Customized_Development_Bank_Presentation.pptx
- 1. Concept, Objectives & Functions of Development Bank An Overview of Development Financial Institutions Presented by: Shuvarajeet Badyakar Course/Subject: M.Com
- 2. Introduction • What is a Development Bank? • A financial institution providing long-term capital for economic development. • Focuses on industrial, agricultural, and infrastructural growth. • Complements commercial banks by funding large-scale projects.
- 3. Concept of Development Bank • Specialized financial institutions. • Promote economic development by providing medium and long-term financing. • Cater to underdeveloped and priority sectors like infrastructure, rural development, SMEs, etc. • Not profit-oriented; focus on nation-building.
- 4. Features of Development Banks • Provide long-term finance • Promote entrepreneurship and innovation • Support economic planning • Offer technical and managerial assistance • Fund both public and private sector projects
- 5. Objectives of Development Banks • Promote Industrial Growth • Support Infrastructure Development • Encourage Small & Medium Enterprises (SMEs) • Reduce Regional Imbalances • Generate Employment Opportunities • Promote Export-Oriented Units • Develop Financial Markets
- 6. Functions of Development Banks • Financial Assistance: Long-term loans, equity participation, underwriting, guarantees. • Project Promotion: Identifying and supporting potential industries. • Technical Assistance: Guidance in project planning, feasibility reports, etc. • Entrepreneurial Development: Training programs, seminars for budding entrepreneurs. • Coordination: Work with other financial
- 7. Examples of Development Banks in India • IDBI – Industrial Development Bank of India • SIDBI – Small Industries Development Bank of India • NABARD – National Bank for Agriculture and Rural Development • EXIM Bank – Export-Import Bank of India • IFCI – Industrial Finance Corporation of India
- 8. Importance of Development Banks • Promote balanced regional development • Support sectors neglected by commercial banks • Boost economic stability and growth • Encourage self-reliance and innovation
- 9. Challenges Faced by Development Banks • Rising non-performing assets (NPAs) • Political interference in lending • Lack of autonomy • Difficulty in raising low-cost funds • Need for restructuring and modernization
- 10. Conclusion • Development banks play a vital role in nation- building. • They fill the gap left by commercial banks in long-term financing. • Crucial for inclusive growth, employment generation, and industrial progress.
- 11. References • RBI Publications • Official websites of IDBI, SIDBI, NABARD • Financial Management textbooks • Economic Survey of India • Articles from The Hindu Business Line, Economic Times