IFCI

Industrial Finance Corporation of India

1. Industrial Finance Industrial Finance
Corporation of India Corporation of India
{IFCI}{IFCI}
Presented ByPresented By
Naveen S.DNaveen S.D
90194715649019471564
The Oxford College of Business The Oxford College of Business
ManagementManagement

2. IntroductionIntroduction
•The Government of India set up the IFCI under IFCI The Government of India set up the IFCI under IFCI
Act in July 1948.Act in July 1948.
•It is the first development financial institution in the It is the first development financial institution in the
county to cater to the long-term finance needs of the county to cater to the long-term finance needs of the
industrial sectors.industrial sectors.
•The main objective of IFCI is to making medium & The main objective of IFCI is to making medium &
long term credits more readily available for industrial long term credits more readily available for industrial
concerns in India.concerns in India.

3. CapitalCapital
•The authorized capital of the corporation as per The authorized capital of the corporation as per
IFCI Act 1948, was Rs.10 crores. It was raised to IFCI Act 1948, was Rs.10 crores. It was raised to
Rs.20 crores by the Amendment Act 1972.Rs.20 crores by the Amendment Act 1972.
•50% of the share capital is held by the IDBI & 50% of the share capital is held by the IDBI &
remaining 50% by banks, cooperative banks, remaining 50% by banks, cooperative banks,
insurance company, investment trusts etc.,insurance company, investment trusts etc.,

4. ActivitiesActivities
•Direct FinancingDirect Financing
•Incidental ActivitiesIncidental Activities
•Promotional ActivitiesPromotional Activities

5. Direct FinancingDirect Financing
•Rupee loansRupee loans
•Sub loans in foreign currencySub loans in foreign currency
•Underwriting of and/or direct subscription to the Underwriting of and/or direct subscription to the
shares & debentures of public limited companies.shares & debentures of public limited companies.
•Foreign currency loans raised by industries from Foreign currency loans raised by industries from
foreign institutionsforeign institutions
•Rupee loans raised by industries from scheduled banks Rupee loans raised by industries from scheduled banks
or state co-operative banks.or state co-operative banks.
•Guaranteeing of deferred payments for machinery Guaranteeing of deferred payments for machinery
{imported & indigenous} {imported & indigenous}

6. Incidental ActivitiesIncidental Activities
•IFCI has been authorized by Industrial Finance IFCI has been authorized by Industrial Finance
Corporation ( Amendment) Act, 1982 to undertake Corporation ( Amendment) Act, 1982 to undertake
incidental activities.incidental activities.
•Undertaking research & surveys for evaluating or Undertaking research & surveys for evaluating or
dealing with marketing or investments and undertaking dealing with marketing or investments and undertaking
& carrying on techno-economic studies.& carrying on techno-economic studies.
•Providing technical & administrative assistance to any Providing technical & administrative assistance to any
industrial concern for the promotion, management or industrial concern for the promotion, management or
expansion of any industry.expansion of any industry.

7. Promotional ActivitiesPromotional Activities
•Merchant Banking operations.Merchant Banking operations.
•The objective of IFCI in this case has been:The objective of IFCI in this case has been:
•Fill in the gaps in the industrial infrastructure for promotion & Fill in the gaps in the industrial infrastructure for promotion &
growth of industries.growth of industries.
•To provide much needed guidance in project identification, To provide much needed guidance in project identification,
formulation, implementation, operation etc., to the new, tiny, formulation, implementation, operation etc., to the new, tiny,
small scale and medium scale entrepreneurs.small scale and medium scale entrepreneurs.
•To improve the productivity of human and material resources; a To improve the productivity of human and material resources; a
better deal to the weaker, underprivileged sections of the society better deal to the weaker, underprivileged sections of the society
in line with socio-economic objectives laid down by Government in line with socio-economic objectives laid down by Government
of India.of India.

8. Areas of AssistanceAreas of Assistance
•Assistance from IFCI single or jointly with Assistance from IFCI single or jointly with
other institutions is available for:other institutions is available for:
–Setting up of new industrial projects.Setting up of new industrial projects.
–Expansion of existing units/ diversification into Expansion of existing units/ diversification into
new lines of activity.new lines of activity.
–Renovation / rehabilitation / Modernization of Renovation / rehabilitation / Modernization of
existing units.existing units.

9. Resources are in the form of:Resources are in the form of:
•Loans from RBILoans from RBI
•Share capitalShare capital
•Retained earningsRetained earnings
•Repayment of loanRepayment of loan
•Issue of bondsIssue of bonds
•Loans from governmentLoans from government
•Lines of credit from foreign lending agenciesLines of credit from foreign lending agencies
•Commercial borrowings in international capital Commercial borrowings in international capital
market.market.

10. THANK YOUTHANK YOU