Profile
Origin & Objectives

Small Industries Development Bank of India (SIDBI) was established in April 1990 under an Act of Indian Parliament as the principal financial institution for :
  • Promotion
  • Financing
  • Development of industry in the small scale sector
  • Co-ordinating the functions of other institutions engaged in similar activities

SIDBI has completed 12 years of service to the small scale sector. Consequent upon, amendment in the SIDBI Act, the Bank has been delinked from SIDBI with effect from March 27, 2000. The SIDBI (Amendment) Act, 2000 has changed the provisions relating to capital structure, share holding pattern, management, business, borrowings, etc. The authorised capital of the Bank has been increased from Rs.4.5 billion To Rs.10 billion, divided into 750 million equity shares of Rs.10/- each and Rs.250 million redeemable preference shares of Rs.10/- each. The amended Act provides for divesting of 51% of the equity share capital of Rs.4.5 billion Subscribed and held by IDBI in favour of Life Insurance Corporation of India, General Insurance Corporation of India, Public Sector Banks and other Institutions owned or controlled by the Government of India. Presently, shares of the Bank are held by 36 such Institutions. While IDBI continues to be the single largest share holder of SIDBI, the State Bank of India and Life Insurance Corporation of India follow as the next two large share holders in that order.

Since its inception, SIDBI has been assisting the entire spectrum of SSI Sector including the tiny, village and cottage industries through suitable schemes tailored to meet the requirement of setting up of new projects, expansion, diversification, modernisation and rehabilitation of existing units.





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