MANAGEMENT OF FINANCIAL SERVICES AND INSTITUTIONS

Topic:- SIDBI (Small Industrial Development Bank of India) Presented by:- Meenu Sharma Roll No. :- 100767

INTRODUCTION

SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to coordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto

Shri Sushil Muhnot takes over as SIDBI Chairman & Managing Director on April 4, 2011

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SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. SIDBI among top 30 development banks of the world in the latest ranking of The Banker, London. 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.

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.

OBJECTIVES

Financing Promotion Development Co-ordination

Development Outlook
The major issues confronting SSIs are identified to be: Technology obsolescence Managerial inadequacies Delayed Payments Poor Quality Incidence of Sickness Lack of Appropriate Infrastructure and Lack of Marketing Network

Function

It refinances loans and advances provided by the existing lending institutions to the smallscale units. It discounts and rediscounts bills arising from sale of machinery to and manufactured by small-scale industrial units. It extends seed capital/soft loan assistance under National Equity Fund, Mahila Udyam Nidhi and Mahila Vikas Nidhi and seed capital schemes. It provides services like factoring, leasing, etc. to small units.

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It grants direct assistance and refinance loans extended by primary lending institutions for financing exports of products manufactured by small-scale units. It extends financial support to State Small Industries Corporations for providing scarce raw materials to and marketing the products of the small-scale units. It provides financial support to National Small Industries Corporation for providing; leasing, hire purchase and marketing help to the small-scale units

Salient Features

Purpose Eligible Borrowers Norms

Interest Rate Structure

In Case of Fixed Deposit For Senior Citizens

12 months - 13 months -9.50 to 9.84

14 months - 36 months -9.25 to 9.58

37 months - 60 months

12 months - 13 months -10.00 to 10.38 14 months 36 months -9.75 to 10.11 37 months - 60 months -9.50 to 9.84

Overall Operations of SIDBI

Direct Finance Schemes Direct Credit Schemes Project Financing -Scheme for Development of Industrial Infrastructure for SSI sector -Integrated Infrastructural Development -Vendor Development Scheme -Equipment Finance Scheme Bill Financing

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-Bill Finance Schemes -Receivable Financing Scheme -Direct Discounting Scheme (Equipment) -Bills Re-DiscountingEquipment Refinance Scheme -General Refinance Scheme -Single Window Scheme -Composite Loan Scheme -Equipment Refinance Scheme

PEROMOTIONAL and DEVELOPMENT SERVICES of SIDBI

RURAL INDUSTRIES PROGRAMME (RIP) ENTERPRENEURSHIP DEVELOPMENT PROGRAMME (EDP) MANAGEMENT DEVELOPMENT PROGRAMMES TECHNOLOGY UPGRADATION PROGRAMMES MARKETING FUND

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