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Development Banking in India Overview

Development banking in India began after independence to support the country's backward and static economy. The Industrial Financial Corporation of India and Industrial Credit and Investment Corporation of India were established in 1948 and 1955 respectively to provide financing to rebuild destroyed industries and promote rapid growth through new technologies. Development banks in India include national-level banks like IFCI, IDBI, SIDBI, and NABARD as well as state-level corporations that finance sectors like industry, agriculture, housing, exports and small businesses to achieve objectives like industrial growth, entrepreneurship, regional development, and filling financial gaps.

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Akshay Sharma
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77 views15 pages

Development Banking in India Overview

Development banking in India began after independence to support the country's backward and static economy. The Industrial Financial Corporation of India and Industrial Credit and Investment Corporation of India were established in 1948 and 1955 respectively to provide financing to rebuild destroyed industries and promote rapid growth through new technologies. Development banks in India include national-level banks like IFCI, IDBI, SIDBI, and NABARD as well as state-level corporations that finance sectors like industry, agriculture, housing, exports and small businesses to achieve objectives like industrial growth, entrepreneurship, regional development, and filling financial gaps.

Uploaded by

Akshay Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

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.

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