Indian Financial Institutions

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By: Kushal Agarwal MBA 2nd sem.

FMS BHU

FLOW OF PRESENTATION
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Definition of financial institutions (FIs) Role of FIs in an Economy Types of Financial Institutions Functions of Financial Institutions

Definition of FIs
FIs are organizations (firms) that engage in the

provision of financial services.


FIs are agents in the financial markets that deal with

buying and selling of securities (financial instruments) on behalf of customers/public. That is FIs are financial intermediaries.
FIs can be classified as bank and non-bank, deposit-

taking and non-deposit taking.

Role of FIs
Essentially, FIs are integral part of financial markets,

they therefore perform the general roles of financial markets. The major role of FIs in the economy is mobilization of funds from the surplus units (lenders-savers) of the economy to deficit units (borrowers-spenders). Identifying individuals with entrepreneurial traits and motivate them to an entrepreneurial career by training facilities and financial support. FIs are involved in indirect transfers of funds within the financial markets.

TYPES OF FIs
financial institutions

Money market institution Central bank Commercial bank

Capital market institution

Investment bank Development bank, Insurance companies

FUNCTIONS
FUNCTIONS

CONCERNING THE FORMATION OF NEW CAPITAL

SUBORDINATE TO CAPITAL FORMATION

FUNCTION CONCERNING THE FORMATION OF NEW CAPITAL


PRIMARY FUNCTION OF FIs IS TO PARTICIPATE IN THE FORMATION OF NEW CAPITAL FOR NEW ESTABLISHED BUSINESS ENTERPRISES AND FOR STATE AND LOCAL GOVERNMENT BODIES . THIS COMPRISES 4 ACTIVITIES 1 : ORIGINATING
2 : UNDERWRITING

3
4

:
:

PURCHASE OF SECURITIES
SALE OF SECURITIES

FUNCTION SUBORDINATE TO CAPITAL FORMATION

(A) ACTING AS BROKER OR DEALER IN

SECURITY MARKET.
(B) ADVISORY AND TECHNICAL SERVICES

QUERY..? ????????.

REFERENCES..
(1) INDIAN FINANCIAL INSTITUTIONS
BY R.M. SRIVASTAVA DIYA NIGAM

(2) FINANCIAL MARKET


RITU MATHUR

(3)INTERNET

THANKS..

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