The Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BOB) have signed a Memorandum of Understanding to expand credit access for micro, small, and medium enterprises (MSMEs) and startups.
The collaboration aims to strengthen working capital flow, enhance export-linked financing, and streamline credit delivery in alignment with India’s Vision 2047.
The agreement was formalised in the presence of M. Nagaraju, Secretary, Department of Financial Services (DFS), along with senior leaders from both institutions. The partnership supports the broader policy objective of increasing formal credit penetration and strengthening financial support for enterprises that drive employment, innovation, and regional development.
Under the MoU, SIDBI and Bank of Baroda will engage in joint financing for MSMEs, leveraging SIDBI’s sectoral expertise and BOB’s extensive branch network. The collaboration also includes operationalising BOB’s digital Working Capital Platform for SIDBI-sanctioned borrowers, enabling expedited and technology-driven credit access.
The partnership extends to startup financing, with plans to integrate SIDBI’s venture debt programmes and BOB’s startup banking services, offering customised solutions and advisory support.
The MoU also covers assistance for export-oriented MSMEs and high-growth startups, using Bank of Baroda’s international network, as well as coordinated initiatives for MSME clusters, incubators, and innovation-driven ecosystems.
Lalit Tyagi, Executive Director, Bank of Baroda, noted that the bank will utilise the partnership to strengthen joint financing efforts, expand digital credit enablement, and support startups through specialised solutions and global market access.
Both institutions stated that the partnership will improve credit flow, streamline lending processes, and broaden formal financial support for MSMEs and startups that form a vital part of India’s economic growth strategy.
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