Financial institution Small Industries Development Bank of India (Sidbi) expects to raise about Rs 15,000 crore in the present financial year as long-term loan.
This includes loan from multilateral financial institutions like World Bank and Japan International Cooperation Agency (Jica) for $300 million each. This apart, Sibdi was also in talks with Kreditanstalt fur Wiederaufbau (KfW), Germany and Asian Development Bank (ADB) for long term loan, said RM Malla, Chairman and Managing Director, Sidbi, on the sidelines of a seminar on micro finance here.
Last financial year, the bank had taken a loan of close to Rs 20,000 crore, including short term borrowing.
Sidbi has made a commitment of infusing Rs 500 crore through equity and subordinate debt to the micro finance institutions (MFIs), he said.
It has already disbursed Rs 100 crore so far to the MFIs.
Recently, Sidbi had picked up about 11 per cent stake in Kolkata-based MFI Bandhan for Rs 50 crore.
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Malla said that Sidbi might infuse another Rs 50 crore through subordinate debt in Bandhan.
This apart, Sidbi might sanction another Rs 500 crore for investments though equity or subordinate debt in MFIs, said Malla.
“Sidbi is taking equity stake in MFIs to improve their capital adequacy, which they can leverage up to 10 times,” he said.
Sidbi's outstanding exposure to MFIs at present stands at about Rs 3,800 crore.
For the entire MFI sector, the loan outstanding could be of the tune of Rs 19,000 crore, said Malla.