Definitions

SIDBI

SIDBI

The Small Industries Development Bank of India () is a state-run bank aimed to aid the growth and development of micro, small and medium scale industries in India. Set up in 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Current shareholding is widely spread among various state owned banks, insurance companies, etc. Beginning as a refinancing agency to banks and state level financing bodies for their credit to small industries, it has diversified in to many activities, including direct credit to the SME through more than 60 branches located in all major clusters of SME in India. Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and onlending.

SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust of India () provides guarantees to banks for collatoral free loans extended to SME. SIDBI Venture Capital Ltd.() is Venture Capital company focussed at SME. SME Rating Agency of India Ltd. (SMERA - ) provides composite ratings to SME.

Provision Of Charter


SIDBI was established on April 2, 1990, under an Act (SIDBI Act, 1989) passed by the Indian Parliament. 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.

Business Domain


The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million . About 3.1 million such units, employing 17.2 million persons account for a share of 36 per cent of India's exports and 40 per cent of industrial manufacture. In addition, SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

Achievements


SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets.

Links

http://www.sidbi.in
http://www.sidbiventure.co.in
http://www.smera.in
Search another word or see SIDBIon Dictionary | Thesaurus |Spanish
Copyright © 2014 Dictionary.com, LLC. All rights reserved.
  • Please Login or Sign Up to use the Recent Searches feature