SIDBI(Small Industries Development Bank Of India) And Its Functions

By, Harish N USN No 53 MBA II Sem A Sec PESIT

Small Industries Development Bank Of India.

Is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises in India. Set up on April 2, 1990 Head office: Mumbai Shri Sushil Muhnot is the current SIDBI Chairman & Managing Director

Mission And Vision

Mission: To empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development. Vision: To emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform

The Small Industries Development Bank of India Act, 1989 Small Industries Development Bank The
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

Objectives Of SIDBI
The basic objective of SIDBI are Financing Promotion Development Co-ordination for orderly growth of industry in the small scale sector.

The major issues confronting SSIs are identified to be: Technology obsolescence Managerial inadequacies Delayed Payments Poor Quality Incidence of Sickness Lack of Appropriate Infrastructure and Lack of Marketing Network

What are the functions of SIDBI?

It refinances loans and advances provided by the existing lending institutions to the small-scale units. It discounts and rediscounts bills arising from sale of machinery to and manufactured by small-scale industrial units. It extends seed capital/soft loan assistance under National Equity Fund, Mahila Udyam Nidhi and Mahila Vikas Nidhi and seed capital schemes.

It grants direct assistance and refinance loans extended by primary lending institutions for financing exports of products manufactured by small-scale units. It provides services like factoring, leasing, etc. to small units. It extends financial support to State Small Industries Corporations for providing scarce raw materials to and marketing the products of the smallscale units.

It provides financial support to National Small Industries Corporation for providing; leasing, hire purchase and marketing help to the small-scale units.