SIDBI sets up a company to serve as a “Technology Bank” for the purpose of implanting appropriate foreign technologies in small and medium enterprises (SMEs).The new company India SME Technology Services (ISTS) has been jointly launched by Indian Bank, Oriental Bank of Commerce and SIDBI, each having one-third stake. The company has a paid-up capital of Rs 3 crores and has also received a funding support of Rs 75 lakh each from State Bank of India and Indian Overseas Bank.

Infusing new and imported technologies will help increase productivity levels of SMEs. This initiative will plug the gap in identifying requisite technology for SME´s, which have access to funding from banks but lack access to economically feasible inputs for purchasing appropriate technology.

In addition to these measures, the bank has been directed to extend on-par treatment to the small scale enterprises in the services sector with those in the manufacturing sector.

Source: http://www.myiris.com/newsCentre/newsPopup