Banking Awarness:SIDBI

Small Industries Development Bank of India (SIDBI) was set up on April 2, 1990, under an Act of Indian Parliament. It has its head office in Lucknow, Uttar Pradesh. It was set up to promote, finance and develop the Micro, Small and Medium Enterprise (MSME) sector and for coordinating the functions of the institutions engaged in similar activities.

The mission of SIDBI:
“To facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system”.

The four basic objectives of SIDBI are:

• Financing
• Promotion
• Development
• Co-ordination

for orderly growth of industry in the small scale sector.

Facts about SIDBI:

• The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs).
• It was set up as a wholly owned subsidiary of Industrial Development Bank of India but now is an independent financial institution.
• Its branches are available in all major clusters of the country.
• SIDBI is in the top 30 Development Banks of the World according to the ranking of The Banker, London.
• SIDBI also provides financial support to National Small Industrial Corporation (NSIC) for providing leasing, hire-purchase, and marketing support to the industrial units in the small sector.