SIDBI’s credit to MSME sector increases to ` 53,785 crore in FY 12
Highlights of FY 2012 announced by SIDBI CMD Shri Sushil Muhnot on the occasion of the 14th Annual General Meeting at Lucknow on June 29, 2012
Cumulative disbursement stood at ` 2.45 lakh crore in FY 2012 benefiting more than 325 lakh people Net Profit after Tax increased to ` 567 crore in FY 2012 Board approves dividend of 25% Reorientation of SIDBI’s business model to fill in gaps in MSME eco-system ` 5,000 crore India Opportunity Venture Fund to help provide equity & risk capital to MSMEs ` 5,000 crore tax-free bonds to help strengthen MSME sector
The Small Industries Development Bank of India (SIDBI) held its 14th Annual General Meeting on June 29, 2012, at Lucknow. The meeting was chaired by Shri Sushil Muhnot, Chairman and Managing Director and attended by its Directors and shareholders.
Shri Muhnot mentioned that during FY 2011-12, SIDBI’s outstanding credit to the MSME sector increased to ` 53,785 crore crossing the ` 50,000 crore mark. The cumulative disbursement of SIDBI stood at ` 2.45 lakh crore, benefiting more than 325 lakh people. The net profit after tax increased to ` 567 crore as compared to ` 514 crore for the previous year. The Networth of the Bank increased to ` 6,399 crore and the Earnings Per Share (EPS) improved to ` 12.60 from ` 11.42 in FY 2011. The Board of Directors during the AGM approved the payment of dividend of 25% for FY 2011-12.
Shri Muhnot, in his address to the shareholders, detailed the progressive role of SIDBI as the principal financial institution for the MSME sector and also briefed the shareholders on the new business strategy.
Shri Muhnot informed that SIDBI is now reorienting its business strategy to address the gaps in the MSME eco-system, both in the financial and development services. SIDBI would now lay greater thrust on risk / venture capital apart from loans for energy efficient equipments, service sector, factoring, receivable financing, etc., to fill the financial gaps. Further, SIDBI would provide refinancing support to Commercial Banks and select Regional Rural Banks, Non-Banking Financial Companies, etc., besides their capacity building.
Financial support by way of equity and other forms of risk capital to MSMEs would be through the ` 5,000 crore India Opportunity Venture Fund, which was announced in the Union Budget, 2012-13. Shri Muhnot also said that the availability of tax free bonds of ` 5,000 crore with SIDBI announced in the budget would help SIDBI to reach out to more MSMEs.
Similarly, to address the development services gaps, SIDBI would enable credit facilitation through Credit Facilitation Centres in association with Industry Associations, initially in 100 MSME clusters. Loan syndication for MSME at an affordable cost is another business strategy of SIDBI. SIDBI would also engage in cluster development in various ways.
During the year 2011-12, SIDBI received international awards for “Taxi Financing Scheme”, “Auto Rickshaw Financing” and “Energy Efficiency Lines of Credit” under Environmental Development Category and for development of Code of Conduct Assessment Tool for MFIs under Corporate Social Responsibility category by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP), which has membership of 127 institutions from 44 countries.
Small Industries Development Bank of India (SIDBI) is India’s apex level financial institution for the promotion, financing and development of MSMEs in the country. Established on April 2, 1990, under the Small Industries Development Bank of India Act, 1989 SIDBI is the principal financial institution for the promotion, financing and development of industry in the micro, small & medium enterprises sector and to co-ordinate the functions of institutions engaged in similar activities and for matters connected therewith or incidental thereto.
Photo Caption: (From left) Mr. Sushil Muhnot, Chairman & Managing Director, SIDBI & Mr. N.K.Maini, Deputy Managing Director, SIDBI on the occasion of SIDBI’s 14th Annual General Meeting at Lucknow on June 29, 2012