IFCI : The First Financial Institution of India: An Overview

Author: P. K. Srivastava

Abstract:
1948, the year of IFCI’s birth, was a seminal year in development banking, not only in India but also all over the world. The World Bank at that time was just three years old, while Kreditanstalt-fur-weideraufau (KFW) of Germany was born in the same year. It was on Ist July 1948 that IFCI opened its doors for business. It was incorporated as a company under the Companies Act, 1956 on 21st May, 1993, the name of Industrial Finance Corporation of India was also changed to "IFCI Ltd" w.e.f. October 1999. The main objective of this study is to analyze the working of IFCI Ltd. A descriptive-analytical research methodology is applied. Various statistical techniques are used in this study. The study reveals that the performance of IFCI ltd shows a mixed picture. Growing NPAs is any concern as in case of IFCI Ltd. too is one of the biggest problems. On the other hand, it significantly contributes in the development of industrial sector. Some concrete suggestions have also been given to improve the financial position so that it may prove itself that old is gold.

Keywords:Financial institution, Development Bank, Debt segment, Equity segment, Project financing, Capital market, Money market.

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:2)