12-28-2009, 10:54 PM
IDBI is the apex institution in the area of long term industrial finance. It was established under the IDBI Act 1964 as a wholly owned subsidiary of RBI and started functioning on July 01, 1964. Under Public Financial Institutions Laws (Amendment) Act 1976, it was delinked from RBI. IDBI is engaged in direct financing of the industrial activities as well as in re-finance and re-discounting of bills against finance made available by commercial banks under their various schemes.
The objectives of this institution are to create a principal institution for long term finance, to coordinate the institutions working in this field for planned development of industrial sector, to provide technical and administrative support to the industries and to conduct research and development activities for the benefit of industrial sector.
It raises funds by way of market borrowing by way of bonds and deposits, borrowing from Govt. and RBI, borrowing abroad in foreign currency and lines of credit.
Its functions include:
- Direct loans (rupee as well as foreign currency) to industrial undertakings as defined in the Act to finance their new projects, expansion, modernisation etc.
- Soft loans for various purposes including modernisation and under equipment finance scheme
- Underwriting and direct subscription to shares/debentures of the industrial companies.
- Sanction of foreign currency loans for import of equipment or capital goods.
- Short term working capital loans to the corporates for meeting their working capital requirements.
- Refinance to banks and other institutions against loans granted by them.
The objectives of this institution are to create a principal institution for long term finance, to coordinate the institutions working in this field for planned development of industrial sector, to provide technical and administrative support to the industries and to conduct research and development activities for the benefit of industrial sector.
It raises funds by way of market borrowing by way of bonds and deposits, borrowing from Govt. and RBI, borrowing abroad in foreign currency and lines of credit.
Its functions include:
- Direct loans (rupee as well as foreign currency) to industrial undertakings as defined in the Act to finance their new projects, expansion, modernisation etc.
- Soft loans for various purposes including modernisation and under equipment finance scheme
- Underwriting and direct subscription to shares/debentures of the industrial companies.
- Sanction of foreign currency loans for import of equipment or capital goods.
- Short term working capital loans to the corporates for meeting their working capital requirements.
- Refinance to banks and other institutions against loans granted by them.