Small Industries Development Bank of India (SIDBI) wants to increase its credit flow to the micro-finance institutions (MFIs) in the state of Orissa and therefore targets to disburse Rs 300 crore to the sector by the end of 2010.

General Manger of SIDBI, Kirpal Singh said, "SIDBI's cumulative disbursement to the micro-finance institutions (MFIs) in Orissa has been Rs 250 crore so far and we are aiming at a disbursement figure of around Rs 300 crore by the end of 2010. Our outstanding loan amount currently stands at about Rs 100 crore and it is expected to reach Rs 120 crore by March next year."

Presently there are 20 MFIs in Orissa that are supported by SIDBI and Mr Singh told that, "SIDBI plans to enhance its presence in underserved regions for MFIs in the country and the bank intends to set up incubation centers for 50 new MFIs in the next two years. Plans are also afoot to set up specialized branches of the bank for MFIs in seven locations of the country. Moreover, SIDBI's thrust will be on equity or quasi equity funding and also syndication of loans for MFIs."

Also there are 2 more MFIs that are been founded by SIDBI in the Kalahandi district of Orissa. Sangini and Maa Shakti Foundation are the institutions that are identified and SIDBI plans to sanction credit to these organizations by March 2009.

At a meeting in Orissa State Policy Conclave on Synergy between microfinance and livelihood, Singh said: "The MFIs in the country are by and large concentrated in the southern states with the eastern region showing trends of growth. The northern and western states as well as the North-Eastern region are underserved as far as MFIs are concerned."

RK Mukherjee, General Manager, UCO Bank and Convener, State Level Bankers' Committee said, "Among the 30 districts in Orissa, Anugul has achieved almost 100 per cent financial inclusion followed by Balasore at about 98 per cent. There are states like Punjab, Haryana and Himachal Pradesh which have achieved 100 per cent financial inclusion."

Recently SIDBI has declared to start its asset reconstruction company (ARC) by the end of March 2009.