1. Industrial Finance In India
Role Of Financial Institutions &
Commercial Bank

3. Synopsis
Introduction
The regulatory bodies of the
financial institution Industrial
finance
List of finance institution
Types Of Financial Institute
Role of finance institution
Impact of finance institution

4. What Is A Financial Institute
 Financial Economics
 Financial Institution
 An Institution
 Financial Services
 Financial Intermediaries.
 Regulated By The Government

5. Definition Of Financial Institute
A Bank Or Other Financial Institution That
Serves As A Facilitator Between Two Parties To
A Financial Arrangement. Execution Of Loans,
Property Sales, Business Contracts, Or Other
Agreements Often Require A
Financial Intermediary To Guarantee Payment To
One Party, Or To Provide Access Of Funding For
Completion Of The Agreement.

6. The Regulatory Bodies Of The
Financial Institutions In India
 Reserve Bank of India (RBI)
 Securities and Exchange Board of India
(SEBI)
 Central Board of Direct Taxes (CBDT)
 Central Board of Excise & Customs

7. List of AIFI’s
 Industrial Development Bank Of India (IDBI)
 Industrial Finance Corporation Of India (IFCI)
 Export - Import Bank Of India (Exim Bank)
 Industrial Reconstruction Bank Of India (IRBI) Now
(Industrial Investment Bank Of India)
 National Bank For Agriculture And Rural
Development (NABARD)
 Small Industries Development Bank Of
India (SIDBI)
 National Housing Bank (NHB)

8. Continued…
 Unit Trust of India (UTI)
 Life Insurance Corporation of India (LIC)
 General Insurance Corporation of India (GIC)
 Risk Capital and Technology Finance Corporation
Limited. (RCTC)
 Technology Development and Information
Company of India Ltd.(TDICI)
 Tourism Finance Corporation of India Ltd. (TFCI)
 Shipping Credit and Investment Company of India
Ltd. (SCICI)
 Discount and Finance House of India Ltd. (DFHI)

9. Organizations Of The Mutual
Funds Companies In India
The Mutual Funds In India Has 5
Constituents
 The Board Of Trustees Or The Trust
 The Sponsors
 The Asset Management Company
 The Custodian
 The Unit Holders

10. Types Of Financial Institute
 Depositary Institutions
 Contractual Institutions
 Investment Institutions

11. Role Of Specialized
Financial Institution
 SFIs Are Institution Set Up Mainly By The Government
For Providing Medium And Long Term Financial
Assistances To Industry
 As These Institutions Provide Developmental
Finance, That Is Finance For Investment In Fixed
Assets They Are Also Known As Development Bank
Or Development Financial Institution
 These Institution Receive Funds For Their Financing
Operations Primarily From The Government Or Other
Public Institutions
 These Institution Also Raise Funds From The Capital
Market

12. The Impact Of Financial Institutions
And Financial Markets On The Real
Economy
The Critical Role of Financial
Intermediation
Financial Turmoil and Liquidity
New Credit Facilities

13. Industrial Of Employment For Financial Manager
[CATEGORYOthers BANKING
NAME] 4% NON-BANK PDs
[PERCENTA insurance companies
GE]
Provident
mutual funds
BANKING financial institution
Funds 47%
financial
FIIs
mutual
corporates corporates
7%
institution
1%
funds
2%
FIIs
0%
insurance Provident Funds
NON-BANK RBI
companies
PDs Others
21%
0%

14. Industries of employment for Architects
Construction
4%
Self Employed
22%
Construction
Architectural &
Government
3% Engineering services
Government
Self Employed
Architectural &
Engineering services
71%

15. Industries of Employment for Food
Scientists
12%, 22%
20%, 37%
7%, 13%
15%, 28%
Manufacturing Educational Institutions
Federal Government Self Employed

16. Consulting
7% Operations
17% 32% Banking &
Finance
Marketing & Sales
12%
IT & IT Service
14% 18%
Others

17. Industries of Employment for
Financial Managers
Government
12% 15%
Retail & Wholesale
Self Employed
20% 15% Healthcare
Educational Service
8% Admin & Support
15%
5% Company & enterprises
10%
Management

19. Commercial bank
 Nature of commercial bank
 Facts about bank formation
 List of commercial banks in India
 Functions of commercial bank
 Role’s of commercial bank
 Role of commercial bank in 21st century
 Risk In Commercial Bank
 Virtual banking
 Conclusion

20. Nature Of Commercial Bank
Commercial banks play an important
and active role in the economic
development of a country.
If the banking system in a country is
effective, efficient and disciplined it
brings about a rapid growth in the
various sectors of the economy.
The following is the significance of
commercial banks in the economic
development of a country.

21. Facts About Bank Formation
Eligible promoters
Corporate structure
Minimum capital requirement
Foreign shareholding
Corporate governance
Business model
Other conditions

22. RESERVE BANK OF INDIA
CENTRAL BANK AND SUPREME MONETARY AUTHORITY
SCHEDULED BANKS
COMMERCIAL
BANKS
CO-OPERATIONS
Foreign Regional Urban State
Banks Rural Cooperatives Cooperatives
(40) Banks(196) (52) (16)
Public Sector Banks Private Sectors Banks
(27) (30)
OLD New
(22) (8)
State Bank Of India Other Nationalised
And Associate Banks Banks
(8) (19)%

23. Function of commercial bank
1. Accepting deposits
2. Giving loans
3. Overdraft
4. Discounting of Bills of Exchange
5. Investment of Funds
6. Agency Functions
7. Miscellaneous Functions

24. Role of Commercial Banks in the
Economic Development of a Country
1. Banks promote capital formation
2. Investment in new enterprises
3. Promotion of trade and industry
4. Development of agriculture
5. Balanced development of different regions
6. Influencing economy activity
7. Implementation of Monetary policy
8. Monetization of the economy
9. Export promotion cells

25. Role of Commercial Banks in the
Economic Development of a Country
1. Banks promote capital formation:
Commercial banks accept deposits from
individuals and businesses, these deposits are
then made available to the businesses which
make use of them for productive purposes in
the country.
The banks are, therefore, not only the store
houses of the country’s wealth, but also
provide financial resources necessary for
economic development.

26. Role of Commercial Banks in the
Economic Development of a Country
2. Investment in new enterprises:
Businessmen normally hesitate to invest their
money in risky enterprises. The commercial
banks generally provide short and medium
term loans to entrepreneurs to invest in new
enterprises and adopt new methods of
production.
The provision of timely credit increases the
productive capacity of the economy.

27. Role of Commercial Banks in the
Economic Development of a Country
3. Promotion of trade and industry:
With the growth of commercial banking, there
is vast expansion in trade and industry.
The use of bank draft, check, bill of
exchange, credit cards and letters of credit etc.
has revolutionized both national and
international trade.

28. Role of Commercial Banks in the
Economic Development of a Country
4. Development of agriculture:
The commercial banks particularly in
developing countries are now providing credit
for development of agriculture and small scale
industries in rural areas.
The provision of credit to agriculture sector
has greatly helped in raising agriculture
productivity and income of the farmers.

29. Role of Commercial Banks in the
Economic Development of a Country
5. Balanced development of different regions:
The commercial banks play an important role in
achieving balanced development in different
regions of the country.
They help in transferring surplus capital from
developed regions to the less developed regions.
The traders, industrialist etc. of less developed
regions are able to get adequate capital for
meeting their business needs.
This in turn increases investment, trade and
production in the economy.

30. Role of Commercial Banks in the
Economic Development of a Country
6. Influencing economic activity:
The banks can also influence the economic activity of
the country through its influence on
a. Availability of credit
b. The rate of interest
If the commercial banks are able to increase the
amount of money in circulation through credit creation
or by lowering the rate of interest, it directly affects
economic development.
A low rate of interest can encourage investment.
The credit creation activity can raise aggregate
demand which leads to more production in the
economy.

31. Role of Commercial Banks in the
Economic Development of a Country
7. Implementation of Monetary policy:
The central bank of the country controls and regulates
volume of credit through the active cooperation of the
banking system in the country.
It helps in bringing price stability and promotes
economic growth with in the shortest possible period
of time.

32. Role of Commercial Banks in the
Economic Development of a Country
8. Monetization of the economy:
The commercial banks by opening branches in
the rural and backward areas are reducing the
exchange of goods through barter.
The use of money has greatly increased the
volume of production of goods.
The non monetized sector (barter economy) is
now being converted into monetized sector
with the help of commercial banks.

33. Role of Commercial Banks in the
Economic Development of a Country
9. Export promotion cells:
In order to increase the exports of the country, the
commercial banks have established export
promotion cells.
They provide information about general trade and
economic conditions both inside and outside the
country to its customers.
The banks are therefore, making positive
contribution in the process of economic
development.

34. Role of Banks in 21st century
 The commercial banks are now not
confined to local banking.
 They are fast changing into global
banking, understanding the global
customer, using latest information
technology, competing in the open market
with high technology system, changing
from domestic banking to investment
banking etc.
 The commercial bank are now considered
the nerve system of all economic
development in the country.

35. Risk In Commercial Bank
NATURE & NEED
TYPES OF RISK
RBI GUIDELINES FOR RISK MANAGEMENT

36. Risk In Commercial Bank
Types Of Risk
Interest Sensitive Assets
Credit Risk
Interest Rate Risk
Liquidity Risk
Operational Risk
Monitoring Risk
Foreign Ex-change Risk
Derivatives
Treasury Function

38. RBI Guidelines For Risk
Management
Credit Risk
Liquidity Risk
Interest Rate Risk
Market Risk
Operational Risk

39. Virtual Banking
What is virtual banking?
Providing the banking services through extensive use
of information technology without direct recourse to
the bank by the customer is called virtual banking.
The origin of virtual banking can be traced to the
1970,s with the installation of ATM’s.
The principal types of virtual banking services
include automated teller machines (ATM’s), phone
banking and most recently internet banking.
With the increasing use of internet banking there is
greater reliance now on information technology and
the decrease of physical bank branches to deliver the
banking services to the customer.

40. CONCLUSION
Banks were the earliest credit
institutions extending
loans(credit) to customers. It was
their job to transform short-term
liquid deposits in to long-term
illiquid financial assets that can
fund longgestation activities and
enhance economic growth.