SIDBI to Extend Refinance Facility for MSMEs; Partners Urban Co-operative Bank SVC

SVC Co-operative Bank Ltd. (SVC Bank) and Small Industries Development Bank in India (SIDBI), announced a partnership by signing an Agreement. Managing director of SVC bank, Ashish Singhal, and Sanjeev Gupta, General Manager, SIDBI signed the memorandum of understanding. The agreement signed in Mumbai said that SIDBI will extend Refinance facility to SVC Bank to facilitate an improved flow of credit to MSMEs.

Commenting on the occasion, Ashish Singhal, Managing Director, SVC Bank, said, “MSME sector is the backbone of the Indian economy in terms of exports, employment creation and revenue to exchequers.” He also said that SVC Bank had supported the MSMEs as a trusted partner for more than 115 years. The company believe that access to affordable capital will prove to be a shot in the arm for the sector.

“In line with the Government of India’s vision of Aatmanirbhar Bharat, SIDBI has proven to be the driving force for resolving the issues relating to MSMEs. We are proud to partner with SIDBI as the first Urban Cooperative Banks (UCB) to participate in their vision of empowering the MSMEs.” He stated.

SIDBI, the Principal Financial Institution for the Promotion, Financing, and Development of the Micro, Small, and Medium Enterprise (MSME) Sector, has recently agreed to give refinance support to qualified scheduled Urban Co-operative Banks (UCBs) and Regional Rural Banks (RRBs). This is the first agreement of its kind with a UCB. SIDBI plans to negotiate more such agreements with other UCBs and RRBs from throughout the country.

Speaking on the agreement, Sanjeev Gupta, General Manager, SIDBI, said, “We consistently work towards offering an empowered ecosystem to the Indian MSMEs. Towards this, we have now extended our partnership with various Scheduled Commercial Banks, SFBs and NBFCs to an urban co-operative bank. The focus is on aligning with the leaders across all segments, which can boost economic participation and upscale of India’s most promising aspirational powerhouses termed as MSMEs. We are elated to partner with SVC Bank. Being a century-plus young bank, SVC has demonstrated success in empowering communities. We will, in time, expand our refinance services to other banks as well.”