SIDBI’s Record-Breaking Year: Driving Profits, Powering Startups, and Fueling India’s MSME Growth

The Small Industries Development Bank of India (SIDBI) has reported its highest-ever annual net profit of ₹4,811 crore for the financial year 2024–25, marking a 19.5% increase over the ₹4,026 crore recorded in the previous fiscal. The results underline the bank’s growing financial strength and its expanding role in supporting India’s micro, small, and medium enterprises (MSMEs) as well as the startup ecosystem.

The Lucknow-headquartered development bank also crossed a significant milestone as its balance sheet exceeded ₹5.6 lakh crore for the first time. As of March 31, 2025, its asset base stood at ₹5,68,238 crore, reflecting an 8.7% year-on-year growth. Loans and advances rose by 8.8% to reach ₹4,96,282 crore.

SIDBI's Financial Performance

SIDBI’stotal income increased 20.6% year-on-year to ₹38,511 crore, while earnings per share climbed to ₹84.62. Importantly, the institution maintained its strong asset quality, with Gross NPA at 0.04% and Net NPA at nil.

At its Annual General Meeting, the bank declared a 20% dividend for FY25, reinforcing confidence in its financial position and growth outlook.

Focus on MSME Access to Credit

Chairman and Managing Director Manoj Mittal highlighted SIDBI’s ongoing efforts to strengthen credit access for small businesses through technology-driven solutions.

“SIDBI is dedicated to reinforcing and expanding the MSME sector by leveraging technology for financial inclusion. Through innovative loan products like the EXPRESS loan, we are ensuring faster and seamless access to credit,” Mittal said.

The EXPRESS loan product is designed to provide quicker disbursals and simplify financing, addressing a long-standing challenge for small businesses seeking timely working capital.

Expanding Startup and Entrepreneurial Support

SIDBI has been playing an active role in supporting India’s startup ecosystem. Its Fund of Funds initiative has enabled the flow of capital into new ventures by channeling investments through venture funds. This approach has helped nurture early-stage companies and promote entrepreneurship at scale.

In addition, SIDBI has been expanding its branch network through FY25 and FY26 to widen its outreach, particularly to underserved segments in smaller towns and cities where MSMEs and startups often face limited financing options.

Sustainability and Green Financing

In line with India’s climate goals, SIDBI is also promoting green energy adoption and cleaner production methods among MSMEs. By offering financing options tailored to sustainability, the bank is creating opportunities for small businesses to transition to environmentally responsible practices without facing prohibitive cost barriers.

Strengthening the Ecosystem Through Partnerships

SIDBI continues to work closely with the Government of India, fintech companies, non-banking financial companies (NBFCs), and other stakeholders to reinforce the MSME financing ecosystem. This multi-stakeholder approach is aimed at ensuring broader financial inclusion and creating a more resilient support system for small businesses and startups.

Institutional Role and Mandate

Established in 1990 under an Act of Parliament, SIDBI was mandated to promote, finance, and develop the MSME sector. Over the years, it has also acted as a nodal agency for several government-led MSME initiatives while facilitating entrepreneurship and innovation.

The record FY25 performance underscores SIDBI’s ability to combine financial strength with developmental responsibility. As MSMEs and startups continue to play a critical role in India’s economic growth and employment generation, the institution’s role in providing accessible credit and long-term support is likely to expand further.