Skip to the content
Mumbai, July 6, 2011: The Small Industries Development Bank of India (SIDBI) now offers general investors and bulk depositors an annualized yield of 9.84% on its Fixed Deposit (FD) scheme for deposits with duration of 12-13 months. SIDBI offers an interest rate of 9.50% for FDs of duration 12-13 months; 9.25% for FDs of duration 14-36 months; and 9% for FDs of duration 37-60 months. The SIDBI’s FD is rated “AAA” by CARE indicating high ‘Return, Safety and Service’. SIDBI also offers higher interest rates for senior citizens. For senior citizens, the yield is 10.38 % for the 12 – 13 months period with the interest rate being 10% for FDs of duration 12-13 months; 9.75% for FDs of duration 14-36 months; and 9.5% for FDs of duration 37-60 months. The deposit options are: (1) Cumulative, (2) Non Cumulative. In case of Non Cumulative option, the depositors can opt for Quarterly or Annual Interest Payment options. The minimum deposit amount is Rs. 10,000 and in multiples of Rs. 1,000 thereafter. Nomination facility is also available. The Scheme offers TDS exemption for income upto Rs. 5,000 per annum. It comes under the eligible investments for religious / charitable trusts u/s 11(5) of I.T. Act, 1961. Deposits are exempt from Wealth Tax. The Scheme also offers Direct Credit of interest to Depositor’s Bank Account through ECS facility wherever available. Interest / Redemption Cheques will be encashable ‘At Par’ in Depositor’s city / town. Mr. Sushil Muhnot, Chairman and Managing Director, SIDBI, said, “Our Fixed Deposit Scheme is rated “AAA” by CARE, which is quite unique for a development bank. SIDBI always benchmarks its interest rates against the industry.” SIDBI markets its deposit schemes through a large number of agents within the Reserve Bank of India (RBI)’s prescribed KYC norms as it draws increasing number of depositors. All eligible Depositors have to comply with the KYC norms. The eligible depositors include: Individuals – Resident individuals, Minors through their Guardians are eligible. Others : NRIs, Hindu Undivided Family HUF (through Karta), Proprietary firms, Partnership firms, Companies, Body Corporate, Banks, Societies, Association of Persons (AOP), Trusts, Charitable Trusts, Relief Funds & NGOs, Public Sector undertakings, Central / State Govt Departments, P.F. Trusts, Port Trusts , Mutual Funds, Welfare Funds, Govt. University / Institutions, Pvt. Educational Institution, Statutory bodies which are authorised to invest in such deposits. About SIDBISmall Industries Development Bank of India (SIDBI) is India’s apex level financial institution for the promotion, financing and development of MSMEs in the country. Established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989 SIDBI is “the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities and for matters connected therewith or incidental thereto. Micro, small & medium enterprises contribute significantly to the national economy in terms of production, employment and exports. SIDBI has crossed the milestone of cumulative disbursement of Rs 2 lakh crore as on March 31, 2011 benefiting more than 325 lakh people. During FY 2010-11, SIDBI’s outstanding credit to the MSME sector increased by 22% to Rs. 46,331 crore. Its asset portfolio crossed Rs. 50,000 crore as at March 31, 2011. The net profit after tax has increased by 22% to Rs 514 crore from Rs. 421 crore. The Networth of the Bank increased to Rs. 5,979 crore and the Earnings per share (EPS) improved to Rs. 11.42 from Rs 9.36. During the year 2010-11, SIDBI also received international award for MSME Financing & Development Project (MSMEFDP), under Local Economic Development Category, for “Making Market Work for MSMEs” by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) – with membership of 116 institutions from 42 countries.