Development Banks the institution engaged in the promotion and development of industry agriculture and other key sectors in other words of A.G. KHERADJOU, "A Development Bank is like a living organism that react to the social economic environment and its success depend on reacting most aptly to the environment" Kheradjou assign an important task to the Development Bank he feels that the banks should react to the social economic needs. they should satisfy the development need of the economy and their success is linked to the satisfactory growth of the economy. in the view of William Diamond "A Development Bank is has the opportunity to promote enterprise that is to conceive investment proposal and to stimulate other to pursue them or itself or carry them through from conception to realisation. in principle, a Development bank is well suited to this kind of role. Yet enterprise creation is fraught with costs and risks which Development bank cannot neglect. Development bank can prudently them only when they have the requisite financial and Managerial skill to the bank. in his view, a Development Bank is an institution which takes up the job of developing industrial enterprise from its Inception to completion. this process involved cost as well as risk. The bank should have sufficient financial resources and expertise to promote a new unit. D. M. Mithani states that, "A Development Bank may be defined as a financial institution concerned with providing all type of financial assistance to business units in the form of loan, underwriting, investment and guarantee operations and promotional activities economic development in general and industrial development in particular. "
