SIDBI–BOB sign MoU to strengthen MSME and startup financing

By Vriti Gothi

The Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BOB) have signed a Memorandum of Understanding to jointly enhance credit access for micro, small and medium enterprises (MSMEs) and startups. The collaboration aims to enhance working capital flows, strengthen export-linked financing, and streamline credit delivery in line with India’s Vision 2047 for a Vibrant India.

The MoU was formalised in the presence of M. Nagaraju, Secretary, Department of Financial Services (DFS), alongside senior leadership from both institutions. The partnership reflects a broader policy push to expand formal credit penetration and increase financial support to enterprises that contribute significantly to employment and innovation.

Under the agreement, SIDBI and Bank of Baroda will collaborate on joint financing for MSMEs, combining SIDBI’s sectoral expertise with BOB’s extensive branch network. The partnership also includes the operationalisation of BOB’s digital Working Capital Platform for SIDBI-sanctioned borrowers, aiming to deliver faster, technology-enabled credit access.

In addition, both institutions will coordinate on startup financing by linking SIDBI’s venture debt programmes with BOB’s startup banking offerings, including advisory services and customised financial solutions. The MoU also outlines support for export-oriented MSMEs and high-growth startups through Bank of Baroda’s international network, as well as joint initiatives for MSME clusters, incubators and innovation ecosystems.

Bank of Baroda Executive Director Lalit Tyagi said the bank will leverage the partnership to strengthen joint financing and expand digital credit enablement, while supporting startups with specialised solutions and export opportunities through its global footprint.

The institutions stated that the partnership is expected to improve credit flow, streamline processes, and expand formal financial support to businesses that are central to India’s growth trajectory.