DEVELOPMENT OF FINANCIAL

INSTITUTIONS ON ICICI
IDBI IFCI

ROLL NO -109, 110, 112, 113,

115
DEVELOPMENT BANKS IN
INDIA
NABARD ICICI IDBI

COMMERCIAL
SIDBI IFCI
BANKS

STATE FINANCIAL
COOPERATIONS
WHAT IS DEVELOPMENT
BANKS
A Development Bank is a polygonal
development finance institution devoted to
improving the social and monetary
development of its associate nations.
It helps improve the value of people's lives
by providing loans and scientific support
for a broad variety of development
activities.
Role of development banks
in financial system
Providin
g Funds

Employment Infrastructu
Generation ral Facilities

Acceleratin
Promotion
g
al
Industrializ
Activities
ation

Developme
Planned
nt of
Develop
Backward
ment
Areas
FUNCTIONS OF A DEVELOPMENT BANK
Increase loans and equity investments to its developing
associate countries (DMCs) for their monetary and social
development.
Provides technical help for the planning and implementation
of development projects and programs and for advisory
services.
Promotes and facilitates speculation of public and private
capital for growth and development.
Responds to requests for assistance in coordinating growth
policies and plans of its increasing member countries.
 ICICI
ICICI (INDUSTRIAL CREDIT AND INVESTMENT
CORPORATION OF INDIA) Bank Ltd.
ICICI is an Indian diversifiedfinancial services
company headquartered inMumbai, Maharashtra.
The Bank has a network of 2,630 branches and 8,003
ATM's in India, and has a presence in 19 countries,
including India.
 OBJECTIVES OF ICICI

Assisting in the creation

Expansion
Modernisation of such enterprises
Encouraging and promoting the participation
private capital
Encouraging and promoting private ownership
 FUNCTIONS OF ICICI
Assistance to industries
Provision of foreign currency loans
Merchant banking
Letter of credit
Project promotion
Housing loans
Leasing operations
ACQUISITION
2005 Investigation Kreditny Bank (IKB), a Russian
bank
2007 - Singly Bank , Maharashtra State
23 May - Bank of Rajasthan
OPERATIONAL ACTIVITIES

The bank has a network of 2016 branches (as on 31st

mar 2010) & 5219 ATMs in India & presence in 18
countries
On 23 may 2010, ICICI Bank announced that it will
merge with Bank of Rajasthan through a share swap in a
non cash deal that values the Bank of Rajasthan at
about Rs 3000 crore. ICICI announced that the merger
expand ICICI Banks branch network by 25%
PROMOTIONAL ACTIVITIES
It is the largest issuer of credit cards in India
It is one of the big four banks of India, along with SBI,
PNB & Canara Bank- its main competitors
RECOGNITION
The Brand Trust Report , launched in 2011, has ranked
ICICI in the 15th place as the most trusted brand of
India.
ICICI Bank is one of the Big Four Banks of India, along
with State Bank of India, Punjab National Bank Bank of
India and Canara Bank its main competitors
BANKING SEGMENTS

Retail Banks -> 58% of revenue

Small Enterprises -> 8% of revenue
Corporate Banks & Project Finance -> 13% of revenue
International Banks -> 21% of revenue
 SUBSIDERIES

On 18th oct 2010 ICICI inaugurated

I-Express, an instant cross-border money transfer
option for NRIs
ICICI Lombard GIC Ltd -> Largest private sector general
Insurance Company in India.
ICICI Prudential -> It was the among the first private
sector life insurance companies to begin operations in
December 2000 after approval of IRDA
 ICICI
Lombard
ICICI Lombard GIC Ltd
Type Public Listed Company
Industry Insurance
Founded 2001
Headquarters Mumbai, India
Key people Bhargav Dasgupta, MD
Products General insurance
Net income 144 crore (US$31.25 million)
Employees 4634 (as March 2010)
Parent ICICI Bank, Fairfax Financial
Website ICICI Lombard
ICICI PRUDENTIAL - AN INTRODUCTION

ICICI Prudential is the first private sector life

insurance companies to begin operations in
December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential Life's capital stands at Rs. 4,780
crores (as of September 30, 2010) with ICICI Bank and
Prudential plc holding 74% and 26% stake
respectively.
The company has a network of over 1,500 offices
and over 1,60,000 advisors, as on September 30,
2010. The company has assets held over Rs. 65,000
crores as on September 30, 2010
 ICICI Prudential
Type Private limited company

Industry Insurance

Headquarters Mumbai

Sandeep Bakshi, Managing

Key people
Director

Individual and Group

Products
Insurance Plans

Website Official Website

ICICI Group - Development framework
Product lead approach for each sector
Small and Medium Enterprise (SME)
Agriculture and Micro Finance
Community Banking
Internet and Electronic Banking
Product and delivery technology
dependent
Branch remote approach
Central processing centres enable
optimum monitoring

18
SME - Strategic framework
Aspirations
Concerns
Non capital
Improve Quality
intensive growth
Exit weak accounts
Liability/ fee
Improve yields
income
Reprise on RaRoC
Cash management
benchmark
product
Reduce delivery
Innovative delivery
cost
Smart / Credit cards
Web / call centre
Web / call centre
based delivery
delivery
Service
relationships
Banker for services
rather than credit

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 SME - Service & Delivery
Drop Information Processes all
box point
trade related
High value cash Logging requests
requests for a
transactions city

Branch Call centre Trade finance

factory
Handles exceptions
Cross sells
Monitors accounts Processes all
pure credit
related
requests
Account/
Relationship
Customer Credit factory
manager

Provide
For all Information support
transactions Logging backbone for
except high requests all
value cash transaction
requests
ATM RPC/CPC
Services
Internet
Processing centres* doorstep
deliveries

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 Online Products
Corporate Infinity
Bill Junction Pay Seal
online transfer/
Utility bill electronic
settlement
payments payment system
system

e-banking in ICICI

Business
ICICI Markets
ICICI Direct and Multiplier
online FX, Debt,
ICICI Select web interface
SME Portal

21
IFCI
previouslyIndustrial Finance Corporation of India, is an Indian government
owneddevelopment bank incorporated on July 1, 1948 to cater to the long-term
finance needs of the industrial sector.
It was the firstDevelopment Financial Institutionestablished afterindependence.
Until the establishment ofICICIin 1956 , IFCI remained solely responsible for
implementation of the government's industrial policy initiatives.
Its contribution to the modernization of Indian Industry, export promotion, import
substitution, entrepreneurship development, pollution control, energy conservation
and generation of both direct and indirect employment is noteworthy.
The Industrial Finance Corporation of India Limited was by the Government of India.
IFCI was established to overcome the scarcity of long-term finance plans in the
industrial sector.
In 1993 it was reconstituted as a company to impart higher degree of operational
flexibility. IFCI was allowed to access thecapital marketsdirectly.
history
During the period of independence in 1947, the capital market
scenario was terrible.
In spite of the major requirement of capital market in India, there
were no providers for it.
To add to the problems, there were no merchant bankers and
underwriting firms.
The commercial banks were not well-equipped to render long-term
financial plans in the industrial sector.
Indian finance market were in great trouble when the Government
of India decided to launch the IFCI with the aim to provide long-
term financial plans to all the sectors of Indian industry.
STRUCTURE OF IFCI
Management of IFCI
12 directors
4 are nominated by the IDBI
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 by the issue
of shares.
Functions
(i) The corporation grants loans and advances to

industrial concerns.

(ii) Granting of loans both in rupees and foreign

currencies.

(iii) The corporation underwrites the issue of stocks,

bonds, shares etc.

(iv) The corporation can grant loans only to public limited

companies and co-operatives but not to private limited

companies or partnership firms.

 OPERATIONAL
ACTIVITIES
Concessional finance to projects in less
development areas
Concessional finance for renewable energy
systems
Power of attorney scheme
Bridging loans
Sub loans in foreign currencies
Capital
The authorized capital of the corporation as
per IFCI Act 1948, was Rs.10 crores. It was
raised to Rs.20 crores by the Amendment
Act 1972.

50% of the share capital is held by the IDBI

& remaining 50% by banks, cooperative
banks, insurance company, investment
trusts etc.,
Activities
Direct Financing
Incidental Activities
Promotional Activities
Direct Financing
Rupee loans
Sub loans in foreign currency
Underwriting of and/or direct subscription
to the shares & debentures of public
limited companies.
Foreign currency loans raised by industries
from foreign institutions
Rupee loans raised by industries from
scheduled banks or state co-operative
banks.
Guaranteeing of deferred payments for
machinery {imported & indigenous}
Incidental Activities
IFCI has been authorized by Industrial
Finance Corporation ( Amendment) Act,
1982 to undertake incidental activities.

Undertaking research & surveys for

evaluating or dealing with marketing or
investments and undertaking & carrying
on techno-economic studies.

Providing technical & administrative

assistance to any industrial concern for the
promotion, management or expansion of
Promotional Activities
Merchant Banking operations.
The objective of IFCI in this case has been:

Fill in the gaps in the industrial infrastructure for

promotion & growth of industries.

To provide much needed guidance in project

identification, formulation, implementation,
operation etc., to the new, tiny, small scale and
medium scale entrepreneurs.

To improve the productivity of human and material

resources; a better deal to the weaker,
underprivileged sections of the society in line with
socio-economic objectives laid down by
Areas of Assistance
Assistance from IFCI single or jointly
with other institutions is available for:
Setting up of new industrial projects.
Expansion of existing units/ diversification
into new lines of activity.
Renovation / rehabilitation /
Modernization of existing units.
Resources are in the form of:
Loans from RBI
Share capital
Retained earnings
Repayment of loan
Issue of bonds
Loans from government
Lines of credit from foreign lending
agencies
Commercial borrowings in
international capital market.
INDUSTRIAL DEVELOPMENT BANK OF
INDIA
ABOUT IDBI
Industrial development bank of India, was established in
1964 by act of parliament.
Its headquarter is in Mumbai.
It is India's 10th largest bank in the world in terms of
reach, with 3350 ATMs, 1853 branches, including one
overseas branch at Dubai, and 1382 centers.
It is one of 27 commercial banks owned by the
Government of India.
SUBSIDIARIES
The following are the subsidiaries of IDBI.
Small industries development bank of India(SIDBI).
IDBI bank Ltd.
IDBI Capital Market Services Ltd.
IDBI Assets Management Company.
ROLE OF IDBI
Co-ordinates the activities of other development banks
and terms financing institutions in the capital market of
the country.
Direct assistance.
Indirect assistance.
FUNCTIONS OF IDBI

Grant Loans and Advances.

Provide many Facilities.
Underwriting and Direct Subscription.
Keeping Value in Safe Custody.
PRODUCTS AND SERVICES.

Suvidha Tax Saving Fixed Deposit.

Jubilee Plus Account.
Super Shakti Account.
Flexi Current Account.
Sabka Saving Account.
LOANS
Home loans
Educational loans
Loans against property.
Personal loans.
Auto loans.
Loans against securities.
Reserve mortage loans.
PAYMENTS
Tax payment.
Stamp duty payment.
Bill payment.
Easy fill.
Card to card money transfer.
Online payment.
Pay mate.
CARDS
Gold debit cards.
Gift card.
World currency card.
Kids debit card.
Foundation day cash back scheme 2009.
Platinum card.
OTHER SERVICES
Capital marketing.
NRI services.
Preferred banking.
IPO.
Demat.
CORPORATE BANKING
Services offered by IDBI bank for the corporates:-
Project finance.
Infrastructure finance.
Carbon credit business.
Syndication, advisory and underwriting services.
DIFFERENCE BETWEEN IDBI AND
OTHER BANKS
IDBI
IDBI work for the Improvement of
Backward Areas People.
IDBI work for the Improvement of
Small-scale Industries.
IDBI focuses on Research,
Surveys and Technologies for the
Development of Industries.
OTHER BANKS
But Other Banks only Focuses on
Urban Areas People
Other Banks only Provide Loans
and helps to Big Businessmen
and Reputed Persons
Other Banks mainly Focuses on
Credit Creations
SUCCESS OF IDBI
Lastly, IDBI is different from Other Banks because,
Other Banks deals in Banking Business but IDBI deals
with the welfare of Industries and Development
Purposes.
THANK YOU