2. Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990
under an Act of Indian Parliament, acts as the Principal Financial Institution for
Promotion, Financing and Development of the Micro, Small and Medium
Enterprise (MSME) sector as well as for co-ordination of functions of institutions
engaged in similar activities.
INTRODUCTION
3. MISSION
To facilitate and strengthen credit flow to MSMEs and address both financial and developmental
gaps in the MSME eco-system.
VISION
To emerge as a single window for meeting the financial and developmental needs of the MSME
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
4. Shri Sivasubramanian Ramann
Chairman & Managing Director
Shri V Satya Venkata Rao
Deputy Managing Director
Shri Sudatta Mandal
Deputy Managing Director
KEY PERSONS
5. ROLE OF SIDBI
Small Industries Development Bank of India
has been established under an Act of the
Parliament in 1990. SIDBI is mandated to
serve as the Principal Financial Institution
for executing the triple agenda of promotion,
financing and development of the MSME
sector and coordination of the functions of
the various Institutions engaged in similar
activities.
6. • The Micro Small and Medium Enterprises (MSMEs) sector is a major contributor to the socio-economic
development of the country. In India, the sector has gained significant importance due to its contribution to Gross
Domestic Product (GDP) of the country and exports. The sector has also contributed immensely with respect to
entrepreneurship development especially in semi-urban and rural areas of India.
• According to the provisions of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 the Micro,
Small and Medium Enterprises (MSME) are classified in two classes i.e., Manufacturing Enterprises and Service
Enterprises.
INTRODUCTION TO MSME SECTOR
7. The Bank executes its mandate through-
• Indirect Lending- Based on multiplier effect/ larger reach in financing the MSME sector and is
undertaken through Banks, SFBs, NBFCs, MFIs and New Age Fintechs.
• Direct Lending- Aims to fill the existing credit gaps in the MSME sector and is undertaken
through demonstrative and innovative lending products, which can be further scaled up by credit
delivery ecosystem.
• Fund of Funds- Boosts entrepreneurship culture by supporting emerging startups through the
Fund of Funds channel.
• Promotion and Development- Promoting entrepreneurship and handholding budding
entrepreneurs for holistic development of MSME sector through credit-plus initiatives.
• Facilitator- Playing a facilitator through roles like Nodal Agency for the MSME oriented
Schemes of the Government.
9. SHAREHOLDING
The Shares of SIDBI are held by the Government
of India and twenty-two other institutions / public
sector banks / insurance companies owned or
controlled by the Central Government
