Industrial Finance

Corporation of India
{IFCI}

Presented By:
Abhishek Jain
Ankit Agrawal
 GENESIS OF IFCI
• At the time of independence in 1947, India's
capital market was relatively under-developed.

• There was significant demand for new capital but

there was a dearth of providers.

• Merchant bankers and underwriting firms were

almost non-existent. And commercial banks
were not equipped to provide long-term
industrial finance in any significant manner.
 Introduction
• The Government of India set up the IFCI under IFCI
Act on July 1,1948.

• It is the first development financial institution in the

county to cater to the long-term finance needs of the
industrial sectors.

• The main objective of IFCI is to making medium &

long term credits more readily available for industrial
concerns in India.
 Capital
• The authorized capital of the corporation as
per IFCI Act 1948, was Rs.10 crores. It was
raised to Rs.20 crores by the Amendment Act
1972.

• 50% of the share capital is held by the IDBI &

remaining 50% by banks, cooperative banks,
insurance company, investment trusts etc.,
 Activities
• Direct Financing
• Incidental Activities
• Promotional Activities
 Direct Financing
• Rupee loans
• Sub loans in foreign currency
• Underwriting of and/or direct subscription to the
shares & debentures of public limited companies.
• Foreign currency loans raised by industries from
foreign institutions
• Rupee loans raised by industries from scheduled
banks or state co-operative banks.
• Guaranteeing of deferred payments for machinery
{imported & indigenous}
 Incidental Activities
• IFCI has been authorized by Industrial Finance
Corporation ( Amendment) Act, 1982 to undertake
incidental activities.

• Undertaking research & surveys for evaluating or

dealing with marketing or investments and
undertaking & carrying on techno-economic studies.

• Providing technical & administrative assistance to

any industrial concern for the promotion,
management or expansion of any industry.
 Promotional Activities
• Merchant Banking operations.
• The objective of IFCI in this case has been:

• Fill in the gaps in the industrial infrastructure for promotion &

growth of industries.

• To provide much needed guidance in project identification,

formulation, implementation, operation etc., to the new, tiny,
small scale and medium scale entrepreneurs.

• To improve the productivity of human and material resources;

a better deal to the weaker, underprivileged sections of the
society in line with socio-economic objectives laid down by
Government of India.
 Areas of Assistance

• Assistance from IFCI single or jointly with

other institutions is available for:
– Setting up of new industrial projects.
– Expansion of existing units/ diversification into
new lines of activity.
– Renovation / rehabilitation / Modernization of
existing units.
 Resources are in the form of:
• Loans from RBI
• Share capital
• Retained earnings
• Repayment of loan
• Issue of bonds
• Loans from government
• Lines of credit from foreign lending agencies
• Commercial borrowings in international capital
market.
 Board of Directors
CEO and Managing Director Chairman

• Mr Atul Kumar Rai • Mr Prakash P Mallya

 Subsidiaries & Associates
• IFCI Financial Services Limited
• IFCI Venture Capital Funds Limited
• IFCI Infrastructure Development Limited
• Tourism Finance Corporation of India
• Assets Care Enterprise Limited
• IFCI Factors Limited
• Institute of Leadership Development
• Management Development Institute
• Rastriya Gramin Vikas Nidhi
• Technical Consultancy Organization
 IFCI Financial Service Ltd
• IFCI Financial Services Ltd (I-FIN) was
promoted in 1995, by IFCI Ltd., to provide a
wide range of financial products and services
to investors, institutional and retail.

• I-FIN is primarily involved in Stock Broking,

Investment Banking etc.

• Currently member of NSE, BSE & MCX

 IFCI Venture Capital Funds Ltd
• IFCI Venture Capital Funds Ltd. (IFCI Venture)
was originally set up by IFCI as a Society by the
name of Risk Capital Foundation (RCF) in 1975
to provide institutional support to professionals
and technocrats setting up their own ventures in
the medium scale sector through soft loans.
• IFCI Venture acquired expertise and experience
of investing in technology-oriented & innovative
projects. Since its inception, it has provided
finance to over 350 ventures and supported
commercialization of over 50 new technologies.
 IFCI Infrastructure Development Ltd

• IIDL, a wholly owned subsidiary, has been

promoted by IFCI to leverage its expertise in the
emerging infrastructure and real estate sector.

• IFCI today, owns prime residential and office

premises across the country and is also equipped
with  experience  in appraisal and monitoring of 
infrastructure projects.
 Tourism Finance Corporation of India

• IFCI promoted a Public Limited Company under

the name of "Tourism Finance Corporation of
India Ltd. (TFCI)"to cater to the financial needs
of tourism industry.

• TFCI became operational with effect from 1st

February, 1989.
 TFCI Contd….
• TFCI provides financial assistance for
development of tourism-related projects,
facilities and services. TFCI has pioneered and
innovated various products in financing the
diverse needs of the industry such as the first
Amusement-cum-Water Park at Mumbai, the
Palace on Wheels, the restoration of heritage
resorts namely the Devigarh Palace at Udaipur,
conversion of Umaid Bhawan Palace into a
resort hotel etc.
 Assets Care Enterprise Limited
• It is an Asset Reconstruction Company, 
promoted by IFCI alongwith other banks and
financial institutions.

• The key objectives of ACE are to unlock the

value entrapped in the impaired and non-
performing assets and  to provide proactive
management of the assets through financial
restructuring.
 IFCI Factors Limited
• IFCI Factors Limited, was  incorporated in
February 1996 & started its operations in
February, 1997 with domestic factoring
activities.
• Factoring is a flexible alternative to traditional
forms of funding. It allows you to respond
quickly to changes in market conditions and
matches your cash flows with your business
requirements, thereby facilitating increased
production and sales.
Institute of Leadership Development
• ILD was set up as in the year 1992 with a broad
objective to develop an enlightened and motivated
workforce all over India through education, training,
research and consultancy & counseling.

• The Institute has its own extensive campus spread

over 33 acres of land in Jaipur.

• The Institute has Lecture Rooms, Conference

Rooms, Seminar Rooms,  a well-stocked library of
management books.
 Management Development Institute
• MDI was sponsored by IFCI in 1973 as a training
institute for enhancing managerial capabilities of
business managers and to impart training in
modern management.

•  In its initial years, the Institute mainly catered to

the training requirements of working executives.
A two year full-time Post-Graduate Diploma in
Business Management (PGDBM) was introduced
in the year 1994. 
 Rastriya Gramin Vikas Nidhi
• RGVN was promoted by IFCI in 1990 as a non-profit
institution registered under the Societies Registration
Act, 1860 to promote organisations for the social and
economic upliftment of underprivileged sections of
society. Subsequently, IDBI, NABARD and the Tata
Social Welfare Trust joined as co-sponsors.
• Promote, support and develop voluntary organizations
engaged in the social and economic uplift of rural and
urban poor, physically and socio-economically
handicapped people
 RGVN Contd…

• Assist the urban and rural poor especially tribals,

scheduled caste, women and children for their
economic self sustenance.
• RGVN  is headquartered at Guwahati, Assam and
has a presence in 14 states across the country. Its
activities are focussed on north-eastern and
eastern India. The program activities today have
extended to cover eastern Uttar Pradesh, Bihar,
Jharkhand, Orissa, north-eastern Andhra Pradesh
 Technical Consultancy Organization

• Technical Consultancy Organisations (TCOs)

provide a complete set  of consultancy services
to small and medium enterprises, individual
entrepreneurs, Government Departments and
agencies, various state level institutions,  
commercial banks and other  various
institutions.
 Facts & Figures
• IFCI is planning to be a holding company with
several entities such as bank, insurance firm
and mutual fund.
• Capital adequacy is close to 17% against the
RBI norm of 10%
• PAT for the Q3 of FY 2009-10 reported a 30%
increase at Rs136 crore from Rs104 crore
corresponding to same quarter of the previous
year
THANK YOU