Sidbi
Sidbi
Sidbi
Promotion Financing Development of industry in the small scale sector Co-ordinating the functions of other institutions engaged in similar activities
Since its inception, SIDBI has been assisting 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, modernisation and rehabilitation of existing units.
Domain of Service
The Small Scale Industries (SSIs) sector is a vibrant and dynamic sector of the Indian economy. The sector presently occupies an important place and its contribution in terms of generation of employment, output and exports is quite significant. The Small Scale Industries sector including tiny units, comprises the domain of SIDBI's business. Besides, the projects in the services sector with total cost upto Rs.250 million are also taken within the area of SIDBI's operations. The Bank also finances industrial infrastructure projects for the development of SSI sector.
Channels of Assistance
SIDBI's financial assistance to small scale sector have three major dimensions:
1. 2. 3.
Indirect assistance to primary lending institutions (PLIs); Direct assistance to small units; and Development and Support Services
Indirect Assistance
SIDBI's Schemes of indirect assistance envisages credit to SSIs through a large network of 913 PLIs spread across the country with a branch network of over 65000. The assistance is provided by way of refinance, bills rediscounting, and resource support in the form of short term loans/Line of Credit (LoC) in lieu of refinance, etc.
Direct Assistance
The objective behind SIDBI's direct assistance schemes has been to supplement the efforts of PLIs by identifying the gaps in the existing credit delivery mechanism for Small Scale Industries. Direct assistance is provided under several tailor made schemes through SIDBI's 41 Regional/Branch offices spread across the country.
Enterprise Promotion with emphasis on Rural Industrialisation Human Resource Development to suit the SSI sector needs Technology Upgradation Quality and Environment Management Marketing and Promotion and Information Dissemination.
This article may need to be wikified to meet Wikipedia's quality standards. Please help by adding relevant internal links, or by improving the article's layout. (June 2009) 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 in 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 ([1]) provides guarantees to banks for collatoral free loans extended to SME. SIDBI Venture Capital Ltd.([2]) is Venture Capital company focussed at SME. SME Rating Agency of India Ltd. (SMERA - [3]) provides composite ratings to SME.
Contents
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SIDBI 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.
[edit] Achievements
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.