Sidbi to set up ARC for small companies

Paid-up capital of Rs 100 cr planned.

Small Industries and Development Bank of India (Sidbi) is planning to set up an asset reconstruction company for small and medium enterprises in the next six months with a paid up capital of Rs 100 crore.

"We may have seven to 10 partners in the company. Global players with expertise in SMEs may also be invited," said Sidbi Chairman and Managing Director RM Malla on the sidelines of the Micro Finance India Conference here.

Sidbi is in talks with top public and private sector banks in this regard, he added. SIDBI also floated an idea on Tuesday to set up mutual fund and insurance company with micro financial institutions for giving better returns to lower income category people.

Meanwhile, micro financial players have joined hands with India Investment Economic Foundation for providing social security cover to low income workers.

Invest India Micro Pension Services Private Limited (IIMPS) aims to enable such low income workers across India to build up savings for retirement in a competitive and well regulated environment, said IIMPS Executive Director Ashish Aggarwal.