BoB Signs MoU with SIDBI to Boost Credit Flow to MSMEs

Current Context: On 19 November 2025, Bank of Baroda (BoB) signed a Memorandum of Understanding (MoU) with the Small Industries Development Bank of India (SIDBI) in New Delhi.

• The aim of the MoU is to boost credit flow to MSMEs and startups, ensuring easier access to working capital and export-linked financing.
• The collaboration combines SIDBI’s sectoral expertise with BoB’s wide branch network to strengthen joint financing.
• A key highlight is the operationalisation of BoB’s digital working capital platform, which will streamline and speed up credit delivery.
• The partnership aligns with the government’s vision of Viksit Bharat 2047, promoting inclusive growth and innovation.
• Overall, the MoU is expected to enhance employment, entrepreneurship, and competitiveness of MSMEs in domestic and global markets.

Question:

Q.1 Bank of Baroda signed an MoU with which institution on 19 November 2025 to enhance credit flow to MSMEs and startups?
a) NABARD
b) Small Industries Development Bank of India
c) EXIM Bank
d) National Small Industries Corporation

Answer: b) Small Industries Development Bank of India is India’s apex development bank for MSMEs, making it the logical partner for BoB to strengthen MSME and startup credit.