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Cabinet approves equity support to Small Industries Development Bank of India Flow of credit to MSMEs will increase as SIDBI will be able to generate additional resources at competitive rates Approximately 25.74 lakh new MSME beneficiaries will be added The Union Cabinet, chaired by the Prime Min
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The Union Cabinet has approved an equity infusion of Rs 5,000 crore for SIDBI.
The equity capital will be infused in three tranches: Rs 3,000 crore in FY 2025-26, and Rs 1,000 crore each in FY 2026-27 and FY 2027-28.
The primary goal is to increase the flow of credit to Micro, Small, and Medium Enterprises (MSMEs) by enabling SIDBI to generate additional resources at competitive rates.
Approximately 25.74 lakh new MSME beneficiaries are expected to be added by the end of Financial Year 2028.
The infusion is needed to maintain a healthy Capital to Risk-weighted Assets Ratio (CRAR) as SIDBI expands its directed credit portfolio and offers digital, collateral-free loans and venture debt.
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