–– SIDBI crossed the milestone of cumulative disbursement of Rs. 2 lakh crore as on March 31, 2011 benefiting more than 325 lakh people
Mumbai, Maharashtra, India, June 24, 2011 The Small Industries Development Bank of India (SIDBI) held its 13th Annual General Meeting on June 24, 2011, at Lucknow. The meeting was chaired by Shri Sushil Muhnot, Chairman and Managing Director, and attended by its Directors and shareholders.
Mr. Muhnot, in his address to the shareholders, detailed the progressive role of SIDBI as the principal financial institution for the MSME sector and highlighted the proactive initiatives and innovative measures taken for development of the MSME sector. He mentioned the operational and financial milestones achieved by SIDBI in its credit support to the MSME sector.
During FY 2010-11, SIDBI’s outstanding credit to the MSME sector increased by 22% to Rs. 46,331 crore. Its asset portfolio crossed Rs. 50,000 crore as at March 31, 2011. The net profit after tax increased by 22% to Rs. 514 crore from Rs. 421 crore.
It was also informed that SIDBI crossed the milestone of cumulative disbursement of Rs. 2 lakh crore as on March 31, 2011 benefiting more than 325 lakh people.
The Networth of the Bank increased to Rs. 5,979 crore and the Earnings per share (EPS) improved to Rs. 11.42 from Rs. 9.36.
The AGM, after approving the accounts of SIDBI and other agenda items, approved the payment of dividend of 25% for FY 2010-11.
Net NPA as percentage of the total outstanding stood at 0.28% as on March 31, 2011, reflecting strong monitoring, persistent follow-up and timely action by the Bank, besides adequate provisioning.
Mr. Muhnot said the support to SIDBI by Government of India and Reserve Bank of India for refinancing Banks/SFCs has helped to augment credit flow to the MSME sector during the year and SIDBI was grateful to the Government of India / RBI for their continued support.
Mr. Muhnot said that SIDBI remains wholly committed to the development of the MSME sector by way of meeting its various credit and non-credit needs. Some of the significant areas which are high on SIDBI’s agenda are promotion of Entrepreneurship and innovation through Venture Capital and Risk Capital finance, encouraging faster growth of micro enterprises through micro finance / small loans to the ‘Missing Middle’ segment, Rural Industrialisation, sustainable finance and Cluster Development.
During the year under review, SIDBI alongwith Technology Information, Forecasting and Assessment Council (TIFAC) under Department of Science & Technology set up a Fund for scaling up (commercialization) of technology innovations in products and process projects by first generation entrepreneurs or existing MSMEs. The Bank, alongwith National Stock Exchange, Indian Private Equity and Venture Capital Association (IVCA) and leading angel networks in India, also set up an India Venture Board (IVB), an e-platform for taking the Venture Capital culture in the MSME sector. Going further, the Bank is setting up the SME Exchange with NSE to enable efficient access to capital markets for SMEs, in addition to giving a boost to venture capital industry.
Mr. Muhnot further said that Sustainable financing is now a commitment and an integral part of Bank’s business strategy to promote energy efficiency, environment protection and social standards in MSME sector.
During the year 2010-11, SIDBI also received international award for MSME Financing & Development Project (MSMEFDP), under Local Economic Development Category, for “Making Market Work for MSMEs” by the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) – with membership of 116 institutions from 42 countries.