SIDBI to mop up Rs 18,000 crore during 2014-15

The institution is eyeing 20-25% growth in its direct finance portfolio in current FY

Small Industries and Development Bank of India (SIDBI) is planning to mop up about Rs 18,000 crore from the market through various financial instruments to fuel its growth.

SIDBI, which disbursed Rs 51,891 crore during 2013-14 against Rs 40,520 crore during 2012-13, is eyeing growth of 20-25 percent in its direct finance portfolio during the current financial year.

The Bank has estimated resources gap for 2013-14 at Rs 25,000 crore, of which Rs 18,000 would be met through raising money from the market, including bonds.

Meanwhile, the portfolio of the bank increased from Rs 56,060 crore in 2012-13 to Rs 61,271 crore at the end of March 2014.

SIDBI is the apex refinance institution for the Micro, Small and Medium Enterprises (MSME) in India.

"We are working towards creating an ecosystem for the MSMEs, wherein securing finances is more easy for the sector, which contributes greatly in terms of giving employment to 100 million people and accounting for a significant portion of our industrial production and Gross Domestic Product (GDP)," SIDBI Deputy Managing Director N K Maini told Business Standard after the 16th Annual General Meeting (AGM) in Lucknow.

The net profit after tax (PAT) increased by 34 percent to Rs 1,118 crore as compared to Rs 837 crore the previous year.

"Our gross and net non performing assets (NPA) stood at 1.86 percent and 0.45 percent respectively at the end of March 2014," he informed.

The AGM approved payment of dividend of 25 percent for 2013-14.

During the year, refinance disbursement of about Rs 35,000 crore to banks and state finance corporations have benefitted about 8 lakh micro and small enterprises, he said.

Since inception in 1990, SIDBI has disbursed a total of about Rs 3,38,000 crore and benefitted about 30 million MSMEs.

Direct and indirect financing portfolio account for 25 percent and 75 percent of SIDBI's overall business respectively.