Small Industries Development Bank of India (SIDBI) is on an expansion spree with the bank aiming to open at least 100 branches in key locations to meet the needs of Small and Medium Enterprises (SMEs). This was disclosed in an exclusive interview to tradeindia.com by a senior official who did not wish to be named.

Set against this backdrop, he said that SIDBI has already provided finance to the tune of Rs 10-13 crore this fiscal to this neglected, but otherwise vibrant sector. The official said that it intends to increase the quantum of loans and advances to SMEs in the days ahead. In order to lighten the burden of the SMEs, the apex financial institution for the development of the SSI sector has also been rescheduling loans and deferring payments (giving more time to the borrowers for repayment), he added.

SIDBI, he said, already has 67 branches, with one more branch opening on February 19, in the country catering to the requirements of SMEs and it aims to hit the 100 mark by 2010. Currently, it also offers various services in the hospitality, tourism and other service-oriented sectors. It has already inked MoUs with about 16 banks including Corporation Bank and Canara Bank.

"Our main strength is our honesty" with high quality professionals providing round the clock service to meet the needs and aspirations of SMEs. He added for good measure that "not a single SIDBI branch of the 67 currently in operation has been a loss-making entity."

Currently, SIDBI has four subsidiaries — SIDBI Venture Capital, SMERA, Credit Guarantee Trust and India SME Technology Service Limited. Since most SMEs suffer from technological constraints, the India SME Technology Service Limited has been at the forefront in upgrading the technological requirements of SMEs. In this regard, SIDBI has been trying to create an awareness among the SMEs about the need for carbon credits, the official added.

Mr. Rajeev Mehta

(Tradeindia Expert)

Mehta Stores

Managing Director, Mehta Stores
New Delhi, India