COMPARATIVE STUDY OF IDBI BANK AND SIDBI

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IDBI BANK

MISSION

Delighting customers with our excellent service and comprehensive suite of best-in-class financial solutions.

VISION

To 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's largest commercial Banks. Headquartered in Mumbai, IDBI Bank today rides on the back of a robust business strategy, a highly competent and dedicated workforce and a state-of-the-art information technology platform, to structure and deliver personalized and innovative Banking services and customized 4/8/12

INTRODUCTION TO IDBI

IDBI Bank Limited is an Indianfinancial servicecompany headquartered Mumbai, India. It was established in 1964 by anAct of Parliamentto provide credit and other facilities for the development of the fledgling Indian industry. It is currently 10th largest development bank in the world in 4/8/12 terms of reach with 1514 ATMs, 923

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SIDBI

MISSION

To empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development

VISION

To emerge as a single window for 4/8/12 meeting the financial and

INTRODUCTION TO SIDBI

The Government of India set up the SIDBI under a special Act of the Parliament in October 1989. SIDBI commenced its operations from April 2, 1990 with its head office in Lucknow. SIDBI has been set-up as a wholly owned subsidiary of IDBI. Its the apex institution which 4/8/12 oversees, co-ordinates & strengthens

OBJECTIVES OF SIDBI

Four basic objectives are setout in the SIDBI Charter. They are: Financing. Promotion. Development. Co-ordination

for orderly growth of industry in the small scale sector. The Charter has 4/8/12 provided SIDBI considerable flexibility

PRODUCT & SERVICES OF SIDBI

Direct finance. Bills finance. Refinance. International finance. Promotional & Development activities. Fixed deposit schemes. Technology Upgradation & 4/8/12

DIRECT FINANCE

Since its beginning, SIDBI had been providing refinance to State Level Finance Corporations, Banks etc., against their loans granted to small scale units. SIDBIs direct finance schemes are: Scheme for expansion/diversification of small scale units. Scheme for specialized marketing 4/8/12 agencies.

Bills Finance Schemes

It involves provision of medium and short-term finance for the benefit of the small-scale sector. It seeks to provide finance, to manufacturers of indigenous machinery , capital equipment, etc., based on compliance to the various eligibility criterion, norms etc. as applicable to the respective schemes. 4/8/12

Refinance Scheme

This scheme is introduced for catering to the need of funds of Primary Lending Institutes{PLI} for financing small-scale sector. Under the scheme, SIDBI grants refinance against term loans granted by the eligible PLIs to industrial concerns for setting up industrial projects in the small scale sector as also for their 4/8/12

International Finance Schemes

Its main objective is to enable smallscale industries to raise finance at internationally competitive rates to fulfill their export commitments. The financial assistance is provided in US dollars and Euro currencies. Assistance in Rupees is also provided to the needy borrowers. The International Finance is available 4/8/12 from pre-shipment & post-shipment

Fixed Deposit Scheme

The Interest Rate Structure for SIDBI Fixed Deposit Scheme of SIDBI are as under Time Period Revised annual Interest For Senior Citizens Rate %p.a.*w.e.f. August 10 2009

12 months 13 months 6.50 14 months 36 months 7.00 37 months 45 months 7.50 4/8/12

7.0 7.5 8.0

Promotional and Development Activities

As an apex financial institution for promotion, financing and development of industry in the small scale sector, SIDBI meets the varied development needs of the Indian SSI sector by its wide-ranging Promotional and Developmental(P & D) activities. The activities are as follows:
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Technology Upgradation & Modernisation Fund Scheme {TDMF}

This fund was set up in the year 1996 by the SIDBI with an initial capital of 200 crores. It was setup for the purpose of encouraging the existing small scale industrial units to modernize production facilities and adopt improved and updated technology for strengthening export capabilities. For availing benefits under this

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Venture Capital Fund Scheme

SIDBI is participating in the venture capital fund set by public sector institutions as well as private companies to the extent of Rs50,00,000 of total capital of the fund required. The fund should be dedicated to financing small industry preferably the most risky one.
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National Equity Fund Scheme

In order to provide equity type assistance, SIDBI is operating a National Equity Fund Scheme. The equity capital loan to the extent of 2.5 lakhs is sanctioned to each project provided the perfect qualities under this scheme.
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