The Small Industries Development Bank of India (SIDBI) saw its Loans & Advances portfolio jump 28 percent from Rs 3.56 trillion to over Rs 4.56 trillion in the financial year 2023-24.
On Wednesday, SIDBI held its 26th Annual General Meeting (AGM) at its Head Office in Lucknow to approve the audited financial results for the year ended March 31, 2024.
Manoj Mittal, SIDBI Chairman and Managing Director, said the Bank’s direct and indirect finance operations have significantly boosted the flow of credit to the MSME sector.
The Bank also achieved a milestone of its balance sheet exceeding Rs 5 trillion. SIDBI Asset Base grew 30 percent from Rs 4.02 trillion to Rs ₹5.22 trillion.
During 2023-24, the Bank earned an income of Rs 31,942 crore, an increase of 73 percent, and recorded the highest ever net profit of Rs 4,026 crore, an increase of 20 percent.
The Earnings Per Share (EPS) increased to Rs 70.82. Gross NPA and Net NPA ratio stood at 0.02 percent and 0.00 percent respectively. A dividend of 20 percent was approved at the AGM for FY 2024.
Meanwhile, the Bank made significant advances in digitalisation of its lending processes, and has been instrumental in implementing digital interventions in the MSME ecosystem.
To further India’s commitment to mitigate climate change, SIDBI stepped up interventions in the area of Green finance for MSMEs with its green financing portfolio expanding by 4.5 times.
SIDBI’s Cluster Development Fund that assists states to develop MSME infra also gained traction with cumulative disbursement of Rs 2,252 crore during the previous fiscal, which is expected to benefit 172,000 MSMEs.
“During FY25, SIDBI will continue to support the MSME sector, with focus on underserved/ unserved Micro enterprises, through various initiatives including extending its direct outreach by opening 24 new branches which would cover a total of 168 MSME clusters,” Mittal said.
He said the Bank will explore new areas/collaborations to address challenges faced by MSMEs to facilitate their growth and help them mark their footprints in the global value chain.