2023 2024 Student Forum > Management Forum > Main Forum

 
  #2  
10th November 2017, 09:17 AM
Super Moderator
 
Join Date: Aug 2012
Re: Functions and Objectives of IDBI

IDBI Bank is an Indian government-owned financial service company which was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry. Central government is the owner of this bank and employees will be called as Central Govt staffs.

Role of IDBI
As an apex development bank, its major role is to co-ordinate the activities of other development banks and term-financing institutions in the capital market of India.

Bank provides technical and administrative assistance for promotion, management and expansion of industry thus performing promotional and development functions.

Bank grants loans and advances to industrial concerns. It guarantees loans raised by industrial concerns in the open market from the State Co-operative Banks, the Scheduled Banks, the Industrial Finance Corporation of India (IFCI) and other notified financial institutions.

It provides refinancing facilities to the IFCI, SFCs and other financial institutions approved by the government. Bank subscribes to the shares and bonds of the financial institutions and thereby provides supplementary resources.

Coordinating the activities of financial institutions for the promotion and development of industries.

Bank is the leader, coordinator and innovator in the field of industrial financing in India. Its major activity is confined to financing, developmental, co-ordination and promotional functions.

Planning, promoting and developing industries with a view to fill the gaps in the industrial structure by conceiving, preparing and floating new projects.

Functions performed by IDBI

Bank has shown its particular interest in the development of small-scale industries is verified by the setting up of the Small Industries Development Fund (SIDF) in May 1986, the National Equity Fund Scheme (NEFS) in 1988, and the Voluntary Executive Corporation Cell (VECC) for providing support in the nature of equity to tiny and small-scale industries engaged in manufacturing, cost not exceeding Rs. 5 lakhs. The scheme is administrated by Bank through nationalised banks.

Bank has also introduced the single window assistance scheme for grant of term-loans and working capital assistance to new, tiny and small-scale enterprises. As per data available, Bank has extended about 1/3 of total industrial assistance to small-sector alone.

The scope of business of Bank has also been extended to cover consulting, merchant banking and trusteeship activities.


Quick Reply
Your Username: Click here to log in

Message:
Options

Thread Tools Search this Thread



All times are GMT +5. The time now is 03:37 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
SEO by vBSEO 3.6.0 PL2

1 2 3 4