The Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BoB) have signed a strategic MoU aimed at improving credit flow, widening working-capital access and strengthening financial support for MSMEs and startups across India. The partnership aligns SIDBI’s development-focused lending with Bank of Baroda’s nationwide branch presence and global network.
Joint Financing and Technology-Led Working Capital
Under the agreement, both institutions will collaborate on joint financing programmes designed to ease credit delivery for MSMEs. Bank of Baroda will operationalise its digital working-capital platform for SIDBI-sanctioned borrowers, enabling faster approvals, smoother loan management and a more transparent, technology-driven experience for small businesses.
Strengthened Support for Startups
The MoU also expands coordinated assistance for startups through SIDBI’s venture-debt initiatives and BoB’s specialised startup banking solutions, which include advisory services, customised financial products and founder-centric account services. Both institutions will work with incubators, accelerators and MSME clusters to deepen support for early-stage innovation across the country.
Helping Enterprises Access Global Markets
SIDBI and Bank of Baroda will jointly support high-potential MSMEs and startups seeking to scale globally by leveraging BoB’s international presence for export financing, market entry insights and cross-border banking solutions. This collaboration aims to help enterprises integrate more effectively into global value chains.
Leadership Underlines National Impact
DFS Secretary M. Nagaraju said the alliance brings together a development institution and a major commercial bank to build a stronger MSME credit ecosystem. DFS Joint Secretary Manoj Ayyappan noted the partnership will significantly expand access to affordable financing. SIDBI CMD Manoj Mittal highlighted the MoU’s role in strengthening digital credit and venture-debt pathways, while BoB Executive Director Lalit Tyagi emphasised the bank’s commitment to MSME and startup growth.
Final Take
By combining SIDBI’s developmental expertise with Bank of Baroda’s national and global reach, this partnership is set to streamline credit access and accelerate India’s MSME and startup growth agenda.
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