Unit 2: Financial Institutions: 14
Definition, Types, Role of Financial Institutions in economic development, Commercial Banks: the emergence of private sector bank after liberalization, financial innovation in commercial banks- Indian Financial Institutions: IDBI, SFCs, SIDCs, LIC, NABARD EXIM Banks.
Financial Institution (FI).[1]
A financial institution (FI) is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers.
Virtually everyone living in a developed economy has an ongoing or at least periodic need for the services of financial institutions.
Financial institutions serve most people in some way, as financial operations are a critical part of any economy, with individuals and companies relying on financial institutions for transactions and investing. Governments consider it imperative to oversee and regulate banks and financial institutions because they do play such an integral part in the economy.
Types of Financial Institutions.
Financial institutions offer a wide range of products and services for individual and commercial clients. The specific services offered vary widely between different types of financial institutions.
A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. A commercial bank is where most people do their banking, as opposed to an investment bank.
Banks and similar business entities, such as thrifts or credit unions, offer the most commonly recognized and frequently used financial services: checking and savings accounts, home mortgages, and other types of loans for retail and commercial customers. Banks also act as payment agents via credit cards, wire transfers, and currency exchange.
Investment banks specialize in providing services designed to facilitate business operations, such as capital expenditure financing and equity offerings, including initial public offerings (IPOs). They also commonly offer brokerage services for investors, act as market makers for trading exchanges, and manage mergers, acquisitions, and other corporate restructurings.
Insurance Companies.
Among the most familiar non-bank financial institutions are insurance companies. Providing insurance, whether for individuals or corporations, is one of the oldest financial services. Protection of assets and protection against financial risk, secured through insurance products, is an essential service that facilitates individual and corporate investments that fuel economic growth.
Brokerage Firms.
Investment companies and brokerages, such as mutual fund and exchange-traded fund (ETF) provider Fidelity Investments, specialize in investment services that include wealth management and financial advisory services. They also offer access to investment products ranging from stocks and bonds to lesser-known alternative investments, such as hedge funds and private equity investments.
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Difference Between a Commercial and Investment Bank.
A commercial bank, where most people do their banking, is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses. Investment banks specialize in providing services designed to facilitate business operations, such as capital expenditure financing and equity offerings, including initial public offerings (IPOs). They also commonly offer brokerage services for investors, act as market makers for trading exchanges, and manage mergers, acquisitions, and other corporate restructurings.
Role of Financial Institutions and economic development.[2]
Financial institutions provide means and mechanism of transferring resources from those who have an excess of income over expenditure to those who can make productive use of the same. The commercial banks and investment institutions mobilize savings of people and channelize them into productive uses. Economic development of a country needs sufficient financial resources, adequate infrastructural facilities and persons who can take the initiative of setting up units for providing goods and services. Financial institutions provide all types of assistance required for development.
- Providing Funds
- Infrastructural Facilities
- Promotional Activities
- Development of Backward Areas
- Planned Development
- Accelerating Industrialization
- Employment Generation
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Commercial Bank.[3]
A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans. Various types of loans given by a commercial bank are business loans, car loans, house loans, personal loans, and education loans.
Commercial bank is the term used for a normal bank to distinguish it from an investment bank. This is what people normally call a “bank”. The term “commercial” was used to distinguish it from an investment bank. Since the two types of banks no longer have to be separate companies, some have used the term “commercial bank” to refer to banks which focus mainly on companies.
In some English-speaking countries outside North America, the term “trading bank” is used to denote a commercial bank. During the great depression and after the stock market crash of 1929, the U.S. Congress passed the Glass-Steagal Act 1930 (Khambata 1996) requiring that commercial banks only engage in banking activities (accepting deposits and making loans, as well as other fee-based services), whereas investment banks were limited to capital markets activities. This separation is no longer mandatory.
It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.
Commercial banking can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual
members of the public (retail banking).[4]
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The emergence of private sector bank after liberalization.
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.
For the past three decades India’s banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India’s growth process.
Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days.
The commercial banks in India are categorized into foreign banks, private banks and the public sector banks. They indulge in varied activities such as acceptance of deposits, acting as trustees, offering loans for the different purposes and are even allowed to collect taxes on behalf of the institutions and central government.
India embarked on a strategy of economic reforms in the wake of a balance-of-payments crisis in 1991; a central plank of the reforms was reforms in the financial sector, and with banks being the mainstay of financial intermediation, the banking sector. At the same time, reforms were also undertaken in various segments of financial markets, to enable the banking sector to perform its intermediation role in an efficient manner. The thrust of these reforms was to promote a diversified, efficient and competitive financial system, with the ultimate objective of improving the allocative efficiency of resources, through operational flexibility, improved financial viability and institutional strengthening.
The first Private Bank in India to receive an in-principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI’s liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.
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Financial innovation in commercial banks.
The term “financial innovations” refers to the various innovative activities in respect of strategic decision making, system arranging, institutional setting, personnel preparing, mode of management, business flow and financial products and so on, which are carried out by commercial banks through bringing in new technologies, applying new methods, expanding new markets and establishing new organizations in order to adapt to the development of economics, and which are finally embodied into continuous improvement of the risk management capacities of banks, and the creations and updating of service products and service methods offered to customers.
Financial innovation places the interests of the consumers at the core, and follows basic market principles in approach. Through financial innovation, commercial banks raise their competitive strengths, improve their risk management skills, and better satisfy the needs of their customers and market requirements. Financial innovation is one of the most important elements of the commercial banks’ sustainable growth strategy.
A pre-condition of financial innovation is proper risk management. Commercial banks identify, measure, monitor and control new risks on a timely basis.
Over the years, the banking sector in India has seen a number of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers, and consequently, the banks. Some of the significant changes in the Indian banking sector are discussed below:
1. Technology for Value Creation: The use of information technology in the Indian banking sector was a corollary of the liberalization process initiated in the country in the early 1990s.
2. Rural India Catching Up: With a majority of the Indian population living in rural areas, rural banking forms a vital component of the Indian banking system. Besides, rural banking operations in India are rather different from urban operations, due to the strong disparity that exists between urban and rural life, and the needs of these two sections of people are also different.
The commercial banks in India have seen the huge possibility available to avail profits
through operating in the rural sectors. This has led the rural India to catch up with the fast
pace of banking in the economy.
3. Banking Beyond Banking: While traditionally, banking meant ‘borrowing and lending’, in the latter part of the 20th century, the word took on a different meaning altogether.
Banks no longer restricted themselves to traditional banking activities, but explored newer
avenues to increase business and capture new markets.
Indian banks could not be left behind. They innovated their operations into fields
unexplored as yet and started venturing into varied activities already discussed in the
above section.
4. Credit/Debit Cards: In India, there has been an exponential increase in credit/debit cards utilization in the last 10 years.
It is now difficult to imagine life without these electronic cards. They are a fast, convenient and safe method for making payments. In the case of credit cards, they are also a key channel for making short-term, unsecured loans which can enable households to smoothen their consumption over time. The risk and instability this innovation can cause, of course, is that some people borrow more than they can afford. But, overall, credit/debit cards are a key payment/credit innovation which has lowered transaction costs, improved resource allocation and supported economic growth.
5. Money Market Mutual Funds: Money market mutual funds were an interesting innovation arising or rather necessitated by the ceilings which governments placed on bank deposit interest rates. These funds offered (savers) investors the benefits of both liquidity and a Notes rate of interest higher than they could earn on bank deposits. Commercial banks, very early on, saw money market funds as a key competitor and over the course of many years have developed many deposit products which seek to provide depositors the same flexibility which money market funds provide. This therefore was an innovation which triggered greater efficiency in the intermediation of savings and investments in the financial system, though its initial impact was to modify the characteristics of the deposit base of the banking system.
Multiple Choice Questions (MCQs):
1
Which of the following is NOT a type of financial institution?
a) Commercial bank
b) Investment bank
c) Insurance company
d) Manufacturing company
d) Manufacturing company
2
What is the primary function of a commercial bank?
a) Facilitating business operations
b) Providing insurance services
c) Accepting deposits and offering loans
d) Managing mergers and acquisitions
c) Accepting deposits and offering loans
3
Investment banks specialize in:
a) Accepting deposits and offering loans
b) Providing insurance services
c) Facilitating business operations and equity offerings
d) Managing retail and commercial customers’ accounts
c) Facilitating business operations and equity offerings
4
Which of the following is a key role of financial institutions in economic development?
a) Providing funds
b) Offering infrastructural facilities
c) Promoting activities for development
d) All of the above
d) All of the above
5
Commercial banks mainly focus on providing banking services to:
a) Individuals and small businesses
b) Large corporations and institutions
c) Government entities and agencies
d) Foreign investors and international organizations
a) Individuals and small businesses
6
The emergence of private sector banks in India was a result of:
a) Technological advancements in the banking sector
b) Liberalization of the Indian banking industry
c) Financial innovations in commercial banks
d) Government regulations on banking operations
b) Liberalization of the Indian banking industry
7
Financial innovation in commercial banks aims to:
a) Increase profits for the banks
b) Provide new service products and methods to customers
c) Improve risk management capabilities
d) All of the above
d) All of the above
8
Which of the following is an example of financial innovation in the Indian banking sector?
a) Utilization of credit/debit cards
b) Introduction of money market mutual funds
c) Expansion of banking services in rural areas
d) All of the above
d) All of the above
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Indian Financial Institutions:
IDBI.[5]
1964
Industrial Development Bank of India was constituted under the Industrial Development Bank of India Act, 1964 as a Development Financial Institution and came into being on July 01, 1964, vide GoI notification dated June 22, 1964. It was regarded as a Public Financial Institution in terms of the provisions of Section 4A of the Companies Act, 1956. It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.
2004
In response to the felt need and on commercial prudence, it was decided to transform IDBI into a Bank. For the purpose, the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 [Repeal Act] was passed repealing the Industrial Development Bank of India Act, 1964. In terms of the provisions of the Repeal Act, a new company under the name of Industrial Development Bank of India Limited (IDBI Ltd.) was incorporated as a Banking Company under the Companies Act, 1956 on September 27, 2004. Thereafter, the undertaking of IDBI was transferred to and vested in IDBI Ltd. with effect from October 01, 2004.
2006
Merger of United Western Bank with IDBI Ltd
The United Western Bank Ltd. (UWB), a Satara-based private sector bank, was amalgamated with IDBI Ltd., in terms of the provisions of Section 45 of the Banking Regulation Act, 1949. The merger came into effect on October 03, 2006.
2008
Change of name of IDBI Ltd. to IDBI Bank Ltd.
To truly capture its widened business functions, the name of the Bank was changed to IDBI Bank Ltd. with effect from May 07, 2008, upon the issue of the Fresh Certificate of Incorporation by Registrar of Companies, Maharashtra.
2011
Merger of IDBI Home Finance Ltd. and IDBI Gilts with IDBI Ltd.
Two wholly-owned subsidiaries of IDBI Bank Ltd., viz. IDBI Home Finance Ltd. and IDBI Gilts Ltd. were amalgamated with IDBI Bank Ltd.
2019
Re-categorization of IDBI Bank Ltd. as a Private Sector Bank
The Bank was categorized as a ‘Private Sector Bank’ for regulatory purposes by the Reserve Bank of India with effect from 21 January 2019 consequently upon Life Insurance Corporation of India acquiring 51% of the total paid-up equity share capital of the bank.
Main Objectives:[6]
To establish and carry on business of banking in all forms within India and outside India.
To finance, promote or develop industry and assist in the development of Industries.
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SFCs.
The State Finance Corporations (SFCs) are an integral part of institutional finance structure of a country. Where SEC promotes small and medium industries of the states. Besides, SFC help in ensuring balanced regional development, higher investment, more employment generation and broad ownership of various industries.[7]
SFC – State Finance Corporation.
At present in India, there are 18 state finance corporations (out of which 17 SFCs were established under the SFC Act 1951). Tamil Nadu Industrial Investment Corporation Ltd. which is established under the Company Act, 1949, is also working as state finance corporation.
Organization and Management.
A Board of ten directors manages the State Finance Corporations. The State Government appoints the managing director generally in consultation with the RBI and nominates the name of three other directors.
All insurance companies, scheduled banks, investment trusts, co-operative banks, and other financial institutions elect three directors.
Thus, the state government and quasi-government institutions nominate the majority of the directors.
Functions of State Finance Corporations.
The various important functions of State Finance Corporations are:
(i) The SFCs provides loans mainly for the acquisition of fixed assets like land, building, plant, and machinery.
(ii) The SFCs help financial assistance to industrial units whose paid-up capital and reserves do not exceed Rs. 3 crores (or such higher limit up to Rs. 30 crores as may be notified by the central government).
(iii) The SFCs underwrite new stocks, shares, debentures etc., of industrial units.
(iv) The SFCs grant guarantee loans raised in the capital market by scheduled banks, industrial concerns, and state co-operative banks to be repayable within 20 years.
Working of SFCs
The Indian government passed the State Financial Corporation Act in 1951. It is applicable to all the States.
The authorized Capital of a State Financial Corporation should be within the minimum and maximum limits of Rs. 50 lakhs and Rs. 5 crores which are fixed by the State government.
It is divided into shares of equal value which were acquired by the respective State Governments, the Reserve Bank of India, scheduled banks, co-operative banks, other financial institutions such as insurance companies, investment trusts, and private parties.
The State Government guarantees the shares of SFCs. The SFCs can augment its fund through issue and sale of bonds and debentures also, which should not exceed five times the capital and reserves at Rs. 10 Lakh.
Problems of State Financial Corporations.
- No Independent Organization.
- All SFCs are dependent upon the rules and regulations made by the state government.
- SFCs’ problem is that all decision of these institutions is dependent on the political environment of the state.
- Due to this, the loan is not available at the right time for the right person.
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SIDCs.
State Industrial Development Corporations.[8]
The full form of SIDC or SIDCs is State Industrial Development Corporations. It was first established in 1995 under the Companies Act, 1956. They are state-owned government corporations that engage in the development and promotion of medium and large industries. SIDCs aim to develop industrial infrastructure such as industrial parks and industrial estates along with providing financial assistance. They set up industrial projects either in joint sector collaboration with private entrepreneurs or on their own. They also set up such projects as wholly-owned subsidiaries. They provide loans to several industrial units in medium and large sectors at an interest rate that ranges from 13.5% to 17% according to the size of the loan.
Some of the SIDCs are:
- Jammu and Kashmir State Industrial Development Corporation
- Tamil Nadu State Industrial Development Corporation
- Kerala State Industrial Development Corporation
Objectives of SIDC.
The main objectives of SIDC are as follows:
- SIDC aims to promote micro, small and medium enterprises.
- It aids in the establishment of entrepreneurship and skill development.
- It helps in facilitating industrial infrastructure development.
- It aims at providing publicity and marketing support to industries.
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Functions of SIDC.
The main functions of SIDC are:
- SIDCs act as an instrument in expediting industrialization in the states of India in which they are present.
- SIDCs issue loans, subscriptions of shares, guarantees to various companies belonging to different industries.
- SIDCs organise various promotional programs like entrepreneurial training, project identification, etc.
- It provides financial assistance in the form of loans or subscriptions to debentures and shares, guarantees, etc.
- SIDCs procure scarce raw materials from the domestic market and international market and make them available to needy small-scale industries as per their requirements.
- SIDCs take up various schemes to provide the various industrial units with efficient marketing assistance. SIDCs participate in tenders floated by the state government departments.
- To obtain orders and distribute them among various small-scale units, SIDCs make advance payments.
- It helps in solving the working capital problems of the various industrial units.
- The government departments often delay payments when goods are supplied to them by the industrial units. Therefore, to avoid such delays, SIDCs discounts the bills drawn on government departments. Hence, they ensure that 80% of the bill value is paid to the supplier units.
- SIDCs have developed websites so that the products manufactured by the industrial units are displayed in foreign markets. It provides export marketing assistance and helps in procuring export orders.
- It helps small scale units to take part in the international trade fair so that the products are displayed there.
- SIDCs also promote industrial units run by women entrepreneurs.
- SIDCs help in setting up skill development centres where workers are trained in various skills and industrial activities. This is to ensure the supply of skilled labourers to various small-scale industries.
- When was SIDCs First Established?
- 1997
- 1998
- 1995
- 1994
Ans: (c) 1995
2. Under Which act SIDCs was Established?
- Companies Act 1956
- Companies Act 2013
- SIDCs Act 1956
- None of the above
Ans: (a) Companies Act 1956
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LIC.[9]
LIC stands for Life Insurance Corporation of India. It started its operations as a corporate firm in September 1956 after the Life Insurance of India Act was passed by India’s Parliament in June 1956. The LIC Act came into effect from July 1956. It helped in the nationalization of the private insurance industry in India. LIC of India was formed by merging 154 life insurance companies, 16 foreign companies and 75 provident companies. It is one of the largest financial institutions in India. It has an asset value of over 2,529,390 crores. The headquarters of LIC is in Mumbai, Maharashtra.
Role of LIC in Indian Economy.
LIC is known as India’s largest government-owned life insurance and investment corporation. The main role of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies. At least 75% of these gathered funds are to be invested in Central and State Government securities, as stated by one of the LIC rules.
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Functions of LIC.
The major functions of LIC are as follows:
- Collect people’s savings in exchange for an insurance policy and promote savings in the country.
- Protect the capital of the people by investing funds into government securities.
- Issue insurance policies at affordable rates.
- Provide various loans like direct loans to industries, housing loans, loans to various national projects at reasonable interest rates.
- LIC aims to spread awareness about the importance of life insurance among people living in rural areas and people who are a part of socially and economically backward classes.
- It aims to meet several life insurance needs of the community people who are subjected to change with the changing social and economic environment.
- It aims to conduct business economically while taking into consideration that the money belongs to the policyholders.
- It aims to maximize the mobility of people’s savings through attractive insurance-linked savings.
- It aims in providing utmost job satisfaction to all the agents and employees of the corporation and promotes building a co-operative work environment to deliver efficient service with courtesy to its insured public.
- It aims to deploy the funds to the best advantage of the investors and the community as well.
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Types of LIC Life Insurance Plans.
LIC provides numerous schemes to its policyholders. It offers different schemes for different categories and segments of the Indian economy. It is the largest insurance policy company in terms of the number of policies it has issued to date. Some of the policies are as follows:
- LIC’s Jeevan Pragati.
- LIC’s Jeevan Labh.
- LIC’s Single Premium Endowment Plan.
- LIC’S Jeevan Lakshya.
- LIC’s Jeevan Tarun.
- LIC was Established in Which Year?
- June 1956
- September 1956
- July 1956
- October 1956
Ans: (b) September 1956
2. Where is LIC Headquartered in?
- Kolkata
- Pune
- Mumbai
- Chennai
Ans: (c) Mumbai
NABARD.[10]
In the year 1982, CRAFICARD or the Committee to Review Arrangements of Institutional Credit for Agriculture and Rural Development recommended the establishment of a developmental bank and accordingly, NABARD was set up.
It was formed by a special parliamentary act. The chief focus of the organisation was the advancement of rural India by enhancing the flow of credit for the upliftment of agriculture as well as the rural non-agricultural sector.
National Bank for Agriculture and Rural Development (NABARD) is an apex regulatory body for overall regulation of regional rural banks and apex cooperative banks in India. It is under the jurisdiction of Ministry of Finance, Government of 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 and implementing financial inclusion.[11]
Functions of NABARD.
The functions of NABARD are described below.
In order to build an empowered and financially inclusive rural India, NABARD has specific departments that work towards the desired goals. These departments can be collectively categorized into three major units:
- Financial
- Developmental
- Supervision
The financial support necessary to build rural infrastructure is provided by NABARD.
Preparation of district-level credit plans by NABARD are used to guide and motivate the banking industry to achieve required targets.
NABARD also supervises the Regional Rural Banks (RRBs) and Cooperative Banks along with developing their banking practices and integrating them to the Core Banking Solution (CBS) platform.
NABARD also helps handicraft artisans by training and providing a marketing platform for them.
NABARD has partnered with various leading global organisations and institutions affiliated with the World Bank that have played a role in transforming agriculture.
It offers advisory services and financial assistance provided by these international partners to help in consultation with rural development and other agricultural practices.
Bank Regulation.
NABARD supervises State Cooperative Banks (StCBs), District Cooperative Central Banks (DCCBs), and Regional Rural Banks (RRBs) and conducts statutory inspections of these banks.
Refinancing.
NABARD’s refinance fund from World Bank and Asian Development Bank to state co-operative agriculture and rural development banks (SCARDBs), state co-operative banks (SCBs), regional rural banks (RRBs), commercial banks (CBs) and other financial institutions approved by RBI. While the ultimate beneficiaries of investment credit can be individuals, partnership concerns, companies, State-owned corporations or co-operative societies.
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EXIM Banks.[12]
EXIM Bank or Export-Import Bank of India is India’s leading export financing institute that engages in integrating foreign trade and investment with the country’s economic growth. Founded in 1982 by the Government of India, EXIM Bank is a wholly-owned subsidiary of the Indian Government.
Financial Products.
- Buyer’s credit – it is a credit facility program that encourages Indian exporters to explore new regions across the globe. It also facilitates exports for SMEs by offering credit to overseas buyers to import goods from India.
- Corporate banking – it offers a variety of financing programs to augment the export-competitiveness of Indian companies.
- Lines of credit – it offers extended a line of credit to Indian exporters to help them expand to new geographies and uses a line of credit as an effective market-entry tool.
- Overseas investment finance – it offers term loans to Indian companies for equity investments in their overseas joint ventures or wholly-owned subsidiaries.
- Project exports – encourages project exports from India and helps Indian companies secure contracts abroad.
Services.
- Marketing advisory services – help Indian exporters in their globalization ventures by assisting in locating overseas distributors/partners, etc. Also, assists in identifying opportunities abroad for setting up plant projects or acquiring companies.
- Research and analysis – conducts research in the field of international economics, trade and investment, country profiles to identify risks, etc.
- Export advisory services – it offers information, advisory, and support services enabling exporters to evaluate international risks, exploit export opportunities and improve competitiveness.
- Term deposit scheme
Is Exim bank regulated by RBI?
Yes, it is regulated by RBI. The Bank primarily lends for exports from India including supporting overseas buyers and Indian suppliers for export of developmental and infrastructure projects, equipment, goods and services from India.
Who owns EXIM bank?
Exim Bank is fully owned by the Government of India.
[1] https://www.investopedia.com/terms/f/financialinstitution.asp
[2] Gupta, S.K; Aggarwal, N. (2015). Indian Financial System. Kalyani Publishers, p 6.1-6.3
[3] https://economictimes.indiatimes.com/definition/commercial-bank
[4] Nigam, S. (2011). Financial Institutions and Services. Excell Books, p 32
[5] https://www.idbibank.in/idbi-bank-about-us.aspx
[6] https://www.idbibank.in/riact-data-1.aspx
[7] https://www.toppr.com/guides/fundamentals-of-economics-and-management/financial-institutions/sfc/
[8] https://www.vedantu.com/commerce/states-industrial-development-corporation-sidc
[9] https://www.vedantu.com/commerce/life-insurance-corporation-of-india-lic
[10] https://byjus.com/free-ias-prep/nabard/
[11] https://en.wikipedia.org/wiki/National_Bank_for_Agriculture_and_Rural_Development
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