INDUSTRIAL FINANCE CORPORATION OF INDIA LIMITED (IFCI Ltd.)

IFCI, previously Industrial Finance Corporation of India, is an Indian government owned development bank to cater to the long-term finance needs of the industrial sector. It was the first development finance institution established by the Indian government after independence.

Until the establishment of ICICI in 1991, IFCI remained solely responsible for implementation of the government’s industrial policy initiatives.

In 1993 it was reconstituted as a company to impart higher degree of operational flexibility. IFCI was allowed to access the capital markets directly. Subsequently, the name of the company was also changed to “IFCI Limited” with effect from October 1999.

The government established the Industrial Finance Corporation of India (IFCI) on 1 July 1948.

CEO & MD- Shri. Malay Mukherjee

Objectives

The main objective of IFCI is to provide medium and long-term financial assistance to large scale industrial undertakings, particularly when ordinary bank accommodation does not suit the undertaking or finance cannot be profitably raised by the concerned issue of shares.

Functions

The functions of the IFCI base are as follows:

• The corporation grants loans and advances to industrial concerns.
• Granting of loans both in rupees and foreign currencies.
• The corporation underwrites the issue of stocks, bonds, shares etc.
• The corporation can grant loans only to public limited companies and co-operatives but not to private limited companies or partnership firms.