Small Industries Development Bank of India (Sidbi) has submitted a proposal to Finance Minster P Chidambaram for taking a strategic stake in a bank in order to provide comprehensive range of services to the small- and medium-sized enterprises (SMEs).
“We can easily invest Rs 500 crore and depending upon the options that amount can be substantially increased,” a Sidbi executive told Business Standard adding that it had a net worth of Rs 4,600 crore.
“In case we do not get the go-ahead to enter into commercial banking in the near future, we would be able to offer integrated services to our customers through strategic tie-up with a bank,” the executive added.
Sidbi had earlier approached the Reserve Bank of India to convert into a commercial bank but the central bank had turned down the proposal. It wanted to convert into a bank as it is allowed to extend composite loans up to Rs 50 lakh only.
