SIDBI

PREPARED BY : GROUP 17
ANMOL ADVANI (92201423006)
ANKIT ZALA (92201423015)
HARIKISHANAN YADAVAL (92201423026)
RUTVIK JANI (92201423168)
RUCHIT DASANI (92201423233)
 SIDBI
Small Industries
Development
Bank of India
Introduction to SIDBI

 the apex regulatory body for overall licensing and regulation

of micro, small, and medium enterprise finance companies in
India
 under the jurisdiction of the Ministry of Finance, Government
of India
 Headquarters: Lucknow, Uttar Pradesh, India
 established on April 2, 1990, by the Government of India, as a
wholly owned subsidiary of IDBI (Industrial Development Bank
of India)
 was later delinked from IDBI with effect from March 27, 2000
Purpose of SIDBI

 to provide refinance facilities to banks and financial institutions

 engage in term lending and working capital finance to industries
 serves as the principal financial institution in the Micro, Small,
and Medium Enterprises (MSME) sector
 SIDBI also coordinates the functions of institutions engaged in
similar activities
Some important facts about SIDBI

 supervised and regulated by the Reserve Bank of India (RBI),

 works hand in hand with the other three being EXIM Bank, the
National Housing Bank (NHB), and the National Bank for
Agriculture and Rural Development (NABARD).
 The Chairman and Managing Director of SIDBI is Mr. Siva S.
Ramann (IAS)
 SIDBI subsidiaries include the Micro Units Development &
Refinance Agency Ltd. (Mudra Bank), India SME Asset
Reconstruction Company Limited, Acuité Ratings & Research
Limited, and SIDBI Trustee Company Limited.
Key initiatives of SIDBI over the last 25
years
 Providing assistance of INR 5.40 lakh crore to the MSMEs
 Extending loans to millions of underprivileged people, mostly
women, through its microfinance operations
 Supporting new and existing small-scale entrepreneurs by
taking in initiative to help them build their businesses and skills
Functions of SIDBI

 aims at emerging as a single-window to meet the developmental and

financial needs of MSMEs in order to make them globally competitive,
strong, vibrant and to protect the institution as a customer-friendly
financial body
 aims at enhancing the wealth of shareholders through the modern
technology platform.
 retained its position in the top 30 Development Banks of the World in
the ranking of The Banker, London.
 principal institution for the development, promotion and financing of
the MSME sector and for coordination of functions of the institutions
engaged in similar activities.
Loan provisions under SIDBI

 Following are some loan provisions under SIDBI :

• Direct lending
• Indirect landing
• Micro-lending PRAYAAS
• Funds of funds
• Infrastructure development
• Green financing
Loan provisions continued..

 Direct lending : Through the SIDBI branch network, financial

assistance is provided to MSMEs directly in order to close credit
gaps that may further be scaled up by the banking ecosystem.

 Indirect lending : Banks, NBFCs, New Age Fintech, SFBs, and

MFIs are given financial assistance, which has a multiplier effect
that accelerates the flow of credit to MSMEs, especially
underserved and unserved/underserved MSMEs.
Loan provisions continued..

 Micro-lending – PRAYAAS : To efficiently and effectively

support bottom-of-the-pyramid entrepreneurs, particularly
women and the underprivileged, through partnerships.

 Fund of funds : Equity support for startups – To encourage the

spirit of entrepreneurship, equity support is given to startups
through the Fund of Funds, which is managed by SIDBI on
behalf of the government. These funds are known as Alternative
Investment Funds
Loan provisions continued..

 Infrastructure development : SIDBI Cluster Development Fund

(SCDF) has been established with a capital of 6,990 crores to
offer State Governments low-cost funding for the growth of
infrastructure in MSME Clusters in order to foster cluster
development.

 Green financing : For projects involving renewable energy,

climate change, electrical vehicles, energy efficiency, etc., new
initiatives are being launched under green financing.
Special schemes and programs by
SIDBI
 Following are some special schemes and programs by SIDBI :
• SIDBI MSME Covid Response Fund (SMCRF)
• Partial Guarantee Pool Loan Issuance Scheme
• Udyam Gyanshala
• Livelihood Outreach Program
• Swavalamban Challenge Fund
• SIDBI Assistance for Harnessing Aspiring Swavalambis
(SAHAS)
Special schemes continued..

 SIDBI MSME Covid Response Fund (SMCRF): It aims to assist

MSMEs, small enterprises, and microloan borrowers by investing in
the debt instruments of financial institutions (FIs), such as NBFCs,
Fin-Tech firms, and Micro Finance companies.

 Partial Guarantee Pool Loan Issuance Scheme: The Bank offers loans
to several, well-managed, small- to medium-sized NBFCs and MFIs.
The scheme has directed end-use aimed at smoothening the liquidity
challenges faced by institutions and businesses due to the Covid-19
pandemic, catering to the financial needs of millions of underserved in
India.
Special schemes continued..

 Udyam Gyanshala: SIDBI conducted two Gyanshalas that is Udyam

Gyanshala on ‘Modern Techniques of Management for
Manufacturing Sector’ for upskilling MSMEs and Udyam Gyanshala
on ‘Making business resilient and sustainable during uncertain times.

 Livelihood Outreach Program: The Bank started the program to help

artisans become more digitally literate and to increase their capacity
for onboarding / direct sales of their goods to companies/end
customers directly on digital platforms.
Special schemes continued..

 Swavalamban Challenge Fund: The Swavalamban Challenge Fund

was established by the bank to offer financial assistance to
development organizations, educational institutions, and start-up
businesses that had a particular focus on environmental initiatives,
sustainable livelihoods, financial inclusion, health and sanitation,
access to financial services, as well as fostering an entrepreneurial
culture.

 SIDBI Assistance for Harnessing Aspiring Swavalambis (SAHAS): this

is to encourage entrepreneurship and provide answers to the problems
facing the MSME sector, including grant support for the selected
Startup.
Data published by SIDBI in
accordance to the FY 2022
THANK YOU