MANAGEMENT OF FINANCIAL SERVICES AND INSTITUTIONS

Topic:- SIDBI (Small Industrial Development Bank of India) Presented by:- Meenu Sharma Roll No. :- 100767

1989 envisaged SIDBI to be "the principal financial institution for the promotion. 2011 . 1990.INTRODUCTION  SIDBI was established on April 2. The Charter establishing it. The Small Industries Development Bank of India Act. financing and development of industry in the small scale sector and to coordinate 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 Shri Sushil Muhnot takes over as SIDBI Chairman & Managing Director on April 4.

. London.Cont…    SIDBI consists of small scale industrial units. SIDBI among top 30 development banks of the world in the latest ranking of The Banker. which contribute significantly to the national economy in terms of production. health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures. employment and exports. SIDBI's assistance flows to the transport.

.450 crore subscribed by IDBI. while setting up of SIDBI.SHAREHOLDING The entire issued capital of Rs.10 each. 19.79% has been transferred / divested in favour of banks / institutions / insurance companies owned and controlled by the Central Government.450 crore has been divided into 45 crore shares of Rs.21% has been retained by it and balance 80. Of the total Rs.

OBJECTIVES     Financing Promotion Development Co-ordination .

Development Outlook 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 .

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

hire purchase and marketing help to the small-scale units . leasing. It provides financial support to National Small Industries Corporation for providing. It extends financial support to State Small Industries Corporations for providing scarce raw materials to and marketing the products of the small-scale units.Cont…    It grants direct assistance and refinance loans extended by primary lending institutions for financing exports of products manufactured by small-scale units.

Salient Features    Purpose Eligible Borrowers Norms .

58   37 months .84  14 months .Interest Rate Structure In Case of Fixed Deposit For Senior Citizens 12 months .13 months -9.36 months -9.84  .50 to 9.50 to 9.11  37 months .13 months -10.25 to 9.00 to 10.38  14 months – 36 months -9.75 to 10.60 months -9.60 months 12 months .

Overall Operations of SIDBI     Direct Finance Schemes Direct Credit Schemes Project Financing -Scheme for Development of Industrial Infrastructure for SSI sector -Integrated Infrastructural Development -Vendor Development Scheme -Equipment Finance Scheme Bill Financing .

Cont… -Bill Finance Schemes -Receivable Financing Scheme -Direct Discounting Scheme (Equipment) -Bills Re-DiscountingEquipment  Refinance Scheme -General Refinance Scheme -Single Window Scheme -Composite Loan Scheme -Equipment Refinance Scheme .

PEROMOTIONAL and DEVELOPMENT SERVICES of SIDBI      RURAL INDUSTRIES PROGRAMME (RIP) ENTERPRENEURSHIP DEVELOPMENT PROGRAMME (EDP) MANAGEMENT DEVELOPMENT PROGRAMMES TECHNOLOGY UPGRADATION PROGRAMMES MARKETING FUND .

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