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.
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.