Development Finance Institution Commerce YouTube Lecture Handouts Part 2

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Development Finance Institution: Role, Features, Classification, Evolution | Commerce

Industrial Development Bank of India (IDBI Bank Limited or IDBI Bank or IDBI)

  • The Industrial Development Bank of India (IDBI) was established in 1964 under an Act of Parliament as a wholly-owned subsidiary of the Reserve Bank of India.
  • In 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India.
  • SUBSIDIARY OF LIC - LIC of India completed the acquisition of 51 % controlling stake in IDBI Bank on 21 January 2019 making it the majority shareholder of the bank. Subsequently, IDBI Bank stands re-categorized as a private sector bank.
  • IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects and also for expansion, modernization, and diversification purposes.
  • Provides indirect financial assistance
    • by way of refinancing of loans extended by State-level financial institutions and banks
    • by way of rediscounting of bills of exchange arising out of the sale of indigenous machinery on deferred payment terms.
  • Some of the institutions built with the support of IDBI are SEBI, NSE, the National Securities Depository Limited (NSDL) , the Stock Holding Corporation of India Limited (SHCIL) , the Credit Analysis & Research Ltd, the Exim Bank, India, SIDBI and the Entrepreneurship Development Institute of India.
  • IDBI Intech Ltd. (IIL) is a wholly owned subsidiary of IDBI Bank, established in 2000.
  • It provides IT related services in the area of
    • Consultancy,
    • System Integration,
    • System implementation & support,
    • Applications & Server hosting and
    • other IT related managed services and specialized training.
  • IDBI Intech has been accredited with ISO 9001: 2000 certification for IT-related services including Data Center Management and Call Center, and also Certified IT Security Auditing Organization with the Indian Computer Emergency Response Team (CERT-In) .

Export – Import Bank

  • Export – Import Bank or Exim Bank is the common name for the export credit agency found in many countries. They can be full agencies of the government or semi-private institutions, such as state-owned corporations or public – private partnerships.
  • Indian exports during the fifties and the early sixties consisted of primary commodities and traditional manufactures like jute and cotton textiles.
  • The export sector remained neglected with a small share in India՚s GDP.
  • Nevertheless, the process of industrial development in India promoted through the import substitution strategy provided an impetus to the growth of a large and diversified industrial base, particularly the engineering industry.
  • A number of emerging industrial sub-sectors also proved to be internationally competitive. The change in India՚s export profile commenced slowly in the sixties with a growing share of non-traditional manufactured goods and value-added products.
  • During 1978 - 79, the Ministry of Finance convened meetings to discuss the proposal regarding setting up of an Export-Import Bank. At these meetings, it was agreed that there was a justification for a separate institution on the ground that it would be able to devote concentrated attention to the needs of exporters and explore new methods for augmenting credit on reasonable terms. It could also concern itself with investment finance required for export production.
  • Export promotion combined to push the government into taking a final view. On June 18,1980, in his budget speech in Parliament, the then Finance Minister, Shri R. Venkataraman, announced the momentous decision to establish an Exim Bank.
  • Export-Import Bank of India was thus born after two decades of debate on the need for a specialized export credit agency for India and the role of international trade in India՚s economic development.
  • The Export-Import Bank of India Act was passed in September 1981 and the Bank commenced its operations in March 1982.
  • Today with our rich pedigree, we serve as a growth engine for Indian Businesses range of products and services.
  • This includes
    • import of technology and export product development,
    • export production,
    • export marketing,
    • pre-shipment and
    • post-shipment and
    • overseas investment.
  • In a rapidly shifting financial landscape, EXIM acts as a catalyst and key player in the promotion of cross border trade and investment.
Import Bank
UTI Mutual Fund
UTI Mutual Fund
FormerlyUnit Trust of India
TypePublic company
IndustryMutual fund
FoundedUnit Trust of India Act 1963, UTI Repeal Act 2002.
HeadquartersMumbai, Maharashtra, India
Area servedIndia

Dubai

London

Singapore

Key peopleImtaiyazpur Rahman (Director & CEO)
ProductsMutual Funds

National Pension System

Private Equity

Private Debt

ServicesPortfolio Management Services

Mutual Funds

National Pension Scheme

Offshore Funds

OwnerLife Insurance Corporation of India

Bank of Baroda

Punjab National Bank

State Bank of India

T. Rowe Price

Number of employees1,365 + (2019)
SubsidiariesUTI Asset Management Company

UTI International Limited

UTI Ventures

UTI Retirement Solutions

UTI Capital

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