New Delhi, Jan. 21 -- New Delhi: The Union cabinet on Wednesday approved an equity infusion of Rs.5,000 crore into the Small Industries Development Bank of India (SIDBI). The move is aimed at strengthening the lender's capital base and significantly expanding the flow of credit to micro, small and medium enterprises (MSMEs), according to a statement released by the cabinet secretariat.

The department of financial services will provide the capital support in three tranches, with Rs.3,000 crore to be infused in FY26 at the book value as of 31 March 2025, followed by Rs.1,000 crore each in FY27 and FY28 at the prevailing book value at the end of the preceding financial year.

In a related development, the cabinet approved the continuation o...