook an initiative of transforming 100 villages
into ICICI Digital Villages. This is a unique village promotion programme encompassing digitization
of transactions & commercial activities; skill development & vocational training; and market
linkages & access to credit

Continued to demonstrate and unlock the substantial value created in our non-banking subsidiaries
with the successful IPO of ICICI Prudential Life Insurance Company (ICICI Life) during the year.
HOUSING DEVELOPMENT FINANCE
CORPORATION

To enhance the residential housing stock in the country through the provision of
Housing Finance in a systematic and professional manner, and to promote home
ownership.

Diversified Financial Services - Banking, Insurance (Life and General), Asset

Management, Realty, Real Estate Venture Capital, Education Loans among others.
HDFC and its Group Companies consistently maintain leadership positions in their
respective sectors.
The company offers general insurance products such as:
Motor, health, travel, home and personal accident in the retail
HOUSING DEVELOPMENT FINANCE
CORPORATION
HISTORY
Pioneered Housing Finance in 1977.

5.8 million cumulative units financed.

Gross loans of Rs.3.4 trillion.

Over 1.8 million Deposits Accounts.

A model private Housing Finance Company for developing countries with nascent Housing
Finance markets.

Undertaken several consultancy assignments in housing finance in various countries across Asia,
Africa and East Europe.

The Corporation has obtained a certificate from its statutory auditors that it is in compliance with
the provisions of Foreign Exchange Management Act, 1999 with respect to downstream
investments made in/by its subsidiaries and in other companies .
 HOUSING DEVELOPMENT FINANCE
CORPORATION
ROLE
To promote a sound, healthy, viable and cost effective housing finance system to cater to all
segments of the population and to integrate the housing finance system with the overall financial
system.

To make housing credit more affordable

RECCENT DEVELPOPMENT

Trying to make substantial investment in its technology platforms and systems.

Harnessing on technology to increase reach and service easily accessible to customers.

HDFC Property fair is an innovative concept that corporation is using to bring reputed developers
and valuable customers under one roof.
 PRSENTATION ON

Objective, Function, History, Role & Recent developments

OF

SECURITIES TRADING CORPORATION OF INDIA

(STCI)
INTRODUCTION:
STCI Finance Ltd. (formerly known as Securities Trading Corporation
of India Limited), is a systemically important non-deposit taking
NBFC registered with Reserve Bank of India. Presently STCI Finance
Ltd is classified as a loan NBFC.

OBJECTIVE:

The main objective of STCI is to foster the development of an active

secondary market in government securities and the bonds issued by
the public sector units .
With the interest now being shown in the government securities by
the non-captive investors like corporate entities, it would be the
endeavor of the STCI to facilitate the process of widening the
clientele for the government securities market.
FUNCTIONS:
STCI lend against marketable securities, such as listed shares (as approved by
STCI), units of open-ended diversified large cap equity mutual funds, gold ETF,
govt. securities, corporate bonds, prime residential & commercial property etc.

Providing Loans to promoters of existing listed companies against pledge of

their holding

Providing Loan for Subscribing to IPO / FPO / Rights Issue.

STCI provide various term loans for financing expansion / diversification /

capacity balancing besides augmenting long term working capital, acquisition
etc. to existing corporates. The loan will be secured by way of mortgage,
hypothecation, pledge, escrow of receivables etc.

STCI provides Bridge finance to the corporates for meeting short term fund
requirements pending documentation for regular term loans sanctioned by
their existing lenders.
HISTORY:
STCI Finance Limited was promoted by Reserve Bank of India in May 1994 with the
objective of fostering an active secondary market in Government of India Securities and
Public Sector bonds. The Company had a subscribed and paid up capital of Rs 500 crores
with RBI owning the majority stake of 50.18%. In 1996, STCI was authorized by RBI as
one of the first Primary Dealers in India.

As the leading Primary Dealer in the country, the Company was a market maker in
government securities, corporate bonds and money market instruments apart from
carrying out proprietary trading in equity both in the cash & derivatives (F&O) segment.
The Companys other lines of activities included trading in interest rate swaps - both for
hedging and market making. The Company enjoyed a successful track record of
achieving profits during consecutive years spanning nearly a decade. It had the
distinction of achieving secondary market turnover of more than Rs.2.00 lakh crore in
sovereign paper.

RBI divested its entire shareholding in STCI in two stages- first in 1997 to bring it down
from 50.18% to 14.41% and the balance in 2002 to the existing shareholders. Bank of
India became the largest shareholder in the company.
 In April 2006, the STCI took over UTI Securities Limited from Specified Undertaking of Unit
Trust of India (SUUTI). The Company hived off Primary Dealership as a separate 100%
subsidiary by the name of STCI Primary Dealer Limited (STCI-PD) which started functioning
from June 25, 2007.

The Company sold off its stake in UTI Securities Limited to Standard Chartered Bank
(Mauritius) limited in three stages between 2008 and 2010. STCI assumed 100% stake in
UTI Commodities, a commodity broking entity (later known as STCI Commodities Ltd)
which was wholly owned by UTI Securities.

Since 2007, the Company has been undertaking lending and investment activities as a
Systemically Important - Non Deposit taking Non Banking Financial Company (NBFC-ND-
SI) with main focus on lending and financing activities. Over a period of time, the size of
the Companys loan book has grown and lending/financing activity has become its core
business. With a view to reflecting the widening mix of its business, the name of the
Company has been changed from Securities Trading Corporation of India Limited to STCI
Finance Limited with effect from October 24, 2011.
ROLE OF STCI:
STCI Primary Dealer Limited (STCI-PD) is a leading player in the retail and mid-
segment of the debt market with a large and diversified client base having pan
India presence.

STCI-PD has been facilitating clients in shaping strategies, assisting in

achievement of investment objectives while ensuring efficient service aided by
quality research. STCI PD has been at the forefront in adhering to sound
business practices and transparency in all its business dealings. We strive to
provide our clients a bouquet of investment solutions and flawless execution
which help them plan and manage their investments better.

The STCI plays a role of market-maker in government securities and as such, it

would strive to achieve large business turnover, rather than becoming a mere
repository of the government securities. In doing so, the STCI would mainly be
guided by commercial considerations.
RECENT DEVELOPMENTS AT STCI:
The Company plans to re-balance and diversify its loan portfolio by increasing its focus
on the corporate loan & other loans segment and adopting a cautious and selective
approach towards lending in the Loan against securities (LAS) segment

The Company plans to expand its corporate & other loans segment by reaching out to a
wider customer base and adding new loan products. In order to cater to a wider
customer base, the Company will leverage its existing customer relationships and foray
into new locations in a phased manner..

STCI Primary Dealer Limited, Companys subsidiary engaged in Primary Dealership

business, reported a profit after tax of Rs 178.12 crore for the financial year ended
March 31, 2017 as against a profit after tax of ` 7.70 crore
during the previous financial year.

STCI Commodities Limited, your Companys subsidiary has been liquidating its assets,
paying off its clients dues, settling its pending legal cases and surrendering its
membership with Multi Commodity Exchange and National Commodity and Derivative
Exchange since discontinuance of its commodity broking operations in September 2011.