+
Cabinet Approves Rs 50 Billion Capital Infusion for SIDBI
ECONOMY & POLICY

Cabinet Approves Rs 50 Billion Capital Infusion for SIDBI

The Union Cabinet has approved an equity infusion of Rs 50 billion into the Small Industries Development Bank of India to expand the availability of credit for micro, small and medium enterprises.

The capital infusion will be carried out by the Department of Financial Services in three tranches. Of the total amount, Rs 30 billion will be infused in FY26 at a book value of Rs 568.65 as on 31 March 2025, while Rs 10 billion each will be infused in FY27 and FY28 at the book value prevailing at the end of the respective previous financial year.

Following the capital infusion, the number of MSMEs receiving financial assistance is expected to increase from 7.63 million at the end of FY25 to 10.2 million by the end of FY28, with around 2.57 million new MSME beneficiaries added during the period, the government said.

Official data shows that, as of 30 September 2025, around 69 million MSMEs registered with the government employ 301.6 million people, translating into an average employment generation of 4.37 persons per enterprise. Based on this average, the addition of new MSME beneficiaries is estimated to generate employment for around 11.2 million people by FY28.

The government said the additional capital infusion is necessary to help SIDBI maintain a strong capital to risk-weighted assets ratio, as its risk-weighted assets are expected to rise with increased lending to MSMEs. A healthy capital adequacy position, well above the mandated level, is considered critical for protecting credit ratings and ensuring sustainable growth.

The infusion of additional share capital is expected to enable SIDBI to raise resources at competitive interest rates, thereby increasing the flow of affordable credit to MSMEs and strengthening the overall financing ecosystem.

The Union Cabinet has approved an equity infusion of Rs 50 billion into the Small Industries Development Bank of India to expand the availability of credit for micro, small and medium enterprises. The capital infusion will be carried out by the Department of Financial Services in three tranches. Of the total amount, Rs 30 billion will be infused in FY26 at a book value of Rs 568.65 as on 31 March 2025, while Rs 10 billion each will be infused in FY27 and FY28 at the book value prevailing at the end of the respective previous financial year. Following the capital infusion, the number of MSMEs receiving financial assistance is expected to increase from 7.63 million at the end of FY25 to 10.2 million by the end of FY28, with around 2.57 million new MSME beneficiaries added during the period, the government said. Official data shows that, as of 30 September 2025, around 69 million MSMEs registered with the government employ 301.6 million people, translating into an average employment generation of 4.37 persons per enterprise. Based on this average, the addition of new MSME beneficiaries is estimated to generate employment for around 11.2 million people by FY28. The government said the additional capital infusion is necessary to help SIDBI maintain a strong capital to risk-weighted assets ratio, as its risk-weighted assets are expected to rise with increased lending to MSMEs. A healthy capital adequacy position, well above the mandated level, is considered critical for protecting credit ratings and ensuring sustainable growth. The infusion of additional share capital is expected to enable SIDBI to raise resources at competitive interest rates, thereby increasing the flow of affordable credit to MSMEs and strengthening the overall financing ecosystem.

Next Story
Resources

KBL Expands Kaniyur Facility in Centenary Year

Kirloskar Brothers (KBL), a leading player in fluid management solutions, has inaugurated a new factory building at its Kaniyur Manufacturing Facility in Tamil Nadu. The expansion coincides with a milestone year marking 100 years since the company manufactured and installed India’s first centrifugal pump in 1926. The newly commissioned facility is aimed at enhancing productivity and operational efficiency, enabling the company to address rising domestic as well as international demand while upholding stringent quality benchmarks. Sustainability remains a central focus of the expansion. Ar..

Next Story
Equipment

Raimondi to Debut TRT 55US at CONEXPO

"Raimondi Group will present the TRT 55US rough terrain crane at CONEXPO 2026, marking the first product debut under its newly established Raimondi North America operations hub.Developed by Terex Rough Terrain, now part of the Raimondi portfolio, the 55-tonne model has been engineered specifically to meet North American operational, regulatory and environmental requirements.Designed for North American ApplicationsThe TRT 55US features a compact transport-friendly design, an additional jib configuration and a redesigned operator environment aimed at improving efficiency and precision. It offers..

Next Story
Infrastructure Transport

CPCL Ranks No.1 in NHAI DPR Ratings

"Chaitanya Projects Consultancy (CPCL) has secured the top position in National Highways Authority of India’s first-ever provisional DPR consultants rating, scoring 80.75 out of 100 and outperforming 55 peer firms.CPCL ranked ahead of Pentacle Consultants (78), L&T Infrastructure Engineering (76), MSV International Technology (74) and Transys Consulting (72). The ranking, released in the fourth week of January 2026, marks NHAI’s first transparent evaluation framework aimed at enhancing DPR quality under Bharatmala and other national highway programmes.The move aligns with the accountab..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App