SIDBI partners with Bank of Baroda to strengthen credit delivery for Indian 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) recently signed an MoU to jointly enhance credit flow, expand working capital access, and strengthen financial support for MSMEs and startups across India.

Under the agreement, both institutions will collaborate on joint financing initiatives that leverage SIDBI’s focus on MSMEs and Bank of Baroda’s extensive branch network to improve credit delivery.

The partnership also includes operationalizing Bank of Baroda’s working capital platform for SIDBI-sanctioned borrowers, enabling smoother, technology-driven access to working capital.

The MoU outlines coordinated support for startups through SIDBI’s venture debt program and Bank of Baroda’s suite of startup banking solutions, which includes financial products, advisory services and customized offerings.

The two institutions will also work together to promote exports by helping MSMEs and high-growth startups tap Bank of Baroda’s global network for export-related banking support, international market insights and cross-border banking solutions.

SIDBI and Bank of Baroda will further collaborate on programs aimed at supporting MSME clusters, incubators, accelerators and innovation ecosystems across the country, with the goal of strengthening entrepreneurship and driving inclusive growth.

“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,” said M. Nagaraju, IAS, Secretary, DFS.

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.

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.” 

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.”