Equity Infusion of Rs.5000 crore in SIDBI by Government of India

Equity Infusion of Rs.5000 crore in SIDBI by Government of India

Today, the Union Cabinet chaired by the Hon’ble Prime Minister, Shri Narendra Modi has accorded approval for an equity infusion of INR 5,000 crore in three tranches (`3,000 crore in FY2026, `1,000 crore each in FY27 and FY28), aimed at significantly enhancing the flow of affordable and timely credit to India’s vast Micro, Small and Medium Enterprises (MSME) sector.

In the recent years, SIDBI has expanded its operations rapidly and its balance sheet as on September 30, 2025 crossed `5.8 lakh crore. SIDBI has opened 65 branches in the last two FYs and its present branch network is 161 branches covering 195 identified major MSME clusters by MoMSME, GoI.

The equity infusion is expected to significantly scale up SIDBI’s ability to serve MSMEs across the country by further reaching out to all major MSME clusters. The equity support will be leveraged by the Bank to scale its business further through expansion of its branch network, introduction of more innovative digital products for working capital, invoice discounting, specialized products for defence sector, machinery loans, etc., SIDBI shall also scale up its efforts in ecosystem development. Further, theme-based refinance support, co-lending with NBFCs and RRBs, equity support at incubation and Pre-IPO stage as well as anchor investments will also be scaled up.

Shri Manoj Mittal, CMD, SIDBI stated that 

“I would like to sincerely thank the Government of India for reposing its trust in SIDBI. I am confident that SIDBI shall play a significant role in empowering the MSME sector as truly identified as a growth engine of the nation to achieve the goals under Viksit Bharat, 2047”.

The Bank would also enhance formalization process of Informal Micro Enterprises (IMEs) and support ecosystem development through energy efficient and cluster interventions in the form of financing as well as outreach programs with industry associations.