SIDBI focusses on direct financing

Kolkata, Apr 6 (UNI) Small Industries Development Bank of India (SIDBI) has embarked on transforming itself into a direct financing company from a refinancing company and is aiming at higher growth from direct financing to the small and medium enterprises (SME).

''We are transforming from a refinancing company to a direct financing company. Direct financing constituted majority chunk of disbursals in the last fiscal, '' SIDBI executive director V.

Chandrasekaran said.

SIDBI disbursed Rs 10,000 crore in 2004-05 and the disbursals in 2005-06 is expected to be recorded in the region of around Rs 14,000 crore.

Auto-components, garments, engineering and food processing were the major sectors which attracted bulk of the disbursals.

SIDBI is also looking at increasing the coverage of micro-finance institutions to the less developed part of the country, Mr Chandrasekaran said.

In the eastern region it is looking at increasing coverage in Assam, Orissa and Jharkhand. SIDBI is also looking at increased penetration in the northeast.

SIDBI has so far promoted 75 micro-finance institutions for credit disbursal to the SMEs in the far flung areas of the country.

SIDBI is also helping in consolidation of the State Finance Corporations, the executive director said.

''We are also trying to increase coverage of SMERA promoted by SIDBI for rating of small and medium enterprises,'' he said.

SMERA has so far completed rating of 100 SMEs. The rating is utilised for disbursal of loans by SIDBI and commercial banks.

UNI