Union Cabinet clears ₹5,000 crore equity infusion into Small Industries Development Bank of India (SIDBI) to boost MSME credit.

Key facts

• The equity capital will be infused by the Department of Financial Services (DFS) in a phased manner over three years.
• Of the total amount, ₹3,000 crore will be infused in FY26 at a book value of ₹568.65 per share as on March 31, 2025.
• The remaining ₹2,000 crore will be infused in two equal tranches of ₹1,000 crore each in FY27 and FY28 at the book value as on March 31 of the respective preceding financial years.
• The number of MSMEs receiving financial assistance is projected to rise from 76.26 lakh at the end of FY25 to about 1.02 crore by the end of FY28.
• The additional MSMEs supported by SIDBI are estimated to generate employment for about 1.12 crore people by the end of FY28.
• The equity infusion will help SIDBI maintain a Capital to Risk-weighted Assets Ratio (CRAR) above 10.5 per cent even under high-stress scenarios and above 14.5 per cent under Pillar 1 and Pillar 2 norms over the next three years.