New Delhi: Public sector lender Bank of Baroda (BOB) and the Small Industries Development Bank of India (SIDBI) have signed a significant Memorandum of Understanding (MoU) aimed at strengthening credit flow, expanding working capital access, and enhancing financial support for MSMEs and startups across the country. The collaboration aligns with the national vision of Viksit Bharat 2047.
MoU Signed in the Presence of Key Government and Banking Leaders
The MoU was formalised in the presence of Mr. M. Nagaraju, IAS, Secretary, Department of Financial Services (DFS), who attended as the Chief Guest. Also present were Mr. Manoj Ayyappan, Joint Secretary, DFS, Mr. Manoj Mittal, CMD, SIDBI, and Executive Directors of Bank of Baroda — Mr. Lalit Tyagi, Mr. Lal Singh, and Smt Beena Vaheed — along with senior leadership teams from both institutions.
Speaking at the event, Mr. Nagaraju highlighted that the collaboration brings together the strengths of a dedicated MSME development institution and a large commercial bank, enabling enterprises to access timely working capital, scale operations, and integrate into global value chains.
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Key Areas of Collaboration
1. Joint Financing for MSMEs
Both institutions will combine SIDBI’s deep expertise in MSME development with Bank of Baroda’s strong national footprint to enhance credit delivery and expand financial inclusion among small businesses.
2. Working Capital Enablement
Bank of Baroda’s digital Working Capital Platform will be operationalised for SIDBI-approved borrowers, ensuring seamless, technology-driven working capital access.
3. Strengthening Startup Financing
The partnership will reinforce startup support through SIDBI’s Venture Debt Programme and BOB’s specialised Startup Banking solutions, including advisory services and customised financial products.
4. Export Promotion and Global Support
Bank of Baroda’s extensive international network will be leveraged to assist MSMEs and startups in exploring export opportunities, gaining market insights, and availing global banking solutions.
5. Cluster and Innovation Support
Both institutions will jointly support MSME clusters, incubators, accelerators, and broader innovation ecosystems across India.
Leaders’ Remarks
- Mr. Manoj Ayyappan, Joint Secretary, DFS, emphasised that the partnership will significantly improve access to affordable and timely credit for India’s MSME and startup ecosystem.
- Mr. Manoj Mittal, CMD, SIDBI, noted that the MoU deepens SIDBI’s long-standing role in strengthening enterprise financing through venture debt, digital credit, and coordinated MSME support.
- Mr. Lalit Tyagi, Executive Director, Bank of Baroda, reaffirmed the bank’s commitment to empowering MSMEs and startups through enhanced digital credit solutions and global opportunities.
- Mr. Lal Singh, Executive Director, Bank of Baroda, expressed appreciation to both teams and highlighted the value creation expected for customers.
During the ceremony, the Secretary, DFS also handed over sanction letters to MSME customers under the new SIDBI-BOB MoU.
About Bank of Baroda
Bank of Baroda is one of India’s leading public sector banks with a strong domestic and international presence. The bank offers a comprehensive range of financial services and remains committed to supporting MSMEs and the emerging startup ecosystem through digital innovation and customised credit solutions.
About SIDBI
The Small Industries Development Bank of India (SIDBI) is the principal financial institution for the promotion, financing, and development of MSMEs and startups in India. With over 35 years of service, SIDBI plays a crucial developmental role through direct, indirect, and digital interventions aimed at strengthening India’s enterprise landscape.
