SIDBI to give Rs300cr to MFIs

Small Industries Development Bank of India (SIDBI) is aiming a credit flow of around Rs 300 crore to the micro-finance institutions in Orissa by the end of 2010.

“SIDBI’s cumulative disbursement to the micro-finance institutions (MFIs) in Orissa has been Rs 250 crore so far and we are aiming at a disbursement figure of around Rs 300 crore by the end of 2010. Our outstanding loan amount currently stands at about Rs 100 crore and it is expected to reach Rs 120 crore by March next year”, said Kirpal Singh, general manager, SIDBI. SIDBI has also identified two MFIs in Kalahandi district-

Sangini and Maa Shakti Foundation and credit for these two institutions is expected to be sanctioned by March next year. At present SIDBI is supporting 20 MFIs in Orissa. “SIDBI plans to enhance its presence in underserved regions for MFIs in the country and the bank intends to set up incubation centres for 50 new MFIs in the next two years.

Plans are also afoot to set up specialised branches of the bank for MFIs in seven locations of the country. Moreover, SIDBI’s thrust will be on equity or quasi equity funding and also syndication of loans for MFIs”, informed Singh.

He was speaking at the Orissa State Policy Conclave on Synergy between microfinance and livelihood organised here at the Xavier Institute of Management.

The conclave was jointly organised by the New Delhi-based Sa-Dhan, the association of community development finance institutions and Mission Shakti of the Orissa government.

Talking on the concerns of the MFIs in India, Sing said, “The MFIs in the country are by and large concentrated in the southern states with the eastern region showing trends of growth. The northern and western states as well as the North-Eastern region are underserved as far as MFIs are concerned.” Speaking on the occasion, RK Mukherjee, general manager, UCO bank and convener, State Level Bankers’ Committee said, “Among the 30 districts in Orissa, Anugul has achieved almost 100 per cent financial inclusion followed by Balasore at about 98 per cent. There are states like Punjab, Haryana and Himachal Pradesh which have achieved 100 per cent financial inclusion.”