Lucknow: Small Industries Development Bank of India (SIDBI) has decided to increase its debt target by 25 percent for Micro, Small and Medium enterprises (MSME) for the current fiscal. (JPN/Bureau)
SIDBI is slated to set up an SME exchange with the National Stock Exchange by September for providing small and medium companies easy access to capital markets, said Chairman and Managing Director of SIDBI, Sushil Muhnot at the annual general meeting.
SIDBI is likely to launch its venture capital fund i.e. Indian Opportunities Fund in the current financial year to fulfill the equity requirements of MSME sector through which it plans to raise Rs 1000 crore.
Indian Opportunities Fund will be the third venture capital fund of SIDBI.
SIDBI has provided Rs 24,000 crores so far to various banks under the Credit Guarantee Trust Scheme (CGTS) and which has benefitted five and a half million Industrial units.
To finance the various energy savings projects of MSME sector, SIDBI has entered into an agreement with Japan International Cooperation Agency (JAICA) for a loan worth Yen 30 billion (Rs 1700 crore).
“Recently, RBI raised lending rates but SIDBI did not hike interest on loans despite this move. But, if the bank repeats it again, we will be forced to raise interest rates,” says Muhnot.
The bank registered a 22 percent increase in its business during the financial year 2010-11 while outstanding credit to the MSME sectors grew by 28 percent.
Lucknow: Small Industries Development Bank of India (SIDBI) has decided to increase its debt target by 25 percent for Micro, Small and Medium enterprises (MSME) for the current fiscal.