2. 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
3. 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 .
4. 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.
5. Mission: To empower the Micro, Small and Medium
Enterprises (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 the
financial 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.
6. 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.
7. 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
8. 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 India's
exports and 40 per cent of industrial manufacture.
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.
9. Conclusion
we can say that the SIDBI, by the
mode of refinancing, discounting and
rediscounting as well as financial assistance
through indirect functions regarding lending
to Primary institutions, through its direct
assistance to small units and through its
various developmental and supporting
services, encouraging small scale
sector in Rural India.
