SIDBI has been a leader in the micro-finance space by providing financial assistance, in the form of equity, and term loans to Micro Finance Institutions (MFIs) while advocating and implementing various responsible lending practices.

As an industry leader, SIDBI has been working towards enhancing the corporate governance and operational efficiency of MFIs, promoting responsible lending practices and enabling smooth flow of adequate credit to the micro finance sector through interventions like capacity assessment ratings, portfolio audits, and adherence to a laid-down Code of Conduct (COC) etc.

As of today, the Bank has developed the capacity of more than 100 MFIs and provided loans and grants worth INR 13,689 crore which have impacted more than 356 lakh people. Many of these MFIs have grown to become Small Finance Banks (SFBs) themselves. COCAs of 37 MFIs is presently underway. Further, to upgrade the tool, SIDBI developed, piloted and rolled out a Harmonized COCA Tool (HCT) in consultation with other stakeholders. The final HCT has since been rolled out.