Small Industries Development Bank of India (SIDBI), the principal financial institution for MSME development in the country, has recorded its highest-ever net profit of Rs 4,026 crore in the financial year 2023-24, growing 20 per cent from Rs 3,344 crore in FY23. The bank, which held its annual general meeting (AGM) on Wednesday, maintained its net non-performing asset (NPA) ratio at 0 per cent from last fiscal while its gross NPA ratio stood at 0.02 per cent.
SIDBI said it 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.
Moreover, the bank’s loans and advances portfolio increased from Rs 3.56 lakh crore in FY23 to Rs 4.56 lakh crore in FY24, representing a growth of 28 per cent. During FY24, the bank earned an income of Rs 31,942 crore, an increase of 73 per cent over the previous year.
Importantly, SIDBI is focusing on increasing its direct lending loan book and also improving its share in total MSME lending from reportedly around 16 per cent last year to around 25 per cent in the next few years.
As part of this planned growth, the bank is looking to raise up to Rs 5,000 crore ($596.4 million) through bonds maturing in five years, Reuters reported in August this year. This would include a greenshoe of Rs 3,000 crore. The bank has invited coupon and commitment bonds from bankers and investors for the same.
Earlier this year, the government had appointed Manoj Mittal, former head of government-owned NBFC IFCI, as the new Chairman and Managing Director of SIDBI.
Speaking on the growth plan for the current fiscal, Mittal addressing the AGM said SIDBI will focus on underserved/ unserved micro enterprises in FY25 through various initiatives including extending its direct outreach by opening 24 new branches which would cover a total of 168 MSME clusters.
The announcement for setting up new branches was made by Finance Minister Nirmala Sitharaman in her budget speech in July this year.
“Further, SIDBI will continue to work towards the development of the MSME ecosystem, explore new areas/ collaborations to address challenges faced by MSMEs to pave a way for their unhindered growth and help them mark their footprints in global value chain,” Mittal said.