Presentation on

SIDBI
What is SIDBI
 SIDBI stands for Small Industries
Development Bank of India
 An independent financial institution aimed to

aid the growth and development of micro,

small and medium scale enterprises in India
 Set up in 1990 through an act of parliament,

it was incorporated initially as a wholly owned

subsidiary of Industrial Development Bank of
India
Contd..
 SIDBI retained its position in the top 30
Development Banks of the World in the latest
ranking of The Banker, London. As per the
May 2001 issue of The Banker, London, SIDBI
ranked 25th both in terms of Capital and
Assets .
Mission and Vision
 Mission: To empower the Micro, Small and Medium
Enterprises (MSME) sector with a view to contributing
to the process of economic growth, employment
generation and balanced regional development.
 Vision: To emerge as a single window for meeting

the financial and developmental needs of the small

scale 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.
Objective
 Financing
 Promotion
 Development
 Co-ordination
Shareholding
 The entire issued capital of Rs.450 Crore has
been divided into 45 Crore shares of Rs.10
each. Of the total Rs.450 Crore subscribed by
IDBI, while setting up of SIDBI, 19.21% has
been retained by it and balance 80.79% has
been transferred / divested in favour of
banks / institutions / insurance companies
owned and controlled by the Central
Government.
Management
 Shri R.M.Malla: Chairman and Managing
Director
 Shri Rakesh Rewari: Deputy Managing

Director
 Shri Madhav Lal: Additional Secretary & DC

(MSME), Ministry of MSME, Government of

India
 Smt. Ravneet Kaur: Joint Secretary,

Department of Financial Services, Ministry of

Finance, Government of India
Contd..
 Shri Janki Ballabh: Former Chairman, State Bank
of India
 Shri M. Balachandran: Former Chairman &
Managing Director, Bank of India
 Shri S.K. Tuteja: Former Secretary, Government
of India
 Shri T. R. Bajalia: Executive Director, IDBI Bank
Ltd.
 Shri B. Manivannan: Executive Director (IT-BPR)
Life Insurance Corporation of India
Aim of SIDBI
• Expansion of small scale sector and increase
its share in industrial output.
• Development of rural areas where more than
70% of the population resides.
• Increase the efficiency of SSIs.
• Increase the contribution of SSIs in export.
• More employment generation in rural areas of
rural India.
Business domain of SIDBI
 The business domain of SIDBI consists of small scale
industrial units, which contribute significantly to the
national economy in terms of production, employment
and exports. Small scale industries are the industrial
units in which the investment in plant and machinery
does not exceed Rs.10 million . About 3.1 million such
units, employing 17.2 million persons account for a
share of 36 per cent of India's exports and 40 per cent
of industrial manufacture. In addition, SIDBI's assistance
flows to the transport, health care and tourism sectors
and also to the professional and self-employed persons
setting up small-sized professional ventures.
Channels of assistance
SIDBI's financial assistance to small scale
sector have three major dimensions:
 Indirect assistance to primary lending

institutions (PLIs);
 Direct assistance to small units; and
 Development and Support Services
“SMALL” Makes “BIG” Difference
 Small industries contributes more than 45%
share in industrial production.

 Share in services is more than 65%.

 80% share in employment generation.

 More than 35% share in India’s export
Industrial sickness & role of sidbi in
rural industrialization
Industrial sickness specially in small-scale Industry has
been always a demerit for the Indian economy, because
more and more industries like – cotton, Jute, Sugar,
Textile small steel and engineering industries are being
affected by this sickness problem.
 As per an estimate 300 units in the medium and large

scale sector were either closed or were on the stage of

closing in the year 1976.  About 10% of 4 lakhs unit were
also reported to be ailing.  And this position also remain
same in the next decades.  At the end of year 1986, the
member of sick units in the portfolio of scheduled
commercial banks stood at 1.47,740 involving an out
standing bank credit of Rs. 4874 crores
Internal causes
 Lack of Finance
 Bad Production Policies
 Marketing and Sickness
 Ineffective Corporate Management
External causes
 Personnel Constraint
 Marketing Constraints
 Production Constraints
 Finance Constraints
Role of SIDBI
Direct Financial Assistances
 Venture capital/development scheme
 Equipment Finance Scheme
 Integrated Infrastructural Development Scheme
 Project Finance Scheme
 Schemes related to Marketing of SSI's Product
 ISO 9000 Scheme
 Short term & long term loan schemes
 Direct Discounting of bill
 Pre & Post shipment financial assistance scheme
Export bill financing scheme & so on
Indirect Finance by SIDBI
Refinance Assistance
a)  Composite loan scheme for cottage, Village & tiny
Industries
b)  Scheme for women entrepreneurs Mahila Udyam
Nidhi
c)  Scheme for ST/SC & Physically Challenged
 Other support through various institutions
a) SFC's, SIDC, SSIDC, Bank to Intermediacies
b) To leasing / hire purchase companies.
c) To factoring companies
d) To special corporate entities and institutions which
are engaged in the business of development of SSIs
Conclusion
In conclusion we can say that the SIDBI, by
the mode of refinancing, discounting and
rediscounting as well as financial assistance
through indirect functions regarding lending
to primary institutions, through its direct
assistance to small units and through its
various developmental and supporting
services, encouraging small scale sector in
Rural India.
References
 www.sidbi.com
 www.google.com
Thank You