Introduction. SIDBI has internally prepared a broad concept on SIDBI Vision 2.0. This concept needs to be validated with various stakeholders, developed into a detailed plan, to be followed by transformational changes in the organisational structure, products and processes etc. and implementation thereof in a timebound manner, so as to enable the Bank to play a very active and catalytic role in creating vibrancy in the MSME Ecosystem. It aims to have an integrated Credit Plus approach for MSMEs and its thought leadership. Key elements of the SIDBI Vision 2.0 are as under:- SIDBI as a Thought leader and nodal agency for MSME sector Shaping the MSME landscape SIDBI should continue to play a role in shaping the policies that impact the MSME sector. It should play an activist, coordinating and specialist role in ensuring that the policies and regulations give the right thrust to the sector and continue to remove impediments. SIDBI should also find ways to become a more pervasive All India Financial Institution rather than remaining a DFI focussing on MSME sector in select areas only. This may require getting to backward areas through partnerships and promoting MSME sector to remove regional disparities. It needs to be ensured that interventions of SIDBI don't remain limited to MSMEs in certain pockets / cohort of MSMEs but also reach out to areas / MSMEs not having access to these services. To do this, SIDBI needs to pursue activities that establish the position of SIDBI as the thought leader in MSME ecosystem more firmly. SIDBI can create forums that attract international participation, government and non-government bodies' involvement. SIDBI could fund research on topics that can promote MSME growth finance, create well researched indices that can be used for policy direction, e.g. State-wise MSME friendly policy index. Preferred partner for implementation of government development schemes SIDBI should position itself as a partner for implementation of government schemes in a financially viable manner. This will require developing mechanisms to drive / enable these schemes and measure impact of these schemes. To deliver these SIDBI could establish itself as a platform through which all government and government sponsored MSME focused schemes are delivered. A tech-enabled mechanism that leverages open APIs, curated by SIDBI, could power SIDBI and all the other partner banks to allow MSMEs to access all the schemes in a hassle free manner.
Introduction. Small Industries Development Bank of India (SIDBI), set up on April 2, 1990, under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Coordination of the functions of the institutions engaged in similar activities. • The MSME financing agenda of the Bank is discharged through the twin interventions of (a) Direct Lending, disseminated through demonstrative lending products to fill existing credit gaps, which could be further scaled up by banking eco-system and (b) Indirect Lending, done through Banks, NBFCs, New Age Fintechs, SFBs and MFIs, which creates a multiplier effect and provides a larger reach. • Keeping in sync with the evolving MSME landscape, SIDBI embraced SIDBI Vision 2.0, to redefine its role as an All India Financial Institution that can create an integrated credit and development support ecosystem for MSMEs, by being a Thought Leader, adopting a credit plus approach, creating a multiplier effect and serving as an aggregator, in the MSME space. • Information Asymmetry in the MSME sector is an area where SIDBI has spearheaded various structural initiatives to address the information gap like MSME Pulse, the health tracker of MSEs and CriSidEx, for gauging the MSE sentiments and aspirations, Microfinance Pulse providing credit insights on Microfinance sector, Fintech Pulse which aims to bring out how emerging technologies are causing disruption in the financial sector and Industry Spotlight, focused on credit trends in Industry sectors. • Assistance to NBFCs increased by 59% to `17,935 crore as on March 2022 from `11,292 crore as on March 2021. During FY2022, the Bank onboarded 35 new NBFCs and the total number of live NBFCs as of March 2021 stood at 54. The portfolio outstanding of NBFC as on September 30, 2022 stood at `25,466 crore. • The bank shall focus on scaling up support to NBFCs through improved risk management of NBFCs to reach underserved/unserved MSMEs. **************** 6. 6.1.
Introduction. Small Industries Development Bank of India (SIDBI) was established under an Act of Parliament in 1990. SIDBI is the Principal Financial Institution engaged in Promotion, Financing & Development of the Micro, Small and Medium Enterprises (MSME) sector and in coordinating the functions of various institutions engaged in similar activities. The bidders can visit xxx.xxxxx.xx for more information. The bank provides its services through a network of offices located all over India. Detailed information on the functions of the bank is provided on the website xxx.xxxxx.xx. Since its inception, SIDBI has been playing an active role in promoting MSME sector and provided direct and indirect financial support to entrepreneurs for setting up of new enterprise as well as expansion/diversification/modernization of their existing enterprises. SIDBI has reoriented its focus on MSEs by adopting SIDBI Vision 2.0. It is a strategic initiative by SIDBI aimed at accelerating effort to serve MSME domain by transforming its current role to that of an All India Financial Institution that can create an integrated credit and development support ecosystem for Indian MSEs, thus promoting their inclusive growth. SIDBI envisions to strengthen enterprise ecosystem through interventions and engagements, which are innovative, inclusive and impactful. SIDBI has always initiated a host of measures on policy advocacy, developmental approaches, handholding MSEs, exposure programs and creating financial linkages, to foster entrepreneurship culture in the country along with aligning its operation in National interest. 5.2.
Introduction