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Financial Organizations – India

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Financial Organizations – India

shape Introduction

What is meant by Financial Organization?
An establishment (open or private) that gathers assets (from general society or different foundations) and puts them in monetary resources (financial assets).
The article Financial Organizations - India presents the list of important Financial Organizations in India.

shape Finance

  • India Infrastructure Finance Company Ltd (IIFCL) is a wholly - owned Government of India companyset up in 2006 to provide long-term financial assistance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

  • The sectors eligible for financial assistance from IIFCL includes transportation, energy, water, sanitation, communication, social and commercial infrastructure.

  • The authorized and paid up capital of the company as on 31st March 2017 stood at Rs. 6,000 Crore and Rs. 4,002 Crore, respectively.

Vision:
Provide innovative financing solutions to promote and develop world class infrastructure in India.
Mission:
  • To adopt best practices in financing infrastructure and develop core competencies in facilitating infrastructure development.

  • Develop a team of highly engaged employees to deliver services in a professional manner and to the satisfaction of all stakeholders.
Key Points:
It is engaged in providing long term financial assistance to commercially viable infrastructure projects with overriding priority PPP projects in the country in designated sectors such as
    a) Road and bridges, railways, seaports, airports, in land waterways, urban transport and other transportation projects
    b) Power (Generation, Transmission and Distribution)
    c) Water supply, sewage collection, treatment and disposal system, solid waste management and other physical infrastructure in urban areas.
    d) Gas pipelinese)Education Institutions, Hospitals, Convention centres, Hotels, Cold storage chains, Soil testing laboratories.
  • Export Import Bank of India was Established by the Government of India, it commenced operations in 1982 under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies.

  • It provides a wide range of products and services which includes import of technology & export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.

Chairman:
  • Shri. R.C. Shah was the first Chairman and Managing Director (CMD) from 1982 -1985.

  • Shri David Rasquinha was appointed the Managing Director of Exim Bank from August 2017.

  • MR. DEBASISH MALLICK is the Deputy Managing Director.

  • Board comprises 12 directors appointed by the Government of India, including the Chairman and Managing Director.

Objectives:
  • Providing financialassistance to exporters and importers.

  • Functioning as the principal financial institution for coordinating the working of institutions engaged in financing export and import of goods and services with a view to promoting the country's international trade.

  • Act on business principles with due regard to public interest.
  • Small Industries Development Bank of India set up on 2nd April 1990 under an Act of Indian Parliament to act as the Principal Financial Institution for Promotion, Financing & Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

  • SIDBI has been working towards the sustainable development of MSME sector.

  • These include the innovative Credit Plus model, where credit is supplemented with advisory and mentoring facilities to MSMEs.

  • Some of SIDBI’s other revolutionary initiatives include the MFI-led Microfinance movement in India that has nurtured and strengthened more than 100 MFIs andfacilitated creation of SFBs, introducing a culture of energy efficient and sustainable finance for the MSME sector.

Mission:
To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system.
Vision:
  • To emerge as a single window for meeting the financial and developmental needs of the MSME sector.

  • To make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution
Share Holding Pattern:
S. NO Name of the Shareholder %
1. State Bank of India 16.73
2. Government of India 15.40
3. Life Insurance Corporation of India 14.25
4. National Bank for Agriculture & Rural Development 10.00
  • The Committee of Secretaries set up the High-Level Group under the Chairmanship of Dr. C. Rangarajan, the then Deputy Governor, RBI to examine the proposal and recommended the setting up of National Housing Bank as an autonomous housing finance institution.

  • The recommendations of the High-Level Group were accepted by the Government of India.

  • The Hon’ble PM, while presenting the Union Budget for 1987-88 on February 28, 1987, announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance.

  • The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing.

  • NHB was set up on July 9, 1988, under the National Housing Bank Act, 1987.

  • NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.

  • The general superintendence, direction, and management of the affairs and business of NHB vest, under the Act, in a Board of Directors.

  • The Head Office of NHB is at New Delhi.

Preamble of the National Housing Bank:
The Preamble of the National Housing Bank Act, 1987 describes the basic functions of the NHB as – to operate as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions and for matters connected there with or incidental there to.
Vision:
Promoting inclusive expansion with stability in housing finance market.
Mission: To harness and promote the market potentials to serve the housing needs of all segments of the population with the focus on low and moderate-income housing.
Objectives:
  • To promote a sound, healthy, viable and cost-effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system.

  • To promote a network of dedicated housing finance institutions to adequately serve various regions and different income groups.

  • To augment resources for the sector and channelize them for housing.

  • To make housing credit more affordable.

  • To regulate the activities of housing finance companies based on regulatory and supervisory authority derived under the Act.

  • To encourage augmentation of supply of buildable land and also building materials for housing and to upgrade the housing stock in the country.

  • To encourage public agencies to emerge as facilitators and suppliers of serviced land, for housing.
  • Industrial Finance Corporation of India is a Non-Banking Finance Company in the public sector.

  • Established in 1948 as a statutory corporation.

  • IFCI manages seven number of subsidiaries and one associate under its fold.

  • It provides financial support for the diversified growth of Industries across the spectrum. The financing activities cover various kinds of projects such as airports, roads, telecom, power, real estate, manufacturing, services sector, and such other allied industries.

  • The company has played a pivotal role in setting up various market intermediaries of repute in several niche areas like stock exchanges, entrepreneurship development organizations, consultancy organizations, educational and skill development institutes across the length and breadth of the country.

Corporate Strategy:
  • To be asolution provider to various financial needs of the industry.

  • To remain competitive, competent and sensitive to the economic growth of the Country.

  • To design customer focused solutions.

  • To enhance the reputation and image of IFCI.
Vision:
To be the leading development institution for industrial and infrastructure sectors across the spectrum and be an influential partner in country’s economic growth and development.
Mission:
  • To adopt the best practices in financing industry and infrastructure and leverage core competencies in promoting sustainable industrial and infrastructure development in the country.

  • To act as a competitive, client-friendly and development oriented organization delivering financial products and services to the satisfaction of all stakeholders.