Institutional Finance for Industrialisation

Contents: Preface. 1. Significance of institutional financing. 2. Institutional finance for industrialisation. 3. Procedures and conditions of institutional term lending. 4. Financial structure of the industrial units. 5. Asset structure of the industrial units. 6. Growth analysis of the industrial units. 7. The nutshell. Bibliography.

"Financial Institutions targeting industrial development were occupying a significant role in India up to the introduction of the economic reforms in 1991. The deregulations in the financial sector and the evolution of market based functioning have effaced the protective operating environment of these institutions. The higher cost of capital and lesser operating efficiency of these institutions have been viewed skeptically by the beneficiaries and stake holders. The application of prudential norms for asset provisioning and write of requirements further worsened the situation of these institutions. Meantime, criticisms rose against their mode of lending, terms and conditions imposed upon and the proactive role in bringing industrialization in the country gained momentum. Anxieties from various quarters were raised regarding the fate of the assisted units financed by these institutions. It was strongly alleged that most of these units were in a state of suffocation throttled by the troubles particularly and generally applicable to them.

The book pursues the different aspects of institutional term lending in India during the post-liberalisation era. The book can serve as a genuine reference material for industrialists, financial institutions, governments, academicians, policy makers and all others interested in the related field. Being a unique work on institutional finance, the conclusions drawn remain clear indicators and catalytic to corrective actions in this area. The suggestions for improvement are conceived from the empirical approach and intensive analyses made on the topic in detail." (jacket)