What is SIDBI SIDBI stands for Small Industries Development Bank of India An independent financial institution aimed to aid the growth and development of micro, small and medium scale enterprises 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
SIDBIretained 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 .
Objectives Small Industries Development Bank of India is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises in India.
Mission: To empower the Micro, Small and MediumEnterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development. Vision: To emerge as a single window for meeting thefinancial and developmental needs of the small scale sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform.
Shareholding The entire issued capital of Rs.450 Crore has been divided into 45 Crore shares of Rs.10 each. Of the total Rs.450 Crore subscribed by IDBI, while setting up of SIDBI, 19.21% has been retained by it and balance 80.79% has been transferred / divested in favour of banks / institutions / insurance companies owned and controlled by the Central Government.
Aim Of SIDBI Expansion of small scale sector and increase its share in industrial output. ‡Development of rural areas where more than 70% of the population resides. ‡Increase the efficiency of SSIs. ‡Increase the contribution of SSIs in export. ‡More employment generation in rural areas of rural India
The business domain of SIDBI 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 Indias exports and 40 per cent of industrial manufacture. SIDBIs 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.
Conclusionwe can say that the SIDBI, by themode of refinancing, discounting andrediscounting as well as financial assistancethrough indirect functions regarding lendingto Primary institutions, through its directassistance to small units and through itsvarious developmental and supportingservices, encouraging small scalesector in Rural India.