Business Initiatives and Overall Operations

Small Industries Development Bank of India (SIDBI) was established under an Act of Parliament in 1990. SIDBI is the Principal Financial Institution engaged in Promotion, Financing & Development of the Micro, Small and Medium Enterprises (MSME) sector, and coordinating the functions of various Institutions engaged in similar activities.

Implementation of the Bank’s MSME Financing Program are executed through the following interventions:

Indirect Lending

Financial assistance is extended to Banks, NBFCs, New Age Fintechs, SFBs and MFIs, which creates a multiplier effect and increases the flow to credit to MSMEs including underserved/unserved MSMEs.

Direct Lending

Financial assistance is extended to MSMEs directly through SIDBI branch network through demonstrative lending products to fill existing credit gaps, which could be further scaled up by banking eco-system.

Micro Lending – PRAYAAS

To effectively and efficiently serve, through partnerships, entrepreneurs at the bottom of the pyramid, especially women and poor.

Fund of Funds

Equity assistance to Start-ups - To boost the entrepreneurial spirit, equity support is extended to Start-Ups through Alternate Investment Funds (AIFs) under Fund of Funds being operated by SIDBI on behalf of the Government.

Infrastructure Development

To promote cluster development, SIDBI Cluster Development Fund (SCDF) with corpus of ₹6,990 crore has been setup to provide low-cost funding to State Governments for Infra Development in MSME Clusters.

Green Financing

New initiatives are being taken for extending assistance to projects in the field of Clean Energy, Climate Change, Electrical Vehicle, Energy Efficiency, etc. under Green Financing.

PROMOTIONAL & DEVELOPMENTAL ROLE

All of the P&D initiatives have been built around “Mission Swavalamban,” an overarching framework for fostering an entrepreneurial culture and assisting several livelihood and entrepreneurship programs.

The Bank is the Nodal Agency for implementing MSME oriented Schemes promoted by the Government. SIDBI has been chosen as the trusted agency by the Government of India for channelising liquidity support and economic packages to the pandemic-hit MSME sector.

Bank undertakes data-backed structural interventions to address information asymmetry in the MSME sector.

Bank partners with stakeholders such as State Governments, Financial Intermediaries, NGOs, etc. for holistic development of the MSME sector.

SIDBI has been focussing on enabling digital lending in order to improve access to credit to MSMEs by leveraging technology.

BANK’s FOOTPRINT

The Bank’s footprint at the end of FY 2022 included:

10

Regional Offices

82

Branch Offices & Extended Branch Office

3

SARBs (Specialised Asset Recovery Branches)

6

ELSCs (Express Loan Service Centres)

Back-end and policy support extended by Head Office Verticals stationed at Lucknow, Mumbai and New Delhi