SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) is an independent
financial institution aimed to aid the growth and development of
micro, small and medium-scale enterprises (MSME) 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
India . Currently the ownership is held by 34 Government of India
owned / controlled institutions. Beginning as a refinancing agency to
banks and state level financial institutions for their credit to small
industries, it has expanded its activities, including direct credit to
the SME through 100 branches in all major industrial clusters 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 seven branches
christened as Micro Finance branches, aimed especially at dispensing
loans up to ₹5 lakh..On 28 August 2017, Mohammad Mustafa became the
new Chairman and Managing Director of SIDBI
* 1 Overview
* 2 History
* 3 References
* 4 External links
The purpose is to provide refinance facilities and short term lending
to industries. It is headquartered in Lucknow. It is an institution
for the promotion, financing and development of the Micro, Small and
Medium Enterprise (MSME) sector and for co-ordination of the functions
of the institutions engaged in similar activities.
SIDBI has also floated several other entities for related activities.
CREDIT GUARANTEE FUND TRUST FOR MICRO AND SMALL ENTERPRISES provides
guarantees to banks for collateral-free loans extended to SME. SIDBI
VENTURE CAPITAL LTD. is a venture capital company focussed at SME. SME
Rating Agency of
India Ltd. (SMERA) provides composite ratings to SME.
Another entity founded by SIDBI is ISARC -
India SME Asset
Reconstruction Company in 2009, as specialized entities for NPA
resolution for SME.
Small Industries Development Bank of
India (SIDBI), set up on April
2, 1990 under small industries development bank of
India act, is the
Principal Financial Institution for the Promotion, Financing and
Development of the Micro, Small and Medium Enterprise (MSME) sector
and for Co-ordination of the functions of the institutions engaged in
similar activities. 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.
Credit Guarantee Fund Trust for Micro and Small Enterprises popularly
known as CGTMSE is widely being used by many PSU Banks and Private
sector banks to fund MSME sector. During the year 2002-03 the
aggregate sanction and disbursements of SIDBI amounted to ₹10,904
crore and ₹6,789 crore respectively. SIDBI has been permitted to
raise finances up to ₹2,730 crore the year 2013 onward by the
Reserve Bank of
Micro Units Development ">
* ^ https://www.idfc.org/Members/sidbi.aspx
* ^ Archived 14 May 2013 at the
Wayback Machine .
* ^ "History of SIDBI".
* ^ "SIDBI gets nod to raise $500 million a year". 2012-11-22.