Small Industries Development Bank of India (SIDBI) was set up on April 2, 1990 under an Act of Indian Parliament. It has its head office in Lucknow, Uttar Pradesh. It was set up to promote, finance and develop the Micro, Small and Medium Enterprise (MSME) sector and for coordinating the functions of the institutions engaged in similar activities. The chairman and Managing Directot of SIDBI is Mohammad Mustafa.
Mission of SIDBI:
“To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system”.
The four basic objectives of SIDBI are:
for orderly growth of industry in the small scale sector.
Associates of SIDBI:
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Government of India and SIDBI set up the CGTMSE in July 2000 to provide credit guarantee support of loans up to Rs. 100 lakh to MSMEs under its Credit Guarantee Scheme (CGS).
- SME Rating Agency of India Ltd. (SMERA)
SIDBI along with some leading banks set up SMERA in September 2005 to provide comprehensive, transparent and reliable ratings and risk profiling.
- India SME Technology Services Ltd. (ISTSL)
ISTSL was set up in November 2005 which provides a platform for MSMEs to tap opportunities at the global level for acquisition of modern technologies.
- India SME Asset Reconstruction Company Ltd. (ISARC)
ISARC is the country’s first MSME focused Asset Reconstruction Company set up for the resolution of non-performing assets (NPA) which would facilitate greater and easier flow of credit from the banking sector to the MSMEs.
- Delhi Financial Corporation (DFC)
DFC has been set under ‘The State Financial Corporation Act, 1951 with objectives to promote, finance and develop industries / service activities in the small and medium scale sectors including commercial transport in the NCT, Delhi and UT, Chandigarh.
Facts about SIDBI:
- The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs).
- It was set up as a wholly owned subsidiary of Industrial Development Bank of India, but now is an independent financial institution.
- Its branches are available in all major clusters of the country.
- SIDBI is in the top 30 Development Banks of the World according to the ranking of The Banker, London.
- SIDBI also provides financial support to National Small Industrial Corporation (NSIC) for providing leasing, hire-purchase, and marketing support to the industrial units in the small-sector.
- SIDBI, in association with credit rating agency CRISIL and Credit Information Company TransUnion CIBIL, has introduced “CriSidEx” and “MSME Pulse”.
CRISIDEX: It is India’s first sentiment index for micro and small enterprises (MSEs).
MSME Pulse: It is a quarterly report on MSME credit activity to track and monitor the MSME segment in India.