"I l' 3'f'jtl I'< 31 m"tl'", 2016 cffi" "tf1Tit(f Cf'f a> mi°O +) ended March 31, 2016 submitted to the Central Government on July 19, 2016 in terms of Section Pla~1a> itsff c5)- ftQ)t 19 ~. 2016 cffi" ~ tt'I'< 30 (5) of the Small Industries Development Bank cffi"~I of India Act, 1989. ~-wll Contents ~~ Letter of Transmittal Pla ~ 1ct>-+fstwr Board of Directors Ha~1ct51 cm t1fllrnlli Committees of Directors WJfu l!a> ~ +) Progress at a Glance 3{tll'lff lf a;r CR'f50[f CMD's Statement Rd~I ct5t cffl ftcfrt Directors' Report ~ CHAPTERS 3'1~C'.lfCl~I 3'IR ~a;r. ~ N m:zm :ro+:f • 0 Economy and Micro Small and Medium Enterprises - ct>llfRtqlct'"I N cf'C 4s(.Y1a>aflllli f) Strategic Business Initiatives "t1'Jijf 0 C'.lfdtllll 4R:dl(.Y1'1 Overall Business Operations fcffiRl tl'"ll~~H N cnUa>IIBct> ~ 0 Financial Inclusion and Sustainable Growth fu5tit cffi' t161lldl Cf5T ~~ a Impact of SIDBI's Assistance JHt'kl'"I N RJlflla 3'ffl:t~ll't1'1 0 Management and Corporate Governance fu5tit c5)- t161lf(f) N ttt:ll)J~ ~ a Subsidiaries and Associate Organisations of SIDBI ~-~mi ~-fitd{OI Q Balance Sheet & Statement of Accounts fu5tit Cf5T ~ W"R"·G'3f 3'IR Audited Balance Sheet along with Profit and ffill-~ ~ d'W ~ m ruct' 1!'f ttt:4) 'ti~ 13fl a;r m Consolidated Balance Sheet along with Profit and Loss ttl!Rt>a~-~31'R~-~~d'W~m Account and Cash Flow Statement of SIDBI including rua-<01 (4R~lte· II) its associates and subsidiaries (Appendix - II) ~ gffla«., 201s-1s V'f01-Q31' Letter of Transmittal 19~. 2016 July 19, 2016 The Secretary, ~ Ministry of Finance, ftrn' tj 3' IC'1lt Government of India, ~ ·~Hd>I'< New Delhi. ~~ Dear Sir, fW:f "f E'~ aq I Annual Accounts and Report of the Board on ~ a; fcffir<:r ~ 2015-16 a; Q>J1l-CffiJf mtrll ~ the working of SIDBI - FY 2015-16 ~ Ci'm f;f a~1a> lfsC'1' cCr mrt In accordance with the Provisions of Section 30 (5) of the Small Industries Development ~ ~ 3Wf fcJct>ffi h ~ 1989 ~ ORT Bank of India Act, 1989, I forward herewith the 30(5) a> 111a~1;:fi a> 3i"jttl'< if f;f141fc;tf~a a'Rt1~;J1 following documents : ea~G:l'ffi ha;~~ ~ 5lfu (2) A copy of the Report of the Board on the (2) 31 m-a 2016 a;T ~~a; fffi? itl'ffi h a> Q>J1l-CffiJf a> min ~ f;f a~1a>­ Bank of India during the year ended March lfsC'l' cCr ftqTt cCr ~ 31, 2016. ~. Yours faithfully, {sl. m;iqfa fQ1a1~) (Dr. Kshatrapati Shivaji) 31ttra:r ~ ~a Ra~1ct> Chairman & Managing Director Encl.: as above Annual Report 2015-16 ~ Q;1 ~ i:i5t'f ("tlttT 31 ~ 2016) Board of Directors of SIDBI (As on March 31, 2016) tf.~ftid Dr. Kshatrapati Shivaji JJfi 3raltl W"R' ~ JJfi~~ Shri Ajay Kumar Kapur Shri Manoj Mittal JJfi 'tf(Q 1'1 ~ ~JJ:rr JJfi~~ Shri Satyananda Mishra Shri Pankaj Jain ~ftifm~ Shri S.K.V. Srinivasan Smt. S.mita Bharadwaj --- iii ~ gffla«., 201s-1s ~ tm-~ (~"fl tffiR 2016 aa>) Our Leaders (Since inception till 2016) <• Rm~~~(~) 02 , 1990 - ~ 18, 1993) Late Sbri S S Nadkami (Chairman) c• m3fR"~~~~> 02, 1990 - llR o3, 1995) Shri. R SAgrawal (Managing Director) (April 02, 1990- September 18, 1993) (April 02, 1990-Marcb 03, 1995) m~~'9R'C~) m ~ 3fR" ftfffi ~ ~> &I'.~~~~) ~ 02, 1993 - ~ 30, 1998) (i1Rf 08, 1995 - ~ 20, 1995) Dr. Sailendra Narain (Managing Director) Shri S HK.ban (Chairman) Shri KR Pillai (Managing Director) (~ 03, 1995 - llR 26, 2000) (December 02, 1993 - June 30, 1998) (March 08, 1995 - July 20, 1995) (~v:cf~~ (Chairman & ~~( Director) ciiRf 27. 2000 - 31, 2000) m~lff~<~> m~~ ~ 01 , 1998 - ll'Rf 26, 2000) (3'1R mcrrit;-~c~~~~> ~ 31. 2001 - ~ 28, 2003) ~ 16, 2003 - ~ 08 , 2004) Shri PB Nimbalkar (Chainuan & Managing Director) Shri V K Chopra (Chairman & Managing Director) (January 31, 2001 - February 28, 2003) (July 16, 2003 - December 08, 2004) m1l;f ili<:'l§ii!'IO m~~pc~Q.Cf~~ ~30, 2004 - ~30, 2006) ~ 11, 2007 - ~ 08, 2010) (~ 04, 2011 - 1' m 1l;f % ifit (Oq ~ ~> m. amm~c~~~~> (~ 23, 2006 - ~ 12, 2007) ~ 22, 2013 - ll'Rf 11, 2014) ('ll'f 02 , 2015 ~~ ~ 26, 2010 - ~ 03 , 2011) Shri N. K. Maini (Deputy Managing Director) Dr. K.shatrapati Sbivaji (Chainnan & Managing Sbri Rakem Rewari (Deputy Managing Director) (November 22, 2013 - March 11, 2014) Director) (March 02, 2015 - till date) (October23, 2006-July 12, 2007) (July 26, 2010- April 03, 2011) ~ afi ~ (m:rr 31 1Jfd 2016) Committees of Directors (As on March 31, 2016) Executive Committee Dr. Kshatrapati Shivaji, Chairman sl. ~ ~ICll~ , 3Mai Shri Ajay Kumar Kapur ~~W'R~ Shri Manoj MittaJ JJTI~~ ShriJ.Chandrasekaran ~ -;;) . a~ '.crr.1$f)Ra 1'<1'1 Shri S. Hariharan JJTI ~. gf{g'{'1 Shri R. Ramachandran ~ 31R. '.at.~Ral'<1'1 Shri S.KV. Srinivasan ~ -;;), il~'.c?r.'SflP!a1'<1'1 Shri S.K.V. Srinivasan ~ -;;), :a~)'~ '(014lRI ~ Information Technology Strategy Committee ~ '<"k1Q1;ia NJJIT, JJWar Shri Satyananda Mishra, Chairman ~~~~ Shri Ajay Kumar Kapur Jir~~ Shri Manoj Mittal Jir lffi.m.Jf ~ Shri Pankaj Jain ~ ~. 'd~~'Jf ~ Shri Pankaj Jain ~ lffi.m.ct><'1f (ltn 3f'tttt4'4ft 3tU'<'1f3fl ~ Review Committee on Wilful defaulters & ~arr~ Non-cooperative borrowers fil. ~ ~ICllafl, :mzfaf Dr. Kshatrapati Shivaji, Chairman Jffi ~kti 1 '1 a fl:rJ31T Shri Satyananda Mishra .m 3rR. 'lti4', financial and developmental gaps in ~ mm 3i""d'ii' ~(~-~)/Total Income (Net of provisions) 425.1 4,557.6 5186.0 5938.5 5559.5 "Rem MTlf I Net Profit 35.6 837.4 1,118.3 1417.1 1177.5 ~ q'tm:c5! 311~qj 100 99.47 99.55 99.22 9927 Standard Assets as percentage of net outstanding portfolio i~ Q ~ 3l1fuf' T ~ fuTt ~ The Board of Directors and the Management ~ §e' ~ q5f Ra~l(f)'."qUS'M Ji'k ~-mi ~ team of SIDBI are privileged to present the a>l 1M'~ Qlf 2015-16 3Jlq$ h $fc;m ~ uc;;IT- 2015-16. It is my pleasure to inform that the year 2015-16 was quite eventful in terms of a number <:f;:f)R!Cf5 oq1a~1fuct5 ~QR m1 ~ -aRR ~-* ct51 of strategic business initiatives taken by your ~ ~ TTe', 'WFf·tBf nm oq1a~ 1fi!ct5 ~-R«m:::i Bank, followed by strong balance sheet growth lf ;7!)'T ~ "ie;ffi13\Uf 34('1f~ ~~fa> An important milestone during FY 2015-16 is :mq$fq;$T ~~ Jik that the balance-sheet size of your Bank crossed ~ ~75,ooo l 'QR "(f)'("ffl s3IT 31+mf the ~ 75,000 crore mark by registering 25.7% 2016 a>l ~76,478 ~lRJIT~I ~Qlf 2015-16 growth to reach ~ 76,478 crore as on March 31, $-aRRh~ oqa~lq 1l ~~~~I~ 2016. The Bank also showed strong business growth during FY 2015-16. The total MSME Qlf 2015-16 $-aRR gx; eqe~eq$ ~ ~ 18.6% credit outstanding increased by 18.6% during FY ~~65,632~m1"fm. ~~'~-tffif' m, faqo191 tlf:im m ~ ~ ~ fact>ltl4' 'tlf:i ti~1:m a,~ e+iette+i$ m~ development, etc. Its 'SIDBI Plus' approach covers integrated thrust to MSME sector l85'lcpa m-rmn ~ ~ ~ 1-4 ~ i:-eitetteit$ through its associates and subsidiaries such as, a;) ~ ij_3lt ~ ~ a> fffi?-~ ~ ~Gci SIDBI Venture Capital Limited (SVCL) for Rimes (ettcn~ea); ~ 100 ~ (fq) a> tJq1~ad>­ providing Venture Capital (VC) assistance to ~~ qar-mffi" ~ M a;T ~ mffi" ~ MSMEs, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide ~ a, fffi?-~~ l!Cf mj ~ ~ mW Rfb ~ credit guarantee coverage to collateral free I (~af'\tle+iett$); eitetteiit cBr ~~a>fffi!-~ third-party guarantee free loans up to ~ 100 ~ ~mes; ~t1)fl1 lakh, SMERA Ratings Limited (SMERA) for fffi!. ~ t:!'t1Qit$ lct'1)dfaf'\ 't1fcff151 ~.; QJ:tt:!'at:!it$ credit rating of MSMEs, India SME Technology Services Limited (ISTSL) for technology advisory mcBr 3Flhla> 3llf~ll) a>~~ 'aitlul"'I a>fffi!-~ and consultancy services, India SME Asset t:!'tleit$ m :flcf>~~l"1 ~ ~. (3'11$tllch); 3IR ~ Reconstruction Company Limited (IS.ARC) for a>~. «tPltnt1"1 speedier resolution of non-performing assets a, fffi!-~ q:niC{'ti ~q{1qijc -es :fl4>1$"1=t1 ~ (NPAs) in MSME sector and Micro Units Development & Refinance Agency (MUDRA) to (~)I ~ ~. ~ 3'1efdlt1~1 amm businesses in the country. Thus, through its a,~~;r~fct>T3!R~ti~13l1, & holistic interventions, SIDBI supplements and 1IT'((f ~~ ~ tte:1;aa1 3IR ct>llfd>'11 cBr ~ complements not only the banks and financial institutions, but also the Government of India in 4RCJ:f fuct>m a;) JIR 3ifu'a; tlit ld~ During the recent years, the Government of mrr~~~~~a,~~rea>Qlff India has come out with various initiatives like Make in India, Start-up India, Stand-up India, ~ mw ~ ~ ~-~ ~ ~ ~. ~- 1)Q) ~ Pradhan Mantri Jan-Ohan Yojana (PM)DY), ~. ~-3Jtf ~. ~-3Jtf ~. :quHJOi~ Pradhan Mantri Mudra Yojana (PMMY), Digital JAl'.R. ~. :sluHii~ ~ ~. 1"%fdica ~. India, Skill India, Zero Effect Zero Defect, etc., ~ ~. ~ ~ ~ fgQxre; 3llfu1 ~ ~ to boost the Indian economic growth in a more 3IR xgm ~ ~ e'iette+i$ a;T 3IR 3'lfu'a; £ilt$m ~ inclusive and sustainable manner. Your Bank is ·~ xi ~ gffla«., 201s-1s "ff 3fR c/?r ~ 1l W«Pr h ~ ~ c/?r "<'1614<'11 continuously striving to support the Government of India in taking our nation and ~ 1l &1411<'11'< ~ W- ~I ~ ~ ~ ~fa>;) MSMEs, in particular, to greater heights. In that ~ ~c/?r &li 46C1ctX:fli4i c/?r ~. ~ ~:WT 31tl-$1®t't a> available soft loan to MSMEs, in the nature ~ 1l ~ ~ 3lR ~ e&1t:Me&1$ c€r ~ of quasi-equity to meet the required debt- 3lR ~fr. ~ e&1e"<"te&1$ a>T Wct>m a> 3lCrn"<1 equity ratio and term loan on relatively soft terms for establishment of new MSMEs, as CPT rmT JOR ij; ~ ~ ~~ WT+J mi'f ~ also for pursuing opportunities for growth ~ ~ ~ Cf5'1<:1f;:q<:1'1 cm~ a-;) • In order to foster smooth implementation of <); ~ ~ ~;) www.standupmitra.in ~ "Stand-Up India" Scheme, SIDBI developed ~-tflfu fcia>Ria fttx:ir t I ~ 3ii<'.1~'1 q;T1f ~ a web-portal "www.standupmitra.in" which is ~ 31R~~~. q\ffi(f)'(OI ~. ~­ designed to obtain application forms, ~ <); fcwre fc.jq; a-;) ~ I3IR ~ qm provide information, enable registrations, provide links for handholding, tracking and SitRc~'I <); fcwre ~ ftvm llm t I ~ >JIB monitoring. This will enable our banking fCf> ~ epi:r ~ Cf)+£ 'QCf5 3FJ)~d -:mfu 3rnQT system to fulfil the intended objective of 3i'j)~foa crH311IB 3~1'rr &lct~I at least one woman borrower per bank branch for setting up a green-field mT ~ flrffift I ~ tITre 'CR 1.07 ~ ~ 3ifum enterprise. This portal, with more than 1.07 fen~ 3IR 11,000 &1Pfo~fct5 ea1f~lli ~ 3IR lakh bank branches and 17,000 handholding ~ fcf>m ~ ~-m;JTR" cm- CRg Cf>ll1 ~ agencies, is functioning as a virtual loan xii Annual Report 2015-16 mt. ~~~mffi<);fffi!~-~~­ market place offering pre-sanction match- ~mm!~~1 making services for loan seekers. • 34tad:!Qffif Q>T $f ;:iq~;:&i" wr ~ 3fTffi t1 ~1<14~ ~ 3~Ra ~mt I of the Government of India. To help our ~ ei:tetiei:i$ d-~ cBr lfcre: ~ <); ~ ~ MSME start-ups, your Bank created a ~ 2,000 3JM; fq; ~ ~ 2,000 affi"$" $ ~ ~Rclhl"1 ~ crore India Aspiration Fund (IAF) to be (341$ee4>) cm ffi1q.-i1 m investments in Venture Capital Funds 3fFfT t. JI). 'QX'f(i: ~ Rfu cm ei:tetl ei:tJ ~ ~ (VCFs) which would, in tum, make ~I~~~ cBI' Qil"1i.'l) "www.sidbistartupmitra.in", which enables ~~-~. ~ tl~'!cffi, mil-~.~ start-up entrepreneurs to get connected with various stake-holders namely incubators, ~.JWJi!3'T~~~~~~ mentors, angel networks, venture capital +tddlll'<~m mtl funds, etc. • ~ 3ITT" ~a- JfR' $ ~ ~ www. venturefund. • To take it further, a new website "www. sidbi.in ;rri:ra; 01> ~ di.'ltll$G fdma cffl ~. venturefund.sidbi.in" was developed for oITTP 3Wf ~ ~ $ mtiPf ~ ei:tetiei:tJ cm Direct Risk Capital assistance to MSMEs in the form of sub-debt and equity assistance 34~"1~ ~ 3ITT" $fq=qt) t1e:1<:ia1 $~~~al through Venture Capital Funds. ,;i~+t il.3'T tl~lllar ~ cBr "3lT ~I • d-~$~~10.ooo~cm~Rftr("ilR • Subsequent to the announcement by Hon'ble Prime Minister on January 16, 2016 ~ cer 3fCffu ~ m qlf ~ 2.soo ~ Atmr fct>t? at New Delhi to create a fund corpus of ~ $ ~ ~ i:tl"1.fl4 ~UHii~ ~ 16 ~ ~ 10,000 crore ~ 2,500 crore every year for a 201 s cm~~~ cer ~ ~ a>JtRRr a31t'lll period of four years) for start-ups, an t@lldl $ ~ ~ ftftITT:T ~ 2016 $ ~ f 500 amount of ~ 500 crore has since been affi"$" cBr ~ ~ ~ t I received in FY 2016 as budgetary support. --- xiii ~ gffla«., 201s-1s • 1!"11!'<11!"4$ tj~li1ll cffl- "'fcfl;:flf'tm, mmur m ~ • Under ''A Scheme for Promotion of 3~ fll di ~~11 --A-... .... '' ~qt&-., <-41"1"'11 3f ~I~ 'Q>R :SW'i1~H .... 3ITQ> Innovation, Rural Industry and $"11~ ~so~~ cffi' Jt1dR:a Q and disbursed to SIDBI for managing the ~fctaR:a ~ Tll!, Cflfcp M- JW=T ~ "# ~ fund for investing in VCs with investment a>~Rfuq;r~~~~. ~m; focus on start-up and early stage enterprises w?rur ~ ~ ~ 3WIT a> mt-~ am in the areas of Rural and Agro Industries. •a; ~'6311Jt ~mff ~ \R~~ I 3fffiQT ~fa>~~ :smm ,ft ~' "3ll ~ SIQ>R ~: -alf a;~ we-~ In addition to the above, your Bank also took some more initiatives during the year like: • ~~ ts R:~aacw~ f-rn«P13flJI ~ (~) • Setting up of a new Trade Receivables cCr "Ml4'11 1~~fa;~~me $'1d«:ftc ct>f CIT{~H fc;ifllts venture between your Bank and the (e'11!'<13tl$~e(T1) Q>f ~ 3Qg>11 ~I ~ ~ National Stock Exchange's NSE Strategic Investment Corporation Limited (NSICL), ~ft;;rcf fa>~ Riet::H1d :' 3t91Ji1a'i IBm TTm after obtaining "in-principle" approval from ~I ~a>~ e"fet1eit$ ~ ~~ Cf>l Reserve Bank of India. TReDS will allow ~ \R tITTc' "Cf>'<" '4'rim ~ 'R"Cfjf fa=a4) ti 01 CfRT MSMEs to post their receivables on the QTC!fy I ~ WPR' ei:iet1ei:t$ ~ cCr "h ~ ~ system and get them financed, thereby ~ cJ5r ~ T '<1"1 ltl H 6) \'.ffE1lll addressing the problem of delayed payments of MSME sector. • e'1e'<1$-e'<1eii$ cflc;q;l4 ·~· tR ~ ~ ~ • Commencing merchant banking activities a; '(11dJ1RCf> Fnfi:t' a;~ '$'-31Jl'Ull SI a"tlct> a;~ for the first ti.me by acting as co-lead -ij Q>fi1 CfR(f §I! ~ 'ijR OQl4 IR(f) &T ~ manager for the public issue of one of its customers on NSE-SME platform Q>f~I "EMERGE", • ~ cffl- ffiTRf 1t fi'llct> ~ :s1U11fc;i1qi for Foreign Currency Lines of Credit to STRltf I reduce the cost of hedging. • e+ie4>3f1 $. 3f(Yq 3flfuf 0Qq'<11ll, ~-3t1tt1R:a • Implementing new Risk Rating models for OQqtJ1ll, q1fUifa<:1ct> ~tiqa1 OQq'(illl am~ MFis, Asset Light Business, Cash fl.ow based 0Qq'<'11ll ~ a; fffi! ~ J11f~"i ~ Tffgffl Q)f business, Commercial Real Estate business and Secured Business Loan. Rf;l!1;ql1'1 I xiv Annual Report 2015-16 ~ •3ITW h cer Si121rndX11 ~1 ~ar ~ Customer satisfaction is a priority of your Bank. ~ $-fffi! crlf $ ~ 'ftfsir flr.f' ~ Ji)cU$t1 ~ During the year1 a mobile app 'SIDBI Mitra' was developed for direct finance customers to ramafax:ITTfm1 ~~$~a>T~~ facilitate providing information related to ~~~m:JIT~~. R&1~H~14Sia"tld5~ accounts of the customers with SIDBI, channel ~ JOt)a1$ct ~~JJTmt31R~~. lfi1T for mobile messaging directly with the ~~~~mn-3$aftoo":J1T~t1 ~ Relationship Manager (RM}, service requests $lTI&Jlf~~e-)~c:t1~ ~$~31R3$m related to loan ledger, demand advices etc. An interface for SIDBI officers has also been made Wt Pw<1;ft $ ~~ fuscU 3Jfud51R4i $fut! mrr operational for monitoring the communication 3qq)J1dX1faIT a>) RBl~H~IQ Sid"tlcffi ~ ~ ~ $ and requests from the customers generated fut! ~ mD $c' ~ ~ 3UPftd5'<01, of SIDBI's operational architecture. Your Bank has made a number of promotional & JElrna1 fcre;m', ~ ~. RlqoH t@lla1. ~ developmental (P&D) initiatives through "fllaffiff, ~ ~ ~, Cft'1«1'< fcre;m' 3llfa-ij; ~ rural industrialization, entrepreneurship ~ J1R fcfCf>ffi (~) $ ~-~ w:tm ftoo" tI development, skill upgradation, marketing support, financial literacy, credit advisory ~ ~ 31R Rld51'<14' ~ ~ e+'ttNrn+i$ tffi:r $ services, cluster development and so on. These 2.3 ~ ~ 3ITbcP ~ cm:nRIB St! t 31R 1.5 ~ P&D interventions have benefitted more than ~ 3ITbcP '()31JIJ'< ~St! ~I ~ 80,000 ~ 3ITbcP 2.3 lakh persons in the MSME sector, created more than 1.5 lakh employments, helped in $d51$41 ffi a; fiRT is indispensible for the growth of Indian ~I'<~ ll 3l:aaict 'ffi I "d5T fcre;ffi ~ mmf5aT I fuscU E;:RT economy. To make the MSMEs attain higher e+ie'tfe+i$ a>) ~ l!ii Rld51~14'{(f) 'tft;:lll(11 m 3fTfil growth level, SIDBI would continue to provide Wfi. OTFcP a~~-~~ (f)'{" %1 ~. financial and developmental support to MSMEs. S1Rt>li13i1 mITSlallP~-~~ ""'ci);;il~a1 a;~~ Its role would be more effective through innovative products, processes and delivery to ~ a>T 34R Si 1=11c:t~11t'l) ~ Jfm1IT. OTfct> e+'te'tf e+i$ address various financial and developmental q1Ra~ $ ~ RiJhF1 l!ii Rld51-m:JIT~I tt-~. ~WfcCr~- start-ups, knowledge-based new age companies, 3lltllRa ci>qf;i41, ~~.~'fa-TI. fat14)t101 infrastructure, sustainable finance, cluster- ~ gffla«., 201s-1s 31R"fcrct;m~ ~ Cti.1'R/<:-~ 4f{ci~ w JTroR-~~ ~. mfct> 311;?Jcm~ ~ development, etc. would act as guide-posts of ll l!'ilNH?'"l~ ~3fR3ITmf>~, ~. ~ your Bank's efforts to make our MSME sector stronger, sustainable, more inclusive and highly tt'"ll~~TI <'fm sif Chairman & Managing Director Annual Report 2015-16 ~ 'aft ftq)t ffffittl Qt{ 2015-16 Directors' Report FY 2015-16 h q;r f.:1a~1a>-+fsff 31 ma 2016 cffl- ~~ The Board of Directors of the Bank takes ~ a> fffi! ~fa> a>~ O!:fCitt1<:1 mi 4Rtl1C'1;:fi pleasure in presenting its Report on the overall business and operations of your Bank for the cRf 'Ml4'11 ~ a> Q"llH"tei:t$ ~ q;r Your Bank was set up in 1990 under an Act of the Parliament as the principal financial ~. fch14)lWI 3JR" ~ ~ ~ ~ 9Q>R cfil institution for the promotion, financing and ~ ~ ~ ~'M13i'i a;~ tt"l"Qll Cf>'<~Cl lctl development of the Micro, Small and Medium ~~~a;~~~a;~a; Enterprise (MSME) sector in India in addition to ~ 1990~cRr11"$ ~I e"lette"I$ ) e"!ette"I$ ~ ~ fcf;T/ similar activities. Financial support to MSMEs is fcffiT<:r ~ 'M l::Hi T, ~ ~ Rtrm q;)- ~ to banks, State Financial Corporations (SFCs), tt~lll('ll, fq;T cffl ftfcif ~~ '<1~1<:1('11, 3Jcq fcffl Bills Rediscounting support to banks, assistance 3i'i 3lR" e~~ll~ 'ti"M13fi cffl- tt~ 1l1<11 ~ fcfft:rn" 'ti"M1 to Microfinance Institutions (MFis) and resource cffl- 'tittlU""i '<"f~llldl ~ ~ I <:ffi" fa> a> ~ ~ support to various institutions and agencies and it constitutes about 83% of total credit ~ q;r rf1TWT 83% ~I ~a;rOR ~ a> ~ outstanding of your Bank. While the indirect ~a; fcffl ~ 24% cRr ~ ~ 3lR" ~ ~ 54 ,235 finance increased by 24% to ~ 54,235 crore, ~ mlfm, ~ fq;T~ ~'M13ii cffl- ~ refinance to banks I Fis which constitutes ('5f)fcp ~ ~a; fcffl q;r ~ 86% 3lR" ~ ~ around 86% of total indirect finance and around ~q;r~ 71% ~) ll 22% cRf ~~I 71% of total credit outstanding, increased by 22% during the year under review. ~ fa; cRr Sf('qaf Rh14)~Ul-'R ~ el4e'<"teJ4$ cfil ~ this way, SIDBI is complementing and 3lR" 3ITlIT4T ~ 3l1ct~llCfX'113ii cffl- ~ ~ a> ~u supplementing the efforts of banks I Fis in ~ gffla«., 201s-1s 1l ~~ ti~1$1 ~ fcro JfT ~ ~
1t ~ ~ SC! payment record since inception and for the FY ~I 2015-16, it paid dividend of 20%. II. C41dtt1Rfa> 'Sl'QRf II. Business Initiatives eitetteitt ~ $ ~ 3lR ~a~d>' :srtJRr fcro-1 g>3 'i6ettiof ~ important initiatives are: a;r~~~JfT@~: • In order to take forward the Govt. of • mm~$ 1)Q; F ~· Cf514¢'"1 cP1 India's 'Make in India' programme, SIDBI ~ ~<);~~~ ~ ~1.000 ~ set up ' SIDBI Make in India' fund with a cCr ~:f.ffu ~ ~ mt> F ~· Rfu corpus of ~ 1,000 crore to make MSMEs a xviii Annual Report 2015-16 'tl~a c/?r, f i l!"ll!'tl1Yi$ ~ ~-~ world-class manufacturing hub. Under the ~Pti:ifo1 ~ ~ JfT ~I ~ -Rfu m~ fnnd, concessional finance is provided to 3'12ict4 ~ ~ ~­ new MSMEs, as also for pursuing opportunities for growth for existing ~ cCr ~ $fifilei ~ 3IR- 3'11)~ m MSMEs. ~m~~~imi~I • Your Bank constituted a ~ 2,000 crore India • ~fa>~ ~2,000 ~~) ~1fqa fct;qr1 ~ ~ 3U'"I" utilized as a Fund of Funds for making tr~ Rftrm ~ Him a>~ Rftrm cBr Rtti a> investments in Venture Capital Funds (VCFs) which would, in turn, make ~ 1l fct;qr JJT ~ t I <) "Rfmff eiiet1eii$ 1l investments in MSMEs to the extent of ~ ~. ~ ~ cBr ct=t1'1alll¢l"I programme of Govt. of India, SIDBI ~ ~ ~ m~ ~ ftrscft ~ WWW. prepared an on-line platform "www. sidbistartupm.itra.in", which enables sidbistartupmitra.in ~ 3iR-~ ~c4>14 entrepreneurs in the start-up community ~ fct;qr ti ~ ~ ~ 1l ~ ~ ~ located anywhere in the country to get d-3Itf tt'jafq a; 3tlflol41 q;) fcrlmf mr- connected with various stake-holders, tlRct>T. ~- ti4)~ct>'i. "ll'fa~fcffi. ~ ~. namely, incubators, mentors, angel 3U'"I" t;tT ~ 3JTfa' ~ ~ ~1fqa ~ networks, venture capital fnnds, etc. ll ~ Qffi'JT t I 'll2IT 31 ~ 2016, (i11l11T 500 Around 500 startups, 48 incubators and 50 investors have already registered on this d-3Itf, 48 ti4)~ct> "d'm 50 Pt~~ta>af ~ platform as on March 31, 2016. ~c4>14 ~ tj;:rl)cpa m¥~1 • A new website www.venturefund.sidbi.in --- xix ~ gffla«., 201s-1s s:l~'1'M ~ ~ ~ ' ~ '# was developed for Direct Risk Capital ~al .:n"IR9l4 ~ ' ~ a61'<11$G debt and equity assistance through Venture Capital (VC) funds. ~ d5f:aa cf5r 1Tt I • Subsequent to the announcement by • d-~ a> IBl! ~10,000 ~ cCr ~ Rftr Hon'ble Prime Minister on January 16, (-aR qlf cf5r ~ ('f "'1::'41(1q l+i Q>R' SllSil~H • Under ''A Scheme for Promotion of 3ffq; $"1)a~H. ~ ~ ~ s:li::'4Sl;q)'{~IQ Irmovation., Rural Industry and (~~Ill'<)" Rftr $ ~ ~ CPT ~ 60 ~ Entrepreneurship (ASPIRE)" Fund of s:i1ciR;a Cf ~~aRa ~ lfl!, wfa> ~ ~ Ministry of MSME, ~ 60 crore was allocated ~~:mm a>~'# d-Jlq ~ !{!'63il~ and disbursed to SIDBI for managing the ~a>~'#~lR~JW:r~°# fund for investing in VCs with investment focus on start-up and early stage ~ ~ Rfu Q5f ~tR ~~I enterprises in the areas of Rural and Agro Industries. • ~~ qlf a> ~ ~ ~ ~ t.:!'1t.:!'<1$- t.:!'14 ,.~,, lR 3itR {!Q) ~a> • During the year under review, your Bank t11 ~ ~-JmOfi Sl61TtlcP a> commenced its merchant banking activities ~ '# Q5fl4" ~ §t! &41QIR¢ ~ TJfufcrtb by acting as co-lead manager for the public issue of one of its customers in NSE-SME mc/5r1 platform "EMERGE" . • ~ci5rffimilf~~ij)~~~ • Alternate Hedging Mechanisms for Foreign ~ ~-OQdffil::m a> IBl! ~epft'\lct> ~ Currency Lines of Credit were introduced sio11ffilli m cf5r 1lf 1 to reduce the cost of hedging. • t.:!"'ll'.!4>3f 1$ I 3R'Q' 3"lfut' OQdtll<:i I ~ ~ • New Risk Rating models for MFis, Asset s:i1tl1R:a &4d'<11ll, d1f01f.jtjep ~ &4d'<11<:1 Light Business, cash-flow based business, mlT Slf'a\Id OQdtll<:i ~ $ ~ ;r4 31)flg+t Commercial Real Estate business and ~ ~ q;r Rt>lll'"ftll'1 fcfx:Jr lTllT I Secured Business Loan were implemented. • • New financing channels were created Annual Report 2015-16 ~'MH, ~ m -m:r, ~ ~. ctllll~'tj\'{ through Industry Associations like farffi ~ m -mi (cffi rg~ll 1) ~ m 31TQ5 Karnataka Small Scale Industries Association, National Institute of Bank ~ $5~51 ~=a'l~lM'i (ctll~lll) ~ m Management, Rai Industries Association, ~ $ ~ ';fl! Rrt1' lH +iltlli?i CJ5T ~ near Delhi, Coimbatore District Small Scale fax:Jr Tf"m I Industries Association (CODISSIA) & Chamber of Small Industries Association (COSIA). • ~ JW:r ffl1R $ ffit! ma fa> ~ 34j~Rla • In order to foster smooth implementation 'atTfa ~ 3f'j~<1 51'1511Ri $ Q)l1 ~ Q5il" mt> of "Stand-Up India Scheme" launched by 3tll' ~ 3tll're:F1 m a;~~ Ji1:ri4\ll :s1t1Htj:fl g:RT os we; and t 1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) 2016 $ 3ITtq cCr ~ "~-3fq ~ ~,, borrower and at least one woman borrower $ ~ f~l"Qll'i $ ~ ~ $ ~ per bank branch for setting up a green- ~ 34TtJ$ h ~ www.standupmitra.in ;:m:rcp field enterprise, your Bank developed a web-portal "www.standupmitra.in" which mr-qlffi fama mx:rr t 1 ~ ~ ii1+~h'l was also launched by Hon'ble Prime :sit! Htj ~ ~ ~ ~3JRlT fcfx:rr I 1:16 ~ Minister on that day. The portal acts as a 3!TctR ~ ~ ~ tct> m m:rr ~ '<'1e:1l!a1 loan market place for application filing and $ ffit! ~/fcp ~ cCr p ~ ~ ~­ tracking as well as providing the facility m;JiR" $ ~ ~ Q;11=I" CfffifT t I ~ q)ffi ~ 1.07 for choice of branches/ banks for credit assistance. The portal with more than 1.07 ~ ~ a:rfucp fa;~ ~ 17,000 +il'fo~ht> lakh bank branches and 17,000 e'11R1<01i ~ '<'1fll1111~ ~ ~ cCr cro;; handholding agencies is functioning as a Q;11=I" ~ ~ ~, -;m- ~ ~ mffi $ fffi! virtual loan market place offering pre- ~ ~ lhi-~ ~ >re:R ~~I sanction match-making services for loan seekers. III. Business Operations 111.1. 'fctq~/J11 Rl+t ~ ill.1. Equity/Risk Capital • 34TtJ$ fa> ~ 2009 1l e+ie'<'le+i$ afl~+i ~ • Your Bank started the Risk Capital ~ (e+ie'(1eii$-3f1-<\'ile45) a> ~ ~ 2,000 operations in 2009 under the MSME Risk CfRT"Q cCf ch'H&fG; ~-~ ~ J1)f-{9+i i~ Capital Fund (MSME-RCF) with a 4Re1i1;fi cCr l{!'l"l ~ ~ -a14t~ll'< :sflsct~-a $s~\J1 Indian Software Products lndustries Round ~ ~ ($~Re} m"8W 31~4t11Rct> 'tlit$?1a1 Table (ISPIRT). So far, 57 start-ups have Sf1tR ~ ~'41faa ~ti ~ ~ m 3ffi1fu been sanctioned assistance aggregating ~ Oct> 57 d-~ ~ g;M' ~ 57.48 ~ cffi" t 57.48 crore under the scheme. '<151llC11 ~ c/5r ""'1T ~~I • ~ar Jl)ftt:q ~ 4Ril1c.wt01 • Direct Risk Capital Operations: ~ar 4Rt11C1'11 m3ffi1fu, 'l$lfi (~ ~ m~ ~) WITT *{!'6311ffl offered to both well established MSMEs (as Q'l't1 ill.2 Sustainable Development ~~ qtf a; aRR ~ ;t fcffmJ ~~/ During the year under review, SIDBI operated focused concessional lending schemes for ~~ eJt~ll1 (~ '\J1TQFl $E'<~~HC1 ~3ilQ~~H Energy Efficiency (EE) out of Lines of Credit ~ (~) ~ 1-30 ntf?tll"1 ~ <).:r, (LoCs) from various multilateral I bilateral ~ 11-30 ~fc:"lll"1 ~ <).:r, 'iRUT lll-30 ~fi'lll"1 agencies, viz. Japan International Co-operation ~ ~. ~ slxt>t$'8 fg saC1qJ1c; (~). Agency (JICA) Phase I - JPY 30 billion, Phase - II m- 50 fllfrtlH ~ ~ ~d'«llct:: QX e455~, ~- 50 fllf?t4"1 ~) ~ sm ~ m~ ~ ~alfil ~ ~ Ra1acfl France - EUR 50 million and Kreditanstalt fur Wiederaufbau (KfW), Germany - EUR 50 cml ~ 4'15Hl3fi q;r ~ ~ ll~dHle 4R'tllIB<1 million. The main objective of these schemes is ~ J>JJf ~amr ~. co Jffiaf'1 ~ ~ t'fRT ~ 2 to enhance energy efficiency, reduce co2 d>lciHN: 1l itHffia e"le'fie"I$ cBr ~ ll ~tJR emissions and improve the profitability of the i'fRT ~I Indian MSMEs in the long run. Cleaner Production/Environmental Lines of Credit l:!"le"ee"I$ ~ ll ~ a> 'fQ'tl§d'< m~ ll ~ Your Bank has contracted LoCs aggregating q;) ~ ~ a>~ ~ fcp ;l ij)eqsg~ ~ ~ EUR 53.74 million from KfW, Germany for promoting investment in cleaner production 53. 74 fllffia'1 ~ cBr ~ 3ifQ> ~ a> IBt! ~ options in the MSME sector. The main objective cf>t ~I ~ ~ 3JfQ) ~ Q5T ~ ~ 'fQ®'< of these LoCs is to achieve a reduction or ~-~ a>~ Jffiaf""t q ~ q;) Q5"I" "lfT avoidance of emission and pollution through WTit(1 Q5'<;n ~I ~tilfl1d> ~ 1l ~ ~ ll cleaner production investments. Investment Q"IQ'fil:!"I$ q;) l'ml ~ ~ 'til~ct> af%:a ICl-W'.Fr such as Common Effluent Treatment Plants (CETPs), waste treatment, storage & disposal ~ (:A1$l\Q)), CP'tl"OI B 1l ~ 1TC! ~ ~ number of MSMEs in the industrial clusters are 'ti ~lll<1 I $ fffe 'CITTf gI lrcf)('1' l!"ll!'fi l!"I $ m~ ~ also eligible under the assistance. Individual 1TI" ~ ~-d!Cl~I m~ ~ ~ ~ $ fffe MSMEs going in for investments that will result 'CITTf g f3y;ffi ~ Pili ~01. cmR 1l ~ ~ Wtr) in the pollution control, waste reduction, improvement in raw material productivity etc., lJTff cCr JcT~ • The services sector remains the key driver of India's economic growth, contributing f.:llfl"ld> ~ s31T ~I ~ alf 2015-161l ~ almost 53% of its gross value added in FY itl' m , ~ 53% q;r 4'1J1c::1"1 fa>m1 ai1 of contribution to trade flows, FDI inflows, ~ 3ffi:m om '°"Pll'< cCr ~ ~ ~ ~ and employment. India's services sector ~ 'lfa~~ci ~I ~ m ~ lITTr ll ~ >rct>R covers a wide variety of activities such as --- xxiii ~ gffla«., 201s-1s cCr ~ =t1~1~a ~. ~ m , ~Cf trade, hotel and restaurants, transport, ~. 4Rct~'1 . iiu51•M ~ ~. Rrt1 ~ ~ ~ ~ ~ ~I and services associated with construction. ~ af?r cCr ~ ~ a;t ~ ~. 3l1trQ5T In view of the growing role of service h ~ af?r Cf>t ~ OQcMlll $ ~ ~ ll sector, your Bank has been focusing on ~ lrcl5' l1A' q;:{ ~ ~ tzlR ~ q;:{d'T 3IT w service sector as one of its niche areas in ~I business. Ill .4 5fl'CZ1 ftrty III.4 Receivable Finance • e~e=tle~$ a;t ~ 5ffClf mrm cCr ~ • In order to help the MSMEs for quicker ~~~~~~~~~ realization of their receivables, thereby ~ fl:rrR cfir ~ a>r =ti~ltlH ~ m addressing the problem of delayed ~ ~ 3l1trQ5T h 1991 ~ 5frczT fcrn ~ payments, since 1991, your Bank has been (3ll'1 a'1 airft ~ 4RtQ1 under which it fixes limits to well- ch4R4f -a5r ~ RtifRa -a5r JITffi ~ ~ performing purchaser companies and ~. ffflrr. Jq-~q~51'11. ~ 3lft -a5r discounts usance bills of MSMEs I eligible service sector units supplying components, ~ d>'l$ql $ ~ ~ cCr ~ cCr 3fffiT ~, the MSMEs I service sector units realise mfa> 3m e~e=tle~$Mcn m -a5r $Cbl$'1i ~ their sale proceeds quickly. Your Bank also ~ cCr ~ :inua1'!cfct> m ~I 3l1trQ5T offers invoice discounting facilities to the h ~ ch4F14f a> eiie=tleit$ J11c{cfd>C1farr MSME suppliers of purchaser companies. cPt ~ ~ cCr p ~ ~ 'a;:{d'T ~I The focus during the year under review ~autlR qtf a, ~ cffilJR sif~13ii ~ was on strengthening the existing ra~11F1a~~ a>t ~ m ~ &JH ~ fct5m processes and guidelines. As on March 31, lTl!TI ~ 31 ma 2016, 3ll' mR) financing the micro finance loans (upto t 50,000) a>t ~ ~ ~ ci>qF14f~ ~ ~ ~- and also the Missing Middle Segment (loans in xxiv Annual Report 2015-16 l:!JilN>3l1$ ~ ij; lflttP1 ~ '<151lk11 ~~~I ~ the range of ~ 50,000 - ~ 10,00,000) through St! llu:J ~ mM mfa:J)<:H m~ ~ ~ NBFCs I NBFC-MFis, etc. The Lines of Credit (LoCs) from ADB and KfW, Germany for dle455t Cf5T gx'f aggregated to tl0,769.17 crore till March 31, 3i("llfat1 ~ 23% ~ ~2.996 cro~ mllml 2016. The gross microfinance outstanding of the Bank increased by 23% to ~ 2,996 crore as on ftlmft a; lflttP1 ~ ~ '<151l(dl ~ till'mT 345 ~ March 31, 2016. The assistance through SIDBI ~ 'Otlffi; ~1F..qa w ~ 1 ~ ~ J41a1a'< 'iIBC'11e has benefited around 345 lakh disadvantaged ~I people, most of them being women. International Partnership under Micro Finance • Your Bank had entered into agreement with (i) Kreditanstalt fur Wiederaufbau (i) ct; a>rnci«1 e455«'q), QR (KfW), Germany for 3 LoCs (a) EUR ~- 3 ~-0Qc:tffil31'i a,~ (Q>) m'«i 85 million and financial contribution ~ 3ICtf ~ ~ q;) mtm fa:J) t:jd)'( I of EUR 1.69 million for improving 'iIBt.113ii c€r ~Q ~ ~tlR' C1'H ~ 85 m access to microfinance products in f1:1ffiq"1 ~ om 1. 69 f1:1ffil1"1 CPT ~ India among the poor, particularly {~)- fa!l1 rc (ii) Asian Development Bank (ADB) for faffi<:H d>IUa>Ji1 ij; lflttP1 ~ 3Jfu loan support of USD 50 million for providing SIDBI with long term "i5't' (s~J))- 300 fllf(lf<:H 3tftRcffi (ill) World Bank (WB) for loan of USD 300 sTt'R m~ ~I ~ $o<:i~HH million, including USD 200 million fa> 'CbR .fl "~'({'Rf" q l!Jil!'(il!Jt$ ~ ~ ~l~d fcm queries raised by banks etc. The MACs ~I eim~eit$ ~ ~ :mlrr mu m~ have been serving MSME clusters across !1lcict5'< ~ ~ a; l!l4l!'(1l!l4$-~ cCr ~ QR" the country in partnership with Industry Associations. For manning the MACs, your ~~IF~ ~resm q~ m-~ Bank has appointed Knowledge Partners cCr R<:!fil> cCr t, 3TI e"'le'(1eit$ m a;r cmqq; (KPs), who are retired bank officials, with ~~ '<>&:ia18t ~-~ fa> ~ ~I vast experience of MSME sector. The KPs ~ CPllJ m~ F m-~ Q5)- ~ have also been suitably trained for the Annual Report 2015-16 ~atUT ~ rorr nm i I :ml (f(!> ~ W ~ purpose. So far, more than 12,500 MSMEs 12,500 ~ 3rfbq; eitefteit' rm:nRIB t?r ¥ ~t have benefited through MACs. • W'f 3tlflJttl er;)~ cr.n: ~ fQ; ~WWW. • Promoting youth entrepreneur5hip: Your Bank developed a website "www.smallB. smallB.in ;:rp:jQ) a&ftl$C fcta;f~C'I ctr i, JI)- ~ in", which is a virtual mentor and ~ ~ cffi1lR dlcH11ll ~ 3t1fl:t<:fl, ~ hand.holding forum for new entrepreneurs ctr ~ ~ ~ 3t1fl:tlll mffm ~ ftfl11~1-«i and even for the existing entrepreneurs to tm-~ 3fR it11fo:fla; ~ WT a>lll aRITT i1 grow their existing business. The website g>tJ ~ ~ ~ a&ftl$C cffi 3iI'< ~ ~ §3IT m1 A wards in the past. • Capacity Building of Regional Rural • ~ 1mftuT "hl/ ~ 'tftta>i I ~ ftf ~~ role in providing credit to micro enterprises due to their proximity and C'ffi ~ ~ ~ ~ "lfffi Q"{ ~ i 3fR f"1f1Cbl ~ ~~ objective to enhance the credit flow to 3Wf aa ~ 2 fact:8l<:1 ~ 311~1R:a a:rrqq; 2-day video based training module has ~mur "ll~ct fdCtJR:ia ~ ~ si14lfl1CtJ been developed and pilot tested. Based on tRTafUT faxtr "li~i"i TR:rr ~I ~ llfumur m the training module, 'Training of Trainers' 3l1tl'R ~ ..~~:mrmur" CtJ14~ 3lt<:1'1fata programmes have been conducted fa512' Tfl!, ~ 42 ~ m1frvr ~~ benefiting about 430 officials of 42 RRBs I tt~(f)){) ~a; 430 ~~WI UCBs. • Micro Enterprise Promotion Programme • ~$r JW'f ~ d>ida>+t (e+i~ ~ ~ a:rrqq; :ro"l' viable micro enterprises leading to tt~llldl ~ ~ CfRff w ITTt d:ICl~l4 ~~ employment generation in rural India by providing comprehensive enterprise ~ Q5T ~ ~ ~. ~ m1frur ~ support services through identified ll {llJ'Jlll'< ~ m~I ~ mo 26 ~ m implementing agencies. MEPP has so far 126 f3rm 1l e'i~cf)cf) ~1:;:ql1'1 Wffi' ~I Q5T m been implemented in 126 districts in 26 ~ ~ ~ ~ 42,000 :ro"l' ~1fGa W ~I states. Cumulatively, about 42,000 enterprises have been set up. • 3Gflldl ftrct;m d>l<.fst>+t (~): 3ITQQ5T fq; • Entrepreneurship Development Programmes (EDPs): Your Bank's support 3t1~a1 fcJcmf CtJ14wm a; IBt! tt~1l1a1 ~ to EDPs aims at building and nurturing a Cf5'Rta ~ 3IR" Q5T opportunities, especially in far-flung and '("l51lll'< a; ~ ~ ~ 'tt"al+i 'EQ{llJ1llJ'(-~ rural areas targeting less privileged :mm Q5T ~ ~ a; ~-~ 3t1~m Q5T sections of the society like women, Ea> a1f "Rflfu" er fdcfiltia ~ ~I ~ 31 lITTf minorities and SCs/STs. As on March 31, 2016, a total of 3,191 EDPs had been 2016, fc5 ~ g>i'1" 3,191 ~a;~ tt~llldl ~ supported by the Bank, benefiting more ~. ~ ~ (Tl'~~ a; 79,500 ~ 3lftrn; than 79,500 participants in various target ~ t'm41f;aa W ~I~~~ (if1JWT groups. Cumulatively, about 39,500 39 ,500 ~ ~ m 3ltAT $Cf>l$lli (i'nT m participants have either set up their own ~ ~ 3mQT ~ ~ ll ~ ~ ~ '(~IJillJ'( units or have been gainfully employed in ~CfR~~I the sector. • ~ fac5m d>lda>+i (~)= eAl'.!tteA~ • Skill Development Programmes (STUPs I SIMAPs): With a view to strengthening the Jt1~m <€!" act>"fta§) 3IR" sni""eb)ll at"la1 3ii technical and managerial capacities of the xxviii Annual Report 2015-16 cffi" w ~ m~ ~ 3ITQQ)f h 51fafYoa MSME entrepreneurs, your Bank supports ~~itM11c:ffl ~te11"11 cffi" ~§l a "~-w-sihnfl1J)) ~ management I skill development d51a¢"f (~)" am ""ffil m ~ ~e1lld5 programmes, viz. "Skill-cum-Technology d51d¢"f ~)" ~ ~cx:iaf~a ~~ Upgradation Program.me" (STUP) and ftra5m d51d¢"f ~illf?ta ~~I "Small Industries Management Assistants Programme" (SIMAP). • ~ ~ m~ ~ ~ ~ 1,5ao • Since its inception, SIDBI has supported ~ 3i1q)f31a fct>iJ ~, fvRffi ~ 32,750 1,560 STUPs benefiting about 32,750 ~ HliJlf.aa ~ ~I ~ ~ Q11f.«:;d5 participants conducted by specialised ~ Ect Sl,Q)fl1c/)) ~ (fuQ?;). institutions viz., Central Institute of Plastic Engineering & Technology (CIPET), Ect ~a ~ ~ ~) ~ Mt:ttl)ll Central Institute of Medicinal & Aromatic am ~ 51faffca actA1 J))~ ~ '$Ul""t1 Plants (CIMAP) and other reputed mmtzn:r ~ 3i 14'1 f3ta fcfx:n" 1f(lf I ~ ~, technical I management institutions. ~ ~ m~ Ecf ~-~ ~'$UH~ Further, 302 SIMAPs have been conducted by top rung national and state level ~ ~~ ~ 3il$3ll$eJ, institutions such as IITs at Kanpur I l2CRR!i13ll'<311$, Jt"i~)a~'<. 44f01q1H $W<'(iJ 7J'C! ~ Jamshedpur, Manipal Institute, Bengaluru benefiting about 9,100 participants. These ft;r.:ffi ~ 9,100 ~ a1ii1Paa ~I ~ programmes have benefited a large d51aSf>Ji) ~ ~ ~ 4 <_!QT ~ ~ < ftla>m= ~ h m~ fcfCPRf • Cluster Development: The cluster development approach of your Bank ii~ m"f?tl! ~1$1llC11 m cCr ~. Development Programmes (CDPs) in fvRffi eite~e'"l$~1~d51'<1/Jt1~4l cffi" ~ various clusters all over India, which have benefitted MSMEs I artisans I ~~' entrepreneurs. ~ gffla«., 201s-1s • mqoH ~: t:!¥tlN1t:!it$ ~ ~ ~ • Marketing Activities: Having realised the ~tl)' fl¥t'flli3'tl a; R{j(f)\(Oj cf5r ~ t I need to address the marketing problems of ~~w3fTQCPfta>~~~~a; MSME sector, your Bank is also engaged in ~('k'll~i'"l~~~~~~~ creating and strengthening marketing tI ~ qlf 2016 a, ~ h ~ 67 it~'ffll!Of initiatives for the sector. During FY 2016, S1~~Rli'iNl~'11-<.1/a>t4¢ii1 m ffil! '<1~1<:u11 the Bank supported 67 important cft. ~ 12,000 ~ 3ITbcP eite'<'leit$ ~ exhibitions I seminars I events benefitting more than 12,000 MSME entrepreneurs. ~WI VI. Resources Management Resources aggregating ~ 53,807 crore were raised ~fa;~~ qlf 2014-15 ll t22,664 ~~ cf5r by your Bank during FY 2015-16 as against ~ 1l ~ qlf 2015-16 a; ~ ~ ~ 53,807 t22,664 crore during FY 2014-15. ~9 m~fl ltH ~I VII. ftr6ilft ~ ~&ffi aft ~ VII. Rating of SIDBI Debt Instruments ~ C:1lf 201s-16 m~ ~ e~fftf~fl ~ During FY 2015-16, Credit Analysis and mm m. (~) ~ ~ a; Tlll ~ ~­ Research Ltd. (CARE) reaffirmed 'CARE AAA' (Triple A) rating in respect of outstanding debt t 23,s8s.so ~9 mWf mqftr ~ ~ 23,686.60 crore, RIDF Deposits of ~ 30,000 ct>i4a>it a, 1l ,,~ tmt!" ~ l!) ~ cf5r ~fr crore, Fixed Deposit Programme of ~ 3,000 crore ¥= ~ cfil ~ t 18,000 ~a, mmtmtr ct>14a>it and 'CARE Al+ (A One Plus)/ CARE AAA (Triple A)' rating for the CP I CD Programme of a; ffil! "~ l!1 + {t! q.:r ~)/ ~ tml! ~ t 18000 crore and also assigned Issuer Rating of "!!)" ~ cft ~ ~ ~. ~ tmt?(~) ~ CARE AAA(ls)(Triple A [(Issuer Rating)]. "!!) [~ ~] cfil ~ ~ ~ m-1~ ;Q'Cf5R Similarly, CRISIL also retained 'CRISIL AAA/ ~ ~ ~ ~ 2,380 Q'R)~ mTlll ~ m~u Stable' rating in respect of outstanding bonds of 1l '~\11ct ~·~~~I ~m ~ ~ 2,380 crore. Instruments carrying the above crrfft' ~ a>) ~~ !!Olch11 Q1ffi m;:rr Jl'Tffi t, ratings are considered to be of the best quality, carrying negligible investment risk. ~ ~ ~ .,fjf~it ~ t1 vm. lfl';:fCI' 'ti 'tt1t1"1 VIII. Human Resources <:I'm 31 ma 201s, ~ h ~ 1oso ~ ~­ As on March 31, 2016, your Bank had on its rolls 1060 active full time staff comprising 908 ~~~~ 21.~~908~, Annual Report 2015-16 95 ~ Ill m~ ~ 57 3iO'l=M ~~ ~I officers, 95 Class III staff and 57 Subordinate staff. Of the total staff, 186 belong to Scheduled ~ ~ ~ ~ 186 3i"j~a -;mfff, 74 3i"J"4=a1&<:11c€r~234 t1 ex-servicemen and Persons with Disabilities (PwD) categories. The strength of women employees is 234. IX. Subsidiaries I Associates IX.1. ~ m ~f?loo ~~ts (e'tt~'tfteM) cBr 'M14'11 1999 it ~ ~ m- a, ~ it IX.1 SIDBI Venture Capital Limited (SVCL) 3W1 ~ Fiftm1 ij; ~ ij, ~ ~ cffl 11t I was established in 1999 as an Investment Management Company for managing l{!Wlct ~ me~~.ffieci ~ fcITTfu ~ it ~ Venture Capital Funds (VCFs). Since 101a'ct1-~. mm-~ l:!'ie~e'i$ q;)- ~ inception, SVCL has continued to provide ~ ~ 31ifr ~~I ~it ~100 ~ growth capital to high-quality, growth- cBr siru61;s:: ~ ~ ~ ett<§)~lk1 ~ oriented MSMEs across diversified sectors. ~ q;g Q5R ttllftall'< l?5 $'4064~1'11 eCf'<'1~1a1~ SVCL, at present, is acting as the ~ (e'1e45ett3i1$tl), ~500 ~ ~ sifa61tt:: Investment Manager for National Venture Fund for Software and Information ~ ~ qffi etteli$ m~ q;g (ett"'1elb), Technology Industry (NFSIT) with a 421.30 ~ ~ ~-c:ilRT ~-~ qffi committed corpus of ~ 100 crore, SME ~ 3il4tlntt)51 q;g (~3iTec5), ~ 440 Growth Fund (SGF) with a committed ~ ~ sifa61tt:: ~ Rfu M ~ Rfu corpus of ~ 500 crore, T:ndia Opportunities (tffll!lb). ~ 40. 83 ~ a; tCRT q;g (fulb}, Fund (IOF) with a drawable corpus of ~ 421.30 crore, Samridhi Fund (SF) with a ~ 200 ~ ~ ~ ~-Rfu qffi ~ committed corpus of ~ 440 crore, TEX Fund ~ eiietteli$ ~ Q;s (s~tfl t:f5s) ~ (TF) of ~ 40.83 crore, West Bengal MSME ~ 200 affi"~ ~ ~ ~-Rfu crrR Jif;l' h Agency: MUDRA has been set up on April 08, 2015 as a wholly owned subsidiary of a; ~ «l1fl1ett Cfl1'ft ft61Qd5 ~ a; ~ -it your Bank for 'funding the unfunded' ~ $ •'fcffi.cffiffi" ~a+f M $ ~'d~tlOI micro enterprises in the country. MUDRA $ ~ ~ "tr 1Tt t I ~ J;; fem. 3ffCf fcffi refinances banks, Micro Finance ti"M13fi (eq('.!Q)3i1$) om JR:T ::t{OIC:I~ ti"M13fi Institutions (MFls) and other lending f d51 services activities. Thus, MUDRA 5«PR ~· ~ 8R "CR~ fcffim ti"M13fi strengthens the Last Mile Financial includes developing the micro enterprise ~ -it ~a>f~a fctx:lr ~ ~ ftq1ffia ~I lffif sector into a viable economic sector. As at 2016 a> 3Rf oa> ~ ~ 22 3«,"q ftffi ti"Mr3fi. the end of March 2016, MUDRA had 3~ ~ fcffih:r ct;qR4i. ft1aJ1Ra> ~ a> sanctioned ~ 3,783.20 crore to 22 MFls, 3 17 fq;l 3fR 3 ~ lIT4Tur ~ f same, t 3,337.20 crore was disbursed as on March 31, 2016. ti~C'1'{01 31 +rrtf 2016 oa;fctx:lr JIT Wf>T t1 IX.3 Credit Guarantee Fund Trust for Micro IX.3 ,~ -eci ~ mtt\ ~ ~ "tr 3!1lJ ~ and Small Enterprises (CGTMSE) was set 'Ml4'11 2000 -it ~ ~ 3fR ~ ~ <.Br, up in 2000 by Government of India and cnfa; ~ ~a+r trci" ffiI 3Ufll {eqeft$) a> fffi! SIDBI to operate the Credit Guarantee ~ TfRtT ~ (ffl\ifleft) 'tit:11Ria Cf;;{ ~I Scheme (CGS) for Micro and Small '$'f1' ~ -it ~ ::ti01a1~ 'ti "M13fi ~ >mFr Enterprises (MSEs) which guarantees credit facilities upto ~ 100 lakh extended by cBr 1Tt f 100 ~ oa> cBr J;; ~ 'tfcttt13fi a; Member Lending Institutions (MLis) in fffi! TfRtT ~ ~ ~. ~ fffi! ~q1~aa> respect of those loans, which are not 51fa~ 3fR/31m!T ~ qar rrrffl ~ <* 1Tt backed by collateral security and I or third ~I~~ 31+rrtf2016 c;a;~ ~~ f1.1 party guarantees. The cumulative ~ ~ cBr ~ a; fffi! 23.3 ~ J1F(f?;qj guarantees approved by the Trust till March 31, 2016 stood at 23.3 lakh for an 31 "j'i) Ra cBr ~ I amount off 1.1 lakh crore. Annual Report 2015-16 IX.4 ~ ~ (~) ~ tt1cf51RCb fM.: ~ ~ &1 Fci" ~ ~ ij; ~ t!s j* IX.4 SMERA Ratings Ltd.: SIDBI, alongwith Dnn & Bradstreet (D&B) and several public and private sector banks, set up the fa51 m Wl il!t.'1Cb'( ~khH 2005 ~ ~ ~ SMERA Ratings Ltd. (SMERA) in fci. (~) c/5r 'Ml4'11 c/5r I ~ eitetteit$ mfcie September 2005, as an MSME dedicated ttitf4a Rsla:r ~ ~ ~, :m- eittMeit$ third-party rating agency to provide Cf5T cmqq;, 41'l$41 Cf5T ~ Sfa'R cRr ~ 1 to 37,554 MSME nnits up to March 31, 2016 -a $Cbl$4i ~ ~. ~ ~ ~ ~ spread across various categories, industries ~~~I~ ~~Fci" ffij ~~ m and states. SMERA has been providing special attention to micro and small &IR~~~ I ~~~~m c5r enterprises which accounted for 77% and ~~: 77~21%~1 21 %, respectively, of its total ratings. IX.5 ~ e't1eitt ~ '6;('1 JrW4'1, energy efficiency and demand management, renewable energy, MSME fcrcnffi 511~ l~CbC11 'faa>R:r ~ 'faa>R:r ari:rnr- t I cluster development and evaluation t) ~ 4Rt1)51'113fi m fcie 3ltR fc!:ilq$1-mwr studies, capacity building, awareness cRr ~ "tl sihlif11ch)-~ ~ tR1lM ~ creation, skill development with the help of --- xxxiii ~ gffla«., 201s-1s ~ ~ t1 ~ ~ cffi' 3hJff G:arar, ei:te' cffi' ~ 'I{) Cf5Ttif $ "fffi! ~ ~ ~ ~ 2015" organized by Access Assist under the '"11$¢!Cbl$;i"'lqf~q"'I a, ffitZ ~ ~ Your Bank was awarded the second prize for the consecutive third time by Govt. of India under cffl 3lfur:r ill'I'< ~ All India Rajbhasha Kirti Puraskar Scheme for a, 3i"fl'fa 3JM; fa; a5l" C'1'11<11'< ~ ~ ~ outstanding performance in Official Language ~'<'«f>I'< ~ fcfx:rr l](:lll Implementation. lfRQ tittltl"'I qflct>Ci, ~ a5l" ~ ~l5UT a>af a, The Human Resources Vertical, SIDBI was ~ a> ffitZ 3t1$et13fl 9001 :2ooa ~ ~ -S3ll, conferred with ISO 9001:2008 certification for JI) ttfl~H ffi~Gs &:RT United Kingdom Accreditation Service (UK.AS). ~ fctx:rr l](:ll j XI. Acknowledgements XI. 3mlR-~ The Board acknowledges the valuable support 'JIT'~~ JI('llqH received from the Government of India and the tis1£4a1 a> ffitZ Pia~1a>-~ t1:;::qci1a ~ CfRC1'T Reserve Bank of India. The Board is also ti ~ ~. ~ fa> ~; ~ $G'<:i~HC'1 thankful to the World Bank Group; Japan cffi"3114hH ~ (~); ~q1ltf c:; Q5k $c'<:i~HC'1 International Cooperation Agency (JICA); gciC'144c $g)), (g)ew1 .; aM>Gie1CT1 Q>'{ Department for International Development (DFID}, U. K.; Kreditanstalt fur Wiederaufbau '{ $c'<:i~HIC'1 ;JJ'tt~"'ll't 'tfl<<:i~ll $ffitZ ~ Pia~1a>-+fsC'1' 3"1'd5T continued resource support and technical co- cpd$1<11-~ CfRC1'T ti tfcm, ~ ~ ti~ IJO, operation. The Board places on record its m ~ om eiiette+i$ ~ a, ~ ~ fcfa>m appreciation for the co-operation extended to 1l rm JRr IBatrn:cffi ~ ~ tii:;4~ ~1 mffitZ Pia~1a>­ SIDBI by banks, state level institutions, industry +fsC'1' ~ ~ 'tf'i tan ~ t I fQ; cffi" ~ mm- come. The Board recognizes and places on ~ ~ &m ~ i)" Cff.f-~ fllllcil'< 't! fffi! Ra~1a> lfsrt" ~ ~ ~ t I trajectory during the year. (gf, ~~lctl~) (Dr. Kshatrapati Shivaji) 3lm~ l!Cf ~ Ra~1a> Chairman & Managing Director I xxxvi ar.a~aRm ~~a. ~ m:t Jfttm1 amR - d) 1d~t!l,\l I~ eci ,~d)j, 01 Economv and Micro, Small and Medium Enterprises - Performance and 01110011 17 ~ . 2016 ltl ~ SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA ~ gffla«., 201s-1s 3iaHr~q 1JID c5ttf M it mrr 3ITT" ~ lift demand and supply potential across the ~ii1c:t;:i13ii cm~~~ fct>t! Tfl! 3iRl't1fi$ll ~Rl,ta countries, especially :in oil-importing countries ~~~ti ~~~fct5t!Tfl!t~ as crude prices are envisaged to remain ~ i'ti:lnci 3if!f< ~st JITT- ~~cm mB -m~ major economy in the world outpacing China. ~ ~pf 'dr, ~ ~ ~ ~ ~ 1l ~ • llt (MSME) sector in India is a strong pillar m t1~C\!11'1:int'1a1 1!Cf ~ ~$ilc:t"11 ;na ~ q;r ~~. of socio-economic fabric of India through erg 1!Cf lJtZllf 3WT IITTf ~ ~ 'ti IJ:l lrat(f)-~ its contribution towards economic growth, employment generation, higher capital ~ q;r ~~~~~I ~~. erg '(!Cf lJtZllf 3WT productivity, demonstrated resilience and ii~1fl<:i, ~ ~ m3i'fi1-11 m3i'j't11'<, ~ m growth potential even during periods of Annual Report 2015-16 1l ~ 50 f1:iffilH $¢1$lli ~ ~ ~ ~ 111 economic crisis. According to the estimates of fl:iffill'"f a:ifux:I) c5I' <'151'11'< JraR (f)'{(IT t ~ ~ the Ministry of MSME, Government of India, ~ 1l ~ ~ m~ ~ ~ ~ t (a1ffi¢1 the sector comprises about 50 million units 1.1)1 ~&if. ~ ~ ~ 3Wi m * 1 '()J1'11'< providing around 111 million jobs - the second largest after agriculture (Table 1.1). It just ~ m mIBl! lIBf ~ 5. 3 ffi"« c€I" ~ m-m t, m *~ IBl! ~6.7 ffi"« cCr ~ requires investment of ~5.3 lakh to create one ~ ti,1f6a employment in MSME sector, whereas in the ~ t1 ~ m ~a;~~~* 37.5%, organized sector, the investment requirement faPl+1fo1 ~ ll 37% Cfm w:rn ~ 1l 40% CPT is ~6.7 lakh for the same. The sector also <'tl~d>l 1.1 : '(&ll, ~ l!i:i ~ JUJJ '9- a~u4h:i t1tt1 Table 1.1 : MSME Sector - Principal Characteristics 1. 2014-15 ll :mm cCr ~ (ffi"«) No. of Enterprises in2014-15 (lakh) 511 m. q~ cpa $¢1$~~~arif (31'j~C1 ~ /31'j~<"1 6'HJ11fa / JRr~-aif) CPTSlfrffi 3Wi 3ITTra <'1"1'11'< (~.)I Average Employment per Enterprise (No.) 2.3 4. m <'1"1'11'< ~ (~ffi"«) I Investment per employment~ Lakh) 5.3 5. m. ~ ~ m ~:mm CPT sifI Rl~1a ~I Percentage share in exports in 2012-13 40.0 * 2006·07 ~&if.~~~ 3@f TJURT 3llU1Ra I As per 2006-07 MSME Census. ~tqufl = ~ ITTf) ~ ~ ;i- ~ m. w ~ 2006-01 ~~. ~ ~ ~ 3Wi ™ ~ oomr ~ 1 Note: Unless otherwise stated, the select data pertain to 2006-07 MSME Census. ~ gffla«., 201s-1s q)Ji~H ~ CfRffi ti 2007-08 ~ 2012-13 c/5t 3tQfh contributes 37.5% of India's GDP, 37% of m~. ~~. ffil mt lltlJll 3Wl m ll 0.4% a5r manufacturing output and 40% of overall ~~~~, Jl)~JtQfall~~~c& exports. During the period 2007-08 and 2012-13, the MSME sector grew faster at 8.4% than GDP ~~7.1%cl?r~ll~tl at 7.1%. 3ffi 1&4' q t mzm 3Wl aa 11 fcp ~~, ffij -eci" It may be noted that the number of enterprises :rom a5r ~ ll 2000-15 m~ d st ~ in MSME sector recorded an average growth ~ ~ 4.4% :!ft; QX1fcHC\4 ~ gx;f ~ 51 .1 rate of 4.4% during 2008-15 (Table 1.2) to reach fitfa<:H m~. JI) 6000 ~ ~ ~ ~ ~ to 51.1 million enterprises producing more than (aiffta>i 1. 2) I 6000 products. a1Pcta;r 1.2: ~ail. t"1tj l!ci m:zlir 3Uffl a;r a;14Pt«uCA, 'l)"1'1i'< ~ ~ Table 1.2: Performance of MSME, Employment and Investments ~ WCf qR:cuM"'1'<<1 3UJf (~ ll) '()"1'11'< (~ ll) Year Total Working Enterprises (in Lakh) Employment (in Lakh) 2006-07 361.76 805.23 2007-08# 377.36 842.00 2008-09# 393.70 880.84 2009-10# 410.80 921.79 2010-11# 428.73 965.15 2011-12# 447.64 1,011.69 2012-13# 447.54 1,061.40 2013-14# 488.46 1,114.29 2014-15# 510.57 1,171.32 # - 3l'j+l1Fk1 I Projected. flcquft: 1. ~ ~ cx:JlqR, ~men ctm ~1+1 1f"1Cf> wml, ~ Eci he.He, qf{q~;:i ~ ~ -eci" 'ilt'1'h~1+1 (cffi"C's ~ ~ 6' $dR) ~ ~, ~ ftit! ~ 5fT\{f ~ lll!I ~ lJURT 2005, ~ '<"li~c/?I d>illfW~. '<1iR9qc/?I -eci" d514¢l"t d>lqf;qq;:i i:i•.:OC1<04 Notes: 1. Including activities of wholesale/retail trade, legal, education & social services, hotel & restaurants, transports and storage & warehousing (except cold storage) for which data were extracted Economic Census 2005, Central Statistics Office, MOSPI. 2. ~ ~ cx:JlqR, ~ men ctm ~1+11f"1a> ~. ~ -eci" hcHc, qf{q~'"' ~ ~ -eci" m +11C1'h~1+1 (cffi"C's ~ iffi- m~ ~ ftit! TR"-4crncpa mm~ ~alUT ~ 5fT\{f ma 3Wi ~mm~ 3l~~. "ffi_! '[!Cf~ 3w:T Q5T share of manufacturing sector MSME in total ~ UC?fT 3fT mt: 2006-07 ~ z.rg 7.7% m, ~ GDP had been declining: from 7.7% in 2006- 2012-13 ~ 7% W Timi ~ 3lIBfht>, ~ RtPliifo1 07 to 7% in 2012-13. Also, the share of MSME ~ ~~. "ffi_! 1!tf ~ 3w:T Rtf:liifo1 Q5T fre:rr ~ Q5it' manufacturing in total manufacturing had also §3TT t 3lR- ~ 3fQfu ~ z.rg 42% ~ ~ 37. 3% declined from 42% to 37.3% during the same mtrmt1 ~~il.~~~~~mn period. At the same time, the share of services tITTf a, ~a;r "ffi_! '[!Cf ~ m Q5T ~ 2006·07 a, I sector MSME in total GDP had increased from 35.1% ~ ~ 2012-13 ~ 37.5% "ITT Tim~' 35.1% in 2006-07 to 37.5% in 2012-13. Status of Credit Availability • ~ ~ ~ ~ ~~ ~ "ffi_! 3w:T tITTf Q5T • The MSE sector's share in total credit ~ ftn:m ~ ~ ~ 3TI m t1 a1ftlI 1.3: ~ ~ 3(qJCf 1l ~air. ?irq eci ~ ~ ~ 3(qJCf cr>14\•tctH Table 1.3: Contribution of MSME Output in GDP ~ WR~~~~ ~a;r, "ffi_! 1!tf ~RlRJifu1 ~~~a;r, Year ~ 3w:T tITTf Q5T ~ (%) "ffi_! 1!tf ~3w:r RtPlitfu1 Share of MSME Sector in total GDP (%) ~Cf>T~ RlRitfo1 tITTf m~~I mn tITTf"m ~ Share of MSME "ffi_! '[!Cf ~ 3w:T ~~, "ffi_! '[!Cf Total Manufacturing Output in total Manufacturing Manufacturing ~3w:T Output(%) SectorMSME Services SectorMSME 2006-07 7.7 27.4 35.1 42.0 2007-08 7.8 27.6 35.4 42.0 2008-09 7.5 28.6 36.l 40.8 2009-10 7.5 28.6 36.1 39.6 2010-11 7.4 29.3 36.7 38.5 2011-12 7.3 30.7 38.0 37.5 2012-13 7.0 30.5 37.5 37.3 ~ gffla«., 201s-1s <'ll~d>I 1.4: '&rif, ~\!Ci iram '3!1lfl tR" 311~<'1 cU~IJtt ~ ~ ilCl>ttlT ~ °fitft 3iiCf>"t Table 1.4: MSME Credit Outstanding Data by Scheduled Commercial Banks ~ t'IRI ~ / lakh crore) ~ -a1!f (3fPcfq R4) fl, 11tJSb a1'<) ,$1 'ffij ,$1 l{ttJ;r ,$1, Wet' Slitliltd>dl ~ Micro Small \!Ci~ Medium ~\!Ci ~ ll ,$1 \!Ci~ ee...dl.al ll '$1 ~ JUi{ "IUT 'a;J \!Ci Financial Year MSE lJll1q ~~a>T~ ~ Slfa'tld ll (Last Reporting MSME Sll'atid ll MSE credit as % Friday) MSE credit as % ofANBC of total priority sector lending lffif 2008 0.79 1.34 2.14 R R 30.34 7.80 March2008 NA NA lffif 2009 0.99 1.57 2.56 R R 31.14 11.30 March2009 NA NA lffif 2010 1.50 2.13 3.62 R R 31.82 13.40 March2010' NA NA lffif 2011 2.01 2.78 4.79 1.29 6.08 35.74 15.00 March2011 (34.0) (30.5) (32.3) lffif 2012 2.18 3.10 5.28 1.54 6.81 35.25 16.50 March2012 (8.6) (11.5) (10.3) (19.1) (12.1) 31 lffif 2013 2.81 4.06 6.87 1.82 8.69 40.56 14.80 March 31, 2013 (29.2) (31.0) (30.2) (18.4) (27.6) 31 lffif 2014 3.55 4.96 8.51 1.89 10.40 39.15 15.70 March 31, 2014 (26.2) (22.3) (23.9) (3.9) (19.7) 31 lffif 2015 4.24 5.37 9.61 2.10 11.71 40.41 17.80 March 31, 2015 (19.4) (8.3) (12.9) (11.1) (12.6) 18 lffif 2016@ R R 8.5 R R 42.10 NA March 18, 2016® NA NA (5.9) NA NA [20 lffif 2015] (8.0] [March 20, 2015] ~ cvreanl fm! Tit!~ S1Rl~1a ~~~I Figures in parentheses are yercentage growth rates. # 2010~~~TQR"~~EITTPl~~I Retail trade data included in services sector since 2010. @ 1s~2016m~~~. JIT s1 lffifm~~, a;~~~ ~(14)q ;;gy~13Rl=~m.J01m"H ~ 20 lffif 2015 m ~ ~ at~ ll ~Tit!~ I March 18, 2016 data not strictly comparable with earlier data which are March 31 data. Hence, for comparison purpose, March 20, 2015 data are also given in the square bracket. ~: iti«:J1lq ft3rcf hi Sources : Reserve Bank of India. Annual Report 2015-16 '!!Ci~ 3W1mQ5T~2001-08a>30.3% ~ that the share of MSE sector in priority ~ ~ q¢ 2015-16 # 42.1% mrrm 3IR sector lending increased from 30.3% in 2007-08 to 42.1 % in FY 2015-16 and in ~ ~ (ee18!~}1 # 7.8% ~ ~ 2014-15 total credit (ANBC}1, increased from 7.8% # 11.8% mrrm12011-12 ~ ~ q¢ 2015-16 to 17.8% in FY 2014-15. It recorded an $ ~ ~ 17.7% cBr 3ITT:rc; ~ ~ d cffl, average growth rate of 17.7% during FY ~ ~ :mritr cBr ~-mu mPrm ~ ~ c5r 2011-12 to FY 2015-16, which was higher WAT # ~ ~I ~. ~a;r '!!Ci ~ JWr than the non-food credit outstanding growth during the similar period. ~ ~ ~ 1) ftruff ~ a't!f ~ f11'<1Clc 3IT However, the MSE credit growth rate ~ ~ ~ ~ ~ qcf 2012·13 $ 30.2% has been decelerating since last 3 years ~ traCf5'<" ~ q¢ 2013-14 1) 23.9%, ~ from 30.2% in FY 2012-13 to 23.9% in Qt!f 2014-15 1l 12.9% om~ q¢ 201s-1s 1l 2013-14, 12.9% in FY 2014-15 and 5.9% in 5.9% ~lft l FY 2015-16. • ma: ~ 3Wf th c5r ~ ~ fc!x:rr ~. • If one includes the medium enterprises sector which is now a part of priority ~ fa> ~ Sll~f"1CfX1 I th ~ Cf5T 'Jfl1T ~, cIT ~ sector lending, medium enterprise sector ma t fa>~~ 2014-15 1l ~ 3Wf th received 17.9% of total credit in FY 2014- raW" 1l ~ Cf>Vl a>~. ~ 'ffiC15R' 3IR Reserve Bank of India have taken a number iti'~ ~ ;i')faJid ~ Ta>C! t1 ~ of policy measures. The major initiatives are ;:rt! ~ CPT fcrcRur ~ fuu rrm ~ : briefed as under: •!• ~ q?l({tt gaM4tic l!s R4>1$4tt ~ •!• Micro Units Development & Refinance (~) c5r ~ 8 3lfff 2015 c5r ~ a> ~ Agency [MUDRA] was set up on April lsmaflictX11 ~3!1R~~~. -e-tr.T~~~~t­ 1 For the purpose of priority sector lending, ANBC ~ -ij mffimh~ (~ ~~ fq;~ denotes the outstanding Bank Credit in India [(As prescribed in item No.VI of Form 'A' (Special Return 1934 c5r t:lRT 42(2) ~ 3icPfu (m:IT 31 1ITTf ~ fcr<:RuIT) as on March 31st) under Section 42 (2) of the RBI Act, q;llf ~· cCr lla: ~.VI -ij fctPlfat!G t) t:rer ~ ~ fq; 1934] minus bills re-discounted with RBI and other 02IT 3Rl 3i'jii)faa ~ .a'<'t41311 ~ ~~~. ~ approved ·Financial Institutions plus permitted non ~-~ 4R4Cf'Qol ('fcf) tITTtf lk-tffi l?ff 3JR~. ~ SLR investments in Held to Maturity (HlM) category plus investments in other categories, which are eligible 3Rl R a; fffi! SIDBI for 'funding the unfunded' micro enterprises in the country by providing ~ fa5t, 3ffll fcffi ti~ 1341 ctm 3Rr ~Mal~ refinance to all banks, Micro-finance ti~r3?i ep) ~ $ ~~ a; ~ mw Institutions (MFls) and other lending ~~~I ~~ 8 ~M 2015 was launched on April 08, 2015 by cffl 'i I+~ ll 5Jt1 Hii ~ ~ fct>m 1fll'T I ~ the Hon'ble Prime Minister, whereby ~ a; ~ ~ fa5t ~ 3Jl)an cCI" 1lt all banks are required to finance ~ a ~~ ~ ep) ~ 10 fct> a; (iR9; (fQ) micro entrepreneurs upto ~10 lakh, ~ ~ CIR, t$ a ~ IBl! ~ ~ irrespective of whether they avail of ~ ~e;1l!a1 Nm ~NI 31 l'.fffl 2016 refinance support from MUDRA or not. As on March 31, 2016, n,37,449 OC5 348.81~3t11'l-0 di'{ ~ ~ ;ra;cfr ~ a; IBl! card, it can be used for drawing cash from ATM or Business Correspondent m ~-~ (Q!~) ~ CPT ~ or make purchase using Point of ~ w (g;{) ar:fl ~ a; fffi! fa>m "3IT Sale (POS) machine. As at the end of ~ ~I lllif 2016 lt1f;cit1'1 ~ tI ~ cCi" ~ scheme. The scheme has been "3fRT '"I Q5T ~ ~ Hon'ble Prime Minister on January 16, 2016, intends to build a strong eco-system ~ ;:iq'J;:ftq om d-~ q;r ~ ~ a>~ for nurturing innovation and start-ups mP ~ 41RC'i~ Cf5T ~ ~ t. JI)~ in the country that will drive sustainable 3JTffla> ~a; ~cirgq; m 3IR ~ tt1fR ~ economic growth and generate large scale -051~11'< m3mR ttw ~I <.ftJR1' Q5T ~ employment opportunities. The prime ~ d-~ ~ fci~lli"icBlll ~ mil" QR" objective of the scheme is to reduce the ~ 3lQ';)' ~ OQcttilll ~ mR ~ ~ regulatory burden on start-ups, thereby ~ JlR ~ 31'j41c'H (YflTRJ cffi' mil" ~ t I allowing them to focus on their core Cf5T4 <.ftJR1' cffi' ~Aff1~a lITTn ~ fci~ tl"Jia business and keep compliance cost low. The Action Plan is divided across the ~ 1Jm t: (W) ti''"I cffi' ~ ~ ~ :re Partnership and Incubation. ma ~ a; ~ ~ ;1- FcP ~ q)ffi 'fusit In order to strengthen and accelerate 'Start- d-3fCf m· ~ ~ t, Jll ~ m d- up India' programme, SIDBI launched a 3fQ' 41RC'i~ mfffi! itaam< ti ~ cJlc4514 web portal 'www.sidbistartupmitra.in' Cf5T ~~ ~ a> J:iH;{tll 'T '<1~it), '<1ctl~ct>H1, 3W"rT Rct>rJi, ~ wr (namely start-up entrepreneurs, incubators, ~ mr mtff ~ ffRT ~ ~'Mi ref) "iRUT a; investors (angels/ Venture Capital Firms), advisors, industry bodies, Banks) onto ~ Cfm ~-3Jq ~ cfir f'att4'J t:f O( ~ 3R:f this web portal and to meet the financing 3l1a~l4ct>a13ff wr ~ CPVTI ~. ~ ~-3Jq and other needs of the early stage and 4 1Nct~ ~ 1' '1q)'""!t:1~ cfir ~ 'ffi ~I rrmm start-up enterprises, so that the start-up soo ~-~. 4a ti4)tta> m:rr 50 Pia~1a> ~ ecosystem is facilitated to usher in a wave cclCIQ>lll ~ '< m¥~I of innovations in the country. Around 500 start-ups, 48 incubators and 50 investors •!• m--31tf ~ have already registered on this platform. 3l"j~Rla ~I 3l"j~a dH"1rfa m:rr ~ •:• Stand-up India 3t1rn4i a; lfur 3tl~ar wr ~ ~ a; ~ Hon'ble Prime Minister launched "Stand- J:IJ+:?itf 31tJHtj~ ~ 05 Wli 2016 wT r~ up India Scheme" on April 05, 2016 to 3Jq ~ ~· d>T ~~ fax:Jr1 ~ promote entrepreneurship among SCs/STs d>T ~ <:ie: ~ ftp ~ ~ ~ ~ (f5J:J' and Women entrepreneurs. The Scheme is ~ a;ir 2~ m {~ 3Ull 3l"j~fila ~I intended to provide credit from tlO lakh ~~27~2015~~~2015 CAPAM 2015 organised by FICCI on October 27, 2015 Annual Report 2015-16 51'1"11rn a; ~ om ~ :rolf ~ a; ~) to ~1 crore to at least two new enterprises cffi ~ 10 ("f'Rg * ~ 1 ~~ era; a; ~ ~ (one enterprise for SC/ST and one for ~ Jfll!l ~ t fcp ~ ~ 2.5 ("f'Rg women) per bank branch and is expected Jtm:asaf ~ mrr1 ~-JN~~ to benefit at least 2.5 lakh borrowers. The cffi R'""ifft~a a> l11m+r * ~ fcvm TJm t= Stand-up India Scheme is strengthened by: • ~m~*~~.~ • Refinance window through SIDBI ~ 3TITTr ~ ~10,000 ~ cCt- ~ ~ with an initial amount of ~10,000 erore. ~ti ·~~lTRtt~~ • Creation of a credit guarantee (e'i~~t)~) m~ * ~ lTRtT mechanism through the National Credit Guarantee Trustee Company c:t>IQSMlffi mum ~I ~ India web portal www.standupmitra. in, which is designed to obtain ~ q;flf 5fTCl.ft application forms and provide ~. tj;:;ftd){UI ~. ~g13)l'f5JI, '<1elltT ~ aRR a, provide links for handholding, ~ ~ fa5m lTm t I tITt1i q{ 1. 07 assist, tracking and monitoring. The ~ ~ 3rlOw fa> ~ crm 11,000 portal with more than 1.07 lakh bank *3rlOw ~s13)ff5,1 e~f~f(:ff ~ ~ ~ ~ ~ 6flJIR a, ~ q{ branches and 17,000 handholding agencies, is functioning as a virtual loan market place offering pre- CPr4 ~ S\! ~ 3tl1-afarr a=; IB1! sanction as well as post-sanction ~-¥ ~ ~-~ ~-~ match-making services for loan ~fctu lld sre:R ctR ~ t I seekers. •!• ful!fa;m lTm m. f i Jti~a1 across-the-country and incubation ~ TTfff 3m! ~ mmur t?Ct ~-3WTT ~ centres to accelerate entrepreneurship, ~-~ om Jti~a1 a> IB1! ~-~ promote start-ups for innovation and entrepreneurship in rural and agro- ~ gffla«., 201s-1s cm~ "flrRI ~ ~ et:1at1 1 ll 3W1 industry. The scheme is designed to ~ 1Rrn ~ ~ 3i1a~llct> ~-~~ provide necessary skill-set for setting up business enterprises and also to ~ ~ 3Elf'llll1 cm m ~~ facilitate the market linkages available ~1Rta ~ ll 1lG:Cr ~ l2Ci ~-a-;~ to entrepreneurs and hand-holding ~s~)frS'I !RR~<); ffil! ~ ~ ~ for a critical period to ensure self- ~, mftf; :mcq.~ tJ>~~ila m- ~1 sustamability. • ~ Jie;('Cl~uf uc;q; ~ 3i1Jfl~Cf>I Clldtl lll • The most important component is to set up Livelihood Business Incubators ~cflttcbf ~ ~14'1 1 ~ I ~ uc;q; ~ (LBis). The second component ~1dlfl1cffi Clldtllll ~c(jqd)1 ~ ~14'11, JI)- is to set up Technology Business ~ ~q)qvl ~ l2Ci ~ ~4)ttvl msit cm Incubators (TBis) to support existing tle;lt~'I ~~I incubation centres and also new incubation centres. • ~ <); 3ffitIB ~ "ffT(if era> ~ 1R -it • Under the scheme, 500 new soo "'1'l! ~cntto1 ~ ~1Rta ~~1 incubation centres will be set up all over India by next year. • ~ ~ fuscft mmtZJlf ~ m; <); • It is also to create a framework for '1q)~~ ~. ~ - $ma. 3itf-$Rffla. Start-up Promotion through Small Industries Development Bank of ~ ~. ~ ij_-aft ~. ~me§) ~. India (SIDBI) by using innovative ~~~ CPTwWT~Wtt means of finance like Equity, Quasi- 31tr cffi°~~m~ifm~~~ Equity, Angel fund, Venture capital ~I cnrnH:€1'1 IC'$lci I ~ fm. oITTt> ~&ir. registration form 'Udyog Aadhaar ~ mi 11mlf m WT 3mfR 3iR ~ Memorandum' to facilitate easier and Annual Report 2015-16 tj ~ CfRUI ~'mr err ~I 3m l!cP -p5 ~ The Union Budget 2016-17 is based upon the theme of "Transform hi.dia". ~ 3t1t11Ra ~1 JU>~ 1t ~ ttH) focus on doubling farmer's income in five years); Rural Sector (with emphasis on ~ (~ -0'51111'< 3tR" ~ ire ~ ~ a; rural employment and in.frastructure)i ~): ~-d'l31~1('1 ~ fll'ilG1cti ~ (~ Social sector including healthcare (to cover cm CfX'tf 101 3tR" '<"ct I~~ $ 3fa1Tc; CfXR"fcfx:rr all under welfare and health services)i JJTWTT); ma:rr, ~ am '();:J1Jll'< ~ (crrFcP education, skills and job creation (to ~cm t!cP~-3t1t11Ra -ea 3cq1acti ~~ make India a knowledge based and productive society); infrastructure and '3fT ~; ~ ~ 3tR" ~ (l~l1 3t1~11f1"1; 3t't'<' 'a5'<" governance and ease of doing business; fiscal discipline; and tax reforms. Some of ~URI ~~2016-17lt~~. ~t!cimztff the highlights of the Union Budget 2016-17 3Ui1~~~3ffiil3i4'll mt! ~I under the Shyama Prasad Mukherjee Urban Mission. • ~5 ~ ~ q;i:r a;~ ctil IBl! R' 1fila 'a5'<" cffi" ~ ~, '31l companies with turnover of less than 29% + ~-e'< ~ c5r trRT 44-eit a; 3ftlR • Increase the turnover limit under ~tlRO'IT3fltl1Rd ' ~a;r, ~ ~ ~ 3Wf an 1t to a large number of assesses in the fcwiiH ctR"-FitlYRRlm cCr crtl ~ cffi" MSME category. ~-mm~I • New manufacturing companies • 0111Rf 2016cffi"~~~R'tflla""lt incorporated on or after March 01, fifRiif oI ci?qRll1 cffi" ~ fcrcf;c;q fu:rr ~ 2016 to be given an option to be taxed fa; 3'1" Q"(" 25% + ~ ~ 3QQR" cCr ~ at 25% + surcharge and cess, provided they do not claim profit linked or ~ ctR" "fflTTm ~. m t11Ra <) 'ffi1'.f 3f1 investment linked deductions and do ~ ~ 311t11Ra d5cl Rl' M e3f1'<~ Cl5T 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC {1 ~ Sl llllJ1(f) l!.311'<~11t 100% om f%ffia1 and permit non-institutional investors ~ 3tR" ~-:a '(%!ow 1a Ra ~1ct>i cffi" SIRi~ to invest in Securitization Receipts. ~ 1t ~ m cCr 31",!iiRI r<:r ~ a; '('!"' 1tl 1::n:5r iXTitrc:f> ~ t1'R • Proposes to introduce a mr~t1 ~~W , ~ cbqR4i comprehensive Code on Resolution of Financial Firms. This Code will 02rr fcffi>r<:r lITTf c& ti~ 1311 ;t Ra 1ffttN'"I provide a specialised resolution c5r ~ mr WlRT ~ a; flit! fa~)~ '('t"litlH 2015, when enacted, will provide a d51® 011('\) ~ ~ fa''tfu:rcRffilT w114! Jt'"I • The Reserve Bank of India (RBI) ~ m3ffi1fcr 25 3JroR ~ ~I reduced the Repo Rate under the ~ <$ 6.75% ~ "(f)"I" ~ 6.5% "(-g liquidity adjustment facility (LAF) by ~I ~ 3tTR cBr ffi1Tff "d5"I" ~ ;f ~ 25 basis points from 6.75% to 6.5%. This would help in reducing the cost f1mm1 of borrowing. • ~l'< • Reserve Bank of India (RBI) granted ~ (Q1e'('te'('t) ~ 2007 m3ffi1fcr an "in-principle" approval to ~ ~ "5fR ~ ~ ~ R~dijffi t- three companies including a joint venture between the National Stock f%'('1ct513fl,1 ~ (~) cbT ~IQ'"ll JtR Exchange's NSE Strategic Investment 4R'CllC1'"1 ~ ~ cbqRlf1 "ct5T "'ll. Small Industries Development ~ ~ ecffffiJt mr e'"le'('1$ ~efJ1d5 Bank of Jndia (SIDBI) to set up and fff. (e'1etl3f1$'8leC'1) $'1aore4c ct51cifhH operate a new Trade Receivables 02IT ~l'«Till ~ m fcra>RT fm ~~I e-Discounting System (TReDS) to be formed under the Payment and ~ a; 4X'1~{ ~. 1il'<~q ~ fa>~ 10 ~ During FY 2015-16, RBI has approved licence to 10 Small Finance Banks ~ fa5T cm f11 $oa;<(i 3lj4lfda fcix:lT (SFBs). The small finance bank shall ~I ~ fcffi fa; ~ cx:fct'<11l4 $d51$4i, ~ primarily undertake basic banking -ect ~ fct>tt 1;fi ~a+T -ect ~ 3llTrIT mm PcP ~ pertinent to mention that 9 out of 10 furcf fct> ;{ fWT qflal&H ~ ~ 00 small finance banks (SFBs), who have 1o~ m tcm cm fWT t11$f! ;<(1 -rem ~. been granted banking license by RBI to carry out banking operations, have ~ ~ 9 cm 3«fm 1l mm ;{ '<1151<:1C1, SIG:Ff been assisted by SIDBI in the past cfil ~ I ~ ~ ·~3i'fq;~~~ ij)f ~f)~h~1fqa~~ Reserve Bank of India gave in- principle approval for 11 entities to \2\:s::irnCf5 3l'jii~a'"' ~ fax:rr1 ~ h set up payment banks. A payment JIT ~ faf;iq&H l!cP flm ~ Q5T fa; ~, bank is a differentiated bank that ~ 1949 $ 3i"alfu 3Fjl1Cf fia>rr will undertake only certain restricted Cf5rtif ll ~ ~ g>3 ~ CPr6 Cf5tm1 F banking functions that the Banking Regulation Act of 1949 allows. These ~ll~~ -~ ~(f)j'{~. activities include acceptance of ~ ~ fa~tto1 ~. $e'<4e fia>rr deposits, payments and remittance om JR:r W a> 0Qq'<'fl4 ~ $~ q'{" services, internet banking and Cf5r6 ~I ~ ll ~ ~ a:ifu> 1 ffiX9 function as busines correspondant of other banks. Initially, they are ~ C1cP$~ '«t~Cf5F< ~ cCf 3l'jlifa ~I allowed to collect deposits upto atR3RRurcCr~~~~~~ tl lakh per individual. They can om~3Wrq;sa5Jftrn3r~~~I ~ facilitate money transfers and sell 3lrnRm, a~~cm~~~ insurance and mutual funds. Besides, they can issue ATM/debit cards, ~.~~cm~~ CJR"~ 1 a but not credit cards. They cannot m-.fia>rr ~ ~ ~ mwrR $ set up subsidiaries to undertake IBl! tii;:lq(f) ~ ~1fqa ~ ~~I non-banking financial services 3JftrcP lif.kq'!uf ~ ~ fcf; a l"ijf1cpc1 ~ ~ activities. More importantly, they are not allowed to undertake lending ~~~~ I activities at all. ,ail,~ -eci ~ ~ q~a>)o1 MSME Outlook ~~. ~ ~ ~JU+i ~3tff~tmq'{"~ The MSME sector is poised on a high growth trajectory, buoyed up by a strong economic $ ffi'C! :mff ~I ~ ~ 3nfl!fu> ~. 3l'jli1Rd growth, an expected normal monsoon and ti titl'"lf itH"«;i ~ mm ti'I'< a> ·mt> F ~·, favomable impact of various programmes 'tt·3fCr ~·. ·~-Jrq ~· ~ ~ of Government of India like 'Make in India', ct>t4aWi $ 3l'j'!'f1 >r'mC! ~ m1 fmwr Wf ~I -4 'Start-up India', 'Stand-up India' etc. These ct>l4w+i faRitfo1 ~ JR:r em ll, ra~~ tt(f)'{ ~ rn programmes have been launched to infuse a5T ~ ~-3lm1Ra cf>qR<:fl ll '1~-=il"' fcmR ~ innovative ideas and entrepreneurship into the manufacturing and other segments, specially J~fl~C1a1 cm ~ ~ a; IBt! :mt~ fcnt! m! ~ new age and knowledge-based companies, thus ~ ~ 5fCf5R ~ ~Rflila fcf>m JJT wr ~ fcf> ~~. ensuring transforming MSMEs into a global ~ l!ci ~:roJ!l Q5T '{<\qj(i'{Oj faf.iitfOj ~ '1~-=il'f manufacturing and innovation hub. Further, a>~flqct>~a>~llm1 ~3lR1Rm, :rollrm the launch of Udyog Adhaar Memorandum is ~ gffla«., 201s-1s wq;:r a§)- !{!'63i IC1 ' w:ra AA qn;fi 3?I 4il IR ~ consu.ming formalities. The combined effect of various policies and initiatives of Govt. of ~'1'l)istl'< ~ 1l om a>i'l)C!itl'< ~ ~ ~ 3i1~1;ft, the country on ease of doing business, starting sifa~uh"ii ct>144'trn ra~1ee ~ The business strategy of SIDBI is oriented ~ +l ~ ~ m:rr ~all, ~ 31R ~ towards addressing financial gaps in niche areas 3Ul1 q IR'MR1~ -~ +l fclCf51'<1 ICiiCf5 ~ WT and developmental gaps in the MSME eco- 3IR ~ I fa~lte t ~ ~ +l ~ +l ;:rciR~ system. The niche financing areas are equity/ («:1cfa1q) ti~R1 cm ~ ~ <)) ftvm $Pctatl/ quasi-equity/risk capital to promote a start-up 310- $Pctatl/51)ffili i~. ftf<;m ~ WT culture in the country, receivable financing to '<"lli~I <)) R''(OI <)) ftvm ~ fcre", l3> fcre" 3JR ~ ~ fat14) tlOI ~ ~I climate change and services sector financing. ~ 31RJRm, ~ ~all. ~ 31R ~ 3Ul1 Besides, SIDBI provides refinancing support to ~ q;)' ~ ~ ~ mftvm mm~ ti1M1.-i~ Banks/Fis for augmenting credit flow to the cm ~'1frGFr ctRffi t I ~ ~ MSME sector. Overall, SIDBI supplements and *. ~ ~all. 'ffil 31R lftztl1 ~ cm ~. complements the banks in their efforts to meet '<1 ltifuct> m.rr ~ m mm- ~ >rGFr ~ +l adequate, timely and affordable credit needs of mm m ~ q;)' ~ m.rr ~ ~ t1 MSMEs. mw Qf:f 201s-16 mG.RR rnsm ~ ~ Cf51'{)d1.fl During FY 2015-16, SIDBI had undertaken a ~ fa5t! ~ ~ m~ 3ffi\IS4'll ~ number of business initiatives, the brief Pl'"'"lfflf~a 31'j6a1 +l fat? 1Tl! ~= highlights of which are enumerated in the following paragraphs: • •l)cp ~ ~· 41 "1"'1 I : ~ "'<1"''('1T ~ t i ~ Cf51a~ cm The initiative also aims at high quality 3111) ~ $ ftvm fusm ~ ~all 'ffil 31R I standards and minimising the impact on ~ ~ q;)' fcmi-~ "Rmor ~ ~ the environment. To take this agenda mftvm ~ 1.ooo "ct>'I ;rfl1 ~ mo ~ India' fund with a corpus of ~,000 crore to ~· f¥tr t 1~ Rfu m3ffi1fo RtifRa make MSMEs a world-class manufacturing ~all. ~ 31R ~ 3U11 ~cm Rlllll~ hub. Under the fund, concessional finance is provided to identified MSME sectors. fcre" >rGFr fcJ5m JJRTT t I Annual Report 2015-16 • ~ ~ ~ ~air. titl 3IR ~ m a; • SIDBI launched a fJ.0,000 crore 'SIDBI ~~a;~~~m~mn~ Make in India Soft Loan Fund for Micro, ~air. ti'Cl 3IR ~ Jw:J ffi1fQa ~ m~ Small & Medium Enterprises (SMILE)' to ~~~m~~~>l4R~ make available soft loan to MSMEs, in the 31R~~$Rfq~ ~ cffl ~~a; nature of quasi-equity to meet the required ~ 3Jtf-$Rfqt) a;~~ ~air. titl 3IR ~ debt-equity ratio and term loan on relatively soft terms for establishment of JUlU cN ~ ~ 3Q"ffifr ~ m~ WP new MSMEs, as also for pursuing ~ 10 ,000 qx)~ ~ ~ ~air. titl mi ~ opportunities for growth for existing ~l)q;~~~~ ~ (~)' MSMEs. 3TR~~~I • _,,)f~~ ij; ~~f.:ltlf'{UI ~ W'c ~ ~ • With a view to make Refinance portfolio fi~1i!JI cN ~ ~ JlR ~ ~ ~ more stable and sustainable in terms of W'c ~ 3IR fq;)- q fcrffi<:r ti ffi 1;:fi a; ~ 3rtflC5 repricing risk and also make it attractive to 311(f)t{a; ~ ~. ~ ~ ~ 1f1: wrcAT the banks/Fis, SIDBI introduced Long Term mcf ~ 364 fa;r ~-ftffi" ~ ~ ~ Refinance (18 months to 60 months) with i!f1 m ai:fta ~ CJZJ ~ Rtim:a ~ ~ m annual Interest Reset Clause benchmarked cflda;11?!Cf5 ~ (18 lfIB' ~ 60 lfIB' C'fQ5) 31R1f to India 364 Day T-Bill Auction rate plus ~~ I negotiated margin. • tR-~ 3w:J ffi1fQa ~ a; ~ m fCf5 • In order to foster smooth implementation ~ IDmi. -gr, ~~. 3!tlr1M 1rcf 5J(iti~. ~mu sAt 3!JfQ" ~~. 3\irtti~. ~ Bankers' workshop on "Stand-up India" Scheme & "Standupmitra" portal. From left to right: Shri Mohan V. Tanksaie, CEO, IBA, Dr. Kshatrapati Shivajl, CMD, SIDBI and Shrl Ajay Kuma r Kapur, DMD, SIDBI. ~ gffla«., 201s-1s 3tll'Ria fctx:rr ~, Rrl~a>I Jat11c"'1 1l)- J:iH;\)q portal "www.standupmitra.in" which was ~aR~~~~fcf>mm 1 ~~~~, also launched by Hon'ble Prime Minister ~ 3lR ~ 3tJlT cffi' ~-Jrq ~ ~ (fW on the same day. The portal enables an 3Rl ~~, ~ 3IR ~ 3tJlT ~ a;~ MSME to apply for Stand-up loans, as also a, IBl! ~tflll ~ ~I ~ ~ ~ Jf+rr other MSME loans. It also acts as a loan ~ (fW ~ ~ ~ a; IBl! ~ iff3fR market place for application filing and q;r Cfif4 aRaT ~ JIR ~ ~ ~ ~61<'1Cf I a> tracking as well as provides the facility for choice of branches/ banks for credit IBl! Yilll'& 1311 I ~ a> Q<:R cBr ~ 1l)- ~ assistance. The portal tracks individual aRaT ~1 ~ ~ a 311aa;fi cBr ~ aiffi>,1 applications and also facilitates the overall Cf5') q;r lJ0"'1" fctx:rr ~ t2,000 crore India Aspiration Fund (IAF) 3dEllG"'1 &iHoflq "fct'O ~ ~ 18 ~ 2015 which was launched by Hon'ble Finance cffi' fcfx:Jr lJllT m1 311$ee4> cffi' ~a;feqcp ~ Minister on August 18, 2015. IAF is being utilized as a Fund of Funds for making w (e3l 1$e4>) 1l ~ ~ RftrqT cBr Rftr a> investments in Alternative Investment ~ 1l ~ fcf>llT JIT ~ ~, "51)- QRUllJ:i'tQ'( cBr ~ q;r 50%, twice the commitment of SIDBI or 50% of "51)- 1l)- 3lftrcp m, q;r ~ ~ I 31 llffi 2016 the corpus of the AIF whichever is more. cffi' fflsir ~ 3l1$ee4> m 3RnIB 19 cffi' As on March 31, 2016, SIDBI has t607 Cf)'{)"~ cBf Slfai!l part of up-scaling its initiatives to address the gaps in the start-up eco-system, SIDBI w:mTI q;) ~ <)> fffi!, ~~ml> 3tl""lcil$"1 created an on-line platform -ire "SIDBlstartupmitra. in" a;r ~ fax:rr "urww.sidbistartupmitra.in", which was ~. fJiflct>I 3dUIG"1 ~ <)> 'iH-flll '<11)(4fa launched by the Hon'ble President of India ~ 17 1ITTf 2016 ml fax:rr mI ~ tOirf ~ on March 17, 2016. The portal will enable m' "f1W, ~ ~1Rla m various stake holders viz. incubators, <)> fffiz ~am ~ ~I ~ q;) ~ l!ci mentors, angel networks, venture capital funds, etc. The portal is also supported by sf\d1fi1cb) fcflWr [~eflt'I], ~ ~ CPT Department of Science and Technology ~ ~ ~ ~I "fffTWT 500 tcll314, 48 [DST], Govt. of India. Around 500 start- $ ~ lfa "# tj\Jficpa 6) ups, 48 incubators and 50 investors have ~~I already registered on this platform. • A new page https://venturefu.nd.sidbi.in has • it1'] <)> 3ffimr been created to give complete details on 4Rt11a911 c5r ~ "1Hct>1'8 ~ ~ fafm:r the operations under India Aspiration 311$eeq; <)> ~ct' "f1W t!CP f1'i$'1'la1-~ ~ India (LIC) on April 07, 2016, under which ~aR fa:it!. ~ ~ itl'<~q ~ ~ UC has allocated an amount of ~00 crore f;pm ~ ~t'iarr M- <)> "f1W ~-~ to co-invest along with India Aspiration <)> fffi! ~200 ~ c5r ~ 3t1 dR;a c5r ~I Fund. • Subsequent to the announcement by • tctl314 a, fffi! ~ 10 .ooo ~ cBr ~ ~ Hon'ble Prime Minister on January 16, (~2,500 ~ ~ ~ Q(f c5r 3'Qftr a, fffiz) 2016 at New Delhi to create a fund corpus a,~<)> fffi! ~ ~ "# 16 ~ 2016 ml of ~10,000 crore ~,500 crore every year for AH~ll SftlR ~ c/5r ~ <)> tmrm, ~500 a period of four years) for start-ups, an ~ cBr ~ C!jjjt)q 3mk;;r ~ ~ Q(f amount of ~500 crore has since been 20161l ~ m1Tt ~I received in FY 2015-16 through budgetary allocation. ~ gffla«., 201s-1s • ~aif. ~ 3IR ~ 3tP1 •buci4 cJ5r ""'fq)..q~. • Under ''A Scheme for Promotion of :mmor m J1R 3E1~a1 mfcfcpm ~ -ea> Innovation, Rural Industry and Entrepreneurship (ASPIRE)" Fund of ~ (ASPIRE)" $ ~. m+ftur 3IR ~ Ministry of MSME, ~ 60 crore was allocated ~ $ ~ l1 «;1l31q 3IR ~ ~ $ and disbursed to SIDBI for managing the 3U+rr ~~ ~~$~ 3tP1 ~ l1 Fund for investing in VCs with investment ~ $ IBl! f.:rfu $ ~!FT $ IBl! ~ ml focus on start-up and early stage ~so ctffi~ 31 Id R:a 3IR ti RlaR:a fax) 1J ~= ~ ~ e ~ m commenced its merchant banking activities ti 1 &! issue of one of its customers in NSE-SME ~ a>r ~ fctx:rr ~I ~ 5. 76 affi~ $ platform "EMERGE". The issue size of 3ITQ)R QTffi f.:nhl 1. 34 1JUlT ~ ~ ~ ~ 5.76 crore was oversubscribed by 1.34 times s31TI • ~ ~ ~: ~aif. ~ 3IR ~ • Foreign LoCs: SIDBI has contracted a Line 3tP1 ~ "'lci)..qq JlR tl&lla~H fcrn of Credit (LoC) of USD 500 million with qf{q)6'1•11' (e'"lette'"l$-~~) $ IBl! International Bank for Reconstruction and ~ -;t $l'<'"'!IH fa> Q>R Rcf>tt~~H ~ Development(IBRD) for 'MSME Growth gar14'1e(JIT#r~) $ ~ 500 ~Ri<:H Innovation and Inclusion Finance Project' 3il!R:cb) 51ffi cJ5r ~ ~ q;r t1'"1$41a1 fcpqr ~. (MSME-IIF) which will focus on financial JI) 1iRO -# ~aif ~ I 3IR ~ 3tP1 ~ ml intermediation to the MSME sector in India. The objective is to improve access to ~~~~mm1~~ finance for MSMEs in manufacturing and ~aif. ~ 3IR ~ 3U+rr cJ5r ti&lld~k1 ~ service sectors from early to growth stage $ IBl! "'lci)..q~ ~ ~ mmum ~ firms, including through innovative ~'63llffl ~ ~ ~ ~ m$ fCtPJqio1 3IR financial products for inclusive growth of mn ~ -# ~aif I ~ 3IR ~ 3U+rr $ IBl! MSMEs. fcrn cJ5r $ l1 tJ;trR d5'<;rr ~I • Alternate Hedging mechanism: Alternate • aCl>~Ci> M~ffcict> Man ffif ft<:wr ~ Light Business, Cash flow based business, Annual Report 2015-16 OQcHllll 3IR ~ OQC:Hi Ill ~ OQcHI Ill a> Commercial Real Estate business and ~ ;m aflf&+t ~ +ti4cis'i CPT d>lllf;q<:H Secured Business Loan were fct>m llml implemented. • m w ~ ctHkCb ~ m mi. ~ • New financing channels were created through Tndustry Associations viz. $~C{<{G fd5 A~51'ic, ~ a> qrn 3JTQ> Kamataka Small Scale Industries ~ m- mi. cPitiaCI-< ~ m mi Association, National Tnstitute of Bank (m)t)311$lMtN13!1Je) a ~ m mi ~ Management, Rai Industries Association, (~3i)e~J11te) a>~~ ;m~ ~ a;r near Delhi, Coimbatore District Small Scale Industries Association (CODISSIA) & ~fct>m1f<:rrl Chamber of Small Industries Association (COSIA). • ~ si1mfl1afl 1l ~= • IT Intiatives: • ftmft ~·'ililifM at;p14'~1 ~ • SIDBI Mitra-Mobile Application i:t) &1$<1 lN c#r URI ~ m~ m The app has been designed to m~~~~~.~u facilitate providing information ~a'-Od5(3TR"ell) a> ~ ~a i:i)a1$C1 related to accounts of the customer ~ ~ ct; mtzm 3IR ~ ~. with SIDBI, channel for mobile messaging directly with the ~~ m ~ (ij;l! lNI lNI ~ l!) ij)wr~ Cfjf ~$11q;f ~ ~aR° SIDBI signs MoU with Karnataka Small Scale Industries Association (KASSIA) ~ gffla«., 201s-1s 11t1T «tl'11311 m ~ ~af""a mrr ~~ Relationship Manager (RM), and ~tIT a> fffinffi l1t t I lN annu:r+r ~ service requests related to loan ledger, demand advices etc. An interface for fl'51tto1 c;m ~a> ~m c/?r H'l' communication and requests from the ~~mo $c'<~ ~ qf{ifkFH a fctxrr customers generated through the app ~t i and also for sending messages to the users by RMs. • 'tkQl'+t t'81 ~ ~ (cfi l! ~): ~ • Virtual Account System (VAS) was at~ d5tqff;qa c/?r implemented for all the branches to l1t t . ~ ~ (f)(q~(i'i<)i ID'lqf(i'iql a; "©rcl a; fcrcRor a; Offices (BOs), thereby leading to reduction in the man-hours spent on +rlm+r ~ Sll'T ~ Sf1tR ~ ~llR'I Signing of MoU between SIDBI and Chamber of Small Industries Association (COSIA). Annual Report 2015-16 ~ flsllictl cRf ~ m 3i'jfll'< ~ received through the account 3i'»1dP1 +ilsqct ~ ~ JfT ~ lfIBC5 m statements of the BOs and then a> m RlR~f.J1a ~ ~ ~ fa>t! lTt! appropriating the same against the customer accounts maintained in llRl2 lTt! gx;r srNTl9UT +iisqct - launched - 10 modules of which; 10 l'lisqct, ~ ~; (i) Static Modules (Study/training (i) ~ 4-11~<1 (3itllli"1/ll~1~01 materials/presentations) - 5 modules m+nftl1!«_!faCfl'<01) - 5 +ilsqct a. Credit Appraisal fcra;m Cfll4Sf>l'i c. Micro Finance Institutions - 1T. 3J(iq fcrn ~ - 'irtl ictH 3IR Appraisal and Assessment 3i1Cflct"'t d. Follow Ups, Supervision and tr. fclt14~ tto1 ~ • Cfl1{c:u$, Monitoring Aspects in Lending ma1'0T 3IR ~il{1:n ~ e. 'Start-ups, Quasi-Capital, s. '«;il3N, 3ift'J\an, 3ID1 ~ Venture Capital Fund (VCF) & M(ah~eQ>) ~ cRr M- Fund of Funds Regulation & fa~li+i cr~· Funding' ildQs wR!itCA 2015-16 (ii) ~1Rt~t'1 q'fsqci (~aJUT q «i'!~i. •w1Rct> ~ a. Citizens' Charter b. 'SMILE' and 'Make in India' TT.~ c. Rajbhasha d. Risk Management s. q:tl)"1~ 311~(f)(1farr ~ '(i'jfila e. Due Diligence of Machinery '(iiqUloft Suppliers Overall Business Operations 22-24 • 2016 ~ ~ 1' 3ii4'tf3tI 3.1 : ll1tJI' qRiUi.'1"1 Table 3.1 : Overall Operations (~ q;:U~ I crore) PctctTt1T ~ I O!s Amt 'i'Cf>Tt1T ~I O!s Amt ~31~. ~31~. as on March 31 as on March 31 I. 31Jl~ / JRf I 4,054 5,678 c Resource Support to NBFC I Others q>t't 31Jlcir gc:qar ~I Total Direct Credit 11,588 11,397 ~'thtr I Grand Total 55,343 65,632 flcquft : rnm '1" I ~ 24% to ~ 54,235 crore, refinance to banks I Fis which constitutes around 86% of total indirect ~ ~13?i cm ~'1fcfa' '3i)' ~ ~~ ftffi-q;r ~ 86% finance and around 71 % of total credit C'Jm ~ ~£Uli\fd51<:U q;r ~ 71% ~, ~~ ~ m outstanding, increased by 22% during the year ~ 22% ('fd)~lfm (arfftd513.2er3.3) I under review (Table 3.2 & 3.3). m@ia>1 3.2: ftrflm ori'ttl13'1 er>) ';('"1fift1 'fltcl<:iC'll Table 3.2: Refinance Assistance to various institutions (~ Cfffi~ I crore) 'Ei'ttlM Institutions 2014 -15 2015-16 ~I orifaC'l'(Ui/ ~I ~I ;ri faC'l'(Ur/ eTQT/ Sane. Disb. Outstanding Sane. Disb. Outstanding 'tl'm 31 lfRf. 'tl'm 31 lfRf. as on March 31 as on March 31 fCP/ Banks 36,308 35,308 36,359 44,610 44,629 45,268 ~~~/SFCs 143 119 1,704 97 79 1,251 ~/NEDFi 0 0 35 0 0 25 ~/Total 36,451 35,427 38,098 44,707 44,708 46,544 ~ = mvTm ~ ~ad5r"j'flt'< ~ ~ m lTt ~mm-~ s11atl1;fi cm~~ lTt ~ 1 Note: Outstanding figures are net of prudential write-off and NPA provision. C'lltfld>I 3.3: ~-Q"f{ ~ '11atl1'11cm~~lTt~1 Note: Outstanding figures are net of prudential write-off and NPA provision . ~ gffla«., 201s-1s Refinance to Primary Lending Institutions ~ ~. 1989 cffl" ttro 13{1){i) $ 31•j'(11'<, In terms of Section 13(1)(i) of SIDBI Act, 1989, SIDBI provides refinance to State Financial ~ ~fcrffi<:fFJrrm, ~3f\~)ft1Cfl~~. Corporation, State Industrial Development ~ 'ffij ~ Fmm 3i'j~<'1 I fa>l. ~ tl~(f)I;{) Corporations, State Small Industries W ~ Rd:itlCfl ~ ~ 3i'js?lfaa ~ ~ cEt Corporations, Scheduled banks, State ~~ ~ ~13il cffl- ~ ~ ~aif Cf 'ffij ~ cffl- Cooperative Banks or such other financial institutions approved by the Board against the ~fcf>t! 1ll!~ er 3ifin:tT $ m~~~ loans and advances granted to industrial ~I ~ t1614C'fl ~ cRt R""lf?tfxg('f q)J1'113il $ concerns in Micro and Small Enterprises (MSEs). ~~~~JrTW~= Refinance is being channeled through the following schemes of SIDBI: i. '~ 1!ci C1fEJ ~ 'f'1Fct=t1 ~ (e11e'6$3'roffi i. Micro and Small Enterprises Refinance - '61411""'4 r.rft.r) Scheme (MSERS) to Banks (General Fund) ~aif trci 'ffil 3W1 ~ ~ (eiiet1~3Troffi) MSERS is offered to Scheduled Banks $ 3ffimr 3i'jefiia w (~ tl~(f)l.a fall ~ t (including State Co-operative Banks, Urban Co-operative Banks, Private Sector Banks, fa>l, ~ m$W, ~fem~ t1~Cf>1;{) Foreign Banks etc.), select Financial ~), ~~ ~~1;fi cP1 tl~llldl 3Rnfa" I resm ~ fcffihl ~ ~ Under the scheme, SIDBI sanctions ~ J;:r mqfu ~ cf> 5l'fcr ~'1fcf:a ~ ~ refinance against term loans sanctioned by t IJfl ftp ~~I "ffi,! mi mzJ+r ahf cf> 3i1 di f11 ct> the SFCs to industrial concerns in Micro, 3EPTI' CP1' eimtrn+i t aa ~ 3i1 di f11a> q R:41 aH 1 e Small and Medium Enterprises (MSMEs) sector for setting up of industrial projects ~ m".lT ~ fattiF(, 311tJ)~a3lct>'