In its 14th Annual General Meeting held today, at Lucknow Small Industries Development Bank of India (SIDBI), Chairman and Managing Director, Sushil Muhnot, mentioned that during FY 2011-12, SIDBI’s outstanding credit to the MSME sector increased to 53,78
In its 14th Annual General Meeting held today, at Lucknow Small Industries Development Bank of India (SIDBI), Chairman and Managing Director, Sushil Muhnot, mentioned that during FY 2011-12, SIDBI’s outstanding credit to the MSME sector increased to 53,785 crore crossing the 50,000 crore mark.
The cumulative disbursement of SIDBI stood at 2.45 lakh crore, benefiting more than 325 lakh people. The net profit after tax increased to 567 crore as compared to 514 crore for the previous year. The Networth of the Bank increased to 6,399 crore and the Earnings Per Share (EPS) improved to 12.60 from 11.42 in FY 2011. The Board of Directors during the AGM approved the payment of dividend of 25% for FY 2011-12.
Muhnot informed that SIDBI is now reorienting its business strategy to address the gaps in the MSME eco-system, both in the financial and development services. SIDBI would now lay greater thrust on risk / venture capital apart from loans for energy efficient equipments, service sector, factoring, receivable financing, etc., to fill the financial gaps. Further, SIDBI would provide refinancing support to Commercial Banks and select Regional Rural Banks, Non-Banking Financial Companies, etc., besides their capacity building.
Financial support by way of equity and other forms of risk capital to MSMEs would be through the 5,000 crore India Opportunity Venture Fund, which was announced in the Union Budget, 2012-13. Muhnot also said that the availability of tax free bonds of 5,000 crore with SIDBI announced in the budget would help SIDBI to reach out to more MSMEs.
Similarly, to address the development services gaps, SIDBI would enable credit facilitation through Credit Facilitation Centres in association with Industry Associations, initially in 100 MSME clusters.