SIDBI net profit up 3.6% in FY 2021 compared with FY 2020

In the 23rd Annual General Meeting of Small Industries Development Bank of India (SIDBI), an all India Development Financial Institution, engaged in creating an integrated credit and development support ecosystem for Indian Micro, Small and Medium Enterprises (MSME),  the financial results for the year ended March 31, 2021 were declared.

Quote of Shri Sivasubramanian Ramann, Chairman and Managing Director, SIDBI:

“SIDBI has been responsive to the COVID-19 challenges faced by the MSME sector. Besides channelizing the Government of India / Reserve Bank of India (RBI) support to partner lending institutions, SIDBI has launched several schemes like SAFE, SAFEPLUS, AROG, and TWARIT to directly enable MSMEs to revive and thrive. To respond to the emerging needs of the MSME sector, SIDBI continued with its developmental engagements including inter alia powering national missions through digital portals, setting up project management units in 11 states for strengthening the ecosystem, supporting 1700 Women Homepreneurs in 7 states, setting up 100 Swavalamban Connect Kendras to kindle the aspirations of youth / displaced population, as also setting up of Swavalamban Crisis Responsive Fund for MSMEs.  I can assure you that besides growing its topline and bottomline, SIDBI shall rise to the occasion for implementing national priorities and continue to contribute to an inclusive AtmaNirbhar Bharat.”

Financial Year 2021 vs Financial Year 2020

  1.  Operating profit (before provision) recorded a Year-on-Year (YoY) growth of 8.0% in FY21 over FY20 to Rs. 4,063 crore.
  2.  Net profit recorded a growth of 3.6% to Rs. 2,398 crore in FY21, from Rs. 2,315 crore in FY20.
  3.   Net Interest Income (NII) grew by 11.5% to Rs. 3,678 crore in FY21, from Rs. 3,299 crore in FY20.
  4.  Non-interest income marginally decreased to Rs. 944 crore in FY21 from Rs. 1,069 crore in FY20.
  5.   Total advances marginally declined by 5.6% (YoY) to Rs. 1,56,233 crore as of March 31, 2021, from Rs. 165,422 crore as of March 31, 2020.

Asset Quality

  1.   Gross Non-Performing Assets (GNPA) ratio decreased by 45 bps from 0.63% to 0.18%, and Net NPA (NNPA) ratio decreased by 28 bps from 0.40% to 0.12%, as on March 31, 2021.
  2.  Provision Coverage Ratio (PCR) was at 93.24% as on March 31, 2021, an improvement of 14.89% from March 2020 level.

Asset Quality – Table

  Gross NPA (%) Net NPA (%) PCR (%)
FY20 0.63% 0.40% 78.35%
FY21 0.18% 0.12% 93.24%

Gross NPAs decreased from Rs. 1,040.84 crore as of March 31, 2020 to Rs. 282.31 crore as of March 31, 2021, while Net NPA decreased from Rs. 658.64 crore to Rs. 185.25 crore during the same period.

Key Financial Ratios

  • Net interest margin increased by 10 bps to 2.04% as on March 31, 2021 from 1.94% as on March 31, 2020.
  • Cost to income ratio improved by 180 basis points to 12.11% during FY21 from 13.91% during FY20.
  • Capital Adequacy Ratio as on March 31, 2021 stood at 27.49% as against 26.62% as on March 31, 2020.
  • Book Value per Share increased to Rs. 388.54 in FY 2021 as against Rs. 339.13 as on FY 2020.
  • Networth increased to Rs. 20,667 crore as of March 31, 2021, from Rs. 18,039 crore as of March 31, 2020.
  • Earnings Per Share improve to Rs. 45.09 in FY 21 from Rs. 43.51 in FY 20.

Details of Profit and Loss account

  Year ended
(Rs. in crore)
  FY21 FY20
1.Interest income 10,221.36 11,020.94
2.Other income 944.27 1,069.36
3.Total income (1+2) 11,165.63 12,090.30
4.Interest expenses 6,542.88 7,722.06
5.Operating expenses 560.00 607.46
6.Operating profit (before provision) (3-4-5) 4,062.75 3,760.78
7.Total provisions (net) and taxes 1,664.47 1,446.26
8.Net profit (6-7) 2,398.28  2,314.52

Leave a Reply

Your email address will not be published. Required fields are marked *