INTRODUCTION OF SIDBI (SMALL INDUSTRIES DEVELOPEMENT BANK OF INDIA
Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
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 developing industry in the small scale sector and for matters connected therewith or incidental thereto.
Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and on lending. Recently it has opened seven branches christened as Micro Finance branches, aimed especially at dispensing loans up to 5 lakh.
* SIDBI offers various schemes of assistance, designed to meet every need of small scale industries, under one roof.
* The unsecured bonds of SIDBI have been rated ‘AAA’ by leading domestic rating agencies viz. The Credit Rating Information Services of India Ltd. (CRISIL) and Credit Analysis and Research Ltd. (CARE).
* SIDBI is ranked 23rd in terms of Assets and 24th in terms of Capital among the top 50 Development Banks in the World (Source: The Banker, London, June 2000)
* SIDBI is placing strong emphasis on technology development and absorption both for modernisation purposes and also for creating new enterprises and strengthening existing enterprises in high tech areas such as information technology.
Business Domain of SIDBI
The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs),...