Industrial finance in india new

Industrial Finance In India Role Of Financial Institutions &

Commercial Bank

Presented By :

Ashish & Harsh Tiwari

Bharat Bhushan

Suraj Bala Saheb

Mohd. Imraan

SynopsisIntroduction

The regulatory bodies of the financial institution Industrial finance

List of finance institution

Types Of Financial Institute

Role of finance institution

Impact of finance institution

What Is A Financial Institute

Financial Economics

Financial Institution

An Institution

Financial Services

Financial Intermediaries.

Regulated By The Government

Definition Of Financial Institute

A Bank Or Other Financial Institution That Serves As A Facilitator Between Two Parties To A Financial Arrangement. Execution Of Loans, Property Sales, Business Contracts, Or Other

Agreements Often Require A Financial Intermediary To Guarantee Payment To One Party, Or To Provide Access Of Funding For

Completion Of The Agreement.

The Regulatory Bodies Of TheFinancial Institutions In India

Reserve Bank of India (RBI)

Securities and Exchange Board of India

(SEBI)

Central Board of Direct Taxes (CBDT)

Central Board of Excise & Customs

List of AIFI’s Industrial Development Bank Of India (IDBI)

Industrial Finance Corporation Of India (IFCI)

Export - Import Bank Of India (Exim Bank)

Industrial Reconstruction Bank Of India (IRBI) Now (Industrial Investment Bank Of India)

National Bank For Agriculture And Rural Development (NABARD)

Small Industries Development Bank Of India (SIDBI)

National Housing Bank (NHB)

Continued… Unit Trust of India (UTI)

Life Insurance Corporation of India (LIC)

General Insurance Corporation of India (GIC)

Risk Capital and Technology Finance Corporation Limited. (RCTC)

Technology Development and Information Company of India Ltd.(TDICI)

Tourism Finance Corporation of India Ltd. (TFCI)

Shipping Credit and Investment Company of India Ltd. (SCICI)

Discount and Finance House of India Ltd. (DFHI)

Organizations Of The Mutual Funds Companies In India

The Mutual Funds In India Has 5 Constituents

The Board Of Trustees Or The Trust

The Sponsors

The Asset Management Company

The Custodian

The Unit Holders

Types Of Financial Institute

Depositary Institutions

Contractual Institutions

Investment Institutions

Role Of Specialized Financial Institution

SFIs Are Institution Set Up Mainly By The Government For Providing Medium And Long Term Financial Assistances To Industry

As These Institutions Provide Developmental Finance, That Is Finance For Investment In Fixed Assets They Are Also Known As Development Bank Or Development Financial Institution

These Institution Receive Funds For Their Financing Operations Primarily From The Government Or Other Public Institutions

These Institution Also Raise Funds From The Capital Market

The Impact Of Financial Institutions And Financial Markets On The Real

Economy

The Critical Role of Financial

Intermediation

Financial Turmoil and Liquidity

New Credit Facilities

BANKING47%

NON-BANK PDs0%

insurance companies

21%

mutual funds

0%

financial institution

0%

corporates1%

FIIs1%

Provident Funds

7%

RBI18%

Others4%

Industrial Of Employment For Financial Manager

BANKINGNON-BANK PDsinsurance companies mutual fundsfinancial institutioncorporatesFIIsProvident FundsRBIOthers

Construction4%

Architectural & En-gineering services

71%

Government3%

Self Employed22%

Industries of employment for Architects

ConstructionArchitectural & Engineering ser-vicesGovernmentSelf Employed

0.2; 37%

0.15; 28%

0.07; 13%

0.12; 22%

Industries of Employment for Food Scientists

Manufacturing Educational InstitutionsFederal Government Self Employed

32%

18%14%

12%

17%

7%Consulting

Operations

Banking & Finance

Marketing & Sales

IT & IT Service

Others

15%

15%

15%

10%5%

8%

20%

12%

Industries of Employment for Fin-ancial Managers

GovernmentRetail & WholesaleSelf EmployedHealthcareEducational ServiceAdmin & SupportCompany & enterprises Management

Commercial bank

Nature of commercial bank

Facts about bank formation

List of commercial banks in India

Functions of commercial bank

Role’s of commercial bank

Role of commercial bank in 21st century

Risk In Commercial Bank

Virtual banking

Conclusion

Nature Of Commercial Bank

Commercial banks play an important and active role in the economic development of a country.

If the banking system in a country is effective, efficient and disciplined it brings about a rapid growth in the various sectors of the economy.

The following is the significance of commercial banks in the economic development of a country.

Facts About Bank Formation

Eligible promoters

Corporate structure

Minimum capital requirement

Foreign shareholding

Corporate governance

Business model

Other conditions

RESERVE BANK OF INDIA CENTRAL BANK AND SUPREME MONETARY AUTHORITY

SCHEDULED BANKSCOMMERCIAL

BANKSCO-

OPERATIONSForeign Banks(40)

Regional Rural

Banks(196)

Urban Cooperative

s(52)

State Cooperative

s(16)

Public Sector Banks

(27)

Private Sectors Banks

(30)

State Bank Of IndiaAnd Associate

Banks(8)

OLD

(22)

New(8)

Other Nationalised Banks(19)%

Function of commercial bank

1. Accepting deposits

2. Giving loans

3. Overdraft

4. Discounting of Bills of Exchange

5. Investment of Funds

6. Agency Functions

7. Miscellaneous Functions

Role of Commercial Banks in the Economic Development of a Country

1. Banks promote capital formation2. Investment in new enterprises3. Promotion of trade and industry4. Development of agriculture5. Balanced development of different regions6. Influencing economy activity7. Implementation of Monetary policy8. Monetization of the economy9. Export promotion cells


1. Banks promote capital formation:

Commercial banks accept deposits from individuals and businesses, these deposits are then made available to the businesses which make use of them for productive purposes in

the country.The banks are, therefore, not only the store

houses of the country’s wealth, but also provide financial resources necessary for

economic development.


2. Investment in new enterprises:

Businessmen normally hesitate to invest their money in risky enterprises. The commercial banks generally provide short and medium

term loans to entrepreneurs to invest in new enterprises and adopt new methods of

production.

The provision of timely credit increases the productive capacity of the economy.


3. Promotion of trade and industry:

With the growth of commercial banking, there is vast expansion in trade and industry.

The use of bank draft, check, bill of exchange, credit cards and letters of credit etc. has

revolutionized both national and international trade.


4. Development of agriculture:

The commercial banks particularly in developing countries are now providing credit for development of agriculture and small scale

industries in rural areas.

The provision of credit to agriculture sector has greatly helped in raising agriculture productivity and income of the farmers.


5. Balanced development of different regions:

The commercial banks play an important role in achieving balanced development in different

regions of the country.They help in transferring surplus capital from

developed regions to the less developed regions. The traders, industrialist etc. of less developed

regions are able to get adequate capital for meeting their business needs.

This in turn increases investment, trade and production in the economy.


6. Influencing economic activity:The banks can also influence the economic activity of

the country through its influence on

a. Availability of credit

b. The rate of interest

If the commercial banks are able to increase the amount of money in circulation through credit creation

or by lowering the rate of interest, it directly affects economic development.

A low rate of interest can encourage investment.

The credit creation activity can raise aggregate demand which leads to more production in the

economy.


7. Implementation of Monetary policy:

The central bank of the country controls and regulates volume of credit through the active cooperation of the

banking system in the country.

It helps in bringing price stability and promotes economic growth with in the shortest possible period

of time.


8. Monetization of the economy:The commercial banks by opening branches in the rural and backward areas are reducing the

exchange of goods through barter.

The use of money has greatly increased the volume of production of goods.

The non monetized sector (barter economy) is now being converted into monetized sector

with the help of commercial banks.


9. Export promotion cells:In order to increase the exports of the country, the

commercial banks have established export promotion cells.

They provide information about general trade and economic conditions both inside and outside the

country to its customers.

The banks are therefore, making positive contribution in the process of economic

development.

Role of Banks in 21st century

The commercial banks are now not confined to local banking.

They are fast changing into global banking, understanding the global customer, using

latest information technology, competing in the open market with high technology

system, changing from domestic banking to investment banking etc.

The commercial bank are now considered the nerve system of all economic

development in the country.


NATURE & NEED

TYPES OF RISK

RBI GUIDELINES FOR RISK MANAGEMENT


Types Of Risk Interest Sensitive Assets

Credit Risk

Interest Rate Risk

Liquidity Risk

Operational Risk

Monitoring Risk

Foreign Ex-change Risk

Derivatives

Treasury Function

RBI Guidelines For Risk Management

Credit Risk

Liquidity Risk

Interest Rate Risk

Market Risk

Operational Risk

Virtual Banking

What is virtual banking? Providing the banking services through extensive use

of information technology without direct recourse to the bank by the customer is called virtual banking.

The origin of virtual banking can be traced to the 1970,s with the installation of ATM’s.

The principal types of virtual banking services include automated teller machines (ATM’s), phone banking and most recently internet banking.

With the increasing use of internet banking there is greater reliance now on information technology and the decrease of physical bank branches to deliver the banking services to the customer.

CONCLUSION

Banks were the earliest credit institutions extending

loans(credit) to customers. It was their job to transform short-term liquid deposits in to long-term

illiquid financial assets that can fund longgestation activities and

enhance economic growth.

Documents

Industrial finance in india new