SIDBI FY16 net dips 17 pc to Rs 1,177 cr

State-owned Small Industries Development Bank of India (SIDBI) reported a 16.94 per cent fall in net profit for 2015-16 at Rs 1,177 crore due to increased provisioning for NPAs.
The bank had registered net profit of Rs 1,417 crore in the previous fiscal.
"We had to write off some of the loans given by us to MFIs in Andhra Pradesh, which were badly hit during the crisis period in 2010.
"This increased NPA provisioning, which finally resulted in the net of the bank coming down during the year gone by," SIDBI Chairman and Managing Director Kshatrapati Shivaji told PTI here.

"Going forward, the bank will focus on startups, Make in India and SMILE (SIDBI Make in India Loan for Enterprises) fundings.
"We have already sanctioned Rs 800 crore of fund under the SMILE scheme so far out of the total fund size of Rs 10,000 crore. We have plans to increase the sanction to Rs 7,000 crore under the scheme by the end of the fiscal," he added.

To help MSMEs benefit from the Make in India programme, SIDBI launched SMILE scheme to provide soft loans in the nature of quasi-equity and term loans on relatively easier terms to these enterprises.

Despite sluggish market conditions, the outstanding portfolio of the bank increased by 18.6 per cent to Rs 65,632 crore in 2015-16 from Rs 55,343 crore in the previous year.
Asset size of the bank also increased by 25.7 per cent to Rs 76,478 crore in the reporting period from Rs 60,855 crore in 2014-15.
Gross income increased marginally to Rs 5,784 crore from Rs 5,741 crore in the previous fiscal.
Net NPA of the bank improved by five basis points to 0.73 per cent from 0.78 per cent earlier.
The bank has declared a dividend of 20 per cent for the reporting year.

It brought down its PLR by 80 basis points during the year gone by. At present, its lending rates stand at 11.95 per cent.
RBI has granted in-principal approval to SIDBI and NSICL to set up and operate Trade Receivable e-Discounting System (TReDS).