idbi and sidbi

8/2/2019 Idbi and Sidbi

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COMPARATIVE STUDY OFIDBI BANK AND SIDBI


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IDBI BANK

MISSION

Delighting customers with our

excellent service and comprehensivesuite of best-in-class financialsolutions.

VISIONTo be the most preferred and trusted

bank enhancing value for all stock

holders.


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PROFILE OF IDBI

IDBI Bank Ltd. is today one of India'slargest commercial Banks.

Headquartered in Mumbai, IDBI Banktoday rides on the back of a robustbusiness strategy, a highlycompetent and dedicated workforce

and a state-of-the-art informationtechnology platform, to structure anddeliver personalized and innovative

Banking services and customized


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INTRODUCTION TO IDBI

IDBI Bank Limited is anIndian financial service companyheadquartered Mumbai, India.

It was established in 1964 by an Actof Parliament to provide credit andother facilities for the development

of the fledgling Indian industry.

It is currently 10th largestdevelopment bank in the world in

terms of reach with 1514 ATMs, 923


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SIDBI

MISSION

To empower the Micro, Small and

Medium Enterprises (MSME) sectorwith a view to contributing to theprocess of economic growth,employment generation and balanced

regional development VISION

To emerge as a single window formeetin the financial and


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INTRODUCTION TO SIDBI

The Government of India set up theSIDBI under a special Act of theParliament in October 1989.

SIDBI commenced its operationsfrom April 2, 1990 with its head officein Lucknow.

SIDBI has been set-up as a whollyowned subsidiary of IDBI.

Its the apex institution whichoversees co-ordinates & stren thens


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OBJECTIVES OF SIDBI

Four basic objectives are setout inthe SIDBI Charter. They are:

-

Financing.- Promotion.

- Development.

- Co-ordination

for orderly growth of industry in thesmall scale sector. The Charter has

provided SIDBI considerable flexibility


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PRODUCT & SERVICES OFSIDBI

Direct finance.

Bills finance.

Refinance. International finance.

Promotional & Development

activities.

Fixed deposit schemes.

Technology Upgradation &


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DIRECT FINANCE

Since its beginning, SIDBI had beenproviding refinance to State LevelFinance Corporations, Banks etc.,

against their loans granted to smallscale units.

SIDBIs direct finance schemes are:

- Scheme for expansion/diversificationof small scale units.

-

Scheme for specialized marketinga encies.


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Bills Finance Schemes

It involves provision of medium andshort-term finance for the benefit ofthe small-scale sector.

It seeks to provide finance, tomanufacturers of indigenousmachinery , capital equipment, etc.,

based on compliance to the variouseligibility criterion, norms etc. asapplicable to the respective

schemes.


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Refinance Scheme

This scheme is introduced forcatering to the need of funds ofPrimary Lending Institutes{PLI} for

financing small-scale sector. Under the scheme, SIDBI grants

refinance against term loans granted

by the eligible PLIs to industrialconcerns for setting up industrialprojects in the small scale sector as

also for their


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International FinanceSchemes

Its main objective is to enable small-scale industries to raise finance atinternationally competitive rates to

fulfill their export commitments.The financial assistance is provided

in US dollars and Euro currencies.

Assistance in Rupees is also providedto the needy borrowers.

The International Finance is available

from pre-shipment & post-shipment


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Fixed Deposit Scheme

Time Period Revised annual InterestRate %p.a.*w.e.f.August 10 2009

For Senior Citizens

12 months 13 months 6.50 7.0



The Interest Rate Structure for SIDBI Fixed Deposit Scheme of SIDBIare as under


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Promotional and

Development Activities As an apex financial institution for

promotion, financing and

development of industry in the smallscale sector, SIDBI meets the varieddevelopment needs of the Indian SSIsector by its wide-ranging

Promotional and Developmental(P &D) activities.

The activities are as follows:

-


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ec no ogy pgra a onModernisation Fund Scheme

{TDMF}This fund was set up in the year 1996by the SIDBI with an initial capital of200 crores.

It was setup for the purpose ofencouraging the existing small scaleindustrial units to modernize

production facilities and adoptimproved and updated technologyfor strengthening export capabilities.

For availing benefits under this


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Venture Capital FundScheme

SIDBI is participating in the venturecapital fund set by public sectorinstitutions as well as private

companies to the extent ofRs50,00,000 of total capital of thefund required.

The fund should be dedicated tofinancing small industry preferablythe most risky one.


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National Equity FundScheme

In order to provide equity typeassistance, SIDBI is operating aNational Equity Fund Scheme.

The equity capital loan to the extentof 2.5 lakhs is sanctioned to eachproject provided the perfect qualitiesunder this scheme.

idbi and sidbi

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