Sidbi is partnering with YES Bank to provide working capital funding to the former’s MSME clients. The agreement provides that YES Bank would provide various banking services, including working capital, to Sidbi’s customers at its 1100 branches across the country. An agreement was signed between the two entities. Sidbi chief general manager K.I. Mani and YES Bank group president (International and Institutional Banking) Arun Agarwal signed the documents. Mani said Sidbi wants to refocus on this area and is partnering with YES Bank to route the working capital needs of its MSME customers through the bank’s counters. As MSME refinancer, Sidbi had been more focused on providing term loan to enterprises, who had to approach other commercial banks for their working capital and other routine banking needs. The agreement would facilitate smooth flow of credit to SIDBI’s MSME customers availing term loan facility, which is offered at low interest rate of 8.12% per annum.
