The Small Industries Development Bank of India (SIDBI) and Bank of Baroda (BoB) have signed a Memorandum of Understanding (MoU) to strengthen credit flow and enhance financial support for MSMEs and startups across the country.

Under the partnership, the two institutions will collaborate in several areas, including joint financing for MSMEs by combining SIDBI’s specialised sector expertise with BoB’s extensive branch network. In a statement, BoB said the partnership would enhance joint financing, enable seamless digital working capital access, strengthen startup support and expand global opportunities for MSMEs.

M. Nagaraju, Secretary in the Department of Financial Services, said the collaboration brings together the strengths of a specialised MSME-focused institution and a major commercial bank to build a stronger credit ecosystem for both traditional and new-age enterprises.

SIDBI CMD Manoj Mittal said the MoU will support efforts to provide venture debt, digital credit and integrated working capital solutions to MSMEs and startups. BoB Executive Director Lalit Tyagi added that the partnership will help strengthen digital credit enablement and expand specialised offerings for emerging businesses.

The bank’s leadership also noted that the collaboration will assist enterprises in accessing export opportunities through BoB’s international presence.

The cooperation is expected to improve access to timely, affordable capital for MSMEs and startups, helping them scale operations and participate more effectively in global value chains.