SIDBI and Bank of Baroda sign MoU to Strengthen Credit Delivery for MSMEs and Startups
Small Industries Development Bank of India (SIDBI), the principal financial institution for promoting, financing and development of MSMEs and startups, and Bank of Baroda (BOB), one of India’s leading public sector banks, today signed an Memorandum of Understanding (MoU) to jointly enhance credit flow, expand working capital access, and strengthen financial support for MSMEs and startups across India in line with the vision of Viksit Bharat 2047.
The MoU for the partnership was signed in the presence of Shri M. Nagaraju, IAS, Secretary, Department of Financial Services (DFS), who graced the occasion as Chief Guest. Shri Manoj Ayyappan, JS, DFS, Shri Manoj Mittal, CMD SIDBI, Shri Lalit Tyagi and Shri Lal Singh, Executive Directors, Bank of Baroda and other senior leadership from Banks and FIs participated in the ceremony.
Key areas of partnership under the MoU include:
* Joint Financing for MSMEs: Credit delivery support through combined strengths of SIDBI’s MSME focus and Bank of Baroda’s wide branch network.
* Working Capital Enablement: Operationalisation of BOB’s Working Capital Platform for SIDBI-sanctioned borrowers to ensure seamless, tech-enabled Working Capital support.
* Startup Financing: Structured support for startups through coordinated interventions—SIDBI’s Venture Debt Programme, and Bank of Baroda’s Startup Banking solutions, including financial products, advisory, and customised offerings.
* Export Promotion: Enabling MSMEs and high-growth startups to benefit from Bank of Baroda’s global network, offering export-related banking support, market access insights, and international banking solutions.
* Cluster and Innovation Support: Joint programs for MSME clusters, incubators, accelerators, and startup ecosystems across the country.
Shri M. Nagaraju, IAS, Secretary, DFS, while delivering the keynote address said “This partnership brings together the strengths of a dedicated MSME development institution and a large commercial bank to build a stronger credit ecosystem for MSMEs and startups. 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 Ayyappan, Joint Secretary, DFS, said “The SIDBI–Bank of Baroda partnership marks an important step in strengthening India’s MSME and startup ecosystem. By bringing together SIDBI’s developmental expertise and Bank of Baroda’s strong national and global presence, this collaboration will significantly enhance access to timely and affordable credit.
Shri Manoj Mittal, CMD, SIDBI, said “For 35 years, SIDBI has shaped the MSME and startup financing landscape through direct, indirect and digital interventions. 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, Bank of Baroda, said: “Bank of Baroda is committed to supporting MSMEs and the emerging startup ecosystem. 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.”
Shri Lal Singh, Executive Director, Bank of Baroda delivering the vote of thanks, appreciated the efforts put in by both the teams and congratulated all stakeholders for the anticipated value creation for all parties involved, especially the customers.
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