Credit and finance for MSMEs: Small Industries Development Bank of India (SIDBI) has reported a 3.6 per cent jump in its net profit to Rs 2,398 crore for the economic year 2020-21, from Rs 2,315 crore in FY20. Financial final results for the year ended March 31, 2021, had been declared throughout the bank’s 23rd annual common meeting on Friday. The bank also announced an 11.5 per cent improve in its net interest earnings to Rs 3,678 crore in FY21 from Rs 3,299 crore in FY20 even as non-interest earnings marginally decreased to Rs 944 crore from Rs 1,069 crore throughout the stated period. SIDBI also reported a marginal year-on-year decline of 5.6 per cent in advances to Rs 1,56,233 crore as of March 31, 2021, from Rs 1,65,422 crore as of March 31, 2020.
The net profit development assumed significance amid the Covid-connected challenges faced by the MSME sector and the crucial need to have for quick credit sought by enterprises as lockdown imposed restrictions on production, and labour movement. SIDBI had launched schemes which includes Secure, SAFEPLUS, AROG, and TWARIT throughout the period to help MSMEs.
“To respond to the emerging needs of the MSME sector, SIDBI continued with its developmental engagements including inter alia powering national missions through digital portals, setting up project management units in 11 states for strengthening the ecosystem, supporting 1700 Women Homepreneurs in 7 states, setting up 100 Swavalamban Connect Kendras to kindle the aspirations of youth / displaced population, as also setting up of Swavalamban Crisis Responsive Fund for MSMEs,” stated Sivasubramanian Ramann, Chairman and Managing Director, SIDBI in a statement.
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The bank also reported a lower in Gross Non-Performing Assets (GNPA) ratio by 45 bps from .63 per cent to .18 per cent — from Rs 1,040.84 crore to Rs 282.31 crore, and Net NPA (NNPA) ratio lower by 28 bps from .40 per cent to .12 per cent, as on March 31, 2021 — from Rs 658.64 crore to Rs 185.25 crore. Provision Coverage Ratio (PCR), which represents the percentage of funds for a bank set aside for losses due to the fact of terrible debts, enhanced 14.89 per cent to 93.24 per cent as of March 31, 2021, from March 2020.
SIDBI had not too long ago earmarked Rs 200 crore for its newly launched Shwas and Arog schemes for MSMEs manufacturing Covid-connected goods catering to MSMEs such as manufacturing oxygen cylinders, oxy-generators, oxygen concentrators, liquid oxygen, credit for MSMEs in manufacturing of solutions or delivering services that are straight connected to fighting Covid which includes pulse oximeters, permitted drugs, and so forth. The bank had last month revamped its liquidity scheme for Covid-hit MSMEs – Liquidity Support by Urgent Infusion of Funds Through Direct Finance Window (LIQUID) 1. to allow term loans for its current clients for the objective of executing new orders, buy of raw supplies, machines, and gear, clearing unpaid creditors, and so forth.