Small Industries Development Bank of India (SIDBI) held its Annual Board Meeting at New Delhi. Shri Mohammad Mustafa, Chairman & Managing Director, SIDBI, announced the annual results of the Bank during FY 2018. While summarizing the performance of the Bank during FY 2018, he said the balance-sheet of SIDBI crossed Rs. 1 Lakh core mark, increasing by 36.6% to 1,08,869 crore. He also touched upon the numerous strategic initiatives undertaken by the Bank to fill in the various financial and non-financial gaps in the MSME eco-system.
The year 2018 SIDBI’s credit outstanding to mostly small units increased by 39.5% to Rs.95,291 crore. The year also witnessed highest ever profit of the Bank at Rs.1,429 crore. While the Earnings Per Share (EPS) increased to Rs.26.87, the Book Value per Share increased to Rs.265.52. As on March 31, 2018, gross NPA percentage of the Bank had declined to 0.94%, whereas the net NPA percentage also improved to 0.26%.
SIDBI’s main focus is on providing more credit to micro and small units from different parts of the country – more through digital mode. It developed www.udyamimitra.in, which is a universal loan market place offering MUDRA loans (upto Rs.10 lakh), Stand-up India loans (Rs.10 lakh – Rs.100 lakh) & MSME Loans (presently upto Rs.200 lakh) through this platform. SIDBI is planning various initiatives in this space.
SIDBI in collaboration with CRISIL has launched CriSidEx, India’s first sentiment index for MSMEs that indicates the current state and expected outlook on the MSME sector every quarter. The index will allow stakeholders, especially policy makers, to take timely, even proactive steps, including those based on early warning thrown up by the Survey, which will help in various policy inputs in future.
SIDBI in association with TransUnion, CIBIL has launched “MSME Pulse”- a quarterly report on MSME credit, for closely tracking and monitoring the MSME segment in the country. The report is based on 5 million credit active MSMEs, who have access to formal credit with live credit facilities in the Indian banking system.
SIDBI has been supporting various GoI schemes like Make in India, Startup India, MUDRA and so on. In order to give a boost to the ‘Make in India’ programme of the GoI, in case of Make in India programme, SIDBI had launched a Rs.10,000 crore ‘SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)’ to make available soft loan to MSMEs, in the nature of quasi-equity to meet the required debt-equity ratio and term loan to meet project cost on relatively soft terms. Under the scheme, SIDBI is providing soft loans at a concessional rate of 8.12% to MSMEs.
In order to further augment its credit reach to MSMEs, SIDBI has focussed on MSE loans through many channel partners, viz. small finance banks like Capital Small Finance Bank, AU Small Finance Bank, etc. SIDBI has been constantly striving to augment credit flow to the MSME sector through various strategic initiatives. Nearly all of the entities converting into SFBs have received support from SIDBI in their early period and growth. SIDBI will continue to play the same role in their growth as SFBs. Accordingly, the Bank introduced two facilities for SFBs, viz. equity Investment for setting up/ capitalization of the SFBs to meet equity/capital gap and refinance support post transformation of MFIs/NBFCs into SFBs.