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    Presentation On Development Financial Institutions (Life Insurance Corporation of India)

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    anurag6866
    The document presents information on Development Financial Institutions (DFIs) in India, including their role in providing medium and long-term financing. It discusses how DFIs like the Life Insurance Corporation of India (LIC) were established to address underdeveloped capital markets and the financial constraints faced by firms in accessing bank loans. The document then provides details on the history and growth of LIC since its establishment in 1956, including its headquarters, offices, policies, and contributions to India's GDP.

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    Presentation On Development Financial Institutions (Life Insurance Corporation of India)

    Uploaded by

    anurag6866
    35 views12 pages
    The document presents information on Development Financial Institutions (DFIs) in India, including their role in providing medium and long-term financing. It discusses how DFIs like the Life Insurance Corporation of India (LIC) were established to address underdeveloped capital markets and the financial constraints faced by firms in accessing bank loans. The document then provides details on the history and growth of LIC since its establishment in 1956, including its headquarters, offices, policies, and contributions to India's GDP.

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    introduction to dfis

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    fm

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    The document presents information on Development Financial Institutions (DFIs) in India, including their role in providing medium and long-term financing. It discusses how DFIs like the Life Insurance Corporation of India (LIC) were established to address underdeveloped capital markets and the financial constraints faced by firms in accessing bank loans. The document then provides details on the history and growth of LIC since its establishment in 1956, including its headquarters, offices, policies, and contributions to India's GDP.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    35 views12 pages

    Presentation On Development Financial Institutions (Life Insurance Corporation of India)

    Uploaded by

    anurag6866
    The document presents information on Development Financial Institutions (DFIs) in India, including their role in providing medium and long-term financing. It discusses how DFIs like the Life Insurance Corporation of India (LIC) were established to address underdeveloped capital markets and the financial constraints faced by firms in accessing bank loans. The document then provides details on the history and growth of LIC since its establishment in 1956, including its headquarters, offices, policies, and contributions to India's GDP.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    Presentation on Development Financial Institutions (Life Insurance Corporation of India)

    Submitted to Mr. Rahul Agarwal

    Submitted by : Divyanshu Sharma

    Introduction to DFIs
    Development Financial Institutions who had access to cheap funds and were an important source of medium and long term funds for industries / firms. Their primary role was to reduce the financial constraints faced by firms who found it difficult to access funds from banks. Historically, different kinds of financial intermediaries have existed in the Indian financial system. Banks financed only working capital requirements of corporates. As the capital market was underdeveloped, a number of Development Finance Institutions DFIs were set u at the all-India and the State levels to meet the long-term requirement of funds.

    Role of DFIs
    They were the principal source of medium and long term finance for industries Constituted an island of expertise in project appraisal and credit assessment In an economy where the price mechanism was not sufficiently developed to signal demand supply gaps and need for capacity creation, DFIs level of lending activity to different industries provided a proxy signal for the same.

    Importance of DFIs (in presence of banks)


    The Financial systems were highly regulated after the world war 2. Countries started to have fixed exchange rates Interest rates were administered and pegged at unrealistically low levels As a result the interest rates were kept outof the purview of the market forces and thefinancial markets were unable to perform itscore function, which is efficient allocation of resources to the most productive sectors of the economy.This task eventually fell upon the DFIs toperform

    Life Insurance Corporation Of India (LIC)


    Introduction Life insurance in its modern form came to India from England in the year 1818. Oriental life Insurance company, started by Europeans In Calcutta was the first life Insurance company on Indian soil. Before 1912 India had no Legislation to Regulate Insurance Business. In the year 1912, the life insurance companies act the provident fund act were passed.

    It was much later on the 19th Jan 1956, India parliament passed the LIC Act on the 19th Jan 1956 & the LIC of India was created on 1st september,1956. LIC lad 5 zonal offices, 33 divisional offices 212 Branch offices, apart from its corporate offices in the year 1956. Today LIC function with 2048 fully computerized branch offices, 105 divisional offices and 8 zonal offices & the corporate office . Its headquaters being in Mumbai.

    Mission
    Explore and enhance the quality of life of people through financial security by Providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.
    (as per LIC website)

    Vision
    A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.

    (as per LIC website)

    PUBLIC RELATION DEPARTMENT


    The Public Relation Department in LIC is divided into three major categories. Namely: 1. Communication Department 2. Crisis Management Department 3. Publicity Department

    ASSOCIATES
    LIC Housing Finance Ltd. LICHLF Care Homes Ltd. LIC Mutual Fund AMC Ltd.

    Current Scenario
    Over its existence of around 53 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of Indias GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. 5 for a US $ , has grown to 25000 servicing around 180 million policies and a corpus of over 8 trillion (US$173.6 billion). (as per LIC website)

    Conclusion
    After knowning about the emergence of the DFIs in the Indian System due to the policies changes in the financial institutions by the Government, we analyse that the underdeveloped Capital market has been raised up with the help of DFIs. Also, the LIC being the most profitable Insurance DFI has become more competent as induction of new institutions has joined its ranks.

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