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Informist, Wednesday, Jan. 21, 2026

--Cabinet approves INR 50 bln equity support to SIDBI 

--Govt: To infuse INR 50 bln equity capital into SIDBI over 3 tranches 
--Govt: To infuse INR 30 bln equity capital into SIDBI in FY26 

--Govt: To infuse INR 10 bln capital into SIDBI in FY27, INR 10 bln in FY28 
 

NEW DELHI – The Union Cabinet Wednesday approved equity support of INR 50 billion to Small Industries Development Bank of India. The government will undertake the capital infusion in three annual straches starting 2025-26 (Apr-Mar).

The Department of Financial Services of the finance ministry will infuse INR 30 billion in the current financial year and INR 10 billion in each of the two successive years of FY27 and FY28. For FY26, the infusion will be based on book value of INR 6.69 billion as on Dec. 31 and those for FY27 and FY28 will be at the book value as on Mar. 31 of the respective previous financial year, the government said in a press release. 

After the equity capital infusion, the government expects that SIDBI will be able to add 2.6 million more micro, small, and medium enterprises as beneficiaries for financial assistance by the end of FY28. SIDBI had extended financial assistance to a total of 7.6 million MSMEs in FY25.  End

Reported by Krity Ambey

Edited by Avishek Dutta

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