Role Of Small Industries Development Bank: An Overview

Meena Kumari


The Small Industries Development Bank (SIDBI) of India plays a vital role in the growth of our country in creating employment, exports, gross industrial value of output, gross value added, investment in fixed assets, contribution to GDP, and giving boost to manufacture, service and infrastructure sectors. The opportunities in this sectors are enormous due to the factors like Less Capital Intensive, Extensive Promotion & Support by Government, Reservation for Exclusive Manufacture, Funding by way of Finance & Subsidies, Reservation for Exclusive Purchase by Government, Export Promotion, great demand in the domestic market , export potential and so on. The Small Industries Development Act, 2006 has given choice to a gradual strengthening of Indian economy. In this research paper we give a brief review of the overall performance of the Small Industries Development Bank of India (SIDBI) and acting as the nodal agency of Government of India. Its main aim is to emerge as a single window for meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform. It act as financial intermediaries, banks exist by virtue of their abilities to minimize transaction costs through enjoying economies of scope and scale and by aggregating uncorrelated demand. In comparison to commercial banks, development banks generally have a more special-purpose and remedial function in providing finance to assist in the economic development of some sector or sectors, and this role is particularly important in the case of developing nations. Compared to conventional banking establishments, further distinctive features of development banks are that they are initiated and sponsored by governments. In this research paper we analysis the work of SIDBI and advantages to customer.  

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