State-owned Small Industries Development Bank of India (SIDBI) today reported a 17 per cent decline in net profit at Rs 1,177 crore for the fiscal ended March 2016.
The bank, which is into promotion, financing and development of the MSME sector, had a net profit of Rs 1,417 crore in 2014-15 fiscal.
There was a marginal increase in gross income to Rs 5,784 crore from Rs 5,741 crore in the previous fiscal, SIDBI said in a statement.
Despite sluggish market conditions, the outstanding portfolio of the bank increased 18.6 per cent from Rs 55,343 crore as on March 2015 to Rs 65,632 crore at the end of financial year 2015-16.
Asset size of the bank has also increased by 25.7 per cent to Rs 76,478 crore as against Rs 60,855 crore in the previous fiscal.
The board of the bank has proposed a dividend of 20 per cent for the 2015-16 fiscal.
During the year, gross non-performing assets (NPAs) or bad loans increased to 1.51 per cent of gross advances as of March from 1.33 per cent a year ago.
During the year, SIDBI took several initiatives for the promotion and development of MSME sector, namely establishment of MUDRA, launch of two web-portals to connect MSMEs with the financiers.
SIDBI launched 'SMILE' scheme to provide soft loans in the nature of quasi-equity and term loans on relatively soft terms to MSMEs to meet the required debt equity ratio norm as also for pursuing opportunities of growth by existing MSMEs in the sectors covered under Make in India and few other sectors.
