SIDBI, BoB team up to support MSMEs and startups

By Vriti Gothi

The Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BoB) have partnered to strengthen credit delivery and financial support for micro, small, and medium enterprises (MSMEs) and startups across India. The Memorandum of Understanding (MoU) was signed in New Delhi in the presence of Shri M. Nagaraju, IAS, Secretary, Department of Financial Services (DFS).

The collaboration seeks to leverage SIDBI’s expertise in MSME financing with BoB’s extensive domestic and international banking network. Key areas of cooperation include joint financing for MSMEs, operationalising BoB’s working capital platform for SIDBI-sanctioned borrowers, structured startup financing through venture debt and customised banking solutions, export promotion, and support for innovation clusters, incubators, and accelerators.

M. Nagaraju, IAS, said, “By combining SIDBI’s innovative financing models with Bank of Baroda’s national and international reach, this MoU will help enterprises both traditional and new-age access timely working capital, scale operations, and integrate into global value chains.”

Shri Manoj Mittal, CMD of SIDBI, added, “This MoU deepens our ability to jointly support MSMEs as well as high-potential startups through venture debt, digital credit, and coordinated working capital solutions. We see this as a powerful opportunity to accelerate India’s enterprise growth narrative.”

Shri Lalit Tyagi, Executive Director of BoB, noted, “Through this partnership, we will strengthen joint financing, enhance digital credit enablement, and expand specialised banking solutions for startups. Our global presence will further help MSMEs and startups tap export opportunities.”

The initiative aligns with the Indian government’s long-term vision for enterprise development under Viksit Bharat 2047, and represents a concerted effort to enhance access to affordable credit for the country’s SME and startup ecosystem. During the ceremony, DFS Secretary Shri Nagaraju also handed over sanction letters under the MoU to selected MSME customers.