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Seminar talk by Mr. Kirpal Singh, General Manager, SIDBI

Topic: Banking and Finance: Prospects and Challenges

Date:July 29, 2010

Speaker Profile :

Mr. Kirpal Singh joined SIDBI in 1990, prior to this he was working with IDBI. Mr. Singh has about 31 years of work experience in Development Banking, Micro Finance, Project finance, Promotional & Development banking and Marketing Finance. He has had a great exposure to Germany, Italy, Viana and Croatiain c/w Micro Finance & Marketing Finance. Mr. Singh obtained his masters in commerce from Sri Ram College of Commerce, Delhi in 1976 and CAIIB from Institute of Bankers in 1982. He has worked at various places like Delhi, Faridabad, Chandigarh, Shimla, Lucknow and is now posted in Bhubaneswar since 2007 as General Manager of SIDBI.


Mr. Singh delivered his lecture on the “Banking and Finance: Prospects and Challenges” and the features of SIDBI Microfinance for the ‘Banking operations & Treasury Management’ students of KSOM. Some of his important points discussed with students can be summarized as follows:

SIDBI Foundation for micro-credit was launched in 1999, with the basic features of:-

  1.   Focusing on poor people, mainly the women.
  2.   Customized need based package of loan, grant and equity to partner MFIs to develop large & sustainable institutions.
  3.   Capacity building of clients, MFIs & sectors.
  4.   Capacity assessment rating & capacity building need assessment prior to sanction.
  5.   Market driven flexible approach for credit delivery with focus on financial sustainability.


SIDBI Microfinance prospectus in India:-

  1. The micro credit is the provision of thrift, credit and other financial services and products of very small amount to the poor for enabling them to raise their income levels and improve the standard of living.
  2. MFI’s are not being permitted to accept deposits unless they comply with the extant regulatory framework of Reserve group.
  3. Banks lending to SHG’s and/or to NGO’s for on-lending to SHG’s/members or SHG’s/discrete individuals or small groups which are in process of forming into SHG’s is treated as priority sector lending.


The Product ranges from:-

  • Term loans for on-lending to MFI’s
  • Transformation loan (Quasi-Equity)/ convertible term loan for facilitating/undergoing transforming into formal equity.
  • Equity for enabling corporate MFI’s to attract commercial capital through SIDBI Growth fund for MFI’s.

Sectoral Initiatives:-

  1. Pioneered the concept of rating of MFI’s.
  2. Mainstreaming- many commercial banks now funding MFI’s.
  3. Capacity Building
  4. Catalytic role


Impact of Assessment Study:-

  1. The longitudinal study was conducted in two stages – Baseline and Endline.
  2. The Baseline study (Stage 1) was conducted during 2001-2004 as the EDA Rural System Pvt. Ltd., Gurgaon.
  3. The Endline study (Stage 2) was conducted during 2004 – 2007 as the Agricultural Finance Corporation Ltd., Mumbai.
  4. To document impact of MF services at the end-user level.