Loans and Advances of SIDBI crossed the landmark of Rs 2 lakh crore

• Loans and Advances of SIDBI crossed the landmark of Rs 2 lakh crore at Rs.2,02,252 crore as of March 31, 2022 with a growth of 29% over FY 2021

Hyderabad, June 27, 2022: The Small Industries Development Bank of India (SIDBI) held its 24th Annual General Meeting on June 25, 2022, at its Head Office Lucknow. In the Annual General Meeting, audited financial results of SIDBI for the year ended March 31, 2022 were approved. Sivasubramanian Ramann, IA&AS, Chairman and Managing Director of SIDBI, briefed the members about good growth in business of SIDBI during FY 2021-2022. It was informed that SIDBI has achieved all round growth in all business verticals. Disbursements of SIDBI increased from Rs. 96029 crore in FY2021 to Rs.143758 crore in FY2022, a growth of 50%. Total assets of the Bank increased from Rs. 1.92 lakh crore to Rs. 2.47 lakh crore, growth of 29%. Bank has achieved income of Rs. 9139 crore and net profit of Rs. 1958 crore in FY2022. Networth increased by 14% to Rs. 23497 crore. The Earnings Per Share (EPS) was Rs.36.79 in FY2022. Gross and Net NPA as a percentage of its net outstanding stood at 0.11% and 0.07%, respectively, as on March 31, 2022. Capital Adequacy Ratio of the Bank as on March 31, 2022 stood at 24.28%. Despite being a pandemic-disrupted year, the Bank has maintained its leadership position and delivered growth in key parameters. The AGM approved the payment of dividend of 15% for FY 2022.
 
Ramann mentioned that We, at SIDBI, are working towards strengthening and deepening the MSME sector. SIDBI aims at growing its balance sheet to `5 trillion to facilitate increased credit to MSME sector, in line with the GoI vision of making India a USD 5 trillion economy.

Utilising the facility extended by RBI in the form of Special Liquidity Fund, SIDBI has launched innovative schemes to meet short- and medium-term needs of the MSME sector, especially smaller/underserved/unserved MSEs, through

• ‘SIDBI MSME Covid Response Fund (SMCRF)’ to provide funding to MSMEs / small businesses / micro finance borrowers through investment in debt instruments of financial institutions (FIs) such as NBFCs, Fin-Tech companies and Micro Finance companies,
• Partial Guarantee Pool Loan Issuance Scheme wherein the Bank would provide loan to well managed and performing multiple small and mid-sized NBFCs and MFIs, which would be backed by a common partial guarantee provided by a third party / arranger,
• Scheme of Assistance through Regulated Entities (REs) using two-tier financial Intermediation will provide resource support to rated REs (NBFCs, MFIs, banks/ SFBs) for on-lending to relatively smaller and unrated / low rated NBFCs/ MFIs.

SIDBI has been pioneer in developing digital interventions like PSBLoansin59minutes and Receivables Exchange of India (RXIL) (TReDS platform). Bringing convergence in the developmental and financing roles of the Bank, SIDBI is developing new channels for credit intervention. One such channel GST Sahay, a first reference app for invoice-based financing (not invoice discounting) for small businesses, is under development. Another digital intervention aimed by the Bank is the MSME Formalisation Project, targeted to provide MSMEs better digital access to Governance, Markets and Financial Services. Udyam registration is expected to open new door to informal sector to get assistance from formal institutions. SIDBI is supporting Open Network for Digital Commerce (ONDC) which is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), to promote open networks for exchange of goods and services over digital/electronic networks. Additionally, SIDBI has also been streamlining and digitizing its own credit processes creating an end-to-end solution starting from enquiry of loan to disbursement. The goal has been set to reduce the turnaround and provide low-cost credit to the MSMEs.

SIDBI is reaching to underserved/unserved Micro enterprises through various GOi schemes. SIDBI is implementing agency of Ministry of Housing and Urban Affairs for PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme to facilitate Urban Street Vendors (SVs) access to loan for resuming their livelihood activities post lockdown. SIDBI is also acting as a Nodal Agency for channelizing interest subvention to MLIs of Shishu loan under MUDRA. SIDBI has also been nominated as nodal agency for Interest Subvention Scheme of Ministry of AYUSH. Further, SIDBI is the Project Management Agency (PMA) for Production Linked Incentive (PLI) Scheme for manufacturing of Telecom and Networking Products of Department of Telecommunications and (PLI) Scheme for Pharmaceuticals of Department of Pharmaceuticals.