BOB has signed a Memorandum of Understanding (MoU) with SIDBI to support various initiatives of SIDBI, with an objective of working together to strengthen credit delivery system, facilitate smooth flow of credit to the MSMEs and startups in hassle-free manner by leveraging each other’s network.
In a bid to facilitate MSMEs financial and non-financial needs, Bank of Baroda (BOB), leading public sector banks enters into a contract with Small Industries Development Bank of India (SIDBI) to strengthen MSME sector.
For this, BOB has signed a Memorandum of Understanding (MoU) with SIDBI to support various initiatives of SIDBI, with an objective of working together to strengthen credit delivery system, facilitate smooth flow of credit to the MSMEs and startups in hassle-free manner by leveraging each other’s network.
The MoU was signed by P S Jayakumar, MD&CEO, Bank of Baroda and Mr. Mohammad Mustafa, Chairman and MD, SIDBI, in the presence of Ashok Kumar Garg, Executive Director, Bank of Baroda and Manoj Mittal, DMD, SIDBI.
With a view to provide End to End solutions for host of services to ease the access of credit flow to MSMEs, SIDBI has launched www.udyamimitra as a part of digital initiatives and as per the provisions of MoU, BOB will efficiently ascertain and sanction applications on Udyamimitra portal.
In the first phase, the ticket size of these would range between Rs 5 lakh to Rs 2 crore, which could be raised to Rs 10 crore in the second phase.
BOB and SIDI share a common objective and synergies in terms of actively promoting Startups, engaging with Fintech and Agritech MSMEs, connecting with the entire life cycle of the start Up eco system, from promotion innovation, incubation and extending financial assistance by way of equit, debt, to product validation and product market fit assessment.
BOB which already works with 25 Fintech companies through its Fintech Alliance, now with this MoU will deepen its engagement with the Startups that work with other entities set up by SIDBI such as SIDBI Venture Capital Ltd (SVCL) and SMERA Ratings Ltd
Speaking at the occasion P S Jayakumar, MD&CEO, Bank of Baroda said that we are committed to work jointly with SIDBI to support MSMEs and Startups to enhance our foot print in delivery of products and services in MSME eco-system.
He further added that this step has been taken to simplify operational processes and to improve the access to finance for MSMEs from a stage of early to growth.
We are fairly active in supporting and promoting the entire Start up eco system and provide mentoring, first enterprise customer and product validation amongst other support and will continue to launch various initiatives in this direction throughout FY18-19, he added.
Mohammad Mustafa, Chairman & MD, SIDBI said that in line with a vision of SIDBI 2.0, SIDBI has been taking all such steps to strengthen MSME eco-system and collaborating with Bank of Baroda through digital channel.