Mission : To Empower the Micro, Small and Medium Enterprises

8/14/2019 Mission : To Empower the Micro, Small and Medium Enterprises

1/22

Mission : To empower the Micro,Small and Medium Enterprises

(MSME) sector with a view tocontributing to the process ofeconomic growth, employment

generation and balanced regionaldevelopment.


2/22

What is SIDBI

Is an apex financial institution in the field of rural

development

It assists the entire spectrum of SSI Sector includingthe tiny, village and cottage industries through suitable

schemes tailored to meet the requirement of setting up

of

new projects, expansion,

diversification,

modernization

rehabilitation of existing units.


3/22

Introduction to SIDBI

Established under the act The Small Industries

Development Bank of India Act, 1989 on April

2,1990, for

-- Promotion-- Financing

-- Development of Industries in the small scale

sector

--Co-ordinating the functions of other institutions

engaged in similar activities.

It is Nodal Agency for SME Schemes of

Government of India.


4/22


5/22

Small makes Big Difference

Small industries Contributes 39% of the

manufacturing output and around 33% of the

total export of the country This sector employs an estimated 31 million

persons spread over 12.8 million enterprises

The labour intensity in the MSE sector is

estimated to be almost 4 times higher thanthe large enterprises.


6/22

Focus of SIDBI

Initiating steps for technological up gradation

and modernization of existing units.

Expanding of channels for marketing the

products of small scale sectors

Promotion of employment oriented industries

especially in semi urban areas to create more

employment opportunities and therebychecking migration of population to urban

areas.


7/22

ACTIVITIES

Direct Finance Operations : MSMEs, Service sector,Infrastructure etc.

Indirect Finance : Resource support to Banks, NBFCs, SFCs,other State & central financing/development agencies,Refinance Assistance and Scheme for Rediscounting of bills.

Micro Credit operations : Pioneers in micro credit movement inthe country. Developed several leading MFIs.

Associate Institutions : SIDBI Venture Capital Ltd, MSMERating Agency, Credit Guarantee Fund, India SME AssetReconstruction Company Ltd.

Nodal Agency : For several GoI schemes like TUFS(Technology Up gradation Fund Scheme), CLCSS (CreditLinked Capital Subsidy Scheme) and IDLSS (IntegratedDevelopment of Leather Sector Scheme), Food Processing andDevelopment Of Integrated Infrastructure Development (IID)

Projects.


8/22

SIDBI : Focus Segments

Manufacturing Micro : Invst. in plant & machinery up to Rs.25lacs. Small : Gross Machinery Investment up to Rs 5 crore.

Medium : Gross Machinery Invst.


9/22

SIDBI De-linked from IDBI

Union Budget of 98-99 announced the transfer of IDBI

stake in SIDBI to RBI.

This was done based on recommendation made by the

Khan Committee. It also proposed that SIDBI should be accorded the status

of a nodal agency for financing of SSIs along the lines of

NABARD in the field of agricultural development.

Khan Committee also proposed SIDBI's role in state levelinstitutions should be as stake holder as well as resource

provider. For this purpose, SIDBI should have access to

assured sources of concessional funding from RBI.


10/22

SMERA (SME Rating

Agency of India Limited) Indias first dedicated rating agency for SME segment. Joint initiative ofSIDBI, Dun & Bradstreet and CIBIL (Credit

Information Bureau (India) Limited)along with leading PSU,Private and foreign Banks.

Rating cost substantially reduced in case of coverage of eligibleSSI units under NSIC (National Small Industries Corporation)Subsidy Scheme

Already done > than 2350 ratings.

Incentives for SMERA Rating for SIDBIs Customers Nominal Rating fees.

Reduction in rate of interest by 0.50% p.a. on existing loans ifthe customer is rated in the first three grades

Would facilitate approval of applications for fresh loans in

future


11/22

SFMC (SIDBI Foundation for

Micro Credit) Launched by SIDBI in January 1999 for channelizingfunds to the poor.

SFMC's mission is to create a national network ofstrong, viable and sustainable Micro FinanceInstitutions (MFIs) from the informal and formalfinancial sector to provide micro finance services to thepoor, especially women.

SFMC is the apex wholesalerfor micro finance in

India providing a complete range of financial and non-financial services such as loan funds, grant support,equity and institution building support to the retailingMicro Finance Institutions (MFIs).


12/22

SVCL (SIDBI Venture

Capital Limited) A wholly owned subsidiary of SIDBI,

incorporated in July 1999

Current funds managed by SVCL are: National Venture Fund for Software and

Information Technology (NFSIT) - SIDBI inassociation with MIT, Govt. of India during 1999-2000.

SME Growth Fund (SGF) - SIDBI in associationwith other leading commercial banks such as PNB,SBI, BOB, BOI, CBI, UBI, OBC and CorporationBank.


13/22

CGTMSE (Credit Guarantee Fund

Trust for Micro and Small

Enterprises) Set up in August 2000 with the Government of

India (GoI).With an objective to provide guarantee support to

banks and lending institutions for their exposureto the MSE sector.

The lender should give importance to projectviability.

The lender availing guarantee facility shouldendeavor to give composite credit to the

borrowers.


14/22

ISTSL (India SME

Technology Services Ltd.)Formed by SIDBI with SBI, OBC and IOB,

with an objective:

To provide a platform for acquisition oftechnology or establish business collaboration

To Maintain and provide data base on

technology options available from different

countries and provide information on means of

accessing them.


15/22

Recent Developments

Prime Lending Rate (PLR) is 11.00% p.a During the FY 2009, SIDBI recorded highest ever

disbursements of Rs 28298 crore with an increase of88%.

SIDBI increased its refinance support to banks /SFCs by more than 100% to Rs. 18,534 crore.

SIDBIs micro finance assistance increased by 144%to Rs. 1,742 crore

Micro finance outstanding stood at Rs. 2,137 crore ason March 31, 2009 with an increase of 125%.


16/22

Recent Developments

World Bank approved $400 million loan to SIDBIwhich is aimed at improving access to finance forSmall and Medium Enterprises (SMEs) in May-09.

In order to tackle rising NPAs in the MSME sector,SIDBI initiated setting up of an asset reconstructioncompany in the name of India SME AssetReconstruction Company Limited (ISARC) in 2009

with an authorized capital of Rs. 100 crore.Net NPAs of SIDBI as a ratio of net outstanding

decreased substantially to 0.08% as on March 31, 2009as compared to 0.25% as at end March 2008.


17/22

Recent Developments

SIDBI was conferred with 3 international awards byAssociation of Development Financing Institutions inAsia and the Pacific (ADFIAP) in 2009

SIDBIs initiative towards setting up of India SMEAsset Reconstruction Company Limited (ISARC)

SIDBIs website (www.sidbi.com) as the bestwebsite

Shri R.M. Malla, CMD, SIDBI for the OutstandingCEO of the year 2009. SIDBI retained its position in the top 30 Development

Banks of the World in the latest ranking of The Banker,London.


18/22

Impact of SIDBI on growth of

SMEs

Through the network of 910 PLIs with 65,000

branches and own network of 63 offices it provides fast

and easy financing facilities for MSME sector.

Quick service and transparent dealings at competitive

interest rates.

Special Interest rate benefit on SMERA rated

industries. The growth rate is expected to increase to 12 per cent

for the micro and small enterprises (MSE) sector during

the Eleventh Five Year Plan 2007-12.


19/22

New Customer Initiatives

PRIVILEGED CUSTOMER SCHEME: To existing

well performing customers of SIDBI For their

annual non-project specific investment plan.

ELIGIBILITY

TWO YEARS SATISFACTORY PRINCIPAL REPAYMENT

TRACK RECORD

SHOULD HAVE EARNED NET PROFIT FOR LAST TWO

YEARS OF OPERATION

QUANTUM OF ASSISTANCE

15% OF NET SALES SUBJECT TO MAXIMUM OF RS.50

LAKH


20/22

New Customer Initiatives

Cluster Development Programs

Cluster development initiatives in 25 clusters all over

India.Focus is on Technology Up gradation.

Power loom cluster in Panapakkam inKancheepuram District in T.N.

PROMOTIONAL & DEVELOPMENTALACTIVITIES

Entrepreneurship Development Programs

Human Resource Development


21/22


22/22

THANK YOU

Date post:	30-May-2018
Category:	Documents
Upload:	chetakno1
View:	219 times
Download:	0 times

Mission : To Empower the Micro, Small and Medium Enterprises

Documents