The Small Industries and Development Bank of India (Sidbi) has projected a 17 per cent growth in the micro, small and medium enterprises (MSME) lending to over Rs 62,000 crore during the current financial year.
Sidbi’s outstanding credit to the sector had clocked Rs 53,785 crore for the financial year 2011-12.
Sushil Muhnot, chairman & managing director, Sidbi, said given the bad economic conditions last year and strong headwinds, the bank had done ‘quite well’ in increasing its credit portfolio, which largely comprises refinancing the banks and other lending institutions. Muhnot was here last month to chair the 14th annual general meeting of Sidbi.
Meanwhile, the cumulative disbursement of Sidbi stood at Rs 2,45,000 crore benefitting 32.5 million people, said Muhnot.
The net profit after tax (PAT) had increased over 10 per cent to Rs 567 crore during 2011-12.
The net-worth increased to Rs 6,399 crore and earnings per share (EPS) improved to Rs 12.60. The bank maintains a capital adequacy ratio (CAR) of over 28 per cent.
The Sidbi board had approved payment of 25 per cent dividend for the last financial year.
The direct financing portfolio of Sidbi is rather miniscule and stands at around Rs 10,000 crore. It has also lined up Rs 5,000 crore for India Opportunity Venture Fund to help provide equity and risk capital to MSMEs.
Besides, Rs 5,000 crore tax-free bonds would be issued in 3 trances over the next 3 years to help provide equity and risk capital to the sector.
Sidbi had also decided to undertake initiatives to facilitate easier funds to the sector with the help of industry associations and reorienting its business model.
