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MSMEs bounce back with normalising repayments: SIDBI MD Sivasubramanian Ramann

Small Industries Development Bank of India (SIDBI), the biggest lender in the vital SME segment, believes the damage to the financial system would be a lot less than expected with revival in the post-Covid economy as data from government guaranteed loans showed no spike in defaults.

SIDBI Chairman & Managing Director Sivasubramanian Ramann tells ET that the lender is leveraging the technology platforms from NSEL portal to GST network to cut its lo.
Are repayments happening on time?

MSMEs have bounced back. Repayments have virtually come back to normal. In the smaller units that employ limited people bad loans are likely to show up. In the micro segment, the total loan exposure is less than Rs 5 crore. We need to provide additional benefits to this particular segment. Larger entities showed tremendous resilience.
Out of Rs 2 lakh crore total book, refinancing is 80 percent, and the rest is direct lending. How much do you aim to increase?
We are aiming for rapid balance sheet growth. We have 80 branches. NBFC refinancing is something that we want to grow. NBFCs have to get the benefit of my market borrowing. We scrutinise NBFC portfolios.