sources of finance- banks

8/6/2019 sources of finance- banks

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SOURCES OFFINANCE

CIA- 3

By:

Faalguni Agarwal 1011356

Mansi Bhatia 1011358

Arpitha Reddy 1011355

Khushboo Chopra 1011357


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Established in 1948 under the IFC Act, 1948.

Main objective has been to provide medium & long

term credit on Indian industrial concerns.

Authorized capital has been raised from Rs.10 croreto Rs.20 crore

Since July 1, 1993 it has been given the status of a

limited company.

the financial resources of IFCI consist of paid up

capital, reserves, repayment of loans, marketborrowings in the form of bonds/debentures, loans

from Govt of India, advances from the Industrial

Development Bank of India and foreign currency

loans.


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The financial assistance of the corporation is

available to limited companies or co-operative

societies registered in India & engaged or proposing

to engage in

a) Manufacture, preservation or processing of

goods

b) The mining industry

c) The shipping businessd) The hotel industry

e) The generation or distribution of electricity or

any other form of power.


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Functions ofIFCI

FinancialAssistance

PromotionalActivities


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The IFCI is authorized to render financial assistance in

one or more of the following forms:

a) Acting as an agent of the Central Govt or the

World Bank in respect of loans sanctioned to

the industrial concerns.

b) Guaranteeing of deferred payments for the

purchase of capital goods from abroad or within

India

c) Guaranteeing of loans raised by industrialconcerns from scheduled banks or state co-

operative banks.

d) Subscribing directly to the shares and

debentures of public limited companies.


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&217'

e) Granting loans or advances to or subscribing to

debentures of industrial concerns repayable

within 25 yrs. Also it can convert part of such

loans or debentures into equity share capita as

its option.

f) Underwriting the issue of industrial securities

i.e., shares, bonds, or debentures to be disposed

off within 7 years.


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&217'

Financial assistance is available from IFCI for the

following purposes:

For the setting up of new industrial

undertakings. For the expansion or diversification of the

existing concerns.

For the modernization & renovation of the

existing concerns. For meeting existing liabilities or working capital

requirement of industrial concerns in exceptional

cases


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IFCIs promotional role is equally important

Creating industrial opportunities

Helps in developing small & medium scaleentrepreneurs through guidance in identification of

projects, preparing project profiles, implementation

of the projects

Acts as an instrument of accelerating the

industrial growth & reducing regional industrial &income disparities.


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ICICI

ICICI Bank Limited is a

major banking and financial services company

based in Mumbai. It is the second largest bank in

India [and the largest private sector bank in

India by market capitalization. The bank also

has a network of 2,529 branches and about 6,102

ATMs in India and presence in 19 countries, as

well as some 24 million customers. ICICI Bank

offers a wide range of banking products andfinancial services to corporate and retail

customers through a variety of delivery.


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BASIC PURPOSE

The corporation has been established

for the purpose of assisting

industries in the private sector .


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FUNCTIONS

Assisting in the creation , expansion modernization of

such enterprises .

Encouraging and promoting participation of private

capital (internal and external) Encouraging and promoting private ownership

Expansion of investment market .

Providing finance in form of long term and short term

loans .


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Making funds available for investment .

Furnishing managerial , technical , administrative

services to Indian industry.

To extend guarantee for deferred payments. To advance loans in foreign currency towards the cost

of imported equipment .

Underwriting issue of shares or debentures.


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STATE FINANCIAL CORPORATION (SFCS)

The state financial corporation act was passed in the year 1951 by the

Government of India. At present we have 18 such corporations

functioning in the country. Some of its functions are -

To provide financial assistance to the Small Scale and Medium

Scale industries that are engaged in manufacture, preservation or

processing of goods, mining, hotel industry, generation and distribution

of power, transportation, fishing, packaging ,fishing etc.

To render assistance to all kind of industries in the form of private

limited companies, partnership firms or sole trading concerns

Granting loans or advances to industrial concerns repayable within

a period, not exceeding 20 years.


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CONTD..

Guaranteeing loans raised by industrial concernspayable within 20 years.

Underwriting the issue of stocks, shares, bonds ordebentures by the industrial concerns subject to their

being disposed off within 7 years. Guaranteeing deferred payments due from any

industrial concern in connection with purchase ofcapital goods in India.

It acts as an agent of the central government or

state government or the Industrial FinanceCorporation of India (IFCI) in respect to any businesswith an industrial concern in respect of loanssanctioned to them.

Subscribing to the debentures of industrial concernsrepayable within 20 years.


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STATE INDUSTRIAL DEVELOPMENT BANK

OF INDIA (SIDCS)

The State Industrial Development Corporations (SIDCs) were

established under the Companies Act, 1956 as wholly ownedundertakings of the governments with the specific objectives of

promoting and developing and large industries in their respective

states/union territories. Andhra Pradesh and Bihar were first

states to set up such corporations in 1960. Most of the states have

set up such institutions at present. At present there are 28 such

SIDCs working in the country. Many of these corporations areregistered under companies Act and two have been set up under

the statutes of legislative bodies.


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Grant of financial assistance.

Provision of industrial sheds or plots.

Promotion and management.

Promotional activities such as identification of project idea,

selection and training of entrepreneur, provision of technical

assistance during project implementation.

Providing risk capital to entrepreneur by way of equity

participation and seed capital assistance

To give term loans, guarantees and lease finance.

To administer incentives schemes of central and state

governments.

SIDCS PERFORM THE FOLLOWING FUNCTIONS


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THANK YOU!

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