Small Industries Development Bank of India (SIDBI), the nation’s primary institution dedicated to the growth of MSMEs and startups, has entered into a strategic partnership with Bank of Baroda (BoB) to boost credit access and enhance financial support for emerging enterprises. The collaboration aims to accelerate working capital availability, improve credit outreach, and drive innovation-led growth among small businesses across the country.
The newly signed MoU brings the strengths of both organizations together—SIDBI’s deep understanding of MSME financing and Bank of Baroda’s widespread national presence. Through this alliance, the two entities intend to design joint lending programs and streamline credit delivery to ensure businesses can secure funds more efficiently.
One of the key aspects of the partnership is the integration of Bank of Baroda’s digital working capital platform for SIDBI-approved borrowers. This is expected to simplify access to funds with faster, tech-enabled processes. In addition, the collaboration broadens support for startups through a combination of SIDBI’s venture debt initiatives and BoB’s dedicated startup banking solutions, covering financial products, advisory services, and customized business support.
The MoU also emphasizes export development, enabling MSMEs and high-growth startups to leverage Bank of Baroda’s international network for global banking assistance, market connections, and cross-border finance solutions. Moreover, both institutions will focus on nurturing India’s innovation ecosystem by jointly supporting clusters, incubators, and accelerator programs to drive inclusive entrepreneurship.
Announcing the initiative, M. Nagaraju, IAS, Secretary, DFS, stated, “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.”
Echoing this vision, 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.”
Highlighting SIDBI’s contribution, CMD Manoj Mittal noted, “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.”
Representing Bank of Baroda, Executive Director Lalit Tyagi added, “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.”
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