(b) borrowing from Industrial Development Bank of India and the Central Government; (c) foreign credit secured from foreign financial institutions and borrowings in the international capital markets. . Industrial Credit and Investment Corporation of India (ICICI) This was set up on 5th January as a joint-stock company on the advice given by a three-man mission sponsored by the World Bank and The Government of USA to the Government of India. The principal purpose of this institution is to channelize the World Bank funds to industry in India and also to help build up a capital market.
Initially the capital ICICI [Industrial Credit and Investment Corporation of India] Functions of ICICI Assistance to industries Provision of foreign currency loans Merchant banking Letter of credit Project promotion Housing loans Leasing operations of ICICI was held by private companies, institutions and individuals. But now, a very large part of its equity capital is held by public sector institutions, such as banks, LIC, GIC and its subsidiaries, as ‘this private institution was nationalized. The significant feature of the operations of ICICI is the foreign currency loans sanctioned by this institution to industries. Since its inception, nearly per cent of its disbursement had been in foreign currencies.
This is possible because of the facility it enjoys of raising funds in foreign currencies. The World Bank has been the single largest source of such funds. Since , the ICICI has entered the international capital markets also for raising foreign currency loans. The major portion of its rupee resources is raised by way of debentures in the capital market.
The ICICI also borrows from the Industrial Development Bank of India and the Government. The major portion of its assistance has gone to the private sector. . Industrial Development Bank of India (IDBI) The Industrial Development Bank of India has been conceived with the