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3/14/2016

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Small Industries Development Bank of India


Small Industries Development Bank of India
(SIDBI) was set up under an Act of Parliament in
April 1990. Though it was initially carved out as
a wholly owned subsidiary of Industrial
Development Bank of India, presently the
ownership is held by 33 Government of India
owned / controlled institutions.

SIDBI reoriented its business strategy


towards filling up the financial and non
financial gaps in the MSME ecosystem.
Some of the niche financial gaps being
addressed by SIDBI are risk capital /
equity assistance, sustainable finance,
factoring and reverse factoring, services
sector financing, etc. The direct finance
to these niche areas is supplementing and
complementing the efforts of the banks /
FIs to meet varied credit needs of the
MSMEs.
SIDBI has also taken strategic initiatives
for addressing various nonfinancial gaps
for capacity building of the MSME sector,
as well as bankers. These activities
include Credit Advisory Services, Loan
Facilitation, information dissemination
through website www.smallB.in,
capacity building of small banks, etc.

The mandate of SIDBI is promotion, financing


and development of Micro, Small and Medium
Enterprises (MSMEs) and to coordinate the
functions of institutions serving the sector.
The authorised capital of SIDBI is ` 10 billion (
125 million) and paid up capital is ` 4.50 billion
( 56.25 million). The networth of SIDBI as on
March 31, 2014 was ` 80 billion ( 1 billion).
The presence of SIDBI is spread all over India
with the following structure :
Head office at Lucknow
15 Regional Offices
84 Branches catering to 600 clusters
across all the states
Total No. of employees 1046
The Mission of SIDBI is To facilitate and
strengthen credit flow to MSME and address both
financial and developmental gaps in the MSME
ecosystem. SIDBI is also working with the
vision to emerge as a single window for
meeting the financial and developmental needs
of the MSME sector to make it strong, vibrant
and globally competitive, to position SIDBI Brand
as the preferred and customer friendly
institution and for enhancement of share
holder wealth and highest corporate values
through modern technology platform.

In its endeavour towards holistic development of


the MSME sector, SIDBI adopts a Credit Plus
approach wherein, besides credit, the Bank also
provides grant support for the Promotion and
Development (P&D) of the sector to make it
strong, vibrant and competitive. The P&D
activities of the bank include Micro Enterprise
Promotion, Entrepreneurship Development,
Cluster Development, Capacity Building of the
MSME Sector, promoting Responsible Finance
among Micro Finance Institutions, Sustainable
Finance to MSMEs including Energy Efficiency,
Environment Protection, etc.

Cumulative disbursements as at end March 2014


have crossed ` 3260 billion ( 40.75 billion)
benefiting more than 32 million persons in the
MSME sector. The total outstanding portfolio as
at end March 2014 aggregated ` 612.71 billion
( 7.66 billion).
SIDBI also functions as a Nodal/ Implementing
Agency to various ministries of Government of
India viz., Ministry of MSME, Ministry of Textiles,
Ministry of Commerce and Industry, Ministry of
Food Processing and Industry, etc.
SIDBI has taken the initiative to promote several
institutions viz., Credit Guarantee Fund Trust for
Micro and Small Enterprises, SIDBI Venture
Capital, SME Rating Agency of India Ltd and
India SME Technology Services Ltd., for the
benefit of the MSME sector.
www.sidbi.in

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https://www.idfc.org/Members/sidbi.aspx

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