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Informist, Tuesday, Nov. 18, 2025

NEW DELHI – Small Industries Development Bank of India and Bank of Baroda Tuesday signed a memorandum of understanding to together boost credit flow, expand working capital access, and increase financial support for micro, small, and medium enterprises and startups across India.

The MoU will focus on credit delivery support through combined strength of SIDBI's MSME focus and Bank of Baroda's wide branch network, the press release said. The partnership will also help in operationalisation of Bank of Baroda's working capital platform for SIDBI-sanctioned borrowers to ensure seamless, technology-enabled working capital support, it said.

"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," Financial Services Secretary M. Nagaraju, who was present at the signing of the MoU, said in the press note. "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."

One of the key areas of focus will also be startup financing, under which lenders will facilitate structured support for startups through coordinated interventions--SIDBI's venture debt programme and Bank of Baroda's startup banking solutions, including financial products, advisory, and customised offerings. 

"Through this partnership, we will strengthen joint financing, enhance digital credit enablement, and expand specialised banking solutions for startups," Lalit Tyagi, executive director, Bank of Baroda, was quoted as saying in the press note. "Our global presence will further help MSMEs, and startups tap export opportunities."

Bank of Baroda's net profit fell by over 8% on year to INR 48.09 billion in the September quarter. Sequentially, the net profit declined nearly 6%. Tuesday, shares of the lender ended 0.2% higher at INR 288.45 on the National Stock Exchange. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

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