Industrial Credit and Investment Corporation of India (ICICI)

The Industrial Credit and Investment Corporation of India or ICICI was established on 5th January, 1955 to assist industrial units in the private sector. It was sponsored by the World Bank.


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The primary object of ICICI is to assist industrial units in the private-sector. The main objects of ICICI are as follows:

  • To assist in the creation, expansion and modernization at industrial units in the private sector.
  • To encourage the inflow and participation of foreign capital in the private sector industrial units.
  • To expand the investment market in India.

The main functions of ICICI are as follows:

  • To sponsor and underwrite new issues.
  • To provide medium and long-term loans to industrial units in the private sector.
  • to guarantee loans taken from other private sources.
  • to furnish managerial, technical and administrative advice to industrial units by the private sector.
  • To make funds available for reinvestment.
  • To advance loans in foreign currency towards the cost of imported capital equipments.
  • to extend guarantee for deferred payments.
  • To purchase the shares and debentures of new companies.


The ICICI is managed by a board of 11 directors out of whom 7 directors are elected by Indian shareholders, 2 by British shareholders, 1 by American shareholders and the remaining 1 is nominated by Government of India, It has a full-time chairman and a general manager.

Financial Resources (Capital)
The authorized capital of ICICI is Rs. 25 crores which was raised to Rs. 60 crores. The present subscribed capital is Rs. 22 crores. The capital has been subscribed by (i) Indian banks and insurance companies, (ii) general public in India, (iii) foreigners including British and American investors.

The ICICI is empowered to accept foreign currency loans. Loan provided by the World Bank is dominating feature. Besides World Bank loan, the ICICI is also obtaining loans from IDBI, IBRD, AID and KFW of the Federal Republic of Germany, America, Britain and also from Government of India.

Review of Progress (Operations)
The ICICI has a commendable record of assistance to industrial units in the private sector. The main industries getting financial assistance from ICICI includes pulp paper, chemicals, electrical equipments automobiles and cycles, machinery manufacturing industries, cotton textiles, sugar and cement etc. The assistance has been provided in the form of rupee loans, foreign currency loans, guarantees, underwriting and direct subscription securities. The performance of the merchant banking division of ICICI is excellent.


Critical Evaluation
No doubt that the ICICI, since its inception, has been rendering valuable services to private-sector industries. It has developed and strengthened underwriting market, an important branch of our capital market. It has assumed great importance as a supplier of foreign currency loans to industrial units in the private sector. Further, it has developed vast associations in foreign countries.

In spite of the progress made by the ICICI in different economic fields, it is subject to criticism on the following grounds:

  • The ICICI has adopted an indifferent attitude towards providing assistance in backward regions of the country.
  • The gap between loans sanctioned and disbursed is quite wide.
  • It has failed to take necessary interest in the development of rural economy of our country.

In spite of the above criticisms, the overall performance of ICICI in financing the private sector industrial units is commendable. It has started taking interest in the economic development of rural and backward areas of our country. Thus, the future of ICICI in India is quite bright.

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