The direct lending portfolio of India’s apex MSME lender Small Industries Development Bank of India (SIDBI) is estimated to grow by 81 per cent by financial year 2026-27 as it aims to increase its direct lending loan book and also improve its share in total MSME lending.
SIDBI had a direct lending portfolio of Rs 26,826 crore as of March 31, 2024 and it has estimated to grow to Rs 48,700 crore by FY 2026-27, Pankaj Chaudhary, Minister of Finance in the Finance Ministry informed Parliament last week.
Rs 26,826 crore in direct credit involved Rs 16,183 crore sanctioned and Rs 12,476 crore disbursed during FY24, growing by 46 per cent from Rs 18,409 crore in direct credit during FY23, according to the SIDBI’s FY24 annual report.
FY24 direct credit was 5.8 per cent of SIDBI’s total outstanding amount of Rs 4.56 lakh crore during the financial year compared to 5.1 per cent of Rs 3.56 lakh crore in total outstanding amount during FY23.
The bank posted its highest-ever net profit of Rs 4,026 crore in FY24, growing 20 per cent from Rs 3,344 crore in FY23 while its gross NPA ratio stood at 0.02 per cent. SIDBI had surpassed the milestone figure of Rs 5 lakh crore balance sheet in FY24 with its asset base growing by 30 per cent from Rs 4.02 lakh crore in FY23 to Rs 5.22 lakh crore in FY24.
The bank had launched a co-lending arrangement with NBFCs in December 2022 to provide credit to smaller MSMEs, especially new borrowers as part of its effort to reach underserved and unserved MSMEs. As of March 31, 2024, 1,532 loans aggregating Rs 290 crore were cumulatively disbursed through co-lending Partnership with eight NBFCs.
Earlier this year, SIDBI had announced a $120 million Avaana Sustainability Fund (ASF) to enable investment into early-stage startups and MSMEs harnessing technology-led innovation to spur climate solutions and sustainability in India.