SIDBI plans to emerge one-stop-shop for SME needs

Chennai, May 27 : The Small Industries Development Bank of India (SIDBI) has drawn plans to emerge as the one-stop-shop for credit and development needs of small and medium industries, its Chairman and Managing Director N Balasubramanian said today.

Addressing a press conference here on the bank's future plans, he said SIDBI intended to strengthen its partnership with select banks, expand micro-finance operations and strengthen financial centres through capacity building in its endeavour to emerge as the one-stop-shop to meet the requirements of small industries.

SIDBI would also focus on small and medium enterprise cluster-based initiatives such as setting up common facility centres, extending marketing support and looking after infrastructure-related requirements, he said.

It has also been planned to increase fee-based services by providing foreign exchange and treasury services in SME clusters, project advisory services, loan syndication and appraisal services, Mr Balasubramanian said.

During the current year, SIDBI proposed to expand the credit portfolio to about Rs 5,500 crore and ehance its support to industrial clusters in auto components, hosiery, garments, rubber, Information Technology and leather sectors, he said.

It also proposed to have a working capital tie-up for SMEs with Industrial Development Bank of India (IDBI) and start a training programme for bank offiers, who would be SME certified, jointly with Manipal Academy for Higher Education.

SIDBI has targeted to take its overall credit portfolio growth by about 26 per cent taking total outstanding to Rs 17,560 crore in the next financial year from Rs 13,890 crore as on March 31, 2006.

UNI