SIDBI inks MoU with Indian Overseas Bank

Small Industries and Development Bank of India (SIDBI) today inked an MoU with Indian Overseas Bank to provide Rs 100-crore growth capital to micro, small and medium enterprises.

The MoU was inked between SIDBI Chairman and Managing Director, Mr S. Muhnot, and Indian Overseas Bank CMD, Mr M. Narendra, at a function here.

Mr Muhnot told presspersons that as per the understanding, SIDBI would provide a line of credit of Rs 100 crore to the city based bank for a period of seven years.

“...it will be given from the risk capital fund managed by SIDBI and the line of credit will be given as growth capital to deserving MSMEs.”

Mr Muhnot said that the move by SIDBI was to channelise the growth capital to a large number of MSMEs and hence it has decided to partner with select banks. MoU with Indian Overseas Bank was a first of its kind initiative, he said.

Asked whether SIDBI would have similar tie-ups with other banks, he replied in the affirmative but did not elaborate.

Mr Narendra said the bank would be offering this service to MSMEs present across the country through its branches.