UBI signs MoU with SIDBI to co-finance MSMEs

Mumbai: Union Bank of India (UBI) signed a Memorandum of Understanding (MoU) with Small Industries Development Bank of India (SIDBI) for a co-financing arrangement for MSMEs. The MoU was signed by UBI Chief General Manager Lal Singh and SIDBI Chief General Manager Vivek Kumar Malhotra.

SIDBI is the country's principal financial institution engaged in the promotion, financing and development of micro, small and medium enterprises (MSMEs). Under the MoU, UBI would consider joint financing/ co-financing with SIDBI to projects/ units in the MSME.

This MoU would help the banks to increase their customer base, while helping the MSMEs to meet their funding requirements. The key highlights of the arrangement include joint identification of viable projects and term loan and working capital financing to MSMEs.

Lal Singh said, "MSME is one of the key sectors of our Indian economy contributing to GDP, exports, manufacturing output, employment, women empowerment, the MSME sector is one of the focused areas of the bank and we aim to become a bank of first choice for the MSMEs."

This tie-up with SIDBI aids in realizing the bank's vision to have increased credit flow to the MSME sector and extend operational convenience to the MSME clientele. Under partnership, the UBI through its pan India branch network can provide general banking products.

On the occasion, Vivek Kumar Malhotra reiterated the SIDBI's commitment towards timely financing for MSMEs across all sectors.