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IFCI Ltd

Overview

IFCI Ltd (formerly the Industrial Finance Corporation of India) is an Indian government-owned non-banking financial company headquartered in New Delhi. It is one of the oldest development finance institutions in India, established to provide medium and long-term finance to the industrial sector. IFCI is administered under the Ministry of Finance, Government of India.

Key facts

Name IFCI Ltd
Former name Industrial Finance Corporation of India
Type Public sector non-banking financial company
Industry Financial services
Headquarters New Delhi, India
Country India
Owner Government of India
Listing BSE, NSE

Background

IFCI was set up in 1948 as the first development financial institution in India, with the objective of channelising long-term financial resources to industry at a time when the Indian capital market was relatively underdeveloped. It was originally constituted as a statutory corporation under the Industrial Finance Corporation Act, 1948.

Following the liberalisation of the Indian economy in the early 1990s, the institution was reconstituted to enable it to access capital markets directly and broaden its operations. In 1993, it was converted into a company under the Companies Act and renamed IFCI Ltd. It is registered with the Reserve Bank of India as a non-banking financial company.

Activities

IFCI extends financial assistance for the establishment, expansion, modernisation and diversification of industrial enterprises in sectors such as manufacturing, infrastructure, services and allied areas. Its product portfolio includes project finance, corporate loans, structured finance and advisory services. Over the decades the institution has supported a wide range of Indian industries, including power, telecommunications, roads, ports and basic metals.

Group and subsidiaries

The IFCI group comprises several subsidiaries and associate entities engaged in allied financial activities, including financial advisory, infrastructure development, venture capital, factoring and skill development. Notable group entities have historically included Stock Holding Corporation of India Ltd (SHCIL), IFCI Venture Capital Funds Ltd, IFCI Infrastructure Development Ltd and IFCI Financial Services Ltd.

Timeline

  • 1948 – Industrial Finance Corporation of India established as the first development finance institution in independent India.
  • 1993 – Converted into a public limited company and renamed IFCI Ltd.
  • Post-1993 – Registered as a non-banking financial company with the Reserve Bank of India and listed on Indian stock exchanges.

Significance

As India's first development finance institution, IFCI played an important role in shaping industrial financing in the country during the post-Independence decades, when private long-term capital was scarce. It served as a model for later development finance institutions and contributed to the growth of several industrial sectors. In the post-liberalisation era, it has continued to operate as a government-controlled NBFC engaged in corporate lending and advisory work.

References