SIDBI posts 25% dividend

Small Industries Development Bank of India (SIDBI) today announced its highest ever dividend of 25 per cent for 2009-10.

The decision was taken at the 12th Annual General Meeting (AGM) chaired by CMD R M Malla.

SIDBI, the principal financial institution for the Micro, Small and Medium Enterprises (MSME), posted an increase of over 41 per cent in its profit to Rs 421 crore. Earnings per share rose to Rs 9.36. Total income grew 21 per cent to Rs 3,207 crore.

In 2009-10, total sanctions (Rs 35,521 crore) and disbursements (Rs 31,918 crore) touched new heights, including both indirect and direct lending.

Malla noted SIDBI’s proactive steps had far-reaching and positive impact on the MSME sector.

The micro finance assistance increased by 53 per cent to Rs 2, 670 crore and micro finance outstanding increased by 78 per cent to Rs 3,812 crore.

SIDBI’s micro finance support through 150 partners had benefited over 34 million people, mostly rural women.

Meanwhile, the Bank’s assets recorded 21 per cent increase to Rs 41,885. Net Non Performing Assets (NPA) stood at 0.18 per cent.

For sustainable financing to MSMEs and improving energy efficiency, SIDBI has contracted lines of credit from the World Bank; Japan International Cooperation Agency , Japan; KfW, Germany; and French Development Agency, France.