SIDBI records 28 pc jump in profit to Rs 519 Cr in March quarter, targets more MSME financing
The banks’ total income in the quarter went up to Rs 2,712 crore from Rs 1,857.39 crore in the same period last year.Team SMB
The Small Industries Development Bank of India (SIDBI) reported a 28.22 percent increase in net profit, amounting to Rs 519.36 crore for the March quarter, PTI reported.
SIDBI’s profit after tax for the full year jumped 36.5 percent to Rs 1,952.21 crore in FY18 from Rs 1,429.21 crore in the previous year due to an increased portfolio and reducing cost-to-income ratio.
SIDBI Chairman and Managing Director Mohammad Mustafa said in a statement, "Credit growth to the MSME sector is on a firm footing and aggregate MSME lending as a proportion to the gross domestic product is on the rise. This has helped us achieve such encouraging financial performance.”
PTI also reported that during the March quarter, SIDBI’s net interest income (NII) improved by 29 percent to Rs 721.20 crore from Rs 559.30 crore in the same period last year.
Further, the bank's total income in the quarter went up to Rs 2,712 crore from Rs 1,857.39 crore in the same period last year.
SIDBI’S gross Non-Performing Assets (GNPA) ratio decreased by 31 basis points to 0.63 percent from 0.94 percent.
Mustafa said SIDBI’s focus in FY20 will be to sustain growth, and build a scalable and profitable franchise focused on MSME development and financing.
The SIDBI data comes a month after a SIDBI and Cibil Transunion report said the share of state-run banks in loan disbursals to MSMEs has dropped from 58 percent to 39 percent in December 2018.
The survey said this drop occurred despite policy thrusts such as Mudra loans and 59 seconds loans to help MSMEs as well as asset quality woes plaguing the state-run banks.
Due to this loss, private sector banks and non-banking financiers have gained, SIDBI and Cibil Transunion said. Their shares increased to 33 percent in December 2018 from 22 percent in December 2013, and up to 21 percent from 13 percent, respectively.