The Small Industries Development Bank of India is a state-run bank aimed to aid the growth and development of micro, small and medium scale industries in India. Set up on April 2 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Current shareholding is widely spread among various state owned banks, insurance companies, etc. Beginning as a refinancing agency to banks and state level financing bodies for their credit to small industries, it has diversified in to many activities, including direct credit to the SME through more than 100 branches in all major clusters of SME in India. Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and onlending. Recently it has opened 7 branches christened as SFMC branches, aimed especially at dispensing loans up to Rs. 5.00 lakh.
SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collatoral free loans extended to SME. SIDBI Venture Capital Ltd.
HISTORY
IDBI was established on April 2, 1990, under an Act (SIDBI Act, 1989) passed by the Indian Parliament. 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.
OPERATIONS
The business domain of SIDBI consists of small scale industrial units, that 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. 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.
MICRO FINANCE
SIDBI Foundation for Micro Credit (SFMC) was launched by the Bank in January 1999 for channelising funds to the poor in line with the success of pilot phase of Micro Credit Scheme. SFMC's mission is to create a national network of strong, viable and sustainable Micro Finance Institutions (MFIs) from the informal and formal financial sector to provide micro finance services to the poor, especially women.
SIDBI has partnered with the Department for International Development (DFID), UK for its capacity building initiatives. DFID has committed grant support of £ 16.51 mn. in this regard. SIDBI has also collaborated with the International Fund for Agricultural Development (IFAD), Rome to upscale its operations in the underserved / underdeveloped regions / states as well as to increase its outreach by providing financial support to MFIs that focus on targeting the poor, more so, women. IFAD is providing soft loan support of SDR 16.35 mn. for providing financial support to MFIs in the underserved regions. To bridge the wide gap between supply and demand and to increase access to microfinance products, SIDBI has partnered with the KfW for a line of credit of EUR 85 million. Additionally, a grant component of EUR 1.69 million has been earmarked for carrying forward the capacity building initiatives for the sector.
PRODUCTS & SERVICES
- DIRECT FINANCE
- BILLS FINANCE
- REFINANCE
- INTERNATIONAL FINANCE
- GOVERNMENT SUBSIDY SCHEMES
- FIXED DEPOSIT SCHEMES
- PROMOTIONAL ACTIVITIES ( MDPs, EDPs, Rural Industries Programmes)
| Shri Rakesh Rewari | Deputy Managing Director |
| Shri Basant Seth | 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 |
| 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 S.S. Chattopadhyay | Chairman, West Bengal Financial Corporation |
| Shri K. Sitaramam | Former Deputy Managing Director State Bank of India |
| Shri T. R. Bajalia | Executive Director, IDBI Bank Ltd. |
| Shri B. Manivannan | Executive Director (IT-BPR) Life Insurance Corporation of India |
| Shri A. Prabhakara | MSME Entrepreneur |
HEADS OF ZONAL OFFICES
Name (S/Shri) Designation Office K. S. Singhwan CGM Eastern Zonal Office, Kolkata K. G. Alai CGM Northern Zonal Office, New Delhi Namgial CGM Southern Zonal Office, Chennai S. Gunasegaran CGM Central Zonal Office, Lucknow S.V.G. Nandagopal CGM Western Zonal Office, Mumbai
IN NEWS
06.06.09: Multilateral lending agency World Bank is thinking of providing $400 million loan to SIDBI for small and medium industries financing and development project. With the signing of legal agreements for the loan, finalised in March this year, Small Industries Development Bank of India (Sidbi) can now work on Small and Medium Enterprise (SME) development and financing project which had performed very well earlier. The SIDBI project would focus on improved access of Small and Medium Enterprises to concessional finance and providing business development services to them.
The informations stated above are subject to change, to keep yourself updated please visit the official website of the company: www.sidbi.in
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