Publications

FI

Ownership Pattern

Supervisory
Functions

Refinance
Function

Direct
Finance

Others

Pre-reform

Current Status

1. IDBI

Wholly owned by the Gov- ernment of India

In October 1994, the IDBI Act was amended giving way to private participation in the ownership subject to the government holding being retained at not less than 51 per cent. After the public issue in 1995 and sale of offer by the government, the share of government holding came down to 74.6 per cent from 100 per cent earlier.

IDBI, under the IDBI Act, is an apex institution for coordinating and supplementing the operations of other institutions providing term finance to industry. IDBI has been assigned with the responsibility of supervising the State Financial Corporations under the SFCs Act. It also supervises SIDCs in terms of the agreement entered into with them. IDBI besides prescribing policy guidelines, undertakes on-site inspection.

IDBI extends indirect financial assis- tance by way of (i) refinancing of term loans given by state-level institutions / banks to medium scale units and (ii) discounting/rediscounting bills of exchange and promissory notes arising out of sale/purchase of machinery and equipment.

It provides direct finance by way of term loans, both in rupee and foreign currencies, besides providing support by way of underwriting and direct subscription to shares/debentures and in the form of deferred payment guarantees. Re-cently, IDBI has also started ex-tending short-term/working capital finance.

It also undertakes project consultancy services, leasing activities and venture capital finance. IDBI has been as signed some promotional role, such as, assistance to entrepreneurial development, voluntary developmental agency, institutional up-gradation training and other activities.

2. NABARD

Owned by the Gov-ernment and RBI

Owned by the Government and RBI

It supervises the Regional Rural Banks (RRBs) State and Central Cooperative banks (SCBs and CCBs). It prescribes the policy guidelines to RRBs. It conducts on-site inspection of these institutions. It also coordinates the lending to agriculture, rural sector and Small Scale Industries (SSIs).

It extends refinance assistance to commercial banks, state co-opertive banks and regional rural banks.

It extends direct finance to larger projects in the rural sector and agricultural re-lated areas.

It provides technical consultancy services to projects in the agriculture and rural areas and conducts project studies.

3. NHB

Wholly owned by the Reserve Bank of India

Wholly owned by the Reserve Bank of India

It is the apex institution in the housing sector. It issues directions and provides guidance to housing finance institutions to ensure their promotion, management and growth on sound lines. It co-ordinates with various agencies in the housing sector.

It grants loans and advances and renders other financial assistance to scheduled commercial banks. It can subscribe to stocks, shares, bonds, debentures of Housing Finance In-stitutions (HFIs). It provides guarantee and underwriting fa-cilities to banks and housing finance in-stitutions.

Also extends di-rect project fi-nance to a small extent.

-

Statement 7 : FIs’ Ownership, Organisation and Functions (contd.)

Ownership Pattern

Supervisory
Functions

Refinance
Function

Direct
Finance

Others

FI

Pre-reform

Current Status

4. SIDBI

Wholly owned by IDBI

Wholly owned by IDBI

Not applicable

Refinancing of term loans granted by SFCs, SIDCs, com-mercial banks and other eligible finan-cial institutions and direct discounting and rediscounting of bills arising out of sale of machinery/ capital equipment/ components by manufacturers in the small-scale sector.

Besides refinancing it also extends direct finance to SSI sector.

Technical consultancy, etc.

5. EXIM

Wholly owned by the Gov-ernment

Wholly owned by the Government

Not applicable

It refinances com-mercial banks.

It extends direct fi-nance to Indian and overseas entities.

It extends guarantee cum refinance, L/C confirmation, business advisory and technical con-sultation ser-vices etc.

Bank

6. ICICI

Institutional agencies and public shareholdig

Institutional agencies and pub-lic shareholding

Not applicable

Not applicable

It provides assis- tance by way of ru- pee and foreign cur- rency loans, under- writing and direct subscription to shares/ debentures and guarantees. Re- cently, it has also started extending short-term loans.

Project and technical consultancy services, de- benture trust- eeship, etc.

7. IFCI

Wholly owned by the Gov- ernment controlled bodies

Converted into public limited company in 1993 giving way for private participa- tion in the own- ership. IFCI came out with Public issue of its shares in 1993.

Not applicable

Not applicable

It provides assis- tance by way of ru- pee and foreign cur- rency loans, under- writing and direct subscription to shares/debentures and guarantees. Re- cently, it has also started extending short-term loans.

Project consultancy services, ven- ture capital etc.

Statement 7 : FIs’ Ownership, Organisation and Functions (concld.)

Ownership Pattern

Supervisory

Refinance

Direct

FI

Functions

Function

Finance

Others

Pre-reform

Current Status

8. IIBI

Wholly owned by the Govern-ment

The entire equity continues to be held by the government.

Not applicable

Not applicable

a public limited company in March 1997. Until conversion, its basic function was to act as the principal credit and reconstruction agency for aiding rehabilitation of sick and closed industrial units. However, after its conversion from a statutory body into a public limited company, it has been allowed to act as a full fledged all-purpose DFI.

Investment/ merchant bank- ing, Project consultancy services etc.

9. TFCI

IFCI, other financial institutions and commercial banks

IFCI, other finan-cial institutions and commercial banks

Not applicable

Not applicable

To cater to the needs of the tourism indus- try by providing term loans.

Also extends consultancy in the related areas.