Business Performance
Institutional Finance accounts for approximately 93% of loans & advances of the Bank. Outstanding under Institutional Finance was at ₹1,87,885 crore at the end of FY 2022. The composition of Institutional Finance is as below:
Composition of Institutional Finance(₹ in crore)
Components of Institutional Finance
REFINANCE TO BANKS (INCL. SFBs) & SFCs
Through the refinance operations, Bank augments PLIs’ resources to increase flow of credit to MSEs. Bank’s Refinance outstanding stood at ₹1,66,832 crore as on March 31, 2022, registering Y-o-Y growth of 26.71%. Bank has 32 commercial banks and 10 SFBs as live customers as of FY 2022.
Cumulative disbursements under corpus allocated by RBI out of Priority Sector Lending shortfalls stood at ₹2,15,678.79 crore as on March 31, 2022, benefiting 33.34 lakh MSE end-borrowers of various banks
ASSISTANCE TO NBFCs
The Bank’s NBFC asset book stood at ₹17,935 crore in respect of 54 NBFCs.
Special Schemes launched in FY 2022
FINANCING UNDER RBI SPECIAL LIQUIDITY FACILITY II
NBFCs with a minimum rating of BBB- and above have been assisted to address the liquidity needs of the MSME sector affected by the COVID-19 pandemic.
FINANCING UNDER RBI SPECIAL LIQUIDITY FACILITY III
To reach out to the smallest of the MSE enterprises, SIDBI launched Double Intermediation-2021 Scheme (FARE-DI-2021) for NBFCs. The scheme envisages double intermediation through SIDBI providing resource support to Regulated Entities (REs) for on-lending to relatively smaller and unrated / low rated NBFCs/ MFIs engaged in financing ultimately targeted Micro and Small enterprises.
CO-LENDING WITH NBFCs
To reach out to the underserved/unserved MSMEs, an MoU with one NBFCs has been signed and the operations are expected to commence in Q1 of FY 2023 in line with GoI/RBI focus on deepening the priority sector lending.
ASSISTANCE TO MFIs
The Bank through various interventions have enhanced the corporate governance and operational efficiency of the MFIs enabling smooth flow of adequate credit to the sector. The Bank had transformed the Microfinance sector of the country to a full-grown industry segment, culminating into several of the MFIs converting into Universal Bank / Small Finance Bank.
The cumulative assistance disbursed under SIDBI’s microfinance initiatives up to March 31, 2022 aggregate to ₹ 23,460 crore benefiting around 4.83 crore poor clients. The outstanding Microfinance portfolio of SIDBI stood at ₹3,118 crore as on March 31, 2022.
Special Schemes launched during FY 2022
“SIDBI MSME COVID RESPONSE FUND (SMCRF)”
With total corpus size of ₹1,000 crore was launched, which aims to provide funding to MSMEs / small businesses / microfinance borrowers through investment in debt instruments of financial institutions (FIs) such as NBFCs, Fintech companies and Microfinance companies.
PARTIAL GUARANTEE POOL LOAN ISSUANCE SCHEME
The Bank provides loan to well managed and performing multiple small and mid-sized NBFCs and MFIs, which is backed by a common partial guarantee provided by a third party / arranger. The scheme has directed end-use aimed at smoothening the liquidity challenges faced due to the COVID-19 pandemic by institutions and businesses catering to the financial needs of millions of underserved in India.
SCHEME OF ASSISTANCE THROUGH REGULATED ENTITIES (REs) USING TWO-TIER FINANCIAL INTERMEDIATION
The scheme envisages double intermediation through SIDBI providing resource support to rated REs (NBFCs, MFIs, banks / SFBs) for on-lending to relatively smaller and unrated / low rated NBFCs / MFIs.
Direct Finance portfolio outstanding increased from ₹ 11,581 crore as of March 2021 to ₹ 14,150 crore as of March 2022, largely on account of higher traction under special schemes launched during the year viz. ARISE, STHAPAN, LIQUID 2.0, ECLGS and AROG/SHWAS.
Direct Finance portfolio outstanding increased from ₹11,581 crore as of March 2021 to ₹14,150 crore as of March 2022, largely on account of higher traction under special schemes launched during the year viz.ARISE,STHAPAN, LIQUID 2.0, ECLGS and AROG / SHWAS.
To reach a wider section of MSMEs, several initiatives/new products were launched with simplification of processes at policy and technology levels, besides expanding the scope of coverage of few existing products.
ARISE & STHAPAN
Under SLF-3, SIDBI had launched two new products under Direct Finance i.e., ARISE & STHAPAN. Till the end of FY 2022, aggregate loans of ₹2,852 crore had been sanctioned to 1,871 MSMEs, out of which, ₹1,853 crore had been disbursed.
TWARIT (EXTENSION) & LIQUID 2.0
During FY 2022, LIQUID 2.0 was launched and TWARIT scheme was extended. Both the schemes were under RBI SLF-II. Till the end of FY 2022, in both schemes, aggregate loans of ₹1,297 crore had been sanctioned to 2,148 MSMEs, out of which, ₹1,247 crore had been disbursed
Strategic Reorientation of Direct Lending business was initiated to maximise impact as detailed below:
Diversifying base
New initiatives / products had resulted in 16% increase in customers base and stood at 9,175 at the end of FY 2022. The widening of customer base had continued for the 3rd consecutive year, which had grown by 47% in past 3 years due to targeted lending to New to SIDBI [NTS] customers as well as through introduction of quick dispensation schemes and MoUs with OEMs & Industry Associations.
Faster delivery
The faster dispensation models had resulted in reducing Average Turn Around Time (TAT) in credit delivery. While the overall TAT was 11 days, the TAT for new & quick delivery products was around 9 days.
Building sustainable & quality portfolio
Reorientation in policy / structure helped the Bank to not only achieve 22% growth in direct credit portfolio at the end of FY 2022 vis-à-vis in FY 2021 but also enabled the Bank to create sustainable & quality portfolio. Net NPA stood at 1.64% of total direct credit portfolio as on March 31, 2022 (outstanding is net of provisions) as against 1.67% as on March 31, 2021.
Business Enablers under Direct Finance
New Initiatives to meet the challenge of COVID-19
Digital Initiatives and Internal Process Improvements under Direct Lending
Tiding the COVID wave - Impact created by SIDBI - Special Liquidity Facility
The Reserve Bank of India extended Special Liquidity Facility to SIDBI of ₹46,000 crore in three tranches to support the funding requirements of Micro, Small and Medium Enterprises (MSMEs)
Under RBI’s SLS-I of ₹15,000 crore,
SIDBI has disbursed ₹13,022 crore.
Under RBI’s SLS-II of ₹15,000 crore,
SIDBI has disbursed ₹1,537 crore.
Under RBI’s SLS-III of ₹16,000 crore,
Financial Performance
