Skip to main content

SIDBI signs MOU with Regional Rural Banks and Urban Co-operative Banks in Rajasthan for increasing credit flow to “Missing Middle”


Indian MSME sector comprises over 26 million units employing over 70 million people contributes over 45% of India’s industrial production and 40% of Indian exports. However, over 90%of the units do not have access to bank finance especially micro enterprises with loan requirement of over Rs 50,000/- (above microfinance ) – and up to Rs 10 lakhs (normal floor level for bank finance ).
Regional Rural Banks/Urban cooperative banks/District Central Cooperative banks are well suited to meet their requirement but presently do not have the required expertise for lending to micro enterprises.

Considering the importance of capacity Building of RRBs/UCBs/DCCBs across the country, SIDBI is extending capacity building support to select RRBs/UCBs/DCCBs for micro enterprises loans. Towards this goal, a MoU was executed on pilot basis with 6 RRBs and 4 UCBs of Rajasthan at SIDBI Jaipur Regional office. It aims at training their staff on project appraisal, monitoring and collection as also providing them free access to software on Downscaling Methodology developed for lending to micro enterprises. This methodology focuses on cash flow base landing instead of the traditional security based lending adopted by banks.

The MoU was signed by Jaipur Regional Head Shri M K Sharma, in the graceful presence of CMD of SIDBI Shri Sushil Muhnot on Nov 26, 2012. It is expected that this MoU signing will strengthen relations between SIDBI and RRBs/UCBs and also take ahead the MEL financing to the missing middle segment of economy.

About SIDBI
Established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989 SIDBI is "the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities and for matters connected therewith or incidental thereto. Micro, small & medium enterprises contribute significantly to the national economy in terms of production, employment and exports. SIDBI has crossed the milestone of cumulative disbursement of Rs 244 lakh crore as on March 31, 2012 benefiting more than 325 lakh people.  The net profit after tax has increased by 10% to Rs 567 crore from Rs. 514 crore. The Networth of the Bank increased to Rs. 6,399 crore and the Earnings per share (EPS) improved to Rs. 12.60 from Rs. 11.42. In 2012, Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) – a DFI fraternity with membership of 116 institutions from 42 countries, honoured SIDBI with two awards under Environmental Development Category and for development and application of “Code of Conduct Assessment (COCA) Tool” under Corporate Governance category

Comments

  1. UnknownFebruary 3, 2015 at 1:23 PM

    Good blog for hearing health care clinic center in Bangalore, hearing aid Bangalore, Thanks for sharing this blog

    ReplyDelete

Post a Comment

Popular posts from this blog

Smallcase Platform: 2025 Wealth Creation Strategies to Achieve Your Investment Goals

  By Dr. Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital In the intricate world of finance, wealth creation is a universal aspiration among investors, though few truly attain it. With a plethora of investment products, philosophies, and strategies available, the challenge is identifying an approach that not only offers returns but also minimizes risk. At OmniScience Capital, we believe the key to successful wealth creation lies in a scientific and disciplined investment strategy. Our unique offerings, rooted in the principles of Scientific Investing, are designed to help you achieve your financial goals with confidence. Pioneering Global Investing and Outperforming on Smallcase Platform OmniScience Capital, a global investment management firm specializing in global and Indian equities, is a pioneer in global investing and growth vectors such as Defense and Digital Transformation. Our strategies have consistently identified and capitalized on growth vectors tha...
Post a Comment
Read more

India’s Economic Slowdown: Navigating Challenges with Resilience and how planetary alignments are suggesting an optimistic economic outlook

 By Aryan Prem Rana, Founder, VRIGHT PATH GROUP (www.vrightpath.com ) India, the world’s fastest-growing major economy, faces a challenging phase as GDP growth slows. The latest figures show Q2 growth dipping to 5.4%, the lowest in seven quarters. This decline comes as 63 of the Nifty 100 companies miss revenue estimates, raising concerns about underlying economic health. Growth Engines Sputtering The economic slowdown is most pronounced in key sectors: • Manufacturing growth has dropped to 2.2%, a sharp decline from last year’s 14.3%. • Urban consumption, a cornerstone of economic growth, is weakening. Industry stalwarts such as Reliance, HUL, and Maruti have seen market corrections of 15-23%. RBI’s Balanced Approach The Reserve Bank of India (RBI) has responded with measured policies, holding the repo rate steady at 6.5% for the eleventh consecutive meeting. This neutral policy stance balances inflation control with growth needs. In a key liquidity-boosting move, the RBI redu...
Post a Comment
Read more

Press Release: Prachay Capital Limited (Company/ Issuer / Prachay Capital) Announces Public Issue of Secured NCDs

Prachay Capital Limited, an RBI-registered Non-Banking Financial Company – Investment and Credit Company (NBFC-ICC), has announced the public issue of its Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) to raise up to ₹100 Crore. The BBB-/Stable CRISIL-rated NCDs offer investors a 13% p.a. return with monthly interest payments, making it a fixed-income investment opportunity. The proceeds from this issue of NCDs will be primarily used for the stated fund utilization. Speaking about the issue, Mr Girish Murlidhar Lakhotiya, Managing Director, Prachay Capital Limited said: "This NCD issue is a key step in Prachay Capital’s expansion strategy. With our focus on structured corporate lending and investment in private debt instruments, we aim to generate strong and sustainable returns for our investors while maintaining a robust financial profile. Prachay Capital has zero delays in servicing liabilities and has Gross NPA of 0% on its Assets Under Management (AUM). The Compa...
Post a Comment
Read more