SIDBI Recorded highest-ever net profit of Rs4,026 crore, a 20% increase y/y
FinTech BizNews Service
Mumbai, 25 Sep 2024: The Small Industries Development Bank of India (SIDBI) held its 26th Annual General Meeting (AGM) on September 25, 2024, at its Head Office in Lucknow. The audited financial results of SIDBI for the year ended March 31, 2024, were approved at the Annual General Meeting.
Shri Manoj Mittal, Chairman and Managing Director of SIDBI, addressed the members and briefed SIDBI’s financial and operational performance for FY 2024. SIDBI achieved its highest-ever balance sheet size, income and net-profit during the year. The Bank surpassed the milestone figure of the balance sheet of Rs5 lakh crore. The Asset Base of the Bank grew by 30% from Rs4,02,383 crore in FY 2023 to Rs5,22,521 crore in FY 2024. The Loans & Advances portfolio increased from Rs3,56,439 crore in FY 2023 to Rs 4,56,015 crore in FY 2024, representing a growth of 28%. During FY 2024, the Bank earned an income of Rs31,942 crore, an increase of 73% over the previous year and recorded highest ever net profit of Rs4,026 crore, an increase of 20% over the previous year. The Earnings Per Share (EPS) also increased to Rs70.82 in FY 2024. Gross NPA and Net NPA ratio of the Bank stood at 0.02% and 0.00%, respectively, as on March 31, 2024. A dividend of 20% was approved at the AGM for FY 2024.
Shri Mittal stated, “At SIDBI, we are committed to strengthening and deepening the MSME sector and the Bank’s direct and indirect finance operations have significantly boosted the flow of credit to the sector”.
SIDBI’s motto is to support MSMEs build resilience, encourage them to grow and enable them to enhance their presence in the global arena. The Bank strives to achieve this objective through continuous engagement with the Government and other stakeholders.
SIDBI has made significant advances in digitalisation of its lending processes and has also been instrumental in implementing digital interventions in the MSME ecosystem.
In furtherance of India's commitment to mitigate the impact of climate change, SIDBI has also stepped up its interventions in the area of Green finance for MSMEs, aligning with the government’s sustainable and green initiatives. SIDBI’s green financing portfolio expanded by a remarkable 4.5 times in the year under review.
SIDBI’s Cluster Development Fund that extends financial assistance to State Governments for the development of MSME infrastructure, gained traction in FY 2024. Cumulative disbursement of `2,252 crore was affected to State/ UTs which is expected to benefit 1.72 lakh MSMEs.
Apart from finance, SIDBI, through its ‘Mission Swavalamban’ programme, promotes entrepreneurship. In FY 2024, the Bank launched several new programmes targeting various MSME segments, especially those centered around micro entrepreneurs..
CMD said, “During FY 2025, SIDBI will continue to support the MSME sector, with focus on underserved/ unserved Micro enterprises, through various initiatives including extending its direct outreach by opening 24 new branches which would cover a total of 168 MSME clusters. 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.”
