MANAGEMENT OF

FINANCIAL SERVICES
AND INSTITUTIONS

Topic:- SIDBI (Small Industrial Development

Bank of India)

Presented by:- Meenu Sharma

Roll No. :- 100767
 INTRODUCTION

SIDBI was established on April 2,

1990. 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
Shri Sushil Muhnot
developing industry in the small
takes over as
scale sector and for matters SIDBI Chairman &
connected therewith or incidental Managing Director
thereto on April 4, 2011
Cont
SIDBI consists of small scale industrial units,
which contribute significantly to the national
economy in terms of production, employment
and exports.
SIDBI among top 30 development banks of the
world in the latest ranking of The Banker,
London.
SIDBI's assistance flows to the transport, health
care and tourism sectors and also to the
professional and self-employed persons setting
up small-sized professional ventures.
SHAREHOLDING

The entire issued capital of Rs.450 crore

has been divided into 45 crore shares of
Rs.10 each. Of the total Rs.450 crore
subscribed by IDBI, while setting up of
SIDBI, 19.21% has been retained by it
and balance 80.79% has been
transferred / divested in favour of
banks / institutions / insurance
companies owned and controlled by the
Central Government.
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

Function
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 provides services like factoring, leasing, etc. to
small units.
Cont
It grants direct assistance and refinance loans
extended by primary lending institutions for
financing exports of products manufactured by
small-scale units.
It extends financial support to State Small
Industries Corporations for providing scarce raw
materials to and marketing the products of the
small-scale units.
It provides financial support to National Small
Industries Corporation for providing; leasing, hire
purchase and marketing help to the small-scale
units
Salient Features
Purpose
Eligible Borrowers
Norms
Interest Rate Structure

In Case of Fixed Deposit For Senior Citizens

12 months - 13 months
-9.50 to 9.84 12 months - 13 months
-10.00 to 10.38
14 months 36 months
14 months - 36 months
-9.75 to 10.11
-9.25 to 9.58 37 months - 60 months
-9.50 to 9.84
37 months - 60 months

9.00 to 9.31

As on the June 01, 2011

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
?
THANK YOU