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Prof. Nijumon K John, Christ University, Bangalore

Role of financial institutions

Providing funds
Infrastructural facilities Promotional activities

Development of backward areas

Planned development Accelerating industrialisation Employment generation

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Prof. Nijumon K John, Christ University, Bangalore

Classification
Banking institutions
Non banking financial institutions - Development banks-All India level and state

level(IDBI,IFCI,ICICI,IDFC,SIDBI etc. & SFCs, SIDCs) - Specialised financial institutions(EXIM Bank, NABARD) - Investment institutions(LIC,GIC,UTI)

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

IFCI(Industrial Finance Corporation of India Ltd)

Indias first DFI
Estd in 1948

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

Activities
Financing activities
- Project financing; medium or long- term credit - Financial services: equipment credit, LoC, etc.

- Corporate advisory services: investment banking,

corporate restructuring - Corporate advisory services to FIs: information services, co-ordination for obtaining approval

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

 Developmental activities
- Carries out developmental activities for industry and

infrastructure - Promoted a lot of institutions like ICRA, SHCIL, NSE etc.

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

SFCs
IFCI could not cater to the needs of all types of

industrial enterprises spread throughout the country. SFCs play complimentary role to IFCI.

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

IDBI
Estd in 1964
Provides assistance to the development related

projects IDBI set up SIDBI in 1990 Promoter of SEBI, NSE, SHCIL, NSDL etc.

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

Functions of IDBI
To co-ordinate the activities of other institutions

providing term finance to industry To provide refinance to institutions granting medium and long term loans to industry To provide technical and administrative assistance for promotion, management or growth of the industry To grant direct loans to industrial concerns

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

SIDBI
Financing, promotion, development and co-ordination

for orderly growth of small scale industrial sector

3/25/2012

Prof. Nijumon K John, Christ University, Bangalore

IDFC(Infrastructure Development Finance Company Ltd)

Estd in 1997
Provides consultancy and advisory services to state

govts for formulating power sector strategy. Provides financing for transportation, telecommunication, urban infrastructure etc.

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Prof. Nijumon K John, Christ University, Bangalore

NABARD
Estd in 1982 Apex refinancing agency for other institutions in the

agri sector. Promotes research in agriculture and rural development Co-ordinates the activities of central and state governments, planning commission and other institutions. Extends long term loans to state governments to enable them to subscribe to the share capital of cooperative credit societies.
3/25/2012 Prof. Nijumon K John, Christ University, Bangalore

Export-Import Bank of India

Estd in 1982
Apex banking institution in the field of financing

foreign trade of India Provides refinancing facilities to commercial banks and other institutions for financing activities related to import and export. Provides financing for joint ventures abroad

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Prof. Nijumon K John, Christ University, Bangalore