This document summarizes funding sources for small and medium enterprises (SMEs) in India. It notes that SMEs contribute 8% to India's GDP and discusses both direct and indirect sources of finance for SMEs. Direct finance comes from public sector banks that have loaned over $100 billion to SMEs. Indirect finance includes bonds issued by organizations like NABARD. The document also lists stakeholders involved in SME funding.

1. Small and Medium
Enterprises Funding
Neha Jain
Malay Srivastava
Naveen Panchal
Vishal B. Patil
PGDM-Business Design (2011-13)
Welingkar Institute of Management Development
& Research, Mumbai

2.  MSME contributes to 8 % GDP.
 45 % of Manufactured Output.
 40 % Exports.
 26 million MSME Units, 60 million people.
 (Source : Economic Survey, Ministry of Finance)

3. Competitors
 Direct Finance
 Indirect Finance.
 Direct Finance: cr
 SBI 1,10,812
 ICICI 71720
 PNB 45296
 Canara Bank 29958
 Bank Of Baroda PNB 27365
 Bank Of India 21000
 UCO Bank 15727
 Central Bank of India 11901

4.  Indirect Finance
Indirect Finance includes Finance through purchase of
Bonds issued by Government establishments like
NABARD etc.
International Players
GoI tied up with Asian Development Bank for $150 mn
funds for KVI sector for 3 years. October 2008 (Source :
ADB Report)

5. StakeHolders
 SME
 Rating Agency.
 Banks.
 Promoters
 Employee.
 Promoters
 GDP
 Employment generation.
 Government.
 Government Schemes.
 Government Bodies like NABARD, PFC, SIDBI.
 RBI.
 Lobbyist.
 Finance Ministry.
 NBFC

6. Breakthrough
 BankMuscat : In 2006, when BankMuscat had
successfully captured a 40-45% commercial banking
market in Oman, the SME opportunity was seized,
when no one was targeting the SME sector.
Recognizing the opportunity to establish itself as the
first Bank to serve SMEs in the country, BankMuscat
focused on building knowledge of the sector through
market research, including a World Bank study
identifying a potential client base of 20,000 SMEs.
 Access Bank Plc Nigeria: Successfully reaching the
women’s market in Nigeria is key to achieving our
retail and small business goals.

7.  Wells Fargo: Experimenting with Marketing
Approaches In reaching clients, Wells Fargo has
experimented with new ways to offer its solutions to
SME needs. The bank was one of the first in the
industry to target small business clients using a
similar approach to credit card companies. Direct
mailings and telemarketing calls from local bank
 Standard Chartered:
 ICICI Bank:
 Sberbank :
 (Source : International Finance Corporation, World
Bank Group)