SIDBI gets a 3.6% rise in net profit for FY21 amid Covid

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Small Industries Development Bank of India (SIDBI) has reported a 3.6 percent rise in net to Rs 2,398 crore for the financial year 2020-21 from Rs 2,315 crore within the financial year 2020. Financial Results for the year ended March 31, 2021were declared within the bank’s 23rd annual general meeting.

The bank also proclaimed an 11.5 percent rise in net interest income to Rs 3,678 crore within the financial year 2021 from Rs 3,299 crore within the financial year 2020 whilst non-interest income marginally decreased to Rs 944 crore from Rs 1,069 crore within the said period and also reported a marginal year-on-year decline of 5.6 percent in advances to Rs 1,56,233 cr as of March 31, 2021, from Rs 1,65,422 cr as of March 31, 2020.

 Internet profit growth assumed significance amid the Covid-related challenges faced by the MSME sector and thus the critical need for immediate credit sought by enterprises as lockdown-imposed restrictions on production, and thus the union movement.

Small Industries Development Bank of India (SIDBI) had launched schemes including SAFE, SAFE PLUS, AROG, and TWARIT during the quantity to support MSMEs.

Sivasubramanian Raman, Chairman, and Director of (SIDBI) during a press release said that to reply to the emerging needs of the MSME sector, “SIDBI continued with its developmental engagements including inter alia powering national missions through digital portals, fixing project management units in 11 states for firming the ecosystem”.

He also added “supporting 1700 Women Homepreneurs in 7 states, setting 100 Swavalamban Attach Kendras to kindle the ambitions of youth/expatriate population also setting of Swavalamban Crisis Responsive Fund for MSMEs”.

The bank also reported a decrease in Gross Non-Performing Assets ratio by 45 bps from 0.63 percent to 0.18 percent from Rs 1,040.84 crore to Rs 282.31 crore, and Net NPA ratio decrease by 28 bps from 0.40 percent to 0.12 percent, as of March 31, 2021, from Rs 658.64 crore to Rs 185.25 crore.

Small Industries Development Bank of India (SIDBI) had lately reserved Rs 200 crore for its recently launched Shwas and Arog schemes for MSMEs manufacturing Covid-related goods catering to MSMEs like manufacturing oxygen concentrators, oxy-generators, oxygen cylinders, credit for MSMEs in manufacturing of products or providing services that are directly related to fighting Covid also as pulse oximeters, permitted drugs.

 The bank had refurbished its liquidity scheme last month for Covid hit MSMEs Liquidity Provision by Urgent Infusion of Funds Through Direct Finance Window 1.0 to permit term loans for its existing customers for the aim of executing new orders, purchase of raw materials, machines, and equipment, clearing unpaid creditors, etc.

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