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Sidbi to give MSMEs a boost

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BS Reporter Chandigarh
Last Updated : Jan 24 2013 | 2:11 AM IST

The Small Industries Development Bank of India (Sidbi), was working on development initiatives for the benefit of micro, small and medium enterprises (MSMEs), said N K Maini, deputy managing director, Sidbi.

He said, “We are looking to set up credit facilitation centre in industrial clusters. Facilitation centre would be set up in 10 clusters in the next couple of months.” Overall 400 clusters have been identified and all the clusters would be covered this financial year. The credit facilitation centre would have a retired banker who will assist in clearing problems and challenges being faced by MSMEs.

The bank that last year registered an overall growth of 17 per cent is eyeing 17-20 per cent growth this year.

Sidbi is also targeting loan syndication facility for MSMEs. Under this scheme, rating agencies would be roped in and MSMEs taking help of the agencies hired by Sidbi could get loans at lower rates.

However, it would take a few months for the scheme to be implemented.

Sidbi has also identified four niche areas where the bank would be focusing on lending. Maini said the identified areas included funding for MSMEs, targeting service sector, looking to promote industry going for sustainable development and assisting firms in receivable management service.

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Sidbi is eyeing 30-50 per cent growth in 2012-13 in the four identified areas as MSMEs are finding it tough to raise equity.

According to reports, the total credit requirement of MSMEs is Rs 25,000 crore while availability is just Rs 3,000 crore. To bridge the gap between availability and requirement funding, Sidbi plans to take steps, including equity and quasi equity, Sidbi venture capital fund and acting as fund of funds. Sidbi is also looking to promote sustainable development by investing in energy-efficient projects and working towards a clean and green technology. Third area that SIDBI has identified is helping service sector that forms part of MSMEs.

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First Published: Jul 04 2012 | 12:03 AM IST

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