A development bank may be defined as a financial institutions concerned with providing all types of financial assistance to business units in the form of loans, underwriting, investment and guarantee operations and promotional activities-economic development in general and industrial development in particular
A development bank is basically a term lending institution. It is a multipurpose financial institution with a broad development outlook.
The industrial finance corporation of India, the first development bank was established in 1948.
Subsequently many other institutions were set-up . Ex. IDBI, IFCI, SIDBI etc.
Functions of Development Banks