- The MoU signed will enable SVC Bank to tap into SIDBI’s Refinance facility to facilitate credit flow to MSME clients
- SVC Bank becomes the first Urban Co-operative Bank to initiate a unique refinancing partnership with SIDBI
SVC Co-operative Bank Ltd. (SVC Bank), one of India’s leading cooperative banks and Small Industries Development Bank in India (SIDBI), the country’s apex financial institution for micro, small and medium enterprises (MSMEs), announced entering into a partnership through an Agreement.
The Agreement was signed by Shri Ashish Singhal, MD, SVC Bank and Shri Sanjeev Gupta, GM, SIDBI in Mumbai on July 28, 2022. As per the agreement, SIDBI will extend Refinance facility to SVC Bank to facilitate an improved flow of credit to MSMEs.
Commenting on the occasion, Mr 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. SVC Bank has been supporting the MSMEs as a trusted partner for more than 115 years. We 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 an 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 UCB to participate in their vision of empowering the MSMEs
SIDBI is the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities, has recently decided to extend refinance assistance to eligible scheduled Urban Co-operative Banks (UCBs) and Regional Rural Banks (RRBs). This is the first such agreement executed with a UCB. SIDBI will sign more such Agreements with other UCBs and RRBs across various States.
Speaking on the agreement, Shri 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 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.
About SVC Bank Set up in 1906, SVC Bank has contributed significantly to the development of the cooperative movement in India for over a century. Today, the Bank is one of the oldest and most recognized names in the country’s co-operative Banking space and remains the country’s only multi-state scheduled Bank with a presence across 11 states – Maharashtra, Karnataka, Goa, Gujrat, Rajasthan, Delhi, Haryana, Madhya Pradesh, Andhra Pradesh, Telangana, Tamil Nadu. With a total business of INR 29,659.53 crore and a Net Profit of INR 150.21 crore (FY 20-21), it has proven its robust and strong fundamentals. Headquartered in Mumbai, the Bank has a vast spread of 198 branches, and 214 ATMs and has an employee strength of over 2300.
The Bank offers the entire gamut of services across Retail Banking, Corporate Banking and International Banking. SVC Bank was recently awarded for its 100+ years of service at the hands of Hon’ble Union Minister of Home Affairs and Cooperation – Shri Amitbhai Shah. It has also been acknowledged with many prestigious awards, like ‘Data Centers Award’ & ‘Enterprise Security Award’ at Express BFSI Technology Awards 2022, the Award for Outstanding Response to Covid-19 at Co-operative Banks Ingenious Leadership Summit and Technology Awards 2022, and Best BFSI Brand Award 2021 at The Economic Times Best BFSI Brands.
The Bank was among the first few cooperative banks in the country to get the Authorized Dealer Category I License (Independent Forex Operations) from RBI, in December 2007. In July 2008, it launched its International Banking Division, which today handles more than Rs. 3,000 crore forex business.
About SIDBI: Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, SIDBI has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative and impact-oriented engagements. To know more, check out: https://www.sidbi.in
Disclaimer: This is an official press release by SIDBI.