This story is from June 24, 2016

SIDBI's net profit stands at Rs 1,117cr for FY'16

Small Industries Development Bank of India (SIDBI) held its 18th Annual General Meeting on June 24, 2016, at Lucknow. Kshatrapati Shivaji, IAS, CMD, SIDBI, while informing of the performance during FY 2016, also touched upon the numerous activities undertaken by the bank to fill in the various financial and non-financial gaps in the MSME eco-system.
SIDBI's net profit stands at Rs 1,117cr for FY'16
LUCKNOW: Small Industries Development Bank of India (SIDBI) held its 18th Annual General Meeting on June 24, 2016, at Lucknow. Kshatrapati Shivaji, IAS, CMD, SIDBI, while informing of the performance during FY 2016, also touched upon the numerous activities undertaken by the bank to fill in the various financial and non-financial gaps in the MSME eco-system.
He mentioned that the Bank’s balance sheet size increased by 25.7% to Rs.76,478 crore and the outstanding increased by 18.6% to Rs.65,632 crore as on March 31, 2016.
The bank’s networth increased by 18.7% to Rs 10,836 crore. The net profit of the bank stood at Rs 1117 crore for the year 2015-16, with Earnings Per Share (EPS) at Rs.24.87.
Shivaji highlighted various initiatives taken by SIDBI during the financial year. An important initiative was to set up Micro Units Development and Refinancing Agency (MUDRA) as a wholly owned subsidiary of SIDBI. MUDRA was launched by the PM on April 08, 2015, to fund the unfunded very small and self-owned enterprises. As at end-March 2016, MUDRA had sanctioned Rs 3,783.20 crore out of which Rs 3,337.20 crore was disbursed.
In order to fulfil the mandate of “Stand-up India” Scheme, launched by the Hon’ble Prime Minister on April 5, 2016, SIDBI developed a web-portal “www.standupmitra.in” which is designed to, enable registrations, accept application forms for financial assistance, provide links for handholding on different aspects, tracking and monitoring of applications etc. This portal, with a database of more than 1.07 lakh bank branches and 17,000 handholding agencies, is functioning as a virtual loan market place.
Bank highlighted the role of start-ups in the overall growth of economy. Hence, to help the start-ups, which mainly fall in the SME category, SIDBI has created a Rs.2,000 crore ‘India Aspiration Fund’ (IAF) to be utilized as a ‘Fund of Funds’ for making investments in Venture Capital Funds (VCFs) which would, in turn, make investments in MSMEs to the extent of twice the commitment of SIDBI or 50 percent of the corpus of the VCF, whichever is more.

SIDBI has also developed an on-line platform “www.SIDBIstartupmitra.in”, which is enabling start-up entrepreneurs to get connected with various stake-holders, namely, incubators, mentors, angel networks, venture capital funds, etc. The bank also took other initiatives like setting up of a new ‘Trade Receivables e-Discounting System’ (TReDS) as a joint venture with the National Stock Exchange's NSE Strategic Investment Corporation Limited (NSICL), after obtaining "in-principle" approval from RBI. TReDS will allow MSMEs to post their receivables on the system and get them financed, thereby addressing the problem of delayed payments of MSME sector.
During the year, bank launched Rs.10,000 crore Fund ‘SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE)’ to make available soft loan to MSMEs, in the nature of quasi-equity to meet the required debt-equity ratio and term loan on relatively soft terms for establishment of new MSMEs, as also for pursuing opportunities for growth for existing MSMEs.
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Priyanka Singh

Priyanka Singh is working as Senior Correspondent with Times Of India in Lucknow. A post graduate from Indian Institute of Mass Communication (New Delhi) she carries around three years of experience in journalism. Worked with Business Standard, Zee News and Indian Express before. Likes reading, singing, watching movies and cooking. Her passion include exploring new places, photography, reading novels and music. She had also pursued marketing career in print advertisement before joining journalism.

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