Page 179 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System

Notes 3. Quality and Environment Management: The SIDBI provides support to reputed agencies
for conducting ISO-9000 awareness programmes for the SSI sector and for guiding and
helping SSI units for acquiring ISO-9000 certification. Thirty-five SSI units have so far
acquired the ISO-9000 certification on account of the Bank's support. Another 45 units are
undergoing the process for acquiring the same.
4. Market Promotion: In order to boost up marketing efforts of the SSI sector the SIDBI has
since its inception accorded special focus to market related development initiatives. It has
set up Marketing Finance and Development Department (MFDD) as the nodal department.
5. Information Dissemination: For dissemination of entrepreneurship related information
through the electronic media the SIDBI provides support to 'Udyog Sadhana' series
programme.
In the year 1998-99 'Udyog Sadhana' programme in Orissa picked up with repeat broadcast of 47
episodes on All India Radio and follow up services provided by a drop-in center supported by
the state nodal agency, viz., Centre for Development Research and Training, Xavier Institute of
Management Bhubaneshwar.
Thus, the SIDBI has emerged as a principal financial institution to render yeoman services to the
small scale sector and with its present financial strength is all set to fulfill the mission of
fostering growth of India's small industries sector.
However, the Bank has to take various proactive measures to counter the challenges, which it is
going to face in the ensuing years. The greatest challenge before the SIDBI is to strengthen
financially, managerially and technically the SSI units so that it can counteract the threats
stemming out of the Government policy of globalisation.
The fast changing market scenario would further deepen the problems of the SSI sector particularly
when the provisions of WTO came into play in full swing. Besides for exports in the global
market, challenges await in the domestic market as well. Consequently, the SSI sector has to
focus on technology up gradation, quality control economies of scale, production and delivery
schedule in order to achieve competitive edge in this era of globalisation. In this mammoth task,
the SIDBI has to play still more crucial role.
Another future challenge before the SIDBI emanates from the upsurge of universal banking
concept. The existing all India development financial institutions prefer to connect themselves
into Universal banks. The SIDBI finds itself at the crossroads at this juncture when it has to
perform the apex role conferred on it by the provisions of SIDBI Act. The SIDBI will have to
strike a delicate balance between its developmental role for the SSI sector, on the hand and the
role of viable financial institution to improve its profitability, adhere to prudential norms,
contain NPAs and achieve higher net worth by adopting competitive banking practices on the
other.

In future the SIDBI is destined to emerge as a big conglomerate financial institution meeting
new innovative demands of SSI sector, having set up subsidiaries, viz., SIDBI Venture capital
Ltd., and SIDBI foundation for Micro Credit and Credit Guarantee Fund Trust. Further, separate
specialized outfits for technology development and finance, marketing, capital market and for
capturing international markets are on the anvil. Once these outfits come into full play, the
SIDBI is expected to become five to six times bigger than its present size.

8.7.5 Small Industrial Development Corporation

The objective of establishing the SIDCs has been growth in the state by undertaking
developmental promotional and financing functions.

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