The homegrown bank would, now, not only help in income generation, employment creation in Egypt, also provide boost to strengthen India & Egypt's ties
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, according to which, SIDBI would not only help in income generation and employment creation in Egypt, but also provide boost to strengthen the ties between India and Egypt
The MoU was signed in the presence of Mohamed Morsi, president of the Arab Republic of Egypt, who is on an official visit to India and India's commerce and industries minister Anand Sharma.
Egypt, being the hub of Arab League, comprising 22 countries, SIDBI's support has the potential to expand to other countries, thereby paving greater role of India in western and northern African (WANA) countries and the Middle East countries.
SIDBI’s initiative would also facilitate transfer of technology from India, as also enable Indian entrepreneurs to expand their business to Egypt and other countries in the region.
Sushil Muhnot, chairman and managing director, SIDBI, said, "The new business initiative is mainly to leverage the experiential learning of SIDBI, accumulated over the years, as also in its associate and subsidiary organisations to help SMEs in other countries to grow in a competitive manner. Further, by creating an enabling eco-system in Egypt, SIDBI would facilitate access to finance to SMEs in Egypt."
N K Maini, deputy managing director, SIDBI who had earlier led the SIDBI team to Egypt for preliminary negotiations, said that the historical bond between the two countries would be further strengthened and SMEs in Egypt would benefit immensely from the expertise developed by SIDBI in several areas.
Further, keeping in view SIDBI’s pre-eminent role in MSME financing in India, many other developing countries were also approaching SIDBI for consultancy assignments. In view of this increasing interest, the Bank had earlier set up a separate vertical with a specialized team to handle international consultancy.
The state-run IDBI Bank has successfully raised $500 million through a five-year bond sale