Banking Awareness Question Day 14

List of Important Financial Institutions/ Organizations – Present Heads & Headquarters

IIFCL (India Infrastructure Finance Company Limited):

  • IIFCL is a wholly-owned Government of India company set 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 are as per the Harmonized list of Infrastructure Sub-Sectors as approved by the Government and as amended from time to time. These broadly include transportation, energy, water, sanitation, communication, social and commercial infrastructure.
  • IIFCL has been registered as a NBFC-ND-IFC with RBI since September 2013.
  • The authorized and paid up capital of the company as on 31st March 2018 stood at Rs 6,000 Crore and Rs 4,102 Crore, respectively.
  • On a standalone basis, till 31st March 2018, IIFCL made cumulative gross sanctions of Rs 81,040 Crore to 459 projects under direct lending and cumulative disbursements of Rs 60,136 Crore (including disbursements of Rs 7,231 Crore under Refinance and Rs 15,413 Crore under Takeout Finance). The vision of IIFCL “Provide innovative financing solutions to promote and develop world-class infrastructure in India.”

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Mission of IIFCL:

“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.”

  • Shri Pankaj Jain has been appointed by the Central Government as Government Nominee Director of the Board of IIFCL w.e.f 1st January 2016 until further orders.
  • IIFCL headquarter is in New Delhi.

What does IIFC do?

  • 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
  • Roads and Bridges, railways seaports, airports, inland waterways, urban transport, and other transportation projects.
  • Power ( Generation, Transmission and Distribution )
  • Water supply, sewage collection, treatment and disposal system, solid waste management and other physical infrastructure in urban areas.
  • Gas Pipelines
  • Education Institutions, Hospitals, Convention Centres, Hotels, Cold storage chains, soil testing laboratories.

EXIM Bank:

  • Established by the Government of India, EXIM Bank commenced operations in 1982 under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies.
  • EXIM Bank serves as a growth engine for industries and SMEs through a wide range of products and services.
  • This includes import of technology and export product development, export production, export marketing, pre-shipment and post-shipment and overseas investment.
  • In a rapidly shifting financial landscape, EXIM Bank is a catalyst and key player in the promotion of cross border trade and investment. By instilling a powerful culture of innovation and foresight, EXIM Bank helps India maximize its potential and meet and exceed its vision.
  • Shri. R.C. Shah was the first Chairman and Managing Director (CMD) from 1982 – 1985.
  • Board comprises 12 directors appointed by the Government of India, including the Chairman and Managing Director. These include five high-ranking Government of India functionaries, three directors from scheduled commercial banks and four industry/trade experts.
  • Key roles are fulfilled by three directors nominated by the Reserve Bank of India (RBI), Industrial Development Bank of India (IDBI) and ECGC Ltd.
  • Mr. David Rasquinha is the Managing Director.
  • Mr. Debasish Mallick is the Deputy Managing Director.

Objectives:-

  • provides financial assistance 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 the public interest.

Small Industries Development Bank of India (SIDBI)

  • Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities.
  • SIDBI has been working towards the sustainable development of the 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 and facilitated the creation of SFBs, introducing a culture of energy-efficient and sustainable finance for the MSME sector, introducing Venture Capital, Risk Capital, Reverse Factoring and other innovative facilities that have been later adopted by various public and private players in the country.
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 and for enhancement of shareholder wealth and highest corporate values through the modern technology platform

  • Shri Mohammad Mustafa is the Chairman and Managing Director of SIDBI.
  • Shri Ajay Kumar Kapur is the Deputy Managing Director of SIDBI.
  • Shri Manoj Mittal is the Deputy Managing Director of SIDBI.

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National Housing Bank:

  • The Sub-Group on Housing Finance for the Seventh Five Year Plan (1985-90) identified the non-availability of long-term finance to individual households on any significant scale as a major lacuna impeding the progress of the housing sector and recommended the setting up of a national level institution.
  • The Committee of Secretaries considered’ the recommendation and 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 Prime Minister of India, 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. Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Hon’ble President of India on December 23, 1987, became an Act of Parliament.
  • The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing.
  • In pursuance of the above, NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.
  • NHB is wholly owned by the Reserve Bank of India, which contributed to 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.

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 therewith or incidental thereto …”

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
  • NHB has been established to achieve, inter alia, the following 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.
  • Smt. Dakshina Das is the Managing Director & Chief Executive Officer of National Housing Bank.

IFCI (Industrial Finance Corporation of India):

  • IFCI is a Non-Banking Finance Company in the public sector.
  • Established in 1948 as a statutory corporation, IFCI is currently a company listed on BSE and NSE. 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 other allied industries.
  • During its 70 years of existence, megaprojects like Adani Mundra Ports, GMR Goa International Airport, Salasar Highways, NRSS Transmission, Raichur Power Corporation, to name a few, have been set up with the financial assistance of IFCI.
  • 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 a solution 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
  • Dr. Emandi Sankara Rao is the MD and CEO of IFCI.

National Bank for Agriculture and Rural Development (NABARD)

  • National Bank for Agriculture and Rural Development (NABARD) is an apex development financial institution in India, headquartered in Mumbai with regional offices all over India.
  • The Bank has been entrusted with ‘matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India’.
  • NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.
  • The only DIF(Developmental Financial Institution) status institution in India.
  • NABARD was established on the recommendations of the B.Sivaraman Committee, (by Act 61, 1981 of Parliament) on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981.
  • It replaced the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC).
  • The initial corpus of NABARD was Rs.100 crores.
  • Consequent to the revision in the composition of share capital between the Government of India and RBI, the paid-up capital as of 31 May 2017, stood at Rs.6,700 crore with the Government of India holding Rs.6,700 crore (100% share).
  • The authorized share capital is Rs.30,000 crore.
  • International associates of NABARD include World Bank-affiliated organizations and global developmental agencies working in the field of agriculture and rural development. These organizations help NABARD by advising and giving monetary aid for the upliftment of the people in the rural areas and optimizing the agricultural process

VISION
Development Bank of the Nation for Fostering Rural Prosperity.

MISSION
Promote sustainable and equitable agriculture and rural development through
participative financial and non-financial interventions, innovations, technology and
institutional development for securing prosperity.

  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. NABARD discharge its duty by undertaking the following roles :
  • Serves as an apex financing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas
  • Takes measures towards institution building for improving the absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc.
  • Co-ordinates the rural financing activities of all institutions engaged in developmental work at the field level and maintains liaison with the Government of India, state governments, Reserve Bank of India (RBI) and other national level institutions concerned with policy formulation
  • Undertakes monitoring and evaluation of projects refinanced by it.
  • NABARD refinances the financial institutions which finance the rural sector.
  • NABARD partakes in the development of institutions that help the rural economy.
  • NABARD also keeps a check on its client institutes.
  • It regulates the institutions which provide financial help to the rural economy.
  • It provides training facilities to the institutions working in the field of rural upliftment.
  • It regulates and supervises the cooperative banks and the RRB’s, throughout entire India.

NABARD has its head office in Mumbai, India.

  • NABARD Regional Office[RO] has a Chief General Manager [CGMs] as its head,
    and the Head office has several top executives viz the Executive Directors[ED],
    Managing Directors[MD], and the Chairperson. It has 336 District Offices across
    the country, one special cell at Srinagar. It also has 6 training establishments.
  • NABARD is also known for its ‘SHG Bank Linkage Programme’ which encourages India’s banks to lend to self-help groups (SHGs). Largely because SHGs are composed mainly of poor women, this has evolved into an important Indian tool for microfinance. By March 2006, 22 lakh SHGs representing 3.3 core members had to be linked to credit through this program.
  • NABARD also has a portfolio of Natural Resource Management Programmes involving diverse fields like Watershed Development, Tribal Development and Farm Innovation through dedicated funds set up for the purpose.
  • NABARD supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks
  • Dr. Harsh Kumar Bhanwala is the Chairman of NABARD.