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Introduction-
 Small Industries development bank of India was setup on 2nd April, 1990 under the act of
India Parliament.
 It is a financial institution of India which provides financial helps to the Small Scale Industries.
 The headquarter of SIDBI is in Lucknow.
 The main aim for establishment of SIDBI is to develop and encourage Micro Small Medium
(MSME).
 SIDBI is the 4th Largest Financial Institution in India, which is regulated and supervised by RBI.
 SIDBI retained its position in the top 3000 development Bank of the world.
 SBI is the largest shareholder with 16.73%.
Objective-
Finance, Promote, Develop and coordinate the development of Small Scale Industry.
To make MSME sector with a view to contributing to the process of economic growth, employment
generation and balanced regional development.
e-Government: Providing e-infrastructure for delivery of e-services
Internet Governance: Enhancing India’s role in Global Platforms of Internet Governance.
e-Inclusion: Promoting the use of ICT for more inclusive growth
e-Security: Securing India’s cyber space
Other activities-
SMERA Ratings Limited - for rating of MSMEs, renamed as Acuidte Ratings & Research Limited.
India SME Technology Services Ltd (ISTSL)[14] - for technology advisory and consultancy services.
India SME Asset Reconstruction Company Ltd. for speedier resolution of Non-Performing Assets
(NPA) in the MSME sector.
 Micro Units Development & Refinance Agency (MUDRA) - for ‘funding the unfunded’ micro
enterprises in the country
Functions of SIDBI (Small Industries
Development Bank of India)
Small Industries Development Bank of India refinances loans that are extended by the PLIs
to the small-scale industrial units and also offers resources assistance to them.
It discounts and rediscounts bills
It also helps in expanding marketing channels for the products of SSI (Small Scale Industries)
sector both in the domestic as well as international markets.
It offers services like factoring, leasing etc. to the industrial concerns in the small-scale
sector.
It promotes employment oriented industries particularly in semi-urban areas for creating
employment opportunities and thus checking relocation of people to the urban areas.
It also initiates steps for modernisation and technological up-gradation of current units.
Functions of SIDBI (Small Industries
Development Bank of India)
It also enables timely flow of credit for working capital as well as
term loans to Small Scale Industries in cooperation with commercial
banks.
It also co-promotes state level venture funds