According to section 4A of the companies Act, 1956 the following institutions will be regarded as Public Financial Institutions :-

  1. The Industrial Development Bank Of India.
  2. The Industrial Credit And Investment Corporation Of India
  3. The Life Insurance Corporation Of India.
  4. The Unit Trust Of India
  5. The Industrial Finance Corporation Of India.
  6. The Infrastructure Development Finance Company Ltd.
  7. The Reconstruction Company Or The Securitization Company that has been recognised under the securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

According to section 4A(2) the Central Government has the power to add or increase to the institution list, the addition can be done only when the notification or it is given in the official gazette. The  institution will be added to existing list on when they fulfill the following two conditions:

(a)     It must have been established or constituted by or under any Central Act, or

(b)     Not less than 51% of the paid up share capital of such an institution is held or controlled by the Central Government. Till now Central Government has specified 39 institutions to be public financial institutions. Some of them are :-

  1. The Oriental Fire And General Insurance Company Limited
  2. The National Insurance Company Ltd
  3. Export Import Bank Of India.
  4. The Shipping And Credit And Investment Company Of India Ltd.
  5. National Housing Bank
  6. Small Industrial Development Bank Of India.
  7. NABARD etc.


The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Leave a reply is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account