NUML Lahore

1.  UMAR HAMEED
 M ASAD NASEEM
 M NABEEL
 M SHAKEEL
 KASHIF KHAN

2. *

3. *
“A financial institution that provides financing
for national development. The bank is formed by
a group of countries, consisting of both donor
and borrowing nations. Furthermore, a
development bank offers financial advice
regarding development projects”.

4. *
*Development bank may national or regional
financial institution designed to provide medium-
and long-term capital for productive investment,
often accompanied by technical assistance, in poor
countries.
*The best-known example development bank is the
Word Bank, which extends loans and credits to most
of countries. Other popular development banks
include the African Development Bank and the Asian
Development Bank.

5. *
*AGRICULTURAL DEVELOPMENT BANK:
Banks which are established to develop the
agricultural sector of country providing financial
assistance i.e. short term and mid-term loans
and technical assistance are known as
Agriculture Development Bank.

6. *
The development of a country is impossible
unless the development of the industrial sector
of it. So to develop the industrial sector of the
country, a bank is established to provide
financial and technical assistance to the
industrial sector.

7. *
Bank which is established to provide training and
loan on the guarantee of group to promote them
for generating income in rural areas is known as
Rural Development Bank. It provides loan to the
poor people without security deposits.

8. *
Banks which is established to develop special
sector of country with the investment and
management of private sector is known as other
private Development Bank.

9. *
*A development bank has the following features or
characteristics:
*A development bank does not accept deposits from the
public like commercial banks and other financial
institutions who entirely depend upon saving
mobilization.
*It is a specialized financial institution which provides
medium term and long-term lending facilities.
*It is a multipurpose financial institution. Besides
providing financial help it undertakes promotional
activities also. It helps enterprises from planning to
operational level.

10. *It provides financial assistance to both private as well as
public sector institutions.
*The role of a development bank is of gap filler. When
assistance from other sources is not sufficient then this
channel helps. It does not compete with normal channels of
finance.
*Development banks primarily aim to accelerate the rate of
growth. It helps industrialization specific and economic
development in general
*The objective of these banks is to serve public interest rather
than earning profits.
*Development banks react to the socio-economic needs of
development.

11.  Finance to projects in less development areas
 Finance for renewable energy system
 Bridging loans
 Funding to new entrepreneur

12. There are two sources:
Long-Term Sources:
Capitals in the form of equity/subordinate
debts/debentures/preference shares.
Internal accrual generated out of profits.
Long-term borrowings from financial institutions like
NABARD/SIDBP.
Short-Term Sources:
Market-linked borrowings from RBP.
Sale of liquid certificate deposits in the open market.
Borrowing from RBP under Repo (Repurchase option).
Short-term borrowings from FIs by way of rated papers
placed, etc.

13. Providi
ng
Funds
Infrastruct
ural
Facilities
Promotio
nal
Activities
Developm
ent of
Backward
Areas
Planne
d
Develo
pment
Accelerati
ng
Industriali
zation
Employme
nt
Generation

14. Increase loans and equity investments to its
developing associate countries for their monetary
and social development.
 Provides technical help for the planning and
implementation of development projects and
programs and for advisory services.
 Promotes and facilitates speculation of public
and private capital for growth and development.
 Responds to requests for assistance in
coordinating growth policies and plans of its
increasing member countries.

15. . Financial Gap Fillers
Development banks do not provide
medium-term and long-term loans only but
they help industrial enterprises in many other
ways too. These banks subscribe to the bonds
and debentures of the companies, underwrite
to their shares and debentures and, guarantee
the loans rose from foreign and domestic
sources.

16. . Commercial Banking Business:
Development banks normally provide medium and
long-term funds to industrial enterprises. The working capital
needs of the units are met by commercial banks. In developing
countries, commercial banks have not been able to take up this
job properly. Their traditional approach in dealing with
lending proposals and assistance on securities has not helped
the industry.
Credit Guarantee:
The small scale sector is not getting proper financial
facilities due to the clement of risk since these units do not
have sufficient securities to offer for loans, lending institutions
are hesitant to extend them loans. To overcome this difficulty
many countries including India and Japan have devised credit
guarantee scheme and credit insurance scheme.

18. The Zaria Taraqiati Bank Limited It is also
known as Agricultural Development Bank
of Pakistan (ADBP).
It is the premier financial institution geared
towards the development of the agricultural
sector through the provision of financial
services and technical know-how.

19. IDBP
Industrial Development Bank of Pakistan is one of
Pakistan's oldest development financing institution
created with the primary objective of extending term
finance for investment in the manufacturing sector
and SME Sector of the economy.
SME Bank
Promote the business.
Positive impact on Financial environment.
Financing of projects.
Tell revenue generation schemes to entrepreneurs.

20. Money provided by investors to start up firms
and small businesses with perceived long-term
growth potential. This is a very important
source of funding for start up that do not have
access to capital markets. It typically entails
high risk for the investor, but it has the
potential for above-average returns.

21. 1. Seed Money: Low level financing needed to prove a new
idea.
2. Start-up: Early stage firms that need funding for expenses
associated with marketing and product development.
3. First-Round: Early sales and manufacturing funds.
4. Second-Round: Working capital for early stage companies
that are selling product, but not yet turning a profit.
5. Third-Round: Also called Mezzanine financing, this is
expansion money for a newly profitable company
6. Fourth-Round: Also called bridge financing, it is intended
to finance the "going public process

22. General Business Strategy Advice:
Venture capital firms are in the business of helping
other businesses succeed. In doing so, they have
acquired a great deal of experience and wisdom along
the way.
Do not expect a VC firm to hang back and be a “silent
partner.” Instead, expect a venture capital firm to offer
plenty of advice in how a business should proceed
with their strategies and offer new strategies in
addition.

23. Develop a Financing Plan:
Obtaining venture capital is similar to
getting a loan. While banks and other types
of investors will usually set up a regular
payment plan and expect a business to stick
to it, venture capital will clearly outline
how they expect to be repaid for their
monetary contribution

24. Refine the Business Plan:
A business seeking venture capital will get
nowhere without a business plan. But once a
venture capital firm decides to back a new
business, they will likely offer advice on how a
business plan can improve and be refined even
more.

25. Marketing Advice and Strategies
A new business may have a super star lineup in
their management team. However, there is
always additional benefit from venture capital
firms with national and even international
marketing savvy. Expect that a venture capital
firm will provide valuable marketing strategies
for newer businesses and products.

26. Venture capitalism is not what it used to be. The bountiful
returns of the dot-com years are long gone and venture capital
(VC) firms are now struggling to exit their investments via
initial public offerings (IPOs) or mergers and acquisitions
(M&A). Also, a new regulatory landscape is threatening to
hinder rather than help the industry, and the companies VCs
invest in require watertight strategies for major growth. VC
experts highlighted these issues and others during a recent
panel discussion sponsored by Wharton Entrepreneurial
Programs titled, “Business Exits in the Current Economic
Environment.”