Small Industries Development Bank of India (Sidbi), the nodal financing agency for small-scale industries and promoted by the Industrial Development Bank of India (IDBI), has sanctioned Rs 1,150 crore and disbursed Rs 1,600 crore during the first half of the current financial year.
This is the first time that Sidbi has audited its results for the first half of a year. The results will be presented before the board for approval on January 22.
During the meeting, financial institutions will also consider a revision in the banks minimum lending and deposit rates.
Explaining the rationale for auditing results, sources said: Sidbi is gearing up for a public issue. It is contemplating entry into the capital market with an equity issue after a couple of years for which an audited half-yearly result would be preferred.
In connection to the half-yearly results, sources said the lull in credit offtake coupled with excess liquidity in the market during the first two quarters has had a severe impact on sanctions and disbursement under the refinance head.
Money disbursed under the refinance head amounted to Rs 400 crore against total disbursement of Rs 1150 crore during the first half the current financial year.
The money sanctioned for refinance also stood at Rs 400 crore since the money sanctioned for the purpose is as good as disbursed, sources said. Under the direct finance head, Sidbi has disbursed Rs 750 crore and sanctioned Rs 1200 crore from April to September 1997.
Sidbi has set a target of Rs 5500 crore for disbursements for the entire financial year. Effectively, it has to disburse another Rs 4350 crore in the last two quarters of the current financial year. Sources said that various Sidbi centres have given disbursement commitments of upto Rs 3000 crore and also confirmed on surpassing the disbursements in the last financial year.
During 1996-97, Sidbi has achieved a disbursement of Rs 4585 crore and sanctions of Rs 6405 crore.
Sidbi has raised resources of Rs 750 crore between April to November at an average coupon of 11 to 12 per cent. It had raised Rs 1,153 crore during the 1996-97 financial year.
