Members

Small Industries Development Bank of India

SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto in India.

The authorised capital of SIDBI is INR 10 billion (Euro 133 million) and paid up capital is INR 4.50 billion (Euro 60 million). The networth of SIDBI as on March 31, 2014 was INR 91.26 billion (Euro 1.22 billion).

SIDBI with its Head Office at Lucknow caters to 600 clusters through a network of 80 Branches and 15 Regional Offices with a total of around 1050 employees.

The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs), which contribute significantly to the national economy in terms of production, employment and exports. MSME sector is an important pillar of Indian economy as it contributes greatly to the growth of Indian economy with a vast network of around 3 crore units, creating employment of about 7 crore, manufacturing more than 6,000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and indirectly. In addition, SIDBI's assistance also flows to the service sector including transport, health care, tourism sectors etc.

SIDBI has been addressing needs of MSMEs through its niche products viz. Energy Efiicinecy, Risk Capital, Bill Discounting and Service Sector.

SIDBI has also played pioneering role in extending responsible microfinance through Micro Finance Institution (MFI) route. In additon to funding, capacity building support has also been provided to smaller MFIs to cater to emerging needs for new and innovative products. The programme has benefitted 3.32 million beneficiaries, mostly women.

SIDBI adopts a Credit Plus approach in its endeavour towards holistic development of the MSME sector, wherein, besides cerdit, the Bank also offers grant support for the Promotion and Development (P&D) for the sector to make it more vibrant, competetive and stronger. The P&D activities of the Bank include Micro Enterprise Promotion, Cluster Development, Entrepreneurhsip Development, Capacity Building of the MSME Sector, promotion of Responsible Finance among Micro Finance Insitutions, Sustainable Finance to MSMEs including Energy Efficiency, Environment Protection, Renewable Energy etc.

Cumulative disbursement as at the end of March 2015 stands at INR 3900 billion (Euro 52 billion) benefitting 34.6 million persons in the MSME sector. The total outstanding portfolio as at end March 2015 is INR 553.43 billion (Euro 7.38 billion).

SIDBI also functions as a Nodal/ Implementing Agency to various schemes run by different ministries of Government of India viz., Ministry of MSME, Ministry of Textiles, Ministry of Commerce and Industry etc.

In an attempt to serve the sector better, SIDBI has taken the initiative to promote several institutions viz., Credit Guranatee Fund Trust for Micro and Small Enterprises, SIDBI Venture Capital Limited, SME Rating Agency of India Ltd, India SME Technology Services Ltd., and India SME Asset Reconstruction Company Ltd.

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).

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.

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.

Total New Commitments in 2015

Micro Units Development Refinance Agency (MUDRA Bank) has been set up as a wholly owned subsidiary of SIDBI to undertake refinancing to micro business under Prime Minister MUDRA Yojana (Scheme) of India.

SIDBI has created a fund-of-funds corpus of INR 20 billion (Euro 266 million) to pick-up equity in startups under the INR 100 billion (Euro 1.33 billion) corpus.

Stand-Up India Scheme, an ambitious programme of the Government of India, facilitates bank loans between INR 1 million (Euro 13333) to INR 100 million (Euro 1.33 million) to atleast one woman and two borrowers belonging to weaker sections of society (Scheduled Castes & Scheduled Tribes ) per bank branch for setting up a new unit. To contribute to the scheme, SIDBI will raise INR 100 billion (Euro 1.33 billion) corpus for ‘Stand Up India Fund’ to be used to refinance loans extended by banks to these entrepreneurs.

In order to give boost to start-up Venture Capital ecosystem in India , SIDBI launched INR 20 billion (Euro 266.66 million) India Aspiration Fund (IAF), to act as a Fund of Funds to enhance flow of equity to start-ups and growth stage MSMEs.

SIDBI launched a INR 100 billion (Euro 1.33 billion) ‘SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE)’ to make available soft loan to MSMEs, as quasi-equity to meet debt-equity ratio and term loan on relatively soft terms for new MSMEs, as also for pursuing opportunities for growth for existing MSMEs.

SIDBI has been identified as one of the agencies to set up Trade Receivebales Discounting System (TreDS), an institutional mechanism for financing of trade receivables of MSMEs from corporate buyers through two or more. It shall deal with discounting of both invoices and bills of exchange.

 
Back