SIDBI reports 5% drop in net profit

Small Industries Development Bank of India (SIDBI), the nodal agency for the financing of micro, small and medium-scale enterprises (MSME) in India, has reported a 5 per cent drop in net profit in the fiscal year ended March 2017 mainly as operating and interest expenses increased.

Net profit in the fiscal year ended March 2017 dropped to Rs 1,120 crore from Rs 1,177 crore in March 2016 as operating expenses increased 27 per cent and interest expended during the year increased 16 per cent SIDBI’s annual profit and loss statement showed.

The government backed financing institution’s total income however increased 10 per cent to Rs 6,346 crore from Rs 5,784 crore in March 2016, and provision for bad loans dropped to Rs 80 crore from Rs 225 crore a year earlier as gross NPAs decline to 1.20 per cent of the loan book from 1.51 per cent a year earlier.

SIDBI said it had provided loans of Rs 3,586 crore for 1,384 MSMEs through its Rs10,000 crore ‘SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)’. It has also sanctioned Rs 1,107 crore to 575 MSMEs as equity capital assistance directly through its Start-up Assistance and Growth Capital scheme and till March 2017 Rs 3,521 crore to 125 venture capital funds

Source: Economic Times