Industrial Banks

These are special types of banks. They lend money to the industries for purchasing machinery land, building, furniture etc. They advance credit for long periods, 10,15 or 20 years. They receive deposits for long periods. They generally raise fund by issuing debentures. These banks also keep an expert staff to judge the value of land, building, machinery etc. Of the industries. There are hardly such banks in Pakistan. In foreign countries like Japan and Germany, these banks have helped a great deal in the development of these countries. Industries Development Bank of Pakistan (IDBP) and Pakistan Industrial Credit and Investment Corporation (PICIC) are playing very important role for financing and promoting industries in Pakistan.