Managing director Sailendra Narain told The Financial Express that talks with DFID are at an advanced level and are expected to be completed in June this year.

"If the talks fructify then Sidbi and the agency together would help in promoting two to three micro-credit institutions which could include a few non-government organisations (NGOs). Sidbi would lend its expertise in conducting training programmes, improving delivery systems, imparting good book-keeping and help in full automation of these NGOs which would in turn onlend to the people concerned," Narain said.

The agency, on the other hand, would commit an investment of Rs 100 crore over a five to seven-year period towards increased capacity building. Narain, who wasattending a seminar on small-scale industries in Calcutta, was just back from a three-day Asian Development Bank conference in Manila.

ADB is believed to have expressed its intention to extend micro-credit assistance to India as it feels that there is a lot of potential in the country. This will be for the first time if the development bank decides to go ahead with its intention. The recent meeting which was attended by Asian bankers laid emphasis on adherence to prudential norms by finance companies in Asia following the Asian crisis. A relook into the convertibility of currency and infrastructure funding also formed part of the three-day deliberations. The seminar also deliberated on possible synergies between ADB and micro-lending agencies.

According to the Sidbi managing director, the micro-credit fund was formed in November 1998 with the sole objective of supporting NGOs."The thrust is to be selective while identifying large NGOs and rationalise on more professional lines," he said. Sidbi has beengiven the Asian Banking Award in Manila. The Indian agency was selected from a list of similar agencies of 13 countries, Narain said. Till now, Sidbi has given its support to 144 NGOs. Its total lending in 1998-99 has been to the tune of Rs 14 crore and about Rs 35 crore in the last three years taken together. "Sidbi, believing in a need-based approach, has, however set higher targets this year," Narain added.