AN ANALYSIS OF KEY INDICATORS OF SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI).

The Small Industries Development Bank of India being the apex bank of Micro Small and Medium Enterprises sector was established as a wholly owned subsidiary of the Industrial Development Bank of India by a separate act of parliament in 1990. After being completed 10 years of dedicated services to small scale sectors, SIDBI was delinked from IDBI with effect from March 27, 2000 after the enforcement of SIDBI (Amendment) Act 2000. As at March 31, 2012, SIDBI has made a journey of 12 years after being delinked from IDBI. As DFIs faced competition from banks as well as capital market, they ended up financing riskier industrial projects and large-scale industrial projects carrying low returns and long gestation periods. During 1990s the share of debt decreased while equity increased. The share of DFIs in total loan finance declined during 1990s while the share of banks rose from the low level during 1985-90 by more than double during 1995-2001 thereby overtaking the position of DFIs in project finance. By 2007-08 only SIDBI was functional. This study makes an appraisal of performance of SIDBI in terms of selected physical and financial indicators with the help of year-on-year growth percentage. During the course of the 22-years of its operation, the Bank has been fairly successful in facing the challenges while assisting the sector and, in the process, has emerged as a strong and vibrant institution. The sector to fully utilize its potential, it is essential that the entrepreneurs along with the Government support take necessary steps for their development. [ABSTRACT FROM AUTHOR]