The Small Industries Development Bank of India (SIDBI) plans to increase its share in total lending to micro, small, and medium enterprises (MSMEs) from 14% to 25% within three years. To achieve this goal, SIDBI intends to raise equity capital, including two tranches totalling Rs 5,000 crore, with a rights issue scheduled for next year. SIDBI's loan portfolio, as of March-end 2023, stands at Rs 4 lakh crore and is projected to reach Rs 5 lakh crore by the end of the current fiscal year. The bank's direct financing component will increase from 8% to 15%, while digital banking will help serve underserved MSEs more efficiently. SIDBI aims to offer lower interest rates compared to microfinance institutions, positioning itself as a lender to micro, nano, and tiny segments. Additionally, SIDBI plans to set up a green fund-of-funds to support sustainability initiatives, including solar rooftops, electric vehicles, circular economy, food, and health sectors critical for India's growth.