Small Industries and Development Bank of India (SIDBI) is eyeing 25 per cent growth in direct micro, small and medium enterprises (MSME) lending during 2011-12.
Overall, the bank targets to grow 18-20 per cent, spanning direct MSME lending, re-financing through banks/intermediaries and microfinance lending.
“We are working towards reaching out to a large number of MSMEs and developing new financial products for them,” SIDBI chairman and managing director Sushil Muhnot told Business Standard.
He said currently direct MSME lending was in the region of Rs 10,000 crore, while re-financing route was estimated at about Rs 32,000 crore. Microfinance lending stood at Rs 3,000 crore.
“The lack of credible information is the biggest block in MSME lending and we are bridging this gap through SME Rating Agency of India (SMERA) platform for these units. So far, SMERA has done 11,000 ratings, which makes it easier for them to source finance from banks,” he said.
Further, SIDBI is setting up SME Exchange with National Stock Exchange (NSE) to enable efficient access to capital market for the sector.
Meanwhile, SIDBI is launching its third venture capital India Opportunity Fund to raise Rs 1,000 crore for boosting venture capital culture in MSME sector. “We have already received commitments for Rs 500 crore for the current fund.”
The AGM approved dividend of 25 per cent for 2010-11, when SIDBI’s outstanding credit to MSME increased 22 per cent to Rs 46,331 crore. Its asset portfolio crossed Rs 50,000 crore at the end of last financial year. The net profit after tax (PAT) rose 22 per cent to Rs 514 crore. SIDBI has made cumulative disbursement of Rs 2,00,000 crore till last financial year benefitting 32.5 million people.
The Bank’s networth increased to Rs 5,979 crore and the earning per share (EPS) improved to Rs 11.42. “We are confident of maintaining our net interest margin (NIM) over 3 per cent even in the prevailing scenario of hardening interest rates,” he added.
Overall, the bank targets to grow 18-20 per cent, spanning direct MSME lending, re-financing through banks/intermediaries and microfinance lending.
“We are working towards reaching out to a large number of MSMEs and developing new financial products for them,” SIDBI chairman and managing director Sushil Muhnot told Business Standard.
He said currently direct MSME lending was in the region of Rs 10,000 crore, while re-financing route was estimated at about Rs 32,000 crore. Microfinance lending stood at Rs 3,000 crore.
“The lack of credible information is the biggest block in MSME lending and we are bridging this gap through SME Rating Agency of India (SMERA) platform for these units. So far, SMERA has done 11,000 ratings, which makes it easier for them to source finance from banks,” he said.
Meanwhile, SIDBI is launching its third venture capital India Opportunity Fund to raise Rs 1,000 crore for boosting venture capital culture in MSME sector. “We have already received commitments for Rs 500 crore for the current fund.”
The AGM approved dividend of 25 per cent for 2010-11, when SIDBI’s outstanding credit to MSME increased 22 per cent to Rs 46,331 crore. Its asset portfolio crossed Rs 50,000 crore at the end of last financial year. The net profit after tax (PAT) rose 22 per cent to Rs 514 crore. SIDBI has made cumulative disbursement of Rs 2,00,000 crore till last financial year benefitting 32.5 million people.
The Bank’s networth increased to Rs 5,979 crore and the earning per share (EPS) improved to Rs 11.42. “We are confident of maintaining our net interest margin (NIM) over 3 per cent even in the prevailing scenario of hardening interest rates,” he added.
