What is the Full Form of IFCI

IFCI: Industrial Finance Corporation of India

IFCI stands for Industrial Finance Corporation of India. The Industrial Finance Corporation of India (IFCI) was the government's first financial institution following independence which was founded to foster economic progress through infrastructure development and industries. The primary goal of IFCI's formation was to offer long-term financing to the nation's manufacturing and industrial sector.

IFCI has significantly boosted the economy by supporting activities in the manufacturing, infrastructure, services, and agricultural based sectors. After India's economy was liberalized in 1991, significant changes were made to the capital markets and financial system. IFCI's constitution was changed from that of a statutory corporation to that of a public company to facilitate direct capital rising through capital markets. In October 1999, the corporation changed its name to "IFCI Limited".

The Industrial Finance Corporation of India, which began in 1948, was turned into a public company on July 1, 1993. The fundamental reason for creating this development bank was to help the industrial sector with its medium to long-term financial requirements.

The IDBI (Industrial Development Bank of India), scheduled banks, the insurance industry, and cooperative banks are a few of the IFCI's key stakeholders. The Central Government reserves the right to raise the authorized capital of IFCI, which is 250 crores, as and when required.

Functions of IFCI

• The IFCI's primary function is to give industrial and manufacturing companies advances and medium- and long-term loans. Before providing any loans, it considers and verifies many things. They research the sector's significance to the country's economy, the project's overall cost, and the project's management and quality. IFCI will grant the loan if the above factors satisfy its conditions and provide an indication of good results.
• The market-issued debentures that different businesses issue may also be purchased by the Industrial Finance Corporation of India.
• IFCI also guarantees the issuance of loans required by various industrial enterprises.
• The IFCI has the option to underwrite securities when a company issues shares or debentures.
• Additionally, it guarantees deferred payments of loans obtained in foreign currencies from foreign institutions.
• The Merchant Banking & Allied Services Department is a special division that helps in the functioning of IFCI properly.
• IFCI handles things like loan syndication, mergers, amalgamations, and capital restructuring, among many other things.
• The Industrial Finance Corporation of India has promoted three of its own companies as part of its efforts to encourage industrialization. Those companies are IFCI Financial Services Ltd, IFCI Insurance Services Ltd, and I-Fin. It also oversees the operation and governance of these three businesses.