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2 A financial institution is an
institution which collects
funds from the public and
places them in financial
assets, such as deposits,
loans, and bonds, rather
than tangible property.
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2     
 
M hey issue claims to

their customers that have characteristics different from
those of their own assets.
2   
 
M hey provide large volumes of
finance on the basis of small deposits or unit capital.
2 © 
 
M hey distribute risk through
diversification and thereby reduce it for savers as in the
case of mutual funds.
2 ×  
 
M hey offer savers alternate
forms of deposits according to their liquidity preferences,
and provide borrowers with loans of requisite maturities
   
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2 anking and Non banking.

2 Regulatory institutions
* R
* SE
 


 


2 A bank is an institution that

accepts deposits of money
from the public, which are
repayable on demand and
withdraw able by cheques.
2 heir deposit constitute a
major part of the national
money supply.
 3


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2 N
s help to bridge the

credit gaps in several sectors
which traditional institution
are unable to fulfill.
2 N
s are more flexible
in their operations and
quick in decision-making.
     3p

½.Equipment leasing ½. ssue Management

2. Hire Purchase 2. Portfolio Management
3.ill discounting 3.orporate ounseling
4.Loan and nvestment 4. Project ounseling
5.Venture apital 5. Arranging
oreign ollaboration
6. House
inance 6. Advising on acquisitions &
mergers
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2
rom ½ ½ to 20½0 the foreign direct investment

brought in ndia is US$½36,855 million. n terms of
ndian Rs is Rs 5 ,75,o 7 crore.
2 N April 20½0 the
 was US$22½4 million
2 Remittance in ndia contributes 3% of total GP
which is highest in world.
2 R contributes around 4. 4% in GP of ndia.
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2
s play an important role in efficient allocation of

funds from savings surplus to savings deficit units
through various financial innovations and
developments in technology
2
s act as a link between savers and investors.
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2 he main role of the financial institutions in ndia in

respect to foreign investments is to aid foreign investors in
investment activities in ndia.
2 he funds from overseas countries come in two formsM

oreign irect nvestments (
  and Joint Ventures (JV
of the foreign companies with ndian companies.
2 Some of the leading financial institutions in ndia that play
an important role in foreign investments in ndia are R ,
 ank,   Limited and EX M ank.
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2 R works through automatic route and government

route in allocating funds in various sectors of the
ndian industry.
2 ts mandatory for all the foreign investors to get
approvals from R in order to carry out investment
activities in the industrial units in ndia.
2
 is allotted up to ½00 percent under automatic
route .
  

  
 



2 Life insurance business.
2 L  is one of the two largest
institutional investors in the
country .y law it is required to
invest 25 percent of its funds in
government securities and a further
25 percent in µapproved securities´.
2
inancial institution which
provides substantial support to
industry.
2
ocus on rural area.
2 t extends assistance for
development of infrastructure
facilities.
 º
  



2 Mobilizing public savings and

channeling them into
productive corporate
investments.
2 Primary objective is to
stimulate and pool the
savings of the middle and low
income groups and enable
them to share the benefits of
the rapidly growing
industrialization in the
country.
 -Getting
amiliar
2 Established in ½ 64 .
2 Largest
inancial institution in ndia, with assets at the end of ½
approximating to Rs.600 billion.
2 uring the
inancial Year 200 -½0, achieved a Net Profit of Rs.½,03½
crore and also crossed business of Rs.3,00,000 crore.
2 he ½0th largest development bank in the world.
2 he National Stock Exchange (NSE, he
National Securities epository Services Ltd. (NSL, Stock Holding
orporation of ndia (SH L are some of the institutions which has
been built by  .
2 Now, it has been categorized under ³Other Public sector anks
2 Resources of 
 ©  

2 Planning, promoting and developing industries .

2 o-coordinating the working of nstitutions.
2  s role as a A ALYS .
2 evelopment Activities of 
‡ PROMO ONAL A V ES
‡ EHN AL ONSUL ANY ORGAN A ON.
‡ EN REPRENEURSH P EVELOPMEN NS U E
 !


2  initially provided long-term assistance to industries such as textiles,

fertilizers, chemicals products and machinery.

2 n ½ 64,  also began a role in assisting the State
inance orporations

(S
s of various states.

2 y ½ 65,  entered into rediscounting of -machinery bills.

2 Subsequently,  entered into financing exports on a different payment

basis, till the time Export- mport (Exim ank of ndia was formed in ½ 82.
2 n ½ 86,  created a Small ndustries evelopment
und (S 


2 Played a major role in setting up of  " 

  
 


  
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2 SE UP Y AN A O
PARL AMEN , ½ 8½

2
HOLLY O
NE Y GOVERNMEN O
N A

2 OMMENE OPERA ONS N MARH ½ 82

2 APEX
NAN AL NS U ON

2 OJE VESM

³« for providing financial assistance to exporters and importers, and for

functioning as the principal financial institution for coordinating the working
of institutions engaged in financing export and import of goods and services
with a view to promoting the countrys international trade«

³« shall act on business principles with due regard to public interest

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2 elayed Payment Exports
2 Pre-Shipment redit
2 erm Loans for Export Production
2
oreign nvestment
inance
2
inancing Export Marketing.
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oreign uyers redit.

Lines of redit.
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2 Administered an Export Marketing
und from % 



2 SMEs extended export marketing finance to implement strategic export
marketing plans
2 Exim anks assistance resulted in generation of significant exports to
developed country markets.
2 Successes achieved in this Programme .

2 Over 300 ompanies supported in variety sectors M

´ †nitting
´ Needles
´ Polyester Ropes
´ Home Appliances

 

2 Established in ½ 0 under an Act of ndian Parliament.

2 Objective
2 Ownership
2 Structural Linkage
2 Nodal Agency
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2 Parameter 31-03-06 31-03-07 31-03-08
2 Paid-up capital 450 450 450
2 Reserve and Funds 4516 4691 4396
2 Total Income 974 1198 1650
2 Net Profit 276 303 204
2 Outstanding Portfolio 13890 16031 20279
2 Sanction 11975 11102 16151
2 Disbursement 9100 10225 15072
2 Standard Assets as % NP 98.1 99.86 99.75
2 CRAR (%) 43.2 37.5 41.7
"©!p ( 

 RE

NANE
OPERA ONS

N RE
NOAL AGENY

NANE

ASSO A E M RO RE

NS U ONS OPERA ONS

ocus Segments

nuf cturing
- icro Service Sector nfr structure
-Sm ll
Sector

- e ium
 © "×p!©××

2 A. Term Loans for MSME units and Service sector entities

Existing customers having good track record
ƥ Privileged Customer Scheme
ƥ Top up loan scheme
ƥ Equity assistance for major expansion / diversification
ƥ Adhoc assistance
2 B. Main Benefits under Govt. sponsored schemes :
ƥ Credit Linked Capital Subsidy Scheme (CLCSS)
ƥ Technology Upgradation Fund Scheme (TUFS)
ƥ Integrated Development of Leather Sector Scheme
ƥ Food Processing Industries
2 C. Receivable finance scheme (RFS)

2 Eligibility -
ƥ Purchasers wise limit
ƥ Sellers wise limit / Invoice discounting facility also available

2 D. Equity Assistance Scheme

 ºp!©××

2 Competitive rate of Interest

2 Flexible approach
2 Simple Business processes
2 Fast Track Schemes for existing regular accounts
2 Quick Decision making
2 Qualified & professional
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 Provide refinance
 Acts as a coordinator
 Assistance to government
 raining and research facilities
 Acts as a regulator