The presentations gives an insight about two Development Financial Institutions In India, NABARD (National Bank for Agriculture and Rural Development) and SIDBI (Small Industries Development Bank of India).
3. ABOUT NABARD
Develops policy, planning and operations in the field of credit for
agriculture and other economic activities in rural areas in India.
Headquartered at Mumbai with branches all over India.
The initial corpus of NABARD was Rs.100 crores. Consequent to the
revision in the composition of share capital between Government of
India and RBI.
Paid up capital as on 31 May 2017, stood at Rs.6,700 crore with
Government of India holding Rs.6,700 crore (100% share). The
authorized share capital is Rs.30.000 crore.
4. MISSION STATEMENT
"Promote sustainable and equitable agriculture and rural
prosperity through effective credit support, related services,
institution development and other innovative initiatives."
5. ROLES
1. NABARD is the most important institution in the country which looks after
the development of the cottage industry, small scale industry and village
industry, and other rural industries.
2. NABARD also reaches out to allied economies and supports and promotes
integrated development.
3. Co-ordinates the rural financing activities of all institutions engaged in
developmental work at the field level and maintains coordination
with Government of India, state governments, Reserve Bank of India (RBI)
and other national level institutions concerned with policy formulation.
4. NABARD refinances the financial institutions which finances the rural
sector.
5. It provides training facilities to the institutions working in the field of
rural upliftment.
6. FINANCIAL SERVICES
Direct Finance
Loans for Food Parks and Food Processing Units in Designated Food Parks
Loans to Warehouses, Cold Storage and Cold Chain Infrastructure
Credit Facilities to Marketing Federations
Rural Infrastructure Development Fund
Direct Refinance to Cooperative Banks
Long Term Irrigation Fund
Financing and Supporting Producer Organisations
Alternative Investment Funds
More Direct Finance
9. ABOUT SIDBI
Set up on April 2, 1990 through an act of parliament.
The ownership is held by 34 Government of India owned / controlled
institutions.
Beginning as a refinancing agency to banks and state level financial
institutions for their credit to small industries, it has expanded its
activities, including direct credit to the SME through 100 branches in
all major industrial clusters in India.
It has been playing the development role in several ways such as
support to micro-finance institutions for capacity building and on
lending.
Recently it has opened seven branches christened as Micro Finance
branches, aimed especially at dispensing loans up to ₹5 lakh.
10. SUBSIDIARIES
Direct Finance: In the form of Term Loan Assistance, Working Capital
Assistance, Support against Receivables, Foreign Currency Loan,
Scheme of Energy Saving for MSME sector, equity support etc.
Indirect Finance: The Indirect assistance in the form of Refinance is
provided to Primary Lending Institutions (PLIs), comprising banks,
State Level Financial Institutions, etc. having a wide network of
branches all over the country. The main objective of Refinance
Scheme is to increase the resource position of PLIs which would
ultimately facilitate the flow of credit to MSME sector.
Micro Finance: SIDBI provides micro finance i.e. credit to small
entrepreneurs and businessmen for establish their business.
11. FUNCTIONS OF SIDBI
SIDBI refinances loans extended by the primary lending institutions
to small scale industrial units.
SIDBI discounts and rediscounts bills
To expand the channels for marketing the products of Small Scale
Industries (SSI)
services like leasing, factoring etc.
To promote employment oriented industries
