Shri Maini in his address to the shareholders detailed the progressive role of SIDBI as the principal financial institution for the MSME sector and highlighted its business strategy which is to address the financial and non-financial gaps in the MSME eco-system to make the MSME sector more vibrant and globally competitive.
Under its new business strategy, SIDBI, besides its refinancing / indirect finance role, provides financing to MSMEs in niche areas which are generally not covered by the banking system. Such specialized financing is in the form of risk / venture capital, loans for improving energy efficiency and implementing cleaner production technologies, loans to the service sector, receivable financing, etc. At the same time, SIDBI has also taken strategic initiatives for addressing various non-financial gaps for capacity building of MSME sector as well as bankers. These activities include Credit Advisory Services covering over 300 clusters, Loan Facilitation through a mechanism of accredited consultants, rating agencies and commercial banks, information dissemination through a dedicated website ‘www.smallB.in’
The performance of SIDBI during FY 2014 was satisfactory. Total disbursements increased by 28% from Rs. 40,520 crore in FY 2013 to Rs. 51,891 crore in FY 2014.
The portfolio of the Bank increased from Rs. 56,060 crore in FY 2013 to Rs. 61,271 crore as at end-March 2014.
The Net worth of the Bank increased to ` 7,991 crore during FY 2013-14 from ` 7,046 crore in FY 2012-13 and the Earnings Per Share (EPS) have improved to ` 24.85 as against ` 18.61 in FY 2012-13.
The total gross income of the Bank for FY 2013-14 has shown a growth of 7.5% and reached ` 5,808 crore as compared to `5,401 crore in the previous year.
The net profit after tax also increased by 34 % to ` 1,118 crore as compared to ` 837 crore in the previous year.
Gross and Net NPA stood at 1.86% and 0.45%, respectively as on March 31, 2014.
The AGM approved the payment of dividend of 25% for FY 2013-14.
During the year, refinance disbursements of about `35,000 crore to banks and SFCs have benefitted about 8 lakh micro and small enterprises.
The cumulative disbursements under micro finance amounted to `8122 crore benefitting around 322 lakh disadvantage people, most of them being women.
As on March 31, 2014, more than 6500 MSMEs have adopted energy efficiency / cleaner production measures under SIDBI’s sustainable finance support. This has resulted in saving of 804 Million Kilo Watt Hour (MkWh) of electricity and a reduction of 771 kilo tons (kT) of CO2 annually.
Shri Maini mentioned about the special refinance facility of `5000 crore extended by the Reserve Bank of India effective from November 14, 2013 for a period of one year. The facility aimed at providing liquidity support against the receivables of MSMEs directly and through select intermediaries like banks, Non Banking Finance Companies (NBFCs) and State Financial Corporation’
SIDBI has been consistently addressing the information gaps by ensuring availability of relevant information to MSMEs. In this direction, SIDBI set up a website www.smallB.in in September 2012. The website provides and guides new entrepreneurs on how to set up a business, access finance, government schemes, etc. The website has crossed 3 million page views since its launch and its rating continues to be high at 4.6 on a 5 star rating poll.
As a last mile credit connectivity to MSMEs, SIDBI has started capacity building of RRBs/UCBs / DCCBs to enable them to handle micro enterprise loans. So far, SIDBI has entered into MoU with 37 RRBs/DCBs and the Training of Trainers’ programmes have been conducted benefitting about 350 officials of 40 RRBs/UCBs.
Poorest State Inclusive Growth (PSIG) Programme being implemented by SIDBI with financial support from DFID, UK, is a seven year programme which aims to enhance the income and employment opportunities of poor women and men in the 4 low income states (Bihar, Odisha, Madhya Pradesh and Uttar Pradesh) by enabling them to participate and benefit from wider economic growth.
With a view to step up micro finance, SIDBI has entered into partnership with international agencies such as Kreditanstalt fur Wiederaufbau (KfW), Germany, Asian Development Bank and World Bank. SIDBI has raised funds from these institutions to improve accessibility of the poor particularly women to micro finance products and scaling up credit flow to “missing middle” [loans between `50,000 to `10 lakh] section.
SIDBI has been operating focussed concessional lending schemes for Energy Efficiency out of Lines of Credit from various multilateral agencies, viz. Japan International Cooperation Agency (JICA), Agence Francaise de Developpement (AFD), KfW, etc. The main objective is to enhance energy efficiency, encourage cleaner production investment and reduce CO2 emissions of the Indian MSMEs.
During the year 2013-14, the Bank received the “Vigilance Excellence Award” in the Banking Sector category instituted by Institute of Public Enterprises, Hyderabad. The award came as recognition of the good work done by SIDBI in the field of Vigilance Administration and SIDBI emerged the winner out of a field comprising top Public Sector Banks of the country.