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Development Banks: Roles & Objectives

The document discusses the operational and promotional activities of development banks. It defines development banks as financial institutions that promote balanced economic development and growth. It outlines some key Indian development banks and their objectives, which include accelerating industrialization, allocating resources to priority sectors, and financing infrastructure and small businesses. The document also describes the operational activities of project appraisal, technical assistance, and loan approval. It notes the promotional activities include area surveys, technical consultancy, and entrepreneurship programs.

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Aditya Raj
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53 views15 pages

Development Banks: Roles & Objectives

The document discusses the operational and promotional activities of development banks. It defines development banks as financial institutions that promote balanced economic development and growth. It outlines some key Indian development banks and their objectives, which include accelerating industrialization, allocating resources to priority sectors, and financing infrastructure and small businesses. The document also describes the operational activities of project appraisal, technical assistance, and loan approval. It notes the promotional activities include area surveys, technical consultancy, and entrepreneurship programs.

Uploaded by

Aditya Raj
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Operational & Promotional

Activities of Development Bank


Presentation by:
ADITYA RAJ
(42110019)
2nd Year, MBA (NIT KKR)
Contents

• Meaning and Objectives of Development Banks


• Need of Development Bank
• Some of the Development Banks
• Operational Activities
• Promotional Activities
• References

2
Meaning of Development Bank

• Development banks are unique financial


institutions that act as catalytic agents in
promoting balanced development of the country
and thereby aid in the economic growth of the
country.
3
• A Development Bank may be defined as a
financial institution concerned with providing all
types of financial assistance medium as well as
long term business units.
• Development banks are unique financial
institutions that perform the special task of
fostering the development of a nation, generally
not undertaken by other banks.
4
Objectives

• To serve as an agent of development in various


sectors, namely, industry, agriculture, and
international trade.
• To accelerate the growth of the economy.
• To allocate resources to high priority areas.
5
• To foster rapid industrialization, particularly in
the private sector, to provide employment
opportunities as well as higher production.
• To promote the development of rural areas.
• To finance housing, small-scale industries,
infrastructure, and social utilities.
6
Need of Development Banks

• To establish foundation for Industrialisation.


• To meet the capital needs.
• For promotional activities.
• To encourage small and medium industries.
7
Some of the Development Banks
• Industrial Finance Corporation of India (1948)
• Industrial Credit And Investment Corporation Of India
(1955)
• Industrial Development Bank Of India (1964)
• Industrial Reconstruction Bank of India (1971)
• Small Industries Development Bank of India (1989)
8
• State Financial Corporation (SFC) was established
in Punjab in 1953.
• At present, there are 18 SFCs are working.

9
Operational Activities

• Project appraisal and Eligibility of applicant.


• Technical appraisal to the industry.
• Economic viability.
• Assessing commercial aspects.
10
• Financial feasibility
• Managerial competence
• National contribution
• Loan sanction
• Loan disbursement

11
Promotional Activities

• Surveys of backward areas -surveys studied the


availability of resurveys, demand potential and
availability of infrastructure facilities.
• Establishing technical consultancy organisations.

12
• Entrepreneurial development programs.
• Technological improvements- the main thrust of
EDP’s has been to institutionalize
entrepreneurship activities, generating,
sharpening and sharing knowledge through
research documentation and publication,
developing a cadre of professionals.

13
References

• Indian Financial System Textbook by Author Bharti Pathak


• RBI website - [Link]

14
15

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