SIDBI signs MoU with Egypt for SME sector Development
Kolkata, Mar 21 : Small Industries Development Bank of India (SIDBI) today signed a tripartite Memorandum of Understanding (MoU) with Social Fund for Development (SFD), Egypt and the World Bank.
The MoU,signed in New Delhi,was done in presence of Egyptian President Mohamed Morsi who is on an official visit to India and Union Minister of Commerce and Industry Anand Sharma, official sources here informed.
Set up in 1990 under an Act of Parliament,SIDBI is the apex financial institution for the promotion, financing and development of micro, small and medium enterprises (MSME) in India.
Under the MoU, SIDBI would help promote income generation and employment creation in Egypt apart from strengthening the ties between India and the largest country in the Arab world, the sources said.
Moreover, Egypt being the hub of Arab League of 22 countries, SIDBI has the potential of expanding its activities to other countries,thereby paving greater role of India in Western and Northern African (WANA) nations and the Middle East.
SIDBI's initiative would also facilitate transfer of technology from India and enable Indian entrepreneurs to expand their business to Egypt and other countries in the region.
Among others SIDBI Chairman and Managing Director Sushil Munhot and Deputy Managing Director N K Maini SIDBI were present at the MoU signing ceremony.
The proposed international consultancy project in Egypt would cover five important areas of Responsible Microfinance - Credit Guarantee Mechanism, Developing venture capital and risk capital eco system; Development of clusters and strengthening Risk Management and credit appraisal system for MSME loans, the sources added.
Till March 31,2012, SIDBI has disbursed Rs 24,40,000 crore benefitting more than 32.5 million people. The profit after tax has increased by ten per cent to Rs 567 crore during 2011-12 from Rs 514 crore the previous fiscal.