SIDBI to bring in 'Standup India Clinic' to K'taka

SIDBI to bring in 'Standup India Clinic' to K'taka

With an aim to promote financing and development of the Micro, Small and Medium Enterprise (MSME) sector in Karnataka, Lucknow-headquartered Small Industries Development Bank of India (SIDBI) will soon introduce ‘Standup India Clinic’ concept here soon, a top executive said.

Talking to DH, SIDBI Deputy Managing Director Manoj Mittal said, “This concept has been recently experimented in Andhra Pradesh, Maharashtra, Kerala, Tamil Nadu and Uttar Pradesh. Very soon we will be carrying out in Karnataka. In these clinics expert support is extended to applicants who have not been picked/rejected by banks on the ‘standupmitra portal’ for loan sanctions.”

Under the ‘Standup India’ scheme, launched by Prime Minister Narendra Modi, banks will give loans from Rs 10 lakh to Rs 1 crore to SC/ST and women entrepreneurs and also 17,000 handholding agencies provide handholding support to prospective entrepreneurs. So far over 18,000 enterprises have been assisted under the scheme.
Set up on April 2, 1990, SIDBI, has a balance sheet of Rs 76,000 crore comprising both refinance and direct finance operations, as on March 31, 2016. It has 79 offices, 15 regional offices covering all major manufacturing MSME cluster across India. It has over 1,200 staff. When asked about the Karnataka market, Mittal said, “We find lot of potential here and looking forward for more partnerships.”


“It is amazing that there are over 2,000 suppliers to the defence establishments. There is an excellent scope with respect to Machine Tool Industry. In Karnataka, we have four branches. This year, we are expecting 30% growth from Karnataka market and aims to reach about Rs 1,400 crore of direct lending,” he said.

Commenting on the startups ecosystem, Mittal said, “Besides fund of fund operations, SIDBI has a direct finance scheme for funding startups and Bengaluru contributes a very good share in that.”

“To boost startups, we have created startupmitra portal, startup direct financing programmes, fund of funds and have also created a special cell in Bengaluru office, he added.

On microfinance institutions (MFIs), Mittal said, “SIDBI has a specialised vertical SIDBI foundation for micro credit and has nurtured many MFIs over a period of time and some of these MFIs got converted into small finance banks. Three of those small finance banks have their origination in Bengaluru, namely Ujjivan, Janalakshmi and then Future Financial Services which got merged with DISHA (Ahmedabad-based) MFI.”

“SIDBI can be credited with creating MFI sector lending. We have not just provided finance, we have built capacity of the whole sector, trained their staff, transforming their process and products. We continue to handhold MFIs, build the capacity of Self-Regulatory Organisations (SROs) MFIN and Sadhan. In a nutshell, we are a Development Finance Institution and our job is not mere financing but promotion, financing and development,” he added.

DH Newsletter Privacy Policy Get top news in your inbox daily
GET IT
Comments (+)