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What Is SIDBI ?

The Small Industries Development Bank of India (SIDBI) is an apex financial institution that assists small-scale industries through financing, promotion and development activities. SIDBI provides direct financing, resource support to other financial institutions, and operates associate institutions to empower micro, small and medium enterprises. Its activities include direct financing, indirect financing through banks and financial institutions, microcredit operations, and serving as the nodal agency for various government schemes.

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Kejal Jain
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194 views

What Is SIDBI ?

The Small Industries Development Bank of India (SIDBI) is an apex financial institution that assists small-scale industries through financing, promotion and development activities. SIDBI provides direct financing, resource support to other financial institutions, and operates associate institutions to empower micro, small and medium enterprises. Its activities include direct financing, indirect financing through banks and financial institutions, microcredit operations, and serving as the nodal agency for various government schemes.

Uploaded by

Kejal Jain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What is SIDBI ?

Small Industries Development Bank of India


Is an apex financial institution in the field of rural
Development.
It assists the entire spectrum of SSI Sector including
the tiny, village and cottage industries through suitable schemes
tailored to meet the requirement of setting up of
 New projects.
 Expansion.
 Diversification.
 Modernization.
 Rehabilitation of existing units.
Introduction to SIDBI
Established under the act “The Small Industries
Development Bank of India Act, 1989” on April
2, 1990, for
 Promotion
 Financing
 Development of Industries in the small scale
sector.
 Co-ordinating the functions of other institutions
engaged in similar activities.
 It is Nodal Agency for SME Schemes of
Government of India.
“MISSION & 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.
OBJECTIVES
Four basic objectives are set out in the SIDBI Charter. They are:
 Financing
 Promotion
 Development
 Co-ordination
for orderly growth of industry in the small scale sector. The
Charter has provided SIDBI considerable flexibility in adopting
appropriate operational strategies to meet these objectives. The
activities of SIDBI, as they have evolved over the period of
time, now meet almost all the requirements of small scale
industries which fall into a wide spectrum constituting modern
and technologically superior units at one end and traditional
units at the other.

Shareholding Pattern
 The entire issued capital of Rs.450 crore
has been divided into 45 crore shares of
Rs.10 each.
 19.21% has been retained by IDBI
 Balance 80.79% has been transferred / divested
in favour of banks / institutions / insurance
companies owned and controlled by the Central
Government.

Focus of SIDBI
 Initiating steps for technological up gradation and
modernization of existing units.
 Expanding of channels for marketing the products of small
scale sectors
 Promotion of employment oriented industries especially in
semi urban areas to create more employment opportunities
and thereby checking migration of population to urban
areas.

“SMALL” Makes “BIG” Difference

 Small industries contributes more than45% share in


industrial production.
 Share in services is more than65%.
 80% share in employment generation.
 More than 35% share in India’s export

ACTIVITIES
Direct Finance Operations : MSME’s, Service sector,
Infrastructure etc.
Indirect Finance : Resource support to Banks, NBFC’s, SFC’s,
other State & central financing/development agencies,
Refinance Assistance and Scheme for Rediscounting of bills.
Micro Credit operations : Pioneers in micro credit movement
in the country. Developed several leading MFI’s.
Associate Institutions : SIDBI Venture Capital Ltd, MSME
Rating Agency, Credit Guarantee Fund, India SME Asset
Reconstruction Company Ltd.
Nodal Agency : For several GoI schemes like TUFS
(Technology Up gradation Fund Scheme), CLCSS (Credit
Linked Capital Subsidy Scheme) and IDLSS (Integrated
Development of Leather Sector Scheme), Food Processing and
Development Of Integrated Infrastructure Development (IID)
Projects

SIDBI : Focus Segments


Manufacturing
 Micro : Invst. in plant & machinery up to Rs.25lacs.
 Small : Gross Machinery Investment up to Rs 5 crore.
 Medium : Gross Machinery Invst. <= Rs 10 crore
Service sector
 Healthcare, Hospitality, leisure, entertainment, IT/IT
enabled businesses, etc. (Project cost limit up to Rs 250
crore)
Infrastructure sector
 Power, Roads, Ports, Telecom, MSME infrastructure
(micro small and medium enterprises)
SMERA (SME Rating
Agency of India Limited )
 India’s first dedicated rating agency for SME segment.
 Joint initiative of SIDBI, Dun & Bradstreet and CIBIL
(Credit Information Bureau (India) Limited) along with
leading PSU,Private and foreign Banks.
 Rating cost substantially reduced in case of coverage of
eligible SSI units under NSIC (National Small Industries
Corporation)Subsidy Scheme
 Already done > than 2350 ratings.
 Incentives for SMERA Rating for SIDBI’s Customers
 Nominal Rating fees.
 Reduction in rate of interest by 0.50% p.a. on existing loans
if the customer is rated in the first three grades
 Would facilitate approval of applications for fresh loans in
future

SFMC (SIDBI Foundation for


Micro Credit)
 Launched by SIDBI in January 1999 for channelizing funds
to the poor.
 SFMC's mission is to create a national network of strong,
viable and sustainable Micro Finance Institutions (MFI’s)
from the informal and formal financial sector to provide
micro finance services to the poor, especially women.
 SFMC is the apex wholesaler for micro finance in
India providing a complete range of financial and non-
financial services such as loan funds, grant support,
equity and institution building support to the retailing
Micro Finance Institutions (MFI’s).

SVCL (SIDBI Venture


Capital Limited)
 A wholly owned subsidiary of SIDBI,
incorporated in July 1999
 Current funds managed by SVCL are:
 National Venture Fund for Software and
Information Technology (NFSIT) - SIDBI in
association with MIT, Govt. of India during 1999-
2000.
 SME Growth Fund (SGF) - SIDBI in association
with other leading commercial banks such as PNB,
SBI, BOB, BOI, CBI, UBI, OBC and Corporation
Bank.

CGTMSE (Credit Guarantee Fund


Trust for Micro and Small
Enterprises)
 Set up in August 2000 with the Government of
India (GoI).
 With an objective to provide guarantee support to
banks and lending institutions for their exposure
to the MSE sector.
 The lender should give importance to project
viability.
 The lender availing guarantee facility should
endeavor to give composite credit to the
borrowers.

ISTSL (India SME


Technology Services Ltd.)
 Formed by SIDBI with SBI, OBC and IOB,
with an objective:
 To provide a platform for acquisition of
technology or establish business collaboration
 To Maintain and provide data base on
technology options available from different
countries and provide information on means of
accessing them.
Impact of SIDBI on growth of
SME’s
 Through the network of 910 PLI’s with 65,000
branches and own network of 63 offices it provides fast
and easy financing facilities for MSME sector.
 Quick service and transparent dealings at competitive
interest rates.
 Special Interest rate benefit on SMERA rated
industries.
 The growth rate is expected to increase to 12 per cent
for the micro and small enterprises (MSE) sector during
the Eleventh Five Year Plan 2007-12

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