Small Industries Development Bank of India is planning to expand its refinance window seeing the increasing demand for the same from the banking industry.
According to a top official of the financial institution, it is expected to increase refinance to about Rs 30,000 crore in this fiscal as compared to Rs 22,000 crore in the fiscal prior to that.
Hike in deposit by as much as 250 bps in the past one year's time, it seems banks are finding refinance from SIDBI to hit them a lot less.
Refinance is offered by SIDBI against terms loans which banks give to industrial institutions for projects in small scale sector as well as for development, improvement and diversification projects too.
Refinance from SIDBI is free from the SLR and CRR factors.