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SIDBI Signs MoU with Federal Bank to Enhance MSME Financing.

Banking & Finance | Dated: 08 Mar 2025

In March 2025, Lucknow (Uttar Pradesh, UP)-based Small Industries Development Bank of India (SIDBI) and Aluva (Kerala)-based Federal Bank Limited (FBL) signed a Memorandum of Understanding (MoU) to provide financial support to Micro, Small, and Medium Enterprises (MSMEs).

🎯 Key Highlights:

  • - The MoU was signed by Prakash Kumar, Deputy Managing Director (DMD), SIDBI, and Harsh Dugar, Executive Director (ED), FBL, in the presence of senior officials from both SIDBI and FBL.

💡 Other Important Facts:

  • (i) This partnership aims to strengthen the MSME ecosystem by offering various financial services, including project financing, machinery and equipment financing, working capital support (such as letters of credit and bank guarantees), and loans against property.
  • (ii) Under this agreement, both institutions will explore joint financing options to extend credit facilities to MSMEs.

📚 Test Your Knowledge:

Which financial institution, recently, signed an MoU with Federal Bank to enhance MSME financing?

Correct Answer: SIDBI

🚀 Quick Recap: