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Sidbi posts 14.6 per cent growth in net profit

MUMBAI: Small and medium firm lenderSidbi recorded 14.6% growth in net profit for the year ended March 13. However, a one time refund of Rs 187 crore from the Income Tax Department, including interest of Rs 45 crore, helped pushed the bottom line by 47.7% for the year. 

Net profits for the year( FY'13) amounted to Rs 837 crore compared to Rs 567 crore in the previous year. Its loan portfolio increased to Rs 56,060 crore in FY'13 from Rs 53,785 crore in the previous year. 

The bank's gross NPA as a percentage of its outstanding loans stood at 0.69%, up from 0.34% in the previous year. While net 
NPAs amounted to 0.98%, up from 0.53% in the previous year. 

"It was a difficult year for the 
MSME sector." Said Mr Sushil Munhot. "We have seen NPAs rise in both direct and indirect finance. "Because large industries were affected, it trickled down to the small scale sector as well " he added. 

Mr Munhot said that the lender was trying to reposition itself to address the financing gaps of this sector. " We are not in competition with banks, but are complementing the banks" he said. 

Among the various initiatives, besides tying up with banks and trying to help and educate the entrepreneurs in the small scale sector, Sidbi has started capacity building of regional rural banks and district co-operative banks in order to reach out to the entrepreneurs in the rural sector and to enable them to handle micro enterprise loans . So far, Sidbi has entered into 19 memorandum of understanding or MOUs with them. 

It is also giving loans for improving energy efficiency and implementing cleaner production technologies, loans to the service sector, receivable financing / factoring, among others.