Land development bank
A land development bank (Bengali: ভূমি উন্নয়ন ব্যাংক), abbreviated LDB, is a special kind of bank in India, and is of quasi-commercial type that provides services such as accepting deposits, making business loans, and offering basic investment products. The main objective of the LDB is to promote the development of land, agriculture and increase the agricultural production. The LDB provides long-term finance to members directly through its branches.
History
The history of land development bank is quite old. The first LDB was started at Jhang in Punjab in 1920. Even though the first LDB was started in Punjab, the real progress began when the land development bank was established in Chennai in 1929. Without it, land banks, land mortgage banks, agriculture banks, agriculture development banks are now called land development banks in modern world.
Type
There are different kinds of functions of land development banks in world. They also differ from one another in their bye-laws or constitutions. Some are organized on a state basis, some on a co-operative basis and some on a private basis, incorporating joint stock principles.